A KEY plank in North Melbourne's survival strategy — the investments reaped from three wealthy "white knights" — is being threatened by the messy shareholder issue, the club has told its members.
North Melbourne chairman James Brayshaw told the club's annual general meeting on Monday night that his new regime had delivered on five of the six pledges he made when assuming control of the club after it rejected a Gold Coast relocation.
Brayshaw told the members that the three wealthy backers he had recruited would not commit funds — $2 million each, which would go into an investment fund for ongoing returns — unless the Kangaroos became a member-based, rather than shareholder-run club.
The AFL will not agree to provide special assistance to the club, in the form of the $1.4 million annual special assistance, unless North Melbourne dissolves its shareholding and returns the club to members.
It is believed that the wealthy backers will not commit their money unless the AFL's support also is assured.
Brayshaw told the meeting that North had delivered on five of the six pledges made when his group, committed to a future in Melbourne, assumed control of the club. The five pledges Brayshaw said he had fulfilled were:
1. To ensure the right corporate governance and structure at board level. The meeting on Monday night ratified the election of the new board, which includes chairman Brayshaw, his brother Mark, Denis Pagan, Ron Joseph and four shareholder-elected directors.
Whereas the old board of directors favoured the Gold Coast option, the new board was united in its preference for a Melbourne-based future.
2. To hire a new management team, headed by a top chief executive. As Brayshaw pointed out, the club has hired Eugene Arocca, the former commercial operations head at Collingwood.
3. A new major sponsor. Brayshaw's board has delivered Vodafone as its top sponsor.
4. Increase the second-tier sponsorship. North has signed three mid-tier sponsors, home loan company Astute, ASG, and the Aspen Property Group, which sponsors the coach Dean Laidley.
5. To increase the membership to more than 26,000. The Roos now have about 29,000 members and hope to soon break the 30,000 barrier — a remarkable feat for a club that has arguably the smallest supporter base.
In response to questions from members, shareholder-elected directors Stephen Head and Fulvia Inserra pledged that they would hand back their shares.
The shareholder issue has been the major stumbling block to the new administration, greatly frustrating Arocca's plans to build a much stronger commercial operation.
While the three major shareholders, ex-director and benefactor Peter de Rauch, ex-chairman Peter McGowan and former chairman Bob Ansett have agreed to hand back their shares, some smaller shareholders have not yet made the same commitment. Influential former board member and ex-player Mark Dawson has been negotiating on behalf of those shareholders.
One of the most tangible signs of the club's improved financial position, despite its debt of more than $4 million, has been the near-doubling in reserve seats sales, from a pitiful 3800 last year to more than 6000 already this year.
