Knights chase Jets for $300K

[radar]

THE Newcastle Knights have lodged an application with the Supreme Court to wind up A-League club, the Newcastle Jets, because of debts exceeding $300,000.

The NRL club, which sub-lets EnergyAustralia Stadium to the A-League franchise, has suspended pre-paid corporate catering services for tonight's Jets-Adelaide match, claiming Newcastle Soccer Pty Ltd did not pay the amount owed by close of business last night.

The Knights said the debt relates to game-day costs, including corporate catering dating back to March 2009.

Knights chairman Robert Tew said he has been forced to take action to limit losses from the Jets using the ground.

"We have a responsibility to our business to ensure we do not incur further costs on the Jets' behalf - where there is a history of little or no likelihood of recovering those costs," Tew said in a statement last night.

"The Jets have been advised they have left us with no other practical choice. It saddens me we have to take such action, but after numerous attempts to recover this debt ... the Jets have forced our hand.

"We have a duty to our business and its members to act in their best interests. We are supportive of the Jets ... and therefore are prepared to allow them to continue using the ground. However, we are not prepared to bankroll their game-day operational activities any further."

"For the sake of Newcastle and Adelaide players and supporters and soccer in our region generally, we have agreed to allow the Jets to use the ground to complete the fixture schedule, but we will not be incurring any further costs on the Jets behalf."

Knights CEO Steve Burraston said his club is sympathetic to Jets players and coaching staff with the finals looming.

However, Jets CEO John Tsatsimas said last night: "We find it ironic that the Knights are making a claim against us when they owe far in excess to the head tenant [Hunter Venue authority]."

Tsatsimas also described the Knights' timing as impeccable.

"They are holding us to ransom as we are playing our last home game tomorrow," he said.

http://www.dailytelegraph.com.au/sport/nrl/knights-pursue-jets-for-300000/story-e6frexnr-1225829340973

 

[FFC Mariner]

However, Jets CEO John Tsatsimas said last night: "We find it ironic that the Knights are making a claim against us when they owe far in excess to the head tenant [Hunter Venue authority]."

WTF has that got to do with it? Maybe a chance to get Con out of the game for good.

Intercode rivalry aside, why should the Knights not get paid.

Wind em up, we finish 7th, we enter finals

I know people will post about the games best interests but............

FTJ's

 

[radar]

However, Jets CEO John Tsatsimas said last night: "We find it ironic that the Knights are making a claim against us when they owe far in excess to the head tenant [Hunter Venue authority]."

WTF has that got to do with it? Maybe a chance to get Con out of the game for good.

Intercode rivalry aside, why should the Knights not get paid.

Wind em up, we finish 7th, we enter finals

I know people will post about the games best interests but............

FTJ's

It's a bit like breaking into Ronald Biggs house, taking his stereo, and trying to defend the decision by claiming Biggs was the bigger crook. Two wrongs and all that.

 

[LFCMariners]

Great news this! 

 

[FFC Mariner]

Great news this! 

Especially if you work in the heart of Newcastle in an office full of scummers lol

 

[dibo]

Are we in glass houses over the COE?

 

[LFCMariners]

Imagine that- Scum get withdrawn from the finals and we take their place. Wouldn't matter how badly we got pummeled on the field, it would be GOLD!

 

[Morgan30]

winding up orders don't generally take two weeks....

 

[radar]

Are we in glass houses over the COE?

let's not ruin the moment

 

[dibo]

Are we in glass houses over the COE?

let's not ruin the moment

Our stuff hasn't made the papers at least, so it's only rumour and innuendo. They're going to the Supreme Court - a much more *real* issue.

 

[curious]

Business as usual for con, isn't it? He must spend more money on legal fees and court costs attempting to avoid debt than he does in paying them. Now there's a business plan to aspire to. Con makes a better soap opera than Palmer, any day of the week. 

 

[Nik Mrdjas Disco Bikkie]

Personally I'd hate to see them wound up as others seem to be hoping for. That 3-0 win the other night wouldn't feel as good against any other team. Sure I'm happy to see them publicly humiliated, but i want them to stick around so we can beat them 4-0

 

[Morgan30]

Personally I'd hate to see them wound up as others seem to be hoping for. That 3-0 win the other night wouldn't feel as good against any other team. Sure I'm happy to see them publicly humiliated, but i want them to stick around so we can beat them 4-0

This

 

[radar]

I'm a schadenfreude junkie

 

[Sean]

Statement regarding Newcastle Knights comments
Friday, 12 February 2010

Pursuant to the recent public comments brought forward by the Newcastle Knights Rugby League Club regarding outstanding monies relating to the use of EnergyAustralia Stadium, the Newcastle Jets Football Club wishes to respond with the following statement:

We do not argue that there are monies owed heading into this evenings match, however, it is critical to note that progressive payments have been made throughout the course of the season and we therefore lament that these public statements have been made on the day of our final home game of the season in a blatant attempt to disparage the Newcastle Jets and football in this city.

For the avoidance of doubt, we advise that we are not permitted to obtain any pourage rights, catering rights or naming rights from the use of the stadium, the monies extracted from these rights go directly to the Newcastle Knights.

To ensure no misinformation has arisen from the public comments made by the Knights, the Newcastle Jets wish to confirm the following key points:

These issues relating to the stadium are long standing. This is not a matter that has surfaced overnight.

We have previously sought to have the matter resolved yet the Knights have refused to discuss the matter in round a table manner.

Financial offers to the Newcastle Knights have been made which would cover catering costs for this evenings match plus contributing to any arrears, however these offers were rejected. The Newcastle Jets club Chairman requested to meet with the Knights recently to resolve the matter amicably, and suitably behind closed doors, only to be turned down.

The Knights have failed to advise that they themselves are in a legal dispute with the State Government which relates to a failure to pay outstanding monies reportedly in excess of the sum of $1 million to the State Government. The amount outstanding to the State Government far exceeds what is claimed against the Newcastle Jets. It is unfortunate that the Knights have seen fit to draw us in a similar position.

The Knights are also claiming damages as to the state of the stadium and its impact upon their use. We are at a loss as to how this negative impact only applies to the Knights and does not flow on to the Jets. The state of the stadium has negatively impacted upon our patrons this season. We have asked to be advised of what the abatement they are seeking is and have asked that this be filtered down to us, however we have yet to receive a reply.
From our perspective it is a case of do as I say not do as I do.

Moreover, the state of the surface has been rated the worst in the Hyundai A-League. We are constantly having to play on a surface that is sub-standard and that possesses NRL insignia and NRL sponsor logos at the times of our games. We also have lost our Marquee Player, Fabio Vignaroli, for the duration of the season as a direct result of the surface of the Stadium.

We find it ironic that these public comments have been made by the Knights some years after the very same NRL club sought and received significant financial aid from the Newcastle Jets club Chairman, Con Constantine, during a time of cash flow difficulties the Knights experienced which enabled them to retain a number of their prime players at the time.

In terms of this evenings match, our club will take on the subsequent financial and logistical burdens in order to protect the interests of our corporate partners, stakeholders and valued supporters.

The course of action taken by the Knights appears to be a blatant attempt to detrimentally impact upon the Newcastle Jets and football in general. We remain steadfast in our position and our resolve to ensure that football in Newcastle takes pride of place at EnergyAustralia Stadium.

 

[dibo]

Most of their gripes are in the 'waaaaaaaaahhhhh' area.

They're sub-letting from the Knights. The Knights are the prime tenant, and whatever the terms of the deal (including terms on pourage, catering, naming etc.) would have been explicit in the deal. The Jets can't expect sympathy - they signed the deal!

If the Jets are behind in their payments, the Knights are surely under no obligation to meet with them to negotiate different terms. The Knights are owed money under a standing agreement and are surely within their rights to demand that it be paid.

This isn't something like a big nasty bank kicking a mortgagee out of their house when they've been under hardship, this is a business that has agreed to pay certain sums and then not held up their end of the bargain.

The Knights owing the HISC money is irrelevant. Do I not have to pay my phone bill if Optus has outstanding loans? It's a ridiculous analogy.

 

[radar]

Danny Wicks should help bankroll them perhaps

 

[curious]

Pursuant to the recent public comments brought forward by the Newcastle Knights Rugby League Club regarding outstanding monies relating to the use of EnergyAustralia Stadium, the Newcastle Jets Football Club wishes to respond with the following statement:

We do not argue that there are monies owed heading into this evenings match, however, it is critical to note that progressive payments have been made throughout the course of the season and we therefore lament that these public statements have been made on the day of our final home game of the season in a blatant attempt to disparage the Newcastle Jets and football in this city.

Nothing to do with owing the outstanding 300k that's grown since last march, and your extremely poor past record regarding debt?

For the avoidance of doubt, we advise that we are not permitted to obtain any pourage rights, catering rights or naming rights from the use of the stadium, the monies extracted from these rights go directly to the Newcastle Knights.

And how is this different to most aleague clubs in Australia? Wouldn't be trying to infer an unusual managements rights practice and victimisation by any chance? Con's usual methodology when cornered.

To ensure no misinformation has arisen from the public comments made by the Knights, the Newcastle Jets wish to confirm the following key points:

  These issues relating to the stadium are long standing. This is not a matter that has surfaced overnight.

Correct, this particular debt goes back 11 months.

  We have previously sought to have the matter resolved yet the Knights have refused to discuss the matter in round a table manner.

Your credit providers say different.

  Financial offers to the Newcastle Knights have been made which would cover catering costs for this evenings match plus contributing to any arrears, however these offers were rejected. The Newcastle Jets club Chairman requested to meet with the Knights recently to resolve the matter amicably, and suitably behind closed doors, only to be turned down.

Too late once the horse has bolted. Maybe keep the gate closed so it couldn't?

  The Knights have failed to advise that they themselves are in a legal dispute with the State Government which relates to a failure to pay outstanding monies reportedly in excess of the sum of $1 million to the State Government. The amount outstanding to the State Government far exceeds what is claimed against the Newcastle Jets. It is unfortunate that the Knights have seen fit to draw us in a similar position.

And this very common public knowledge has what to do with your own outstanding debts? Best improve your legal argument before the supreme court date if this is to be part of it.

  The Knights are also claiming damages as to the state of the stadium and its impact upon their use. We are at a loss as to how this negative impact only applies to the Knights and does not flow on to the Jets. The state of the stadium has negatively impacted upon our patrons this season. We have asked to be advised of what the abatement they are seeking is and have asked that this be filtered down to us, however we have yet to receive a reply.
From our perspective it is a case of do as I say not do as I do.

Could be because their claim is for lost income from the non availability of a large proportion of corporate boxes previous available and previously used to full capacity with a long waiting list. Which has no effect on you as the jets have struggled since day one to sell a small percentage of the corporate boxes and still do? What isn't available to you, a larger number of empty corporate boxes?

  Moreover, the state of the surface has been rated the worst in the Hyundai A-League. We are constantly having to play on a surface that is sub-standard and that possesses NRL insignia and NRL sponsor logos at the times of our games. We also have lost our Marquee Player, Fabio Vignaroli, for the duration of the season as a direct result of the surface of the Stadium.

First part is a fair call for parts of the season, but the second is a very big one for a lawyer like yourself to make in public. You might need to prove that in court too.

  We find it ironic that these public comments have been made by the Knights some years after the very same NRL club sought and received significant financial aid from the Newcastle Jets club Chairman, Con Constantine, during a time of cash flow difficulties the Knights experienced which enabled them to retain a number of their prime players at the time.

And the motive backfired in a big way when their members voted to refuse to sell 51% of the club to con. Again, what does this have to do with your outstanding debt?

In terms of this evenings match, our club will take on the subsequent financial and logistical burdens in order to protect the interests of our corporate partners, stakeholders and valued supporters.

Nice of you to take the responsibility of those "burdens" in paying for the provisions of your corporate clients at your own cost to protect them from those nasty credit providers. (I really don't understand the gist of this comment...burdens  ??? It's a burden to pay for and provide the services the clients had paid you for  before the season kickoff? )

The course of action taken by the Knights appears to be a blatant attempt to detrimentally impact upon the Newcastle Jets and football in general. We remain steadfast in our position and our resolve to ensure that football in Newcastle takes pride of place at EnergyAustralia Stadium.

Nice shot with the old faithful chestnut victims routine, so over used in the past. I think the general public got over that years ago, probably following your last public outing over debt. There's been so many it's difficult telling which is which. Now just pay your debts and you won't have a problem. Oh! and don't forget all that super owed to the players, by the way.

Sorry to post the complete article again. 

 

[dibo]

Do the Knights accept mangoes?

Next time we play the scum, all hands on deck for a mango tifo. And maybe some mango songs.

 

[FFC Mariner]

Had a ball at the office today - at one point walking around the office waving a $20 note saying if you are going to the game tonight, does anyone want to bail Con out.

More seriously, the 3 scum members in the office are more embarrassed by Con and the Jets than anything else. By all accounts his modus operandi is to rack up a bill (say $300k) then when the creditor screams, attempt to negotiate. He is known and despised through out the town because of it.

The amount of moaning about their cluster f**k of a club was lolworthy.

They even forgot to give me the Arnold gibes I have been getting all week