Wests Tigers Restructure [MERGED]

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WESTS Tigers' years of crippiling boardroom battles and financial woe appear to be over for good.

In the most significant development of the joint venture's 14-year existence, warring shareholders Wests and Balmain have agreed to hand over the controlling vote to a newly-installed bloc of NRL-nominated directors.

Representatives from the two halves of the joint venture club signed off on the historic accord with NRL peace brokers at a landmark board meeting on Thursday night.

The deal that will rescue the cash-strapped club from oblivion is expected to be announced today.

In exchange for a complete overhaul of the current board, Wests Tigers will receive some $4 million from the NRL to fund their current deficit and any further losses that are incurred this year.

The 10-person board has been abolished in favour of a model that boasts seven directors, three appointed from an NRL-compiled list of independent candidates.
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The remaining four are split between Balmain and Wests, although the Balmain pair won't enjoy voting rights until their side's significant financial commitments are fulfilled.

Wests Ashfield CEO Simon Cook and director Tony Andreacchio are likely to be the Magpies nominees, while ­Tigers deputy chairman Nick Di Girolamo and Danny ­Stapleton are tipped to represent Balmain.

A sub-committee will appoint the three independents in the next week. One is expected to be a woman.

With only five votes on the new board, the independents hold the balance of power in deciding who will be appointed coach and CEO of the club, as well as the venue allocation for home games.

After posting a loss of more than $2 million in 2012, Tigers officials first approached the NRL for assistance last July.

The prospects of recovery were extremely grim, given Balmain was unable to provide funding without Leagues Club support and Wests Ashfield was only willing to lend enough money to pay wages and suppliers without the guarantee of further control.

Keen to lift the standard of corporate governance across the game, NRL boss Dave Smith was heavily involved and engaged business analyst Tony Crawford.

"This is one of the most club-driven changes for a long time," Smith said.

"It's set a standard for the future of corporate governance and the two clubs have shown great courage to get to this point."
 
Wests Tigers take first steps to climbing back from brink of extinction
Josh Massoud The Daily Telegraph January 30, 2014 11:30PM

UNPAID rent, food suppliers, security firms and star players complaining about their marquee bonuses being lost in the mail.

There was even a morning when the coaching staff was told there would be no new footballs for training until the previous ones were paid for.

Welcome to life at Wests Tigers over the past 18 months.

Ominous clouds have been rapidly gathering since the joint venture posted a staggering and unexpected loss in excess of $2 million at the end of 2012.

Fresh from back-to-back finals appearances, the Tigers started that season as premiership favourites and budgeted accordingly. Instead they finished out of the top eight and deep in the red, as sponsorship, attendance and merchandise numbers fell alarmingly short of expectation.

The seven-figure shortfall was comfortably the biggest in the joint venture's 14-year existence, most of which had been eeked out with an impressive degree of financial prudence within the rusted confines of Concord Oval.
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But suddenly decisions went haywire. Coach Tim Sheens was sacked with two years remaining on his contract, and continued to receive a full salary for nine months after his dismissal. Top players like Andrew Fifita, Bryce Gibbs and Chris Heighington were given early releases, with the Tigers paying part of their wages at Cronulla just to comply with the salary cap.

They were excesses and miscalculations that simply that simply could not be afforded. Worse still, they quickly pushed the Tigers to the brink of extinction because the Balmain half was unable to meet its financial obligations.

Under the original JV constitution, signed in 1999, shareholders Wests Group and Balmain were required to provide equal funding each season to balance the NRL club's books.

With their Rozelle Leagues Club reduced to rubble and red tape, Balmain could offer little or no aid, which virtually reduced the financial obligation on Wests to zero.

Balmain's suffrage put Wests in a position of power, because four of the five Magpies-aligned directors were appointed from the successful Leagues Club in Ashfield and had access to riches that could keep the Tigers afloat.

Magpies diehards wanted the club to flex its financial plight and effectively buy control, condemning their Balmain bedfellows to irrelevance.

But the reality of being primarily responsible for the huge losses that are commonly associated with NRL club did not sit comfortably with the Ashfield directors, whose No. 1 responsibility is to safeguard the interests of their Leagues Club members.

To ensure vital costs such as wages were met, Ashfield made several loans to the joint venture. But a more permanent fix was required to ensure the mounting debts did not turn lethal.

As the mammoth loss of 2012 began to materialise, Tigers powerbrokers began to talk about radical reform measures that would see the joint venture give way to a single entity run by directors with no alignment to either foundation club. In this utopia, there would be no Balmain or Wests. Only Wests Tigers.

Last night's announcement that three independent directors, nominated by the NRL, would hold the balance of power on a new seven-man board is a huge step toward that goal.

Since NRL boss Dave Smith accepted a call to help Wests and Balmain reach middle ground last July, negotiations have pushed through old hatreds and entrenched agendas to carve-out the most historic accord in the joint venture's history.
 
So glad to read this, can finally put all the magpies/ tigers fighting behind us

_Posted using RoarFEED 2013_
 
Wests Tigers have struck a historic agreement to overhaul their corporate structure in what the NRL describes as a potential blueprint for other clubs to follow.

Fairfax Media can reveal the Balmain and Western Suburbs factions, an uneasy alliance since they merged into Wests Tigers in 1999, have agreed to a new model of seven directors - two from the Balmain side, two from Western Suburbs, and three independent board members. The landmark agreement to ensure a more harmonious relationship between the merged entities was ratified by the NRL at an extraordinary meeting between the parties on Thursday. It came just two days after Balmain and Western Suburbs met to sign off on the arrangement.

Under the new arrangement, the ARLC has agreed to cover the financial shortfall of the cash-strapped Balmain side for the next two years. Balmain must square the ledger within that period or face losing their shares in the joint venture.

Until such time as security is provided against the money lent, the two Balmain board members - Nick Di Girolamo and Danny Stapleton, who have been nominated for those spots - won't have voting rights. Western Suburbs will be represented by Tony Andreacchio and Wests Ashfield boss Simon Cook.
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The archaic system of alternating chairmen on an annual basis will be scrapped, and the role now will go to one of the three independent directors. Those board members will be selected by the two entities from a list sourced by the NRL.

After years of backroom squabbling between the factions, the long-awaited reforms are expected to provide the Tigers with the financial and off-field stability that has been missing for much of their short history in the NRL.

''It's a historic moment for the Wests Tigers,'' NRL boss Dave Smith said. ''The club, along with the two shareholders, has shown great courage in agreeing to the changes. It's a great moment for the club and a big moment for the governance of the game in beginning to set the standard to improve the overall quality of these boards.

''Fans and members can have some confidence the newly constituted board will have the independence and business plans to grow and be great again.''

The changes - which are sure to be welcomed by stakeholders, including fans, players and officials - were agreed upon after an independent audit outlined the extent of the financial struggles under the previous arrangement.

Wests Ashfield Leagues club had previously sought control of the board in exchange for a $1 million cash injection to prevent Wests Tigers from becoming insolvent last year. The failure of the leagues club development at Rozelle was one of the factors behind Balmain being burdened with a $9.5 million debt.

Western Suburbs and Balmain have agreed on little since their union 15 years ago. However, in recent months, the parties have made a concerted effort to work more cooperatively to ensure the long-term sustainability of Wests Tigers. With the majority of NRL clubs running at a loss, the agreement highlights the role of the ARLC in assisting clubs towards sustainability. Smith said the Tigers' structure could be a blueprint for how other NRL clubs could operate in the future.

''For sure, it sets the standard,'' Smith said. ''It's very much a blueprint and a benchmark for the standard of governance we want across the whole game.''

The league provided additional funding only after it was satisfied the corporate governance issues were resolved.

Wests Tigers can now move positively towards several long-term ambitions. They include finding a new training base to replace the ageing Concord Oval, the establishment of academies in both its heartland regions and a cohesive strategy for stadiums.

Read more: http://www.smh.com.au/rugby-league/league-news/wests-tigers-landmark-deal-could-become-nrl-boardroom-blueprint-20140130-31ppy.html#ixzz2ruQEQTE0
 
For 15 years we havent had progression and growth as our main driving goals…rather weve had a split board each trying to one up the other.

I just hope some independents have progression and growth as their main driving force, as opposed to just going with the flow and being there to break stalemates....I hope their hearts are in it
 
Maybe should merge this with the other thread:

http://www.weststigersforum.com/viewtopic.php?f=2&t=19792&view=unread#unread

…dont need two discussions going
 
A fresh start that should get everyone moving in the right direction. This was needed from day one, but now at least the deadwood can't stop the club from making WT decisions.

_Posted using RoarFEED 2013_
 
Death To Magpies & Balmain, We are the Wests Tigers, time to move on ! This new structure will do great things for this Club !
 
So glad Humphreys is gone….he and his side kick Sheenius decimated this club financially!

Finally we become true Wests Tigers off the field!...has to be a good thing for everyone who loves this club!
 
Fri, Jan 31, 2014 - 6:18 AM
Wests Tigers, in conjunction with the NRL, has today announced major changes to the corporate governance of the Club that will strengthen it for the future.
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Wests Tigers CEO Grant Mayer said; “We still have a fair distance to travel but no doubt all of the parties involved have done an outstanding job to get us to this stage.
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“There will be sweeping change in the corporate governance of the Club and at its most basic form it means a more vibrant and robust club for Members and sponsors,” he said. “No doubt there will be much speculation of the next few weeks and I would like to assure Members and sponsors that the Club will keep them informed.”
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The NRL said today that major corporate governance changes would be made to Wests Tigers to set it up for a successful future.
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NRL CEO Dave Smith said Wests Tigers fans deserve to have a great and successful club.
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Under changes driven by the NRL, the Board of Wests Tigers will be revamped with the appointment of three Independent Directors, including an Independent Chairman.
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The changes also include developing a sustainable financial model, four year business plan and a revised joint venture agreement and club constitution.
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Mr Smith said the NRL had been working with the club’s management for more than six months to ensure Wests Tigers had the standards of governance required to ensure a bright future.
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“It has been a thorough process and the club and shareholders have shown great courage in embracing these changes to set up Wests Tigers for the future,” Mr Smith said.
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“We are making sure that Wests Tigers have a business plan which will make the club great again.
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“That’s what Wests Tigers’ fans deserve. This is an iconic brand and that is what the fans are crying out for in the game.”
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While further details of the in-principle agreement will be released when the changes are finalised with Wests Tigers, Mr Smith said the NRL was setting up a blueprint for the standard of governance across the game.
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“It is a big step forward for the game, and is part of a wider drive to improve the governance standards of club boards.”
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Wests Tigers board nominee Simon Cook said “the corporate governance review process with the NRL has been exceptionally important for the long term future of Wests Tigers. We also believe that the Club is fundamentally crucial to the game as a whole.”
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Current Wests Tigers board member Nick Di Girolamo said “this is a decision that is consistent with the NRL’s policy for best corporate governance practices and puts Wests Tigers in the best possible position to achieve financial self sustainability.”
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The NRL and Balmain and Wests will continue to work together to negotiate and finalise the joint venture agreement and the Club’s new constitution.

Courtesy of the Official Wests Tigers website.
 
@turnstyle said:
**There was even a morning when the coaching staff was told there would be no new footballs for training until the previous ones were paid for.**
Click to expand...

Not sure how true this is… I was under the impression that NRL game balls were distributed to the clubs for training use after they'd been used for a certain amount of games.
 
**IMPORTANT MEDIA RELEASE DISTRIBUTED ON BEHALF OF NRL**

FRIDAY, 31 JANUARY 2014

NEW ERA FOR WESTS TIGERS

The NRL said today that major corporate governance changes would be made to Wests Tigers to set it up for a successful future.

NRL CEO Dave Smith said Wests Tigers fans deserve to have a great and successful club.

Under changes driven by the NRL, the Board of Wests Tigers will be revamped with the appointment of three Independent Directors, including an Independent Chairman.

The changes also include developing a sustainable financial model, four year business plan and a revised joint venture agreement and club constitution.

Mr Smith said the NRL had been working with the club’s management for more than six months to ensure Wests Tigers had the standards of governance required to ensure a bright future.

“It has been a thorough process and the club and shareholders have shown great courage in embracing these changes to set up Wests Tigers for the future.” Mr Smith said.

“We are making sure that Wests Tigers have a business plan which will make the club great again."

“That’s what Wests Tigers’ fans deserve. This is an iconic brand and that is what the fans are crying out for in the game.”

While further details of the in-principle agreement will be released when the changes are finalised with Wests Tigers, Mr Smith said the NRL was setting up a blueprint for the standard of governance across the game.

“It is a big step forward for the game, and is part of a wider drive to improve the governance standards of club boards.”

Wests Tigers board nominee Simon Cook said “the corporate governance review process with the NRL has been exceptionally important for the long term future of Wests Tigers. We also believe that the Club is fundamentally crucial to the game as a whole.”

Current Wests Tigers board member Nick Di Girolamo said “this is a decision that is consistent with the NRL’s policy for best corporate governance practices and puts Wests Tigers in the best possible position to achieve financial self sustainability.”

The NRL and Balmain and Wests will continue to work together to negotiate and finalise the joint venture agreement and the Club’s new constitution.
 
Was a very pleasant surprise to read this on the back page of the SMH today. I know there is still an awful lot of hard work to be done, but it is wonderful to finally take this very important step!
 
@turnstyle said:
Wests Tigers take first steps to climbing back from brink of extinction
Josh Massoud The Daily Telegraph January 30, 2014 11:30PM

UNPAID rent, food suppliers, security firms and star players complaining about their marquee bonuses being lost in the mail.

There was even a morning when the coaching staff was told there would be no new footballs for training until the previous ones were paid for.

Welcome to life at Wests Tigers over the past 18 months.

Ominous clouds have been rapidly gathering since the joint venture posted a staggering and unexpected loss in excess of $2 million at the end of 2012.

Fresh from back-to-back finals appearances, the Tigers started that season as premiership favourites and budgeted accordingly. Instead they finished out of the top eight and deep in the red, as sponsorship, attendance and merchandise numbers fell alarmingly short of expectation.

The seven-figure shortfall was comfortably the biggest in the joint venture's 14-year existence, most of which had been eeked out with an impressive degree of financial prudence within the rusted confines of Concord Oval.
\
\
\
But suddenly decisions went haywire. Coach Tim Sheens was sacked with two years remaining on his contract, and continued to receive a full salary for nine months after his dismissal. Top players like Andrew Fifita, Bryce Gibbs and Chris Heighington were given early releases, with the Tigers paying part of their wages at Cronulla just to comply with the salary cap.

They were excesses and miscalculations that simply that simply could not be afforded. Worse still, they quickly pushed the Tigers to the brink of extinction because the Balmain half was unable to meet its financial obligations.

Under the original JV constitution, signed in 1999, shareholders Wests Group and Balmain were required to provide equal funding each season to balance the NRL club's books.

With their Rozelle Leagues Club reduced to rubble and red tape, Balmain could offer little or no aid, which virtually reduced the financial obligation on Wests to zero.

Balmain's suffrage put Wests in a position of power, because four of the five Magpies-aligned directors were appointed from the successful Leagues Club in Ashfield and had access to riches that could keep the Tigers afloat.

Magpies diehards wanted the club to flex its financial plight and effectively buy control, condemning their Balmain bedfellows to irrelevance.

But the reality of being primarily responsible for the huge losses that are commonly associated with NRL club did not sit comfortably with the Ashfield directors, whose No. 1 responsibility is to safeguard the interests of their Leagues Club members.

To ensure vital costs such as wages were met, Ashfield made several loans to the joint venture. But a more permanent fix was required to ensure the mounting debts did not turn lethal.

As the mammoth loss of 2012 began to materialise, Tigers powerbrokers began to talk about radical reform measures that would see the joint venture give way to a single entity run by directors with no alignment to either foundation club. In this utopia, there would be no Balmain or Wests. Only Wests Tigers.

Last night's announcement that three independent directors, nominated by the NRL, would hold the balance of power on a new seven-man board is a huge step toward that goal.

Since NRL boss Dave Smith accepted a call to help Wests and Balmain reach middle ground last July, negotiations have pushed through old hatreds and entrenched agendas to carve-out the most historic accord in the joint venture's history.
Click to expand...

Will only succeed when all supporters start looking at the club as Wests Tigers and not Balmain or Magpies. Stop selling Magpie gear and Balmain gear at grounds.

Until this happens all this work will be for nothing

_Posted using RoarFEED 2013_
 
After 14 years why can't we believe that we are the West Tigers not Balmain or Western Suburbs? I hope that yesterday's heroes like Ben Elias keep completely out of the new running of this modern club.
 
@Newtown said:
After 14 years why can't we believe that we are the West Tigers not Balmain or Western Suburbs? I hope that yesterday's heroes like Ben Elias keep completely out of the new running of this modern club.
Click to expand...

Agree especially idiots like Steve Roach who despite working for the club continuingly refer to it as Balmain. That's when he isn't on 2GB slagging us off again despite being a paid employee

_Posted using RoarFEED 2013_
 
Yes it was great to be a Wests Fan, But i am a Wests Tigers Fan now & lets get on with running this Club properly. Also as someone said shut these ex idiot Players up who have to much to say.
 
[MERGED]

This is great news, a fantastic plan that will have a great long-term impact.

Well done to all involved.
 
Will only succeed when all supporters start looking at the club as Wests Tigers and not Balmain or Magpies. Stop selling Magpie gear and Balmain gear at grounds.

Until this happens all this work will be for nothing

Have to agree we should show unity under a Wests Tigers brand.
:sign:
 
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