Businessman Peter
Holmes a Court and actor Russell Crowe could become the majority owners of South Sydney
Football Club
when they table a proposal that asks the club’s
members to approve
privatisation.
Under
the deal, Holmes a Court and Crowe
will gain 75% ownership of the Football Club. Members
will own the other 25% of shares and
would have veto power on issues
relating to the team’s colours, Iogo and location. This would provide a safeguard to ensure the Rabbitohs aren’t
relocated and that the,club is managed in accordance to its traditions.
If the proposal
is accepted the South Sydney Football team is unlikely, to play NRL games at Redfern Oval. Holmes a Court is against
playing there because the stadium’s
capacity would be only 12,000 people. His
position on Redfern Oval has created tension between himself and Leagues Club president George Piggins.
When asked about the Holmes a Court proposal, Piggins said, “It all depends on
how Holmes a Court wants- to help South Sydney. What I’ve asked is that he agrees South Sydney should go back to Redfern Oval. If we don’t fight
for Redfern Oval-then there won’t be
a Football Club.”
Piggins is rallying public support against Sydney City Lord Mayor Clover Moore because she does not support his redevelopment plan for Redfern Oval. He wants the
Rabbitohs to play a handful of games there but his application has been rejected by City of Sydney Council.
Moore has,
however, agreed to build a professional-level
training ground for the Football Club
at Redfern Oval.
Holmes a Court said,
“City of Sydney Council wants to give the Rabbitohs a
first class training facility and
that’s the best outcome for the Football Club. I do not
believe in the commercial viability of
playing NRL games at Redfern Oval.
When I go to the football, the first
two things I want are a seat and a
beer. Redfern Oval would be a dry ground
(no alcohol licence) with only 1000 seats and no corporate boxes.
“If Souths win
more than three matches at the start of the
season, then you can expect 20,000 people at the games. Why would the
Football Club ever consider locking itself
into a football stadium for NRL matches that it hopefully won’t fit into?
Piggins disagrees
with Holmes a Court’s assessment. “You’re
always going, to have your good and
bad games. At Aussie Stadium if we
get under 8000 you lose money. We’re
better off financially playing at Redfern Oval.
It’s since we moved from Redfern that we’ve
gone downhill,” he said.
The difference of
opinion between
Piggins and Holmes a Court
could be a significant hurdle to South
Sydney Football Club becoming
successful on and off the field.
Holmes a Court wants to restructure
the Leagues Club so it will be
financially viable and able to fund
the Football Club with money from increased revenues and through the
rental income generated by properties
that it owns. The proposal, however, is unlikely to go ahead unless Piggins gives his support to the
deal.
Piggins and Holmes a
Court met recently to discuss
the future of South Sydney and both parties described
the talks as promising. Key components of
Holmes a Court’s proposal for
the Leagues’ Club include that he
and Crowe will underwrite the $7.5 million dollars
of debt accumulated by the Leagues Club. The pair would then invest a
further $3 million dollars through renovations. This plan will likely to be
improved on because former tennis player
John Alexander has also expressed an interest
in investing with the Leagues Club.
Holmes a Court
said he thinks a deal can be
brokered with the Leagues Club. “I’d be surprised if the Leagues Club resisted
the opportunity to use their assets to support the Football Club. We’ve all got the same goal, which is to help the
Football Club, and we’ll get beyond the Redfern Oval issue,” he
said.
Football Club chairman,
Nick Pappas, said, “Peter’s
position on Redfern Oval makes it harder for him to achieve his proposal. He can’t do
it without the support of the Leagues Club members. It would also help
to have the support of the board”.
Pappas expects there will be a
bid to privatise South Sydney Football Club even if Holmes a Court isn’t
able to work out a deal with the Leagues Club. He said, “Peter
Holmes a Court is a very valued supporter of the Football Club who has already
contributed significantly to the club in
terms of sponsorship. South Sydney
always wanted to attract the big business side of town, now that they want to
be involved we need to accommodate them.”