NRL takes on Newcastle Knights ownership

The National Rugby League (NRL) has taken control of the Newcastle Knights.

The agreement follows negotiations with the former operators of the club, the Hunter Sports Group and the Newcastle Knights Members Club.

NRL Chief Executive Dave Smith said the move would deliver the security and certainty that the Knights players, staff, sponsors, fans and members were seeking, with the club continuing to play out of Newcastle Hunter Stadium in their traditional jersey.

Furthermore, the NRL will provide a $10.52 million bank guarantee which will be used to pay Hunter Sports Group’s existing employee and supplier obligations and to provide $5.1 million in start up funds for the new club.

In a statement, Smith explained “the Knights will continue to be Newcastle through and through.

“The team will look the same, they will continue to be based in Newcastle and they will represent this region proudly like they have for the last 26 years.

“The difference is that, financially, they will be one of the top tier clubs in the competition.”

The business assets of the old club have been transferred to a new entity, called Knights Rugby League Pty Ltd in which the Members Club will take a minority 20% interest.

Smith said the new Knights would have a board of seven, including one community representative initially nominated by the Members Club, two shareholder representatives initially from the NRL, and four independent directors.

Prior to the NRL's intervention, the Members Club had looked to its major sponsor, the Wests Group, for backing.

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