The deal was a bit complicated but the Knight's Board will have some explaining to do to the community.
From SMH:
After giving in-principle endorsement on January 19 to Tinkler's offer, Knights chairman Tew said three components of the deal had since been altered.
Tew said ''the first and overriding issue'' was that the offer, as it stood, ''represents a significant departure from the $100 million proposal guaranteed to be paid over 10 years that was announced by The Tinkler Group last month''.
He said: ''The present offer does not commit to a 10-year period. The offer of guarantee at present is for a period of two years, and does not commence until March 31, 2012.''
He said TSG wanted to calculate all revenue, including ticketing and membership, in its definition of ''sponsorship income''.
''On that basis, the total is already as high as $10 million, and therefore the contribution by the Tinkler Group would be zero,'' Tew said.
He said there was no guarantee if TSG sold the Knights within 10 years that the new buyer would commit to the same level of funding.
The Knights insist the members should be given a ''stated buy-back sum at the outset of the agreement'' or be empowered to ''enforce the obligations of the guarantee and other conditions upon an incoming purchaser for the remainder of the 10 years''.
Tew also alleged that TSG had ''removed the commitment to junior development from the documentation'', and the club would require ''an iron-clad commitment guaranteeing a minimum expenditure''.
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Still, that type of offer should have been worked through quickly and resolved. As it is the Knights - it is all GOOD!!!
