Former Newcastle chief executive Steve Burraston is adamant the club is worse off for Nathan Tinkler's involvement and has called for a total cleanout of management in any new ownership structure.
Tinkler's troubled tenure as Knights owner finished on Friday, ending the reign of the controversial Hunter Sports Group. Given coach Wayne Bennett – linked to a return to Brisbane or St George Illawarra – was contracted to the entity, there are fears he may not see out the remaining 18 months of his tenure.
In his outgoing statement, Tinkler boasted the annual spend on football operations was more than $3 million above that of the average club. But it hasn't resulted in improved on-field results, while there are reports the Knights' liabilities could be as high as $20 million.
Burraston, the CEO from 2007 to 2011, was much maligned for insisting on due diligence on Tinkler before handing over control of the club. Along with then-chairman Rob Tew, Burraston insisted on a number of safeguards, most notably the $10 million bank guarantee and the ability for the members to buy back the club for one dollar.
The long-serving administrator, who was axed when Tinkler gained control, denied the mining magnate's assertion the club was $7 million in the red when he left.
Asked if the club was in a worse state following Tinkler's involvement, Burraston said: "Undoubtedly. You hear the reports – $10 million, $17 million, $18 million and $20 million debt. What it is, I don't know, I don't have access to their accounts.
"In Nathan's press release he said it was somewhere short of the $10 million that's in the bank guarantee, but to me that indicates that it's several million dollars.
"I would say it is well above the $2.5 million when we went out. And the problem is the $2.5 million we had was accumulated over 21-22 years, a loss of about $100,000 a year.
"You're talking three years here that some people are reporting it as $20 million. That's $6.5 million a year at a time when you're getting extra grants from the NRL. Those losses are hard to understand, how you would rack up that much debt in such a short period of time?"
Burraston said any new ownership structure, which he believed would benefit from the involvement of the Wests Group, must not include the existing management.
"You can't say they've been successful. The on-field performance has not been good and the off-field performance has been worse," he said.
"There is a need for a new management structure. You don't have to be Einstein to work out they haven't got much experience and expertise in the areas of business or sporting club management.
"I think it needs a new management structure from [HSG CEO] Troy Palmer right down to its executive management in the club."
Asked if that included removing CEO Matt Gidley and chairman Paul Harragon, Burraston said: "I would say so, yes."
The Newcastle community have long identified with their rugby league team but Burraston said the constant dramas under Tinkler had eroded the bond.
"It is very sad, you want to see the club be strong," he said. "The on-field performance is what we all do it for and at the end of the day that's been pretty woeful. With the coach and the number of players that have been brought to the club.
"There's been a lot of money spent on that team which has performed worse than when Rick Stone was there, before I left.
"That's not good enough. And when you go from one controversy to another, not being able to pay bills and seeing headlines in the paper every week, getting extensions for deadlines, staff and players not being paid, it's just disgraceful how the brand has been hurt.
"There has been a huge disconnect with the Newcastle community, that's shown in sponsorship and the crowds each week. It's probably hurting them in merchandising and corporates sales. You used to see the Knights out in the community doing things all the time – you don't see that very often these days. Because of all the poor publicity and the poor performance on the field under the Tinkler group's reign, the community has lost touch with the Newcastle Knights. Hopefully that can be mended again."
Newcastle legend Tony Butterfield, a former chief executive of the Rugby League Players' Association, hoped the Knights could settle on a new ownership model quickly.
"The Hunter community have enough talented people to look after their own affairs, but if the NRL have a role to play financially they may insist on having oversight there [as independent directors]," he said.
Tinkler's dramas at the Knights have raised fears that similar problems could occur with the other sporting club he owns in the region, the Newcastle Jets.
“FFA has discussed the situation with the Newcastle Jets management this week and we have been given an update on the club’s off-season plans," said an FFA spokesperson.
“The Jets are planning their 2014/15 roster under a new head coach Phil Stubbins and the club is well-advanced with the membership campaign for Season 10.
"However, FFA is not in a position to comment about Hunter Sports Group’s business interests and dealings outside of football.
“FFA can reaffirm its commitment to Newcastle’s place in the Hyundai A-League for Season 10 and beyond.”
Read more: http://www.smh.com.au/rugby-league/leag ... z32gdnlRgM
"In his outgoing statement, Tinkler boasted the annual spend on football operations was more than $3 million"
those League clubs are on the big bucks for sure
liar extraordinaire 
thats just over 1/3 or what small afl teams run on 
