Wests Tigers lurch from bad to worse in cash crisis

AmericanHistoryX

AmericanHistoryX

Well-known member
Glen Jackson SMH
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The crisis engulfing Wests Tigers has taken another turn with their major sponsor, the billionaire property developer Harry Triguboff, telling the club to look for another major backer.

The comments by the founder and managing director of Meriton come as details emerge of an $8 million rescue package put forward during a meeting between NRL chief executive Dave Smith and key officials from Western Suburbs and Balmain. That potential package was due to be discussed during a critical meeting of the Wests Tigers board on Thursday night.

Fairfax Media understands Smith has offered four repayable instalments of $2 million in exchange for a restructure of the club board. Smith is believed to be pushing the club to install a seven-member board, which would include two Balmain directors, two Wests directors and three NRL-appointed directors. The delegation - Wests Tigers and Wests Ashfield chairman Mike Bailey, Wests Tigers deputy chairman and Balmain director Nick Di Girolamo, Wests Ashfield chief executive Simon Cook and Balmain chairman Leslie Glen - met with Smith on Wednesday night.

The move comes after Fairfax Media last week revealed the Tigers needed an injection of $1 million to survive - funds the rich Wests Ashfield were not prepared to provide unless given full control of the joint venture's board.

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Triguboff's remarks, on ABC's The Business on Wednesday night, highlight how much the club's boardroom problems could be affecting the joint venture.

Asked if he was happy with the way the club was progressing, Triguboff said: ''No, I'm not happy at all. I've been with them for many years, and I believe that probably it's better that somebody else becomes the major sponsor. I think that they need somebody that really will devote more time to it than I can.''

Triguboff, the merger's inaugural major sponsor, lamented the power struggles at the club, as well as the fact he was not asked for help while Balmain attempted to re-develop their Rozelle leagues club - which has left the Tigers side of the merger struggling financially. ''I think I could have been of help to them when they were trying to develop their site in Balmain, but they never came to me,'' he said.

''It's not that I wanted to buy it, but I thought I could be of help, because I think I could talk on their behalf to the council much better than what they could do. They didn't use that help of mine. But that's only part of the problem. The other problem is that the Tigers from Balmain have done badly, and the Tigers from the Western Suburbs have done very well. The balance of power has changed now towards the ones in the west.''

He maintained he would not pull his financial investment out of the club unless the Tigers found a replacement.

''They'll definitely sort it out,'' he said. ''We have young kids coming up which are very good, we have new management, so I hope everything will be OK. But I think that … I'll always be there.

''If they can't find anyone, I'm always there. But if they can find somebody who really understands football better than I do … I don't understand much … I like it, I love it, I look at it. So if they can, they can. If not, I'm always there for them anyway.''

Triguboff's frank assessment came less than 24 hours before the club's board meeting. Alongside financial decisions, directors were due to discuss a review of the coaching structure at the club.

What has become clear recently is that coach Mick Potter will almost certainly lead the club into the second year of his contract, despite board agitations to sack him earlier this month.

The board is understood to be focusing on the coaching staff around Potter, including the prospect of hiring current Melbourne assistant coach David Kidwell, who is moving back to Sydney.

''I just want to get on with winning footy games - it's a distraction I could do without,'' Potter said, ahead of his side's clash with South Sydney on Friday night.
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Read more: http://www.smh.com.au/rugby-league/league-news/wests-tigers-lurch-from-bad-to-worse-in-cash-crisis-20130829-2stnn.html#ixzz2dOsbDWJ6
 
If this media report is true, then I fear for the future of our team.

Who is going to repay the 4 x $2m instalments? The WT don't have the cash, nor does Balmain.

If Wests Ashfield have the ability to service the debt, why would the agree to if they only allocated two board members on a seven person board?
 
Maybe balmain think were going to pay the debt while they get 3 " independent" directors.

Again I ask what would happen if Wests had no money. I reckon if that were true we would get 0 directors out of 7.
 
@sheer64 said:
Perth Wests Tigers

Central Coast Wests Tigers

Ipswich Wests Tigers
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Ipswich are lucky to attract 500 to a game in the Intrust Super Cup… Now the Mighty Tigers at Langlands Park are a different story and are very strong financially.
 
@fibrodreaming said:
If this media report is true, then I fear for the future of our team.

Who is going to repay the 4 x $2m instalments? The WT don't have the cash, nor does Balmain.

If Wests Ashfield have the ability to service the debt, why would the agree to if they only allocated two board members on a seven person board?
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Pretty much the crux of the issue right there…

Anyone who thinks Wests Group wouldnt walk into this with their ass covered (if they would at all) on paper that they would only be liable for half the debt is crazy... How long would it take for the 3 Independant NRL Board members to call Balmain on any defaults and possibly force them into solvency?

Anyway, this minute its a split board, with a Wests chair, so it is unlikely that Wests Group would throw themselves in front of the bus if they dont think the NRL loan has legs.... They have all the hand.

Think about it this way... Balmain wouldnt accept Wests Groups loan of $500k - $1M, with surety of a board seat until payed off... If Balmain were anyway confident that they could pay it back, then I dont see the issue, I dont think any bank would isue them the loan. Why then do many on here think that an even larger debt (to the WT admittedly not Balmain personally) is a better financial move, seeing as if the WT cannot make financial obligations regarding repayments then Wests Group and Balmain will need to stump the cash... Back to square one.
 
@Magpie Magic said:
Maybe balmain think were going to pay the debt while they get 3 " independent" directors.

Again I ask what would happen if Wests had no money. I reckon if that were true we would get 0 directors out of 7.
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On what basis? When has Balmain ever in the 13 odd years ever suggested the board would be anything other than evenly split between Balmain and Wests directors?
 
If Wests Ashfield want to stump $8 million I am all for it.

If it is the band aid of $1 million then no thanks I will take the NRL option
 
@smeghead said:
If Wests Ashfield want to stump $8 million I am all for it.

If it is the band aid of $1 million then no thanks I will take the NRL option
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yeah…. because the NRL loan would have the duration of a home loan, lol... It will be say a 10yr repayment, so for a decade we will be financially behind the base starting point of every single club in the NRL... $8M is a band-aid. It wont make us a profitable business in our own right, it will put us in debt, more debt.
 
As I have said I think people believing a million is enough drastically undersell how far behind we are right now.

The factional BS at board level with no neutral force has white anted the success of Wests Tigers from day one and that has to stop
 
The perfect storm is building up for the NRL.
Us and Cronulla owing them millions of dollars, too (2?) many teams in Sydney and expansion on the table. Everything can be tidied up quite nicely.
 
Well, lets get one thing straight .I want Balmain to survive and thrive independently and with their share of 50% of the WT.
A strong Balmain means a stronger WT.

But its strange that Balmain would want the NRL option if they thought they could contribute financially soon because it means a dilution of their shareholding from 40% which it would be for 3 yrs under the Wests idea to around 30% forever. 😕
Considering this they seem very comfortable with the NRL option ,perhaps they think that the "independent" directors will favor them a little so they still get the identity they want without paying.

With regards the board , poeple are bagging them but what could they have done different. Perhaps the sacking of Sheens but then many here and many players didn't want him. Marshal was offered 2m for 3 yrs and decided to go so what more could have been done.It seems the rumblings about the board may be coming from elsewhere so control of the club can be taken away from Wests and Balmain so we then can be pushed around all over Australia. :bulb: Their is an insulation from some corners of the media that the Wests side are not professional but what about Balmain, why are the virtually insolvent?
 
An independent board would not mean a dilution of shareholding from either side.

And our board is a mess, there is a lot more they could have done over the years. Practically every person involved with the club including our captain has acknowledged that.
 
@Magpie Magic said:
Well, lets get one thing straight .I want Balmain to survive and thrive independently and with their share of 50% of the WT.
A strong Balmain means a stronger WT.

But its strange that Balmain would want the NRL option if they thought they could contribute financially soon because it means a dilution of their shareholding from 40% which it would be for 3 yrs under the Wests idea to around 30% forever. 😕
Considering this they seem very comfortable with the NRL option ,perhaps they think that the "independent" directors will favor them a little so they still get the identity they want without paying.

With regards the board , poeple are bagging them but what could they have done different. Perhaps the sacking of Sheens but then many here and many players didn't want him. Marshal was offered 2m for 3 yrs and decided to go so what more could have been done.It seems the rumblings about the board may be coming from elsewhere so control of the club can be taken away from Wests and Balmain so we then can be pushed around all over Australia. :bulb: Their is an insulation from some corners of the media that the Wests side are not professional but what about Balmain, why are the virtually insolvent?
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The board has failed in uniting the fanbase and establishing one club.
It failed to field one reserve grade team for way too long. Even now the WestsTigers state cup team doesnt wear Wests Tigers playing strip.
It failed on the home ground issue. An even split of home games has to be abandoned and the home games should be decided by merit.
It failed in our playing strip. Every year we still wear old magpie and old balmain jerseys. The heritage jersey should be our original jersey or our g/f jersey. Previous team jerseys need to worn very rarely. Events like last week., evry few years tops.
If, say ten years ago, we had an NRL, State Cup and Under 20's team all wearing Wests Tigers jerseys , playing out of the one stadium then we would have a more united fanbase. Old allegencies would be less of an issue.

Thats one area where the board has gone wrong IMO.
 
The eagerness to go back to a 4 - 4 - 4 split made by Humpty and the board was also a poor one.

As a fan I loved it but realistically it wasn't the best decision to make in terms of sustainability
 
@LaT said:
An independent board would not mean a dilution of shareholding from either side.

And our board is a mess, there is a lot more they could have done over the years. Practically every person involved with the club including our captain has acknowledged that.
Click to expand...

Its a permanent dilution of control.
 
@gallagher said:
@Magpie Magic said:
Well, lets get one thing straight .I want Balmain to survive and thrive independently and with their share of 50% of the WT.
A strong Balmain means a stronger WT.

Butcant say I like any of you ideas its strange that Balmain would want the NRL option if they thought they could contribute financially soon because it means a dilution of their shareholding from 40% which it would be for 3 yrs under the Wests idea to around 30% forever. 😕
Considering this they seem very comfortable with the NRL option ,perhaps they think that the "independent" directors will favor them a little so they still get the identity they want without paying.

With regards the board , poeple are bagging them but what could they have done different. Perhaps the sacking of Sheens but then many here and many players didn't want him. Marshal was offered 2m for 3 yrs and decided to go so what more could have been done.It seems the rumblings about the board may be coming from elsewhere so control of the club can be taken away from Wests and Balmain so we then can be pushed around all over Australia. :bulb: Their is an insulation from some corners of the media that the Wests side are not professional but what about Balmain, why are the virtually insolvent?

The board has failed in uniting the fanbase and establishing one club.
It failed to field one reserve grade team for way too long. Even now the WestsTigers state cup team doesnt wear Wests Tigers playing strip.
It failed on the home ground issue. An even split of home games has to be abandoned and the home games should be decided by merit.
It failed in our playing strip. Every year we still wear old magpie and old balmain jerseys. The heritage jersey should be our original jersey or our g/f jersey. Previous team jerseys need to worn very rarely. Events like last week., evry few years tops.
If, say ten years ago, we had an NRL, State Cup and Under 20's team all wearing Wests Tigers jerseys , playing out of the one stadium then we would have a more united fanbase. Old allegencies would be less of an issue.

Thats one area where the board has gone wrong IMO.
Click to expand...
Click to expand...
 
@Magpie Magic said:
@LaT said:
An independent board would not mean a dilution of shareholding from either side.

And our board is a mess, there is a lot more they could have done over the years. Practically every person involved with the club including our captain has acknowledged that.

Its a permanent dilution of control.
Click to expand...
Click to expand...

Which isn't a dilution of shareholding as you claimed.

And we would still hold the majority, as long as they act in unison.
 
the fact that one fo the msot successful and popular clubs of recent years is in such a poor financial position speaks volumes about those in charge.

we need an independent board as suggested, or else we'll have little chance of futuer success.

we don't know what the terms of the nrl loan would be, but it really is the best option the WT have. do we need 8 million? is this to build a training centre? can't we get facilities paid for by the state/fed gov like so many other clubs? we do represent a highly valuable political area…
 
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