The offer in detail

1. The Tinkler Group will:

(a) Guarantee a minimum of $10million (annually adjusted for CPI) in sponsorship revenue (in sponsorship and corporate hospitality sales) to the club each year for 10 years, ie $100million plus CPI over the next 10 years. It has been indicated by you that the current sponsorship commitments are in the order of $7million annually. As per our discussions I would like the opportunity to review the details of current contracts and sales. Tinkler Group would be pleased to provide to the Knights members an annual audit certificate that the minimum guarantee has been satisfied.

(b) As you would recall my previous offer was to invest up to $10million to buy and operate the Knights NRL licence. This offer is revised and replaced by a) above. The sponsorship guarantee being offered effectively delivers incremental revenue streams in the order of $30million plus CPI for the Knights.

(c) Provide a guarantee that the Newcastle Knights will always operate as a ‘‘not for profit’’ organisation and that 100% of surpluses will be re-invested into both the Knights and junior development programs for rugby league in the Hunter Valley.

(d) Immediately settle all of the outstanding liabilities of the Knights. You have indicated this is in the vicinity of $3million.

(e) Ensure the club has adequate working capital at all times.

2. Knights members: existing and future will have the guaranteed right to control the club’s name, colours, location and home ground. In the most unlikely event that a change to any of these heritage issues were to be proposed it is understood and agreed that a 75% vote of members will be required.

3. In the unlikely event of an insolvency of the Tinkler Group, members will have the right to buy back the Newcastle Knights for $1. Further and as per my previous offer the members will have the first right for up to 90 days to buy the Knights from the Tinkler Group in the event that the Knights are offered for an orderly sale. The purchase price for members will be no more than the total consolidated losses, if any, of the Tinkler Group from the time of purchase to the sale offer date.

4. The broad intent of the mission statement and key strategic principles as set out remain substantially the same including the intention to appoint a Knights Rugby League Advisory Board made up of a chairman (appointed by the Tinkler Group), the chairman for the Newcastle Rugby League, 2 members of the existing Knights board (to be replaced by 2 elected directors after 2 years) and an old boys representative.