**Deal allows News to sell Storm as going concern**
BRAD WALTER
December 16, 2009
NEWS Ltd is set to retain ownership of the Storm until after the club ends making losses in 2013 as part of a deal for the media group and the ARL to hand control of the game to an independent commission.
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With the premiers losing up to $6 million per year, rival clubs were concerned they would effectively have to prop up Melbourne if News were forced to sell the Storm at the same time it handed over its 50 per cent stake in the NRL.
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To do so, it had initially been proposed that News be paid an exit fee of up to $30 million that would then be used to cover the losses incurred by the new owner for the next six years.
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That figure is understood to have since been negotiated down to $20m but some officials at clubs and within the ARL believe that is still too much and there are fears the issue could develop into a deal breaker.
>
But the Herald has been told that the Storm's losses after the club moves into its new 31,000-seat stadium next season are expected to be halved to about $3m in 2010\. With cost savings and an increased grant from the next television deal the club could finally be at break even point by 2013.
>
As a result, the exit fee paid to News could be significantly reduced and the Storm would become a more attractive proposition for potential buyers. Until then, however, it is considered logical to relax the ruling preventing two clubs having the same owner so that News can maintain its shareholding in both the Storm and Broncos.
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Storm founder and QRL director John Ribot, who earlier this month told Fairfax he would not be part of a consortium established to buy the club from News, said it was essential the code had a team in Melbourne.
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''I think people are starting to realise that they are one of the most valuable teams in the competition but, because they have been in the last four grand finals and won two premierships, there is probably a bit of jealously there from some people,'' he said.
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''They are incredibly valuable because they bring an asset to the table that a lot of other clubs can't do. The most valuable team is New Zealand because of the television revenue they bring in and the Storm is the next most valuable team.
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''The Storm give our game a presence in a market as big as Victoria and that is incredibly important when it comes to negotiating television deals so clubs like Cronulla and the Roosters make money out of having Melbourne in the competition as they do with New Zealand.''
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Melbourne chief executive Brian Waldron said the club's ownership was not an issue that concerned him.
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''I think that people genuinely understand the benefits of having a team in Melbourne and the Storm's place in the competition is no longer questioned,'' Waldron said.
>
''Who owns us is not really an issue at this stage. We are just focused on moving into the new stadium and from a financial point of view I think that will help us.''
>
Cronulla's decision to fine Test lock Paul Gallen $5000 and impose an additional $5000 suspended penalty for urinating in public last weekend will be reviewed by the NRL's newly appointed private investigator before a decision is made on whether further action should be taken.
>
The investigator's findings and the club's report will be submitted to a panel of NRL chief operating officer Graham Annesley and former players Michael Buettner and Mark O'Neill, who will decide if the Sharks' punishment of Gallen is sufficient.
That is why Melbourne suck…...they can lose $6mill a year......yet still sign the Inglis, Cronks, Smith's and Slaters.....
Other Clubs have to find that $$$$$$ to survive.........Melborne Storm get it on a platter.....Now they want other Clubs to cover potential future losses....pfft....Ribot's counter is rubbish....Repace the Storm with the Central Coast's own team and the television games remain the same.....
BRAD WALTER
December 16, 2009
NEWS Ltd is set to retain ownership of the Storm until after the club ends making losses in 2013 as part of a deal for the media group and the ARL to hand control of the game to an independent commission.
>
With the premiers losing up to $6 million per year, rival clubs were concerned they would effectively have to prop up Melbourne if News were forced to sell the Storm at the same time it handed over its 50 per cent stake in the NRL.
>
To do so, it had initially been proposed that News be paid an exit fee of up to $30 million that would then be used to cover the losses incurred by the new owner for the next six years.
>
That figure is understood to have since been negotiated down to $20m but some officials at clubs and within the ARL believe that is still too much and there are fears the issue could develop into a deal breaker.
>
But the Herald has been told that the Storm's losses after the club moves into its new 31,000-seat stadium next season are expected to be halved to about $3m in 2010\. With cost savings and an increased grant from the next television deal the club could finally be at break even point by 2013.
>
As a result, the exit fee paid to News could be significantly reduced and the Storm would become a more attractive proposition for potential buyers. Until then, however, it is considered logical to relax the ruling preventing two clubs having the same owner so that News can maintain its shareholding in both the Storm and Broncos.
>
Storm founder and QRL director John Ribot, who earlier this month told Fairfax he would not be part of a consortium established to buy the club from News, said it was essential the code had a team in Melbourne.
>
''I think people are starting to realise that they are one of the most valuable teams in the competition but, because they have been in the last four grand finals and won two premierships, there is probably a bit of jealously there from some people,'' he said.
>
''They are incredibly valuable because they bring an asset to the table that a lot of other clubs can't do. The most valuable team is New Zealand because of the television revenue they bring in and the Storm is the next most valuable team.
>
''The Storm give our game a presence in a market as big as Victoria and that is incredibly important when it comes to negotiating television deals so clubs like Cronulla and the Roosters make money out of having Melbourne in the competition as they do with New Zealand.''
>
Melbourne chief executive Brian Waldron said the club's ownership was not an issue that concerned him.
>
''I think that people genuinely understand the benefits of having a team in Melbourne and the Storm's place in the competition is no longer questioned,'' Waldron said.
>
''Who owns us is not really an issue at this stage. We are just focused on moving into the new stadium and from a financial point of view I think that will help us.''
>
Cronulla's decision to fine Test lock Paul Gallen $5000 and impose an additional $5000 suspended penalty for urinating in public last weekend will be reviewed by the NRL's newly appointed private investigator before a decision is made on whether further action should be taken.
>
The investigator's findings and the club's report will be submitted to a panel of NRL chief operating officer Graham Annesley and former players Michael Buettner and Mark O'Neill, who will decide if the Sharks' punishment of Gallen is sufficient.
That is why Melbourne suck…...they can lose $6mill a year......yet still sign the Inglis, Cronks, Smith's and Slaters.....
Other Clubs have to find that $$$$$$ to survive.........Melborne Storm get it on a platter.....Now they want other Clubs to cover potential future losses....pfft....Ribot's counter is rubbish....Repace the Storm with the Central Coast's own team and the television games remain the same.....
