Former Snakes president challenges proposed privatisation process
A dispute over who can approve the sale of the Cairns Taipans has emerged with club stalwarts arguing that foundation members have the final sign-off on a prospective buyer.
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A dispute over who can approve the sale of the Cairns Taipans has emerged with a former president arguing that foundation members have to sign-off on a prospective buyer.
But the club has claimed that under its constitution the Snakes’ board will have the final say on a shift to private ownership.
The Taipans held a town hall meeting at the Pullman Hotel on Thursday night, fielding questions from more than 100 fans in attendance.
While a sale hasn’t been finalised, club president Troy Stone confirmed the team was negotiating with prospective suitors from across the globe.
“Yes, we are speaking with people, various parties, Australian based, overseas,” Mr Stone said at the 90-minute meeting.
“Anybody can show interest in purchasing the Taipans and put an offer forward.”
Under the not-for-profit club’s model, the Taipans’ board members would vote on whether a new owner could take over the team.
“My understanding is that under the constitution that would be a decision for the board,” the Taipans’ lawyer Peter O’Connor said.
“I would expect there would be a consultation process. Having looked at it, it would be the board.”
But the club’s former top boss Denis Donaghy said the team’s foundation members, those that helped buy the team’s NBL licence with a $5000 donation when the club went into receivership in 2009, were entitled to weigh in on the buyer.
“My understanding is that the majority of foundation members would need to approve it but that isn’t what was said at the meeting,” Mr Donaghy, who left the club in 2011, said.
“I think they were testing the water to see what the reaction to a potential sale would be.”
Mr Donaghy led the drive for donations in 2009.
“There’s a feeling that if the right owner came in … and said, ‘OK. I’m going to make us perennial title contenders’ I think the town would be happy with that,” he said. “But it’s a bit of a secret at the moment.”
Privatisation was the only way to remain competitive long-term in the NBL, Mr Stone said.
“We’ve got other clubs out there spending probably more than double what we’re spending on our roster and they’re losing multiple millions of dollars,” he said.
“And that’s their choice to do as a private owner, how much they want to invest and how much they are prepared to lose in a year to have success with their team.
“We don’t have that luxury in our club model. We can spend what we’ve got and what our sponsors and members generously spend with us each year to try and be as competitive as we possibly can.”
NBL CEO David Stephenson said 34 clubs had competed in the league since its inception in 1979.
“In the last 10 years we haven’t lost any clubs,” Mr Stephenson said.
“And that was a commitment we made, is that we won’t see any clubs go because it’s really important for us. The fan connection is important.”
The Taipans refused to allow the town hall event to be filmed or photographed by media in attendance.
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Originally published as Former Snakes president challenges proposed privatisation process
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