The Billionaire Blues

Nathan Tinkler wondering what happened

It was not long ago that I wrote about the freak out Rabbitohs fans were having when Russell Crowe announced he would give up his ownership share after 2013. Today Newcastle fans in both rugby league and soccer (I’d say football but in this context that would complicate things) must be having a heart attack after reports came out that the ATO are looking to wind up Nathan Tinkler’s assets, including of course the two Newcastle football teams.

Obviously this is huge cause for concern for Novocastrians as whilst private ownership can be a huge advantage in sport, the downside is situations like this. League’s typically go through rigorous procedures to approve of potential owners before allowing them to buy teams, but I don’t think either the A-League or the NRL even considered Nathan Tinkler going broke.

Unfortunately this story isn’t all that surprising. There are many stories of people getting rich quickly and blowing it. Often those stories come from things like lottery winners, however sometimes it happens to people who actually earn the money through business ventures.

The Tinkler situation reminds me of the Eddy Groves situation that occurred with the old Brisbane Bullets in the NBL. Eddy, if you remember, was the founder of ABC Learning Centres and was fast becoming one of the richest men in Australia. He was expanding his business overseas and looked on top of the world. Eddy bought the Brisbane Bullets and the NBL thought it not only now had a rich owner of a team, but even maybe the Frank Lowy style benefactor the league needed. However Groves, much like Tinkler, got ahead of himself, overextended his business interests and the good times didn’t keep on rolling.

Sometimes the mentality it takes to make the fortune in the first place is the same mentality that eventually tears it down.

Of course representatives of Tinkler claim the bills will be paid and all will be well, but few people at this stage believe them. Whether the Newcastle teams go the way of the Bullets will not just be a function of the owner’s finances, but also the finances and strategy of the league as a whole. The NBL were in no position to save the Bullets and could do little but watch the team go under, however the NRL is certainly not in that same position.

The NRL is sitting on the goldmine that is the new TV deal and I doubt they will want the Newcastle market to go under. Whilst it’s not a huge city, it’s a city that is passionate about rugby league and they always have good crowd numbers and merchandise sales. It’s also a hotbed for up and coming talent. Whilst we can’t know yet how it will play out, I think if required the NRL will step in and save the Knights, much like the NBA did with the New Orleans Hornets until they found a new owner for them.

The A-League on the other hand might not do the same for the Jets however. They too just received a shiny new TV deal which they are delighted with, but it isn’t in the same ballpark as the NRL deal and I think they will do everything they can to find a new owner for the Jets, but won’t be willing or able to foot the bill themselves if required.

If the Jets went under it would be a real shame as Newcastle has embraced the team and their local rivalry with Central Coast is something the A-League has over other sports.

A year from now I doubt Nathan Tinkler will still be the owner of either team, but whether those teams still exist at all, at least in Newcastle, is a story we will have to watch unfold.