As usual you all seem to think it is appropriate to shoot byso down, when it appears he is completely right in what he has suggested.
Penn purchased the balance of shares, after Board approval in January 2006, for an undisclosed amount. Based on what has been in the press it is obvious that he bought the same amount as Max for about half the amount of money that Max had put in. An injection was needed and it looks to me that all the parties accepted a smaller amount to obtain those funds.
Here is what happened in 2004:
Manly Football Club To Be Taken Over By Delmege In $3.5 Million Deal
District club members will vote on a new privatisation deal that gives major sponsor Max Delmege a controlling stake in the Sea Eagles.
Under the proposal, which has been approved by the Manly board, Delmege will purchase 62.5 per cent of the club for $3.5 million.
In return, he will receive 3.5 million shares in a new company called Manly Warringah Sea Eagles Limited, with the existing football club taking another two million shares and Penn Sports buying 100,000 shares at $1 each.
Included in the agreement, which will be put to members at an extraordinary general meeting on June 3, is that:
* the club remains known as Manly Warringah Sea Eagles;
* the colours be maroon and white; and
* all home games be played at Brookvale Oval.
Members were told in an information package mailed out this week that it was envisaged that majority control would eventually return to the football club through the issue of preference shares.
During time, Delmege intends to sell down his shareholding to 15 per cent, with the football club aiming to raise $1 million per year through membership.
The Sea Eagles hope to increase the number of football club members from about 500 to more than 5000 during the next five years.
(by the way have a very good laugh at the football clubs claim that they intended to raise membership numbers as history shows they have moved to make it an insignificantly small closed shop)
Here is the only announcement I could find on Penn taking up the shares:
http://www.manlyseaeagles.com.au/news.asp?newsid=168
This is also on the Pennsport website.
From MWSE and listed by CW:
31 October 2005
Max Delmege (through his nominated company) completes his acquisition of shares in the Manly-Warringah Sea Eagles Limited in accordance with the privatisation deal, raising his total shareholding to 3,500,000 ordinary shares.
25 January 2006
Penn Sport Pty Ltd acquires 3,825,000 ordinary shares in the Manly-Warringah Sea Eagles Limited, taking its total shareholding to 3,925,000 ordinary shares.
Max Delmege (through his nominated company) acquires 425,000 ordinary shares in the Manly-Warringah Sea Eagles Limited, taking his total shareholding to 3,925,000 ordinary shares.
Instead of making claims of idiocy why don't you come up with the actual figure that the Penns put in for their equal shareholding? I would love to be proved wrong by anybody!