Wests Tigers Restructure [MERGED]

[851]

Sound good,but what happens if Balmain can't pay their debt off in time and lose their 50% share in the JV as outlined in the report,who takes that 50%?,and do Wests get a say in it?

 

[GNR4LIFE]

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.

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_

Lol careful what you say, this comment has already wound up on a Magpie fan page, alluding this is being Balmain bias. Posted by a regular here who is pretty long winded when it comes to this topic. You knew there would be some diehards who would find this distressing. I've read comment where someone said ''the life support machine should be turned off on the Magpies'' after this. Seriously, these people are only happy when they are bitter and miserable. My comment will probably get posted now lol

On topic, its a good move, which has more upsides than downsides.

 

[Citizen_Tiger]

I think David Smith needs to take some serious credit for this move. His corporate credentials, particularly in the areas of regulation and governance are impressive. You don't manage $50bill of Lloyd's assets without having some sense of what your doing. Makes a pleasant change from ex footballers and Lawyers

Having three independents ensures decisions based on the best interests of the entity and not some antiquated connection with teams that became irrelevant years ago. Watching 20 or 30 'somethings' parade around in Balmain or Magpies gear is just cringeworthy. They're gone, their dead, their buried. If you need affirmation just walk down Darling St or Liverpool Rd sometime

 

[tigerpie]

FWIW guys,
Mu understanding is that the Magpies merchandise is sold at campbelltown games with the proceeds going directly towards the wests football club, which funds (along with sponsors and some cash from Wests Ashfield) the Magpies Ron Massey Cup team.
I hardly think that the Magpies football club selling a few thousand dollars worth of merchandise each year at Campbelltown home games is going to cause any problems and "confusion"…
Whats wrong with Wests Tigers supporters knowing that the club was formed from 2 foundation clubs by the selling of a relatively small amount of those clubs merchandise each year?
Also it is the Magpies football club / leagues club's prerogative whether or not they fund a 3rd tier (Ron Massey Cup) team, and by the selling of merchandise to fans that may or may not spend money on Wests Tigers gear (or even spend quite a bit of money on both lots of merchandise) then less money is needed to come from the football or leagues club to support the Ron Massey cup team...
Geeze we have 2 clubs with about 212 years worth of tradition to draw upon compared to 15 years the Wests Tigers have...... You would think they would be able to use these 2 foundation clubs traditions in a much better way.. but anywho lets just drop all links to both the magpies and balmain, kick em to the curb and start from scratch.. while we are at it, I suppose the WT don't need to worry about any financial support from either Balmain or Wests and they can go it alone as a completely separate football club / business because we know have 3 independent directors and an $8 million loan from the NRL.. yeah stuff the clubs that the WT are formed from, we don't need em anymore eh!

 

[GNR4LIFE]

The diehards like to think that everyone who wants the sole focus to be on WT's think like that cos they have no respect for the past or tradition and just want to kick them to the curb. I don't think it has anything to do with that. The reason i think people want to move on from Balmain and Wests is to end all the in-fighting. You eliminate Balmain and Wests and it makes for a much more peaceful existence, where WW3 doesn't erupt every time a decision is made that supposedly favours one side over the other.

 

[Jerry_Seinfeld]

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.

Because after 14 years people still get the club name wrong its WESTS tigers not west tigers.People say its only one letter well try telling that to Canterbur,Paramatt,or Manl and Penrit.

 

[tigerbalm]

Will two years make any difference to Balmain's cash crisis? Seems like it's just putting off the inevitable.

_Posted using RoarFEED 2013_

 

[Abraham]

Will two years make any difference to Balmain's cash crisis? Seems like it's just putting off the inevitable.

_Posted using RoarFEED 2013_

Hopefully this is the kick up the backside that the Balmain Director's need to get the club in a position where it can play a future role in the WT.

Spending 10 years whinging about the Leagues Club is way too long, and they need to come up with plan B, C, D, and E if necessary.

They are on notice now, they have 2 years to get things right or there will be repercussions (what those repercussions are has not yet been announced).

 

[Peaches]

This should work in theory but we still need better unity from the foundation clubs for the merged entity to really be a success.

_Posted using RoarFEED 2013_

 

[system]

Congratulations to Mayer and Smith for their work in this regard.

It appears blood can be drawn from a stone after all.

 

[Magpie_Magic]

Since we were forced financially to look at the corporate structure I think all in all I'm happy with the new set up.

I just hope Wests and Balmain retain a permanent shareholding and as someone else said the heritage and traditions of both Wests and Balmain should be used as a promotional tool to benefit the WT.

At the end of the day It's just about having a link the the foundation teams who created this club and are the reason 75% of us follow the Wests Tigers.

 

[TurnStyle]

when two teams merge to create a single entity there is always going to be a period where there is dichotomy due to the allegiances of the respective clubs' fans and boards.
15 years is long enough for this though!

as time goes by, and there being no balmain or wests magpies in the nrl, this will inevitably fade as these people move on in time and the kids of 2000 onwards grow to become consolidated Wests Tigers supporters, players, coaches, board members.

personally, i was a balmain supporter (albeit with no personal ties) but have been happy to be a Wests Tigers fan and move on from balmain.

i am very happy with the new board structuring and very hopeful the (counter productive) forces within the club will now dissipate and it can work synergistically for the betterment of the club as one.

 

[LaT]

Some terrific news!

Really hope we can move in the right direction and build a powerhouse club that challenges each and every year.

Getting our guys into world class training facilities needs to be one of our top priorities.

 

[Benjirific]

Congratulations to Mayer and Smith for their work in this regard.

It appears blood can be drawn from a stone after all.

Not sure how much Mayer had to do with this. I'd say credit has to go to Smith, and Cook and Di Girolimo who seem to have sorted this out like adults, rather than the children who have previously inhabited the board.

 

[Snake]

I have been waiting for this day for 14 years or the last game at Campbelltown by the Magpies. I now have a club to support not a half and half entity …. Congratulations to all concerned as this could well be the start that myself and many others have thought of the sleeping giant that is the Weststigers . Make no mistake the support is there it just has to be brought on. :sign:

 

[Snake]

I have been waiting for this day for 14 years or the last game at Campbelltown by the Magpies. I now have a club to support not a half and half entity …. Congratulations to all concerned as this could well be the start that myself and many others have thought of the sleeping giant that is the Weststigers . Make no mistake the support is there it just has to be brought on. :sign:

 

[system]

Congratulations to Mayer and Smith for their work in this regard.

It appears blood can be drawn from a stone after all.

Not sure how much Mayer had to do with this. I'd say credit has to go to Smith, and Cook and Di Girolimo who seem to have sorted this out like adults, rather than the children who have previously inhabited the board.

Grant lobbied for NRL involvement.

He had experience in dealing with cancerous board structures

 

[Tigerdave]

Pretty damn good news, especially to have this sorted before the first game.

Hope this sort of positivity flows down to the players.

 

[Black_n_White]

Lets hope for a brighter future…

Though i dont know why, but my gut is telling me that this is all going to go pear-shaped somehow. I really hope that I am totally and utterly wrong, honest to god.

Im old Magpies, now Wests Tigers, and am glad that the boardroom deadlock has been broken, but get the feeling that Balmain has called for a lifeline and has been handed a length of rope...

 

[TurnStyle]

Lets hope for a brighter future…

Though i dont know why, but my gut is telling me that this is all going to go pear-shaped somehow. I really hope that I am totally and utterly wrong, honest to god.

Im old Magpies, now Wests Tigers, and am glad that the boardroom deadlock has been broken, but get the feeling that Balmain has called for a lifeline and has been handed a length of rope...

i understand exactly what youre saying: there is what could be seen as a very faint, ghostlike image in the tigers boardroom that could very well develop into a full blown white elephant named the balmain debt.

if it is not paid within the 2 years (and i also hope it is) then it could be goodbye to any say in the club for the balmain half.

having said that, i just hope that whatever the case may be after that period that the club retains its Wests Tigers identity. i think they would lose a lot of fans, possibly me (oh no!), if they reverted to a pure wests magpies entity.