In an intriguing move, Wests Group chief executive Phil Gardner is standing down from the Knights’ board, just as the process of selling Newcastle’s NRL franchise is about to kick off in earnest.
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Gardner, who has been a director since the NRL installed a new board in November, 2014, has tendered his resignation, effective after the Knights’ last game this season.
He told the Newcastle Herald he wanted to ensure there was no conflict of interest – or perception of conflict – as the NRL prepares to put the Knights on the market, although he stressed that did not necessarily mean Wests would be among the bidders.
“I signed up for two years, and that two years finishes at the end of the season,’’ Gardner said.
“The board has a divestment strategy and is looking for an owner to take the Knights onto glory.
“I’m conflicted in that process, which is another reason why I’m going.’’
Asked if that meant Wests was preparing to launch a takeover bid, Gardner replied: “You can’t reach that conclusion.
“Realistically if anyone is going to pay over $10 million for the [Knights] club, then that won’t be Wests. That’s my personal opinion.’’
The NRL has run the Knights since the demise of failed tycoon Nathan Tinkler in June, 2014, but hopes to have found a new owner by Christmas. The governing body has appointed Tony Garrett, the head of mergers and acquistions at Deloitte Australia, to broker the sale.
Garrett, whose online profile declares he specialises in mergers, acquisitions, divestments, public and private capital raising transactions and “has individually led or overseen in excess of 150 transactions in his career”, will be entrusted with drawing up a short list of suitable candidates. They will then be asked to sign confidentiality agreements before being given full access to the Knights’ financial data.
It is expected that by next month, the NRL will be in position to start serious negotiations with viable parties.
It will then become a case of which entity can produce the most appealing package – and NRL officials insist that does not necessarily mean the highest bidder.
The NRL’s head of club and state services, Tony Crawford, told the Herald two weeks ago he was “encouraged by the level of unsolicited interest we’ve received’’ from potential buyers.
Since Tinkler’s downfall, the prospect of Wests taking over the Knights has appeared a logical option.
But is also seems clear that will only happen if it is on Wests’ terms.
- KNIGHTS v HAYNE P62
