KNIGHTS officials are considering "four or five" proposals to privatise their club and plan to present a preferred business model for members to consider before Newcastle's annual general meeting in May.
Knights chairman Rob Tew revealed yesterday the club had "targeted and approached" a number of potential investors, all of whom were interested in supporting the financially embattled club.
It is understood the Knights have spoken to individuals, consortiums and the chief executive of a listed company.
Tew said it was too early to speculate if Newcastle's board would recommend full or part privatisation to members.
A 75 per cent majority of the club's 8000 members who chose to vote would be needed to carry any such constitutional change.
"It's not necessarily so that the terminology will be exclusively privatisation," Tew said yesterday.
"It's simply ensuring that the club is capitalised appropriately.
"At the moment, we've had a variety of options put to us and no two parties have been the same."
Hamstrung by more than $2.5 million in accumulated losses and facing a potentially costly arbitration battle with the State Government that starts next week, the Knights are in arguably the most perilous financial position in their 22-year history.
Just how bad the bottom line actually is will not be determined until the arbitrator, retired High Court judge Michael McHugh, considers all evidence and reaches his verdict, which will be final and binding.
Tew said uncertainty surrounding arbitration would not necessarily deter investors.
"I must say that some of those showing an interest haven't put too much weight in the arbitration, whether it's a positive or negative outcome," Tew said.
"I'll also say that some have [expressed concern].
"You'd be right in assuming it may be a determining factor, but there are other interests that don't see it as a hurdle."
Tew would not name any of the interested parties, citing confidentiality.
But multimillionaire Nathan Tinkler has been closely involved with the Knights for several years - secretly loaning them $500,000 in 2008 - and Tew confirmed the mining and horseracing tycoon was one possible option.
"He's expressed interest in supporting the club in the past, and he has also done that recently as well," Tew said.
Tew has previously stated that any new business model would have to adhere to three criteria:
? that members retain a "meaningful input" in the club's future;
? that the club continues showing "commitment to our community"; and
? that the Knights do not "become a chattel to be bought and sold by the highest bidder at an individual owner's whim".
He said Newcastle's board of directors needed to consider whether the financial advantages of private investment would impact negatively on existing sponsorships.
"I think we need to be capitalised to a greater extent than we currently are, and the question becomes how we achieve that increase in capitalisation," he said.
"It's important that we don't press ahead with seeking a capital injection into the club on the basis that we may lose a similar amount of capital through sponsors who may or may not like the particular structure for capital investment."
Tew said it would be "ideal" to provide members with a prospectus to consider before the annual general meeting, which is scheduled for late May.
"We'll probably put an option, that we as a board believe is in the best interests of our club, forward to our members," he said.
"Our anticipation is that we put the option forward and seek approval with members to pursue it."
Asked whether the club would discuss the other proposed business models with it members, Tew replied: "Well there may not be any need to, if we believe there is an overriding best option."
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