Benjirific
New member
Balmain set to retain stake in Wests Tigers as deadline extended
March 29, 2016 - 8:35PM
Brad Walter
Sports Reporter
Wests Magpies are set to honour a pact made with Balmain when they merged in 2000 by agreeing to a deal that would enable their fellow foundation club to maintain a stake in Wests Tigers.
With the deadline for cash-strapped Balmain to repay a $5.4 million loan to the NRL due to expire on Thursday, there have been doubts over the future of one of the game's oldest and most famous clubs but Fairfax Media has been told Wests will not allow them to die and is prepared to offer the Leichhardt-based Tigers a 25 per cent stake in the joint venture.
Negotiations between the two clubs are continuing and are set to go past the March 31 deadline but it is understood they are close to reaching an agreement that would result in half of Balmain's debt being retired and the 116-year-old club having a further 10 years to repay the rest.
In return, the Wests Group - headed by the powerful Wests Ashfield Leagues Club - would take control of the Wests Tigers board by appointing five of the nine directors.
Advertisement
Balmain would have two seats on the board and there would also be two independent directors.
Under the terms of the NRL licence agreement for Wests Tigers, the Magpies have the option of buying Balmain's 50 per cent stake in the joint venture if the Tigers can't meet Thursday's deadline.
However, it is believed Balmain will not only retain a 25 per cent stake but also have an opportunity to buy back the other 25 per cent if they get back on their feet.
Such a move would be in the spirit of the original joint venture agreement between the two clubs after they rebelled against attempts to merge Balmain with Parramatta to form the Parramatta Tigers and Wests with Canterbury to become the Western Bulldogs.
Despite being separated geographically, Balmain and Wests assured their survival when the NRL reduced the number of teams to 14 in 2000 by taking advantage of an $8 million merger incentive and becoming the Wests Tigers.
In doing so, the boards of both clubs decided that if one got into difficulty the other would help them out and Wests have been honouring that commitment since the closure of Balmain Leagues Club at Rozelle six years ago left the Tigers unable to play their way.
It is understood the NRL is so convinced that the two clubs will reach agreement on a new deal that they have extended the deadline for the $5.4 million debt to be paid.
Wests Ashfield chief executive Simon Cook confirmed that March 31 was not being treated as a red-letter day for the future of the joint venture.
Cook told Fairfax Media negotiations would continue between the Wests Tigers' three stakeholders - Balmain, Wests and the NRL - well beyond Thursday.
"I wouldn't be too hung up on the date," he said. "The talks are progressing and there won't be anything finalised on March 31st."
Cook said despite rumours that old Magpies diehards had a petition demanding for the club to rename itself the Western Suburbs Magpies he was yet to see it.
Regardless of the ownership structure, Cook made it clear that the NRL club's name would remain Wests Tigers and he said there would be continued and considered discussion about the future of the Wests-Balmain alliance.
"We never have - and never will be - a guillotine organisation that just chops something off without giving a matter due consideration and exploring all options," Cook said.
Balmain finance committee chairman James Myatt said the discussions had been constructive and would continue.
"There are ongoing discussions and all parties are engaged," Myatt said."It would be premature to put a position forward on what shape they may take. We're in the negotiation phase and I don't want to prejudice anything that's been discussed."
March 29, 2016 - 8:35PM
Brad Walter
Sports Reporter
Wests Magpies are set to honour a pact made with Balmain when they merged in 2000 by agreeing to a deal that would enable their fellow foundation club to maintain a stake in Wests Tigers.
With the deadline for cash-strapped Balmain to repay a $5.4 million loan to the NRL due to expire on Thursday, there have been doubts over the future of one of the game's oldest and most famous clubs but Fairfax Media has been told Wests will not allow them to die and is prepared to offer the Leichhardt-based Tigers a 25 per cent stake in the joint venture.
Negotiations between the two clubs are continuing and are set to go past the March 31 deadline but it is understood they are close to reaching an agreement that would result in half of Balmain's debt being retired and the 116-year-old club having a further 10 years to repay the rest.
In return, the Wests Group - headed by the powerful Wests Ashfield Leagues Club - would take control of the Wests Tigers board by appointing five of the nine directors.
Advertisement
Balmain would have two seats on the board and there would also be two independent directors.
Under the terms of the NRL licence agreement for Wests Tigers, the Magpies have the option of buying Balmain's 50 per cent stake in the joint venture if the Tigers can't meet Thursday's deadline.
However, it is believed Balmain will not only retain a 25 per cent stake but also have an opportunity to buy back the other 25 per cent if they get back on their feet.
Such a move would be in the spirit of the original joint venture agreement between the two clubs after they rebelled against attempts to merge Balmain with Parramatta to form the Parramatta Tigers and Wests with Canterbury to become the Western Bulldogs.
Despite being separated geographically, Balmain and Wests assured their survival when the NRL reduced the number of teams to 14 in 2000 by taking advantage of an $8 million merger incentive and becoming the Wests Tigers.
In doing so, the boards of both clubs decided that if one got into difficulty the other would help them out and Wests have been honouring that commitment since the closure of Balmain Leagues Club at Rozelle six years ago left the Tigers unable to play their way.
It is understood the NRL is so convinced that the two clubs will reach agreement on a new deal that they have extended the deadline for the $5.4 million debt to be paid.
Wests Ashfield chief executive Simon Cook confirmed that March 31 was not being treated as a red-letter day for the future of the joint venture.
Cook told Fairfax Media negotiations would continue between the Wests Tigers' three stakeholders - Balmain, Wests and the NRL - well beyond Thursday.
"I wouldn't be too hung up on the date," he said. "The talks are progressing and there won't be anything finalised on March 31st."
Cook said despite rumours that old Magpies diehards had a petition demanding for the club to rename itself the Western Suburbs Magpies he was yet to see it.
Regardless of the ownership structure, Cook made it clear that the NRL club's name would remain Wests Tigers and he said there would be continued and considered discussion about the future of the Wests-Balmain alliance.
"We never have - and never will be - a guillotine organisation that just chops something off without giving a matter due consideration and exploring all options," Cook said.
Balmain finance committee chairman James Myatt said the discussions had been constructive and would continue.
"There are ongoing discussions and all parties are engaged," Myatt said."It would be premature to put a position forward on what shape they may take. We're in the negotiation phase and I don't want to prejudice anything that's been discussed."
