just been put on there too................

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Tuesday 20th October 2009

Gateshead Thunder Directors, Steven and Sarah Garside, have taken the decision to commence proceedings to wind up Gateshead & Newcastle Rugby Limited, the holding company of the professional rugby league club. This decision was reached following a long running shareholder dispute. The long standing supporters of rugby league in the North East have been unable to secure agreed funding from majority shareholder Neil McPherson. McPherson holds 60% of the shares on behalf of 3 companies, including Jensen Button Management Limited.

Steven Garside explained:

"The shareholders met 3 years ago and agreed a 3 year strategy. At that time, the third shareholder, Bill Midgley, decided to take a back seat role. However, Neil and I agreed to continue funding. We were both to invest £60k pa and it is fair to say that I have spent much more than that. Neil provided the agreed funding in Year One but I have not seen the £60k owed for each of Years Two and Three. I have met debts on an ongoing basis but it became clear at the recent shareholder meeting that the agreed funding would not be forthcoming.

It appeared that I - as only a 20% minority shareholder - was expected to meet all of the club's funding needs, whilst the major shareholder could avoid any funding commitments. That was not acceptable to me. I had hoped to find a solution with the RFL but Sarah and I have reluctantly come to the conclusion that we should pass the baton on to someone else. It is disappointing on the weekend that Jensen Button won the World Championship that the rugby league club with connections to him was facing such a troubling future.

Gateshead Thunder are already in negotiations with the RFL to secure their future and Chief Executive, Rod Findlay, is meeting with RFL representatives today (Wednesday). A "Plan B" is being worked up to build on the excellent support the local community and businesses have shown Thunder in 2009.

Findlay stated:

"First, I'd like to thank the Garsides for the support they have shown for 4 or 5 years. I am sure they will always be welcome at Thunder. I have enjoyed working with them this year and Steve has taught me so much. You have to have sympathy for the position he has found himself in - a minority shareholder but sole investor - and we should all remember the great developments we have seen since Steve and Sarah became involved.

However, Thunder has faced many challenges over its 10 year history and I am sure Thunder will come through this - perhaps a little battered and a little bruised but ready for the next challenge. I have a great staff and they have really pulled together in difficult circumstances to prepare a draft business plan to take to the RFL. My role now is to secure Thunder's future and to preserve as many jobs as possible.

I was really touched by one player e-mailing me to say that Thunder was his club and he wanted to play for us at whatever level. I won't name him to save his blushes but that is a perfect example of the loyalty this club enjoys. 2010 might not be the season we were preparing for but we will be on the starting line, I am confident."

Gateshead Thunder will make a further announcement once its business plan has been approved by the RFL

Kick em out I say

THe RFL will bail them out no worries

Its another club who cant apply for the next round of SL licences though

And the relevance to leigh is ?

None

IF they and Oldham fold how can the RFL justify two leagues?
far better having two 'conference' type leagues, and then the grand final would mean something.

The RFL need to look seriously at the funding they are providing to clubs below SL if clubs are to survive

if oldham fold the exspantionists will love it [please excuse mi spellin]

It will be a 'good' contrast if they 'save' one and let the other go to the wall.