Fairfax Media has been told the NRL will own an 80 per cent share of the new entity and the members club will provide the other 20 per cent using the $10.52 million bank guarantee that has been sitting in a joint signatory account held with Tinkler’s Hunter Sports Group since March 31.
There was speculation on Monday night that the NRL would effectively become 100 per cent owners of the new entity once it was formed,but other sources with knowledge of the negotiations of the past three months indicated this was not necessarily the case.
It is understood the Wests Group will have no initial stake in the entity but,depending on the outcome of ongoing discussions between Wests and the NRL,that situation could change when the new entity has been established.
Once the deal is finalised,the NRL will transfer the Knights'licence from HSG to that new entity,operating under a working title of Newcastle Knights Pty Ltd,which will be administered by a seven-member board including one director who must meet certain ‘‘community criteria’’.
Fairfax Media has been told the community-appointed director would have to be a long-standing Knights member of significant stature and experience. Though the finer details are still being negotiated,it is understood Knights members would have their existing membership transferred to the new entity,but would possibly no longer have any voting rights.
Members club chairman Nick Dan was reluctant to comment but said he had held ‘‘fruitful discussions’’ with the NRL on Monday and was hopeful of a resolution within days. An NRL spokesman declined to comment when contacted.