St George Illawarra Dragons have released a statement regarding speculation businessman and media owner Bruce Gordon may be keen to buy a share of the club if it was open to privatisation.
Mr Gordon, 86, a billionaire, is based in Bermuda.
He has been a longtime supporter of the Dragons and among his business interests include the WIN Television Corporation.
In a statement for the Leader, the Dragons chief executive Peter Doust said: “It is no secret that we have been reviewing our structure and governance throughout this year in particular, part of which has involved dialogue with various broader stakeholder interest groups.’’
“At this point in time, it is not appropriate to be making comment on the specifics or with whom discussions have been held, other than to say that the process is complex and ongoing."
The Weekend Australian reported a debt-for-equity swap looms as Bruce Gordon’s most likely entry route into the St George Illawarra rugby league club, should he embark on a privatisation of the NRL team.
The article revealed the Dragons were considering privatising with Gordon, the billionaire owner of regional TV network WIN Corporation, the most obvious suitor.
WIN's threat to strip back local news comes amid its frustration with delays to the scrapping of the "reach rule", which prevents mergers between regional networks and their metropolitan affiliates.
Cabinet is due to discuss proposals by Communications Minister Mitch Fifield to scrap the rule and the so-called "two-out-of-three rule" this week or next week, with a potential announcement before Christmas.
Gordon is a passionate Dragons fan and loaned the team’s joint venture partner, the Illawarra Steelers, $6.5m in 2006. It was an interest-free loan, contingent on the Dragons playing six games a year in Wollongong, where WIN is based. But when the Dragons cut that to four games last year, it became an interest-bearing loan.
Gordon also has a mortgage over some of the Steelers’ assets. WIN is exploring the debt-for-equity option. James Packer bought 37.5 per cent of the South Sydney Rabbitohs for $7.5m last year, which valued the club at $20m. If the Dragons’ valuation was on par with Souths’, Gordon’s loan could be worth 32.5 per cent of the club.
Do you think Bruce Gordon would or should buy shares in the club?
