Our Knights One Chance organisers have released a business plan that they believe can have Newcastle’s NRL franchise running profitably within three years.
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The Our Knights campaign, launched in December, hopes to raise $20 million by selling 40,000 shares at $500 apiece, forming a co-operative that would allow the Newcastle community to buy back its team from the NRL.
Under a draft financial forecast, Our Knights anticipate the Knights will run at a $3 million loss under NRL control in 2017.
Next year, under a community model, the expected deficit would be $3.9 million, then $2.8 million in 2019.
By 2020, the goal is to register a $200,000 profit.
”The co-op business plan [2017 to 2020] forecasts the club would maintain positive cash flow, allowing it to operate a competitive approach to acquiring and maintaining quality players, sponsorships and ongoing community support,’’ Our Knights said in a statement.
“It projects revenue increase by 28 per cent in the initial years of trading.
“The trading projections are based upon the information available and recognise the club would experience losses for the initial two years but anticipates a modest profit in year three. The group believes having surplus funds from year one and with prudent management, the entity would continue to trade profitably on the back of participation of owners.
“By the third year of operation the group hopes to have the ability to direct funds towards other enterprises and assets that benefit the community.”
The Our Knights blueprint would feature a seven-person board of directors, five of whom would be elected by shareholders, and two who would be appointed for their specialised skills.
Our Knights are also offering season-ticket incentives to foundation owners, who would receive the equivalent of $125 towards game-day seating in return for their $500 share.
Another feature of the proposal is the establishment of a $7.5 million rugby league centre of excellence, probably in 2020.
Our Knights spokesman Rob Tew, a former Newcastle chairman and foundation player, said community ownership would “break the existing inertia and re-establish relevance with the community" after several bleak seasons, on and off the field.
"An engaged ownership will increase home-game attendances, which in turn will increase revenues and assist with making home games an exciting and enjoyable experience,’’ Tew said in a statement.
“The experience of sharing your game day with other owners, knowing you are making a contribution to the success of a regional icon, will engender a community aspect to the day’s entertainment.”
The first step, Tew said, is to “prove to the NRL that this model is sustainable and acceptable to our community”.
Expressions of interest can be registered at www.ourknights.com.au.
The website will also post a detailed business plan for perusal on Monday.