From stuff.co.nz
By STEVE KILGALLON
The Warriors have exceeded their budgeted loss for 2006 and want more cash from their shareholders, which could dilute the New Zealand Rugby League's share in the club.
The move has angered the NZRL, which is expected to refuse to make a contribution, as it could lose its input into Kiwi league's flagship without being repaid.
CEO Wayne Scurrah said it was at a level "we certainly didn't anticipate".
The NZRL brokered the original deal that gave the club's majority owners, Eric Watson and Mark Hotchin's Cullen Sports, 75% of the club in 2000.
The league has been negotiating to sell its shares to Cullen.
The Sunday Star-Times has seen the original shareholders agreement signed by then NZRL chairman Gerald Ryan and Watson. It suggests the NZRL's contributions were limited to $500,000 - a figure which it is understood has been reached.
Warriors chairman Maurice Kidd denied that. But he did confirm the shareholders were to be asked for more cash, and said if the minority partners - the NZRL and a Wellington consortium led by Ramesh Dayal - did not contribute, diluting their holdings was "certainly an option". The NZRL-Dayal bloc holds 25% of the club.
The news sparked an angry response from NZRL chief executive Selwyn Pearson.
"The timing is impeccable when negotiations are at a very sensitive stage for Cullen Sport to takeover the NZRL's shareholding," he said. Pearson, formerly the chairman, said the board had always been "unanimous that they would not tip in any more money to the Warriors. I'm certain there has been no change in that stance.
"I feel sorry for the NZRL board - they have never had any say in the governance, management, operations or finance of the Warriors, yet here they are being asked to put their hand into their pocket to pay for something that is totally out of their control.
"It doesn't sound fair."
Told that Kidd had said diluting the shareholding was possible, Pearson responded: "What a sad day it would be if the major shareholder punted the minor shareholder, who were actually instrumental in the major shareholder getting the football club in the first place. Words would fail me if that happened."
Kidd said the decision to call for funds had come "probably a fraction earlier than expected".
"The reasons for it are the salary cap issue and the lower crowds than we budgeted on.
"Those were unexpected things and things built into the budget were not achieved. In the long run, they will not be recurring: there will not be another salary cap issue and the team are doing a fantastic job and getting results on the paddock and they will start winding back the attendances."
It's understood Cullen has already put in money once this season - without the other shareholders contributing. Scurrah said the club had analysed its cashflow and alerted the board of the need for more money, but that it was not disastrous.
Sky TV host Stephen McIvor claimed on Friday night that rumours were circulating that Watson and Hotchin wanted out of the Warriors, but Kidd vehemently denied that prospect, saying: "Hell, no."
However, relations between Cullen and the NZRL seem to have hit a new low, with Pearson adding: "It is time the NZRL board of the day who completed the sale came out and told the world what discussions took place at the time of the sale ... What was said? What was agreed to? What was promised? Then we can compare that to what is actually happening now."
By STEVE KILGALLON
The Warriors have exceeded their budgeted loss for 2006 and want more cash from their shareholders, which could dilute the New Zealand Rugby League's share in the club.
The move has angered the NZRL, which is expected to refuse to make a contribution, as it could lose its input into Kiwi league's flagship without being repaid.
CEO Wayne Scurrah said it was at a level "we certainly didn't anticipate".
The NZRL brokered the original deal that gave the club's majority owners, Eric Watson and Mark Hotchin's Cullen Sports, 75% of the club in 2000.
The league has been negotiating to sell its shares to Cullen.
The Sunday Star-Times has seen the original shareholders agreement signed by then NZRL chairman Gerald Ryan and Watson. It suggests the NZRL's contributions were limited to $500,000 - a figure which it is understood has been reached.
Warriors chairman Maurice Kidd denied that. But he did confirm the shareholders were to be asked for more cash, and said if the minority partners - the NZRL and a Wellington consortium led by Ramesh Dayal - did not contribute, diluting their holdings was "certainly an option". The NZRL-Dayal bloc holds 25% of the club.
The news sparked an angry response from NZRL chief executive Selwyn Pearson.
"The timing is impeccable when negotiations are at a very sensitive stage for Cullen Sport to takeover the NZRL's shareholding," he said. Pearson, formerly the chairman, said the board had always been "unanimous that they would not tip in any more money to the Warriors. I'm certain there has been no change in that stance.
"I feel sorry for the NZRL board - they have never had any say in the governance, management, operations or finance of the Warriors, yet here they are being asked to put their hand into their pocket to pay for something that is totally out of their control.
"It doesn't sound fair."
Told that Kidd had said diluting the shareholding was possible, Pearson responded: "What a sad day it would be if the major shareholder punted the minor shareholder, who were actually instrumental in the major shareholder getting the football club in the first place. Words would fail me if that happened."
Kidd said the decision to call for funds had come "probably a fraction earlier than expected".
"The reasons for it are the salary cap issue and the lower crowds than we budgeted on.
"Those were unexpected things and things built into the budget were not achieved. In the long run, they will not be recurring: there will not be another salary cap issue and the team are doing a fantastic job and getting results on the paddock and they will start winding back the attendances."
It's understood Cullen has already put in money once this season - without the other shareholders contributing. Scurrah said the club had analysed its cashflow and alerted the board of the need for more money, but that it was not disastrous.
Sky TV host Stephen McIvor claimed on Friday night that rumours were circulating that Watson and Hotchin wanted out of the Warriors, but Kidd vehemently denied that prospect, saying: "Hell, no."
However, relations between Cullen and the NZRL seem to have hit a new low, with Pearson adding: "It is time the NZRL board of the day who completed the sale came out and told the world what discussions took place at the time of the sale ... What was said? What was agreed to? What was promised? Then we can compare that to what is actually happening now."
Only 'cause they'd call it blue in the middle of a beautiful pink sunset.
