By VANESSA BIDOIS Maori issues reporter
Tainui wants to sell its entire share of the struggling Warriors rugby league club as the tribe shuts down a deal brokered by iwi kingpin Sir Robert Mahuta.
Financial adviser Michael Stiassny, a member of the strategy committee set up to solve the Waikato tribe's money woes, last night said Tainui would make a "full exit" from the Warriors if the price was right.
Sir Robert has been stripped of his corporate powers by the tribal executive, Tekaumarua, but has continued to try to sell the underperforming Auckland team.
According to Mr Stiassny, Sir Robert has no authority to broker any deals regarding tribal assets, although it was discovered that he was negotiating with a consortium called The Yes Group.
The strategy committee has decided to pull the plug on that sale "in light of the fact that Tainui has to put in a lot of money and gets no money back."
The tribe has already spent $6.5 million on a two-thirds share of the Warriors while fellow owners Malcolm Boyle and Graham Lowe put up just $100,000 between them.
Under the deal with The Yes Group, the tribe would have had to inject a "significant" amount of money into the club for a 25 per cent stake, Mr Stiassny said.
It would have received no cash for the sale but would still have been required to fund future advances.
Mr Stiassny said ownership wrangles were unfortunate for the team but the result would be stability.
"My understanding is that there were some payments due to staff today and they have been met."
Sir Robert and Tainui's legal adviser, Shane Solomon, yesterday did not respond to Herald inquiries.
Mr Boyle last night said he was surprised by Tainui's decision, and both he and Mr Lowe would reconsider their positions.
"We will be doing what's in the best interests of the club and if it means talking to a potential purchaser, then we will do that," Mr Boyle said.
The acting chairman of the Tekaumarua, Kingi Porima, said he was buoyed by a meeting of the new-look strategy committee in Auckland yesterday.
Sir Robert and senior tribal manager Niwa Nuri have been replaced by Tekaumarua members Lisa Ferguson and Hemi Rau.
Mr Porima said the running of the tribe would no longer be a "one-man band."
"Everyone's got to participate because it helps to develop continuity in leadership - something that's been missing."
Mahuta deal axed as tribe seeks cash sale for team
AdvertisementAdvertise with NZME.