Sage shocked as Perth Glory receivers grab more of his empire

Receivers tasked with finding a new owner for embattled A-League soccer club Perth Glory have taken control of more of former owner Tony Sage’s personal flagship empire and its assets, fuelling mounting speculation a sale deal won’t cover the club’s debts.

The club’s receivers KordaMentha were appointed controllers of Sage’s company Okewood Pty Ltd and its shareholding in a host of entities on Tuesday, according to documents obtained by this masthead.

Hoping for NASDAQ glory ... European Lithium executive chairman Tony Sage.Credit: Getty Images

Those assets included its stake in Sage’s other business ventures, including ASX-listed resources hopeful European Lithium, exploration company Cyclone Metals Limited, and emerging copper miner CuFe Limited.

Based on Wednesday’s closing price, Okewood’s shareholding in the companies would be worth at least $2.7 million.

It’s not yet clear why the appointment over additional assets was made, but sources close to the process suspect it may indicate a deal is imminent, and its price tag may not enough to cover the club’s debts.

KordaMentha’s Andrew Knight remained tight-lipped on Thursday morning, declining to be drawn on the reason for the newly configured appointment or whether a deal had been reached.

Sage, who is currently in New York, told this masthead he was shocked by the move and insisted it would have no impact on the public companies he chaired.

And the WA businessman, who has long pinned the club’s recent financial woes on interruptions caused by renovations to its home stadium that forced its relocation, took a shot at the state government for its alleged role in the Glory’s fall from grace.

“It comes as an absolute shock that [the receivers] would do this without giving me any prior warning,” he said.

“As I said many times before, all I ever did was love the world game and, of course, Perth Glory.

“The WA government’s decision not to pay fair and proper compensation was the catalyst for all of this.

“I am committed to working with the APL to resolve any outstanding issues.

“This has absolutely no impact on any of the public companies I am chairman of, as Okewood is only a small shareholder in all of them.”

KordaMentha has been on the hunt for a new buyer since November, when this masthead revealed the termination of the sale to Melbourne property mogul Robert Brij’s Primeland Group-led consortium.

The appointment comes just six months after the club’s governing body, Australian Professional Leagues, slapped Okewood with the breach notice that saw Sage relinquish the Perth Glory license in July 2023.

The APL originally handed receivers control of just the slice of Okewood’s assets that pertained to the club, amid revelations it had been bankrolling its player and staff wages for five months.

A receiver’s report later revealed it did so to the tune of $4.4 million, making it the entity’s second-largest creditor behind Okewood itself – which claims to have loaned the club $33 million.

The diversified holding company also has an extensive property portfolio consisting of four apartments in West Leederville and a two-floor West Perth penthouse that is on the market for $9.75 million.

The residential property assets are not understood to be affected by the latest appointment.

The move coincided with European Lithium entering a trading halt ahead of a ballot for its proposed merger with NASDAQ’s Sizzle Acquisition Corp to form Critical Metals, a deal that was tipped to net executive chair Sage a windfall.

It also comes just two months after KordaMentha and the APL were slapped with subpoenas for documents canvassing Okewood’s finances with the Supreme Court’s approval in an ongoing bid by creditor Kakka Enterprises to have the company liquidated.

Kakka, which is spearheaded by Perth businessman Kenneth Keogh, brother of former striker Andy Keogh, claims the entity is insolvent and wants to be paid out for its 3.3 per cent stake in the club.

Sage has repeatedly denied claims the club is insolvent and has previously insisted Keogh would be paid following the execution of a sale deal.

MPH insolvency specialist Dan Butler, who is representing Kakka, told this masthead the chain of events had been “somewhat unorthodox”, but he had no doubt there was a logical explanation that would come to light in due course.

“As is common with lenders, the APL was entitled to and did take a ‘general’ security interest and, as such, it had the right to step in and take control of the whole of Okewood’s assets to recover its debt,” he said.

“Initially, it chose only to take control over Perth Glory and the licence itself [by appointing receivers].

“Given that it was in a position of having ultimate control over the A-League football licence that it was funding, one might assume it had a pretty clear understanding of what that asset was worth as against what APL was owed and, specifically, whether it was going to be repaid from the sale process.

“As it turns out, it would appear that it may have misjudged the calculus here as it is now enforcing against other assets of Okewood to pay back what it is now owed — which after nine months of receivership will include other costs and expenses.”

The APL had originally claimed licenses issued for its expansion last year could sell for $25 million.

But sources close to the deal raised questions about whether the Glory could attract such an offer, suggesting it would need a sustainable entity with deep pockets capable of ongoing multimillion-dollar investment.

The APL has been contacted for comment.

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