The Wests Tigers on Tuesday night descended into a state of civil war with the Balmain side of the joint venture accusing the Magpies of "betrayal of trust and an indication of disrespect".
Balmain chairman Leslie Glen issued a blistering response to revelations in Fairfax Media that powerful stakeholder Wests Ashfield wants control of the Wests Tigers board in exchange for saving the club from insolvency.
As reported, the joint venture requires an urgent cash injection of $1 million to save it from financial collapse – a fact the NRL mysteriously wanted to ignore.
Balmain directors met on Tuesday night to discuss how to respond to Wests' proposal, under which the Magpies would gain an additional director on the board and the chairmanship for three years. But the appearance of the story in Fairfax Media – as well as comments from Wests chairman Mike Bailey – has outraged Balmain, and the joint venture's future is shrouded in uncertainty.
"Wests made an offer to Balmain Tigers recently, as outlined in the Herald article, which was confidential and which was to be considered by the Balmain Tigers board this evening [Tuesday]," Glen said. "The leaking of that offer and the comments by Mike Bailey is seen by me, at least, as a betrayal of trust and an indication of disrespect from our partners at Wests Ashfield.
"Balmain Tigers has a history of loyalty and honour in its dealings with all those with whom it has ties. We supported the formation of the ARL Commission and respect its authority and its charter to develop rugby league and foster the links between sport and the community. We recognise that corporate governance is a fact of life in our present-day economy."
While Wests wants control of the Tigers, Balmain wants to see more independent directors installed – something outlined in a report commissioned by the NRL earlier this year. It is understood the ARL Commission would only consider handing over additional funding to save the Tigers if they agreed to change their structure to a more independent model to stop the incessant infighting.
"We are pleased to co-operate with [NRL chief executive] Dave Smith, who has provided financial assistance to the NRL clubs that have made the game so popular," Glen said. "We need further financial support in order to continue this work now, it is true, but we believe we must strive to become independent as quickly as possible in order to become resilient and worthy of our heritage. Staying moribund, as Wests appear to desire, is not part of our ambition. Independent members of our Wests Tigers board who can offer us innovation and ideas are welcomed, not shunned. Balmain doesn't want to keep the same old people to continue warming seats on the Wests Tigers' Board (including myself). The Balmain Tigers' board welcomes change which will lead to a stronger Wests Tigers in the future."
Smith refused to elaborate on whether the NRL would financially assist the Tigers.
"I've met with the Wests Tigers board . . . but I am not going to go into the details of those discussions," he said. "We are working with all our clubs to make sure they are meeting those aims and that there is a five-year planning horizon. The financial accountability that is being built across the game will play an important role in that going forward."
The Wests Tigers board is due to meet on Thursday week, when the coaching structure for next season will be determined.
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Read more: http://www.smh.com.au/rugby-league/league-news/claws-are-out-infighting-has-joint-venture-on-the-brink-20130820-2s9bf.html#ixzz2cY9A6sq1
