Doctors chase Knights and Jets over debts
JUST a year ago, Nathan Tinkler was flying high after his stunning coup to save the financially embattled Newcastle Knights and Jets.
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It catapulted the self-made mining magnate and racing tycoon to hero status in the Hunter.
But now the region’s flagship sporting clubs are embroiled in a debt dispute with creditors chasing outstanding bills, some almost a year old. Medical providers, tasked with keeping the players on the pitch, have joined a growing list of businesses chasing money from Tinkler’s Hunter-based companies.
Fed up, businesses came to the Newcastle Herald, some to say they had to employ debt collectors to try to extract money from the Knights and Jets for unpaid bills.
One medical provider has refused to see players without payment up front, and another began billing players direct, due to continued difficulty getting payment from the clubs.
Phone calls, emails and letters to the clubs and Hunter Sports Group requesting payment for outstanding medical bills are regularly ignored.
“We don’t have these kinds of problem with other patients. It’s absolutely unbelievable,” a doctor said.
Other team suppliers and contractors joined the list of debtors, with several saying they had not been paid for at least six months.
Mr Tinkler’s Sydney-based public relations spokesman declined to answer questions the Herald submitted yesterday, instead providing a statement from Hunter Sports Group chief executive Troy Palmer (see below for the full statement).
More than 60 business owners from Scone to Queensland have spoken to the Herald in the past three weeks detailing difficulty getting paid for work, goods or services supplied to Tinkler-backed companies including Bolkm, Buildev, Patinack Farm and Hunter Sports Group.
Debts range from a few hundred dollars to almost $200,000.
Many have declined to be named because they fear never being paid, and the medical providers expressed concern about players’ privacy.
Following the Herald’s interest in the issue, some creditors have received payment in full and others in part.
One Hunter Sports Group supplier said it had received advice from its accountant to stop work if payment was not received in the next week.
“We are basically working for free at the moment,’’ the business owner said. ‘‘It’s been going on for months and we just can’t keep doing it.
“When Con [Constantine] had the Jets it was bad enough trying to get payment, but at least he tried to pay his bills. It’s worse just simply being ignored by them now.”
Others said they had sent final letters of demand to the Knights for outstanding bills, but received no response.
Some have been successful in using the threat of withholding crucial services to force the clubs to pay, but said subsequent bills were ignored.
“We thought when Tinkler took over the clubs there would be no problems but the situation is out of hand,” a supplier said.
“The debt is affecting our ability to pay our creditors and it’s climbing all the time.”
In an open letter to Knights fans published in the Herald last year, Tinkler wrote: “We have listened to previous concerns, and now we can provide a full decade of financial security. This will be underpinned by a sustainable financial and business model.
‘‘Additional working capital will be provided if required.’’
The Herald reported earlier this month that Hunter Sports Group is locked in a dispute with the state government over debts at Hunter Stadium.
The debts, which neither side will reveal, have been a sticking point in the drawn-out negotiations for a new 10-year access agreement for the venue.
It is understood that up to $30,000 in outstanding strata fees is owed by Tinkler’s company Boardwalk Investments for offices at The Boardwalk, Honeysuckle.
Lake Group Strata office manager Brad Gribble said due to privacy restrictions he was unable to comment on the matter.
Residents told the Herald a meeting was scheduled for September 10 to discuss possible legal action.
A spokesman for Newcastle businessman Stephen Forgacs confirmed this week he was locked in a legal battle with a Tinkler-linked company over the possible sale of Mr Forgacs’s heliport site at Steel River.
HSG says it has no cash-flow problems
By Troy Palmer, CEO of the Hunter Sports Group
I CAN assure you there are no cash-flow concerns at HSG. All suppliers are being paid, will continue to be paid and will always be paid.
It is disappointing that the Herald continues to drive this smear campaign against Nathan all because the Knights and the Jets have introduced a professional media policy which does not allow the Herald to run the agendas of both clubs.
This policy was requested by the players as they have no trust in the integrity of the journalists at the Newcastle Herald.
We are constantly reviewing our budgets, just as other organisations, particularly the Herald and its parent Fairfax [Media], are doing at the moment – but not as dramatically. Nathan Tinkler and HSG employs over 500 people, with most of them living in the Hunter Region. A huge benefit to the local community.
It was Nathan Tinkler and his HSG that saved the Jets when the FFA was going to pull the licence from Newcastle. It was Nathan and HSG who saved the Knights when the ATO and other creditors were going to wind up the Knights. In saving the town’s two main sporting teams he has so far spent in excess of $20million.
Newcastle Herald statement
By Chad Watson, Editor
THE Newcastle Herald stands by the integrity of its award-winning team of journalists.
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This newspaper has a long and proven record of championing the interests and issues of the Hunter and its communities.
We stand up for our region and our readers, providing a voice for their concerns.
The Herald has been a proud supporter of the Newcastle Knights and Jets since their inception, celebrating their successes and lamenting their losses.
Originally Posted by Pico
