By PAUL YANDALL
The New Zealand Rugby League has been given the all-clear to buy the Warriors rugby league club.
In the High Court at Hamilton yesterday, Justice Grant Hammond set aside an application to stop the sale, stating that the court had no legal reason to halt it.
Justice Hammond also ruled that the present executive of the club's owner, Tainui, could manage the tribe's affairs until new elections could be held and a new executive formed.
"I'm very happy with the decisions,'' said Kingi Porima, chairman of Tainui's executive, Tekaumarua.
"We'll get back to taking care of business now. That's the most important thing, looking after the affairs of the tribe."
Mr Porima said the executive could now proceed with its asset-realisation programme aimed at cutting Tainui's $24 million debt.
The two court decisions clear the way for the New Zealand Rugby League to proceed with buying the ailing club through its subsidiary the New Zealand Warriors Ltd.
The Warriors are in a state of near-collapse, with a tax bill close to $500,000 due next week and debts totalling nearly $8.6 million. Of the debt, $6.27 million is owed to Tainui and will be written off as a loss by the tribe.
Tainui has agreed to sell the club and its assets, including its National Rugby League franchise licence, to the NZRL for $400,000, plus an agreement for the NZRL to pay some club debts.
The NZRL has said it is prepared to inject up to $3 million to turn the Warriors around.
NZRL chairman Gerald Ryan, said he would call a board meeting to ratify a purchase and sale agreement approved last week.
"It's the best decision for Tainui, for the Warriors, and for the game in New Zealand. It's the only decision that could have been made."
Mr Ryan said he would contact his board members individually this weekend to seek endorsement for the purchase of the Warriors.
"I'd like to get it all done as quick as I can. I'm going to have to get endorsement over the phone. I'd like us to start working on sorting out the club's problems and getting it back on track by the end of the weekend.''
The NZRL had its attempt to buy the club blocked last week by Tainui's principal negotiator, Sir Robert Mahuta, who gained a court order preventing the sale from proceeding.
Sir Robert said it was a "fire-sale" and the Tainui executives who authorised it did not have the power to do so.
Justice Hammond said it was important that the issue be settled as the club was on the brink of collapse and its licence to play in the Australian-based National Rugby League risked being revoked.
He also ruled that the Tainui executives who agreed to the sale were authorised to do so and had acted in good faith and in the interests of the tribe.
"Why should the Tainui beneficiaries continue to bleed money for this franchise in the face of its current loss?
"The sale can proceed to New Zealand Warriors Ltd."
NRL chief executive David Moffett said the court result was positive for the powerful Australian-based competition.
"On the face of it, it seems to clear the way for a speedy resolution.``We've designed the draw with them [the Warriors] in mind.
"Whatever happens, we've always said that the NZRL would be well placed to play a future role in the club.''
Tainui's legal adviser, Shane Solomon, said an appeal against the decision to let the executive operate would be considered.
"The decision means that we are considered just like any other tennis club, any other incorporated society. Where does that leave us?"
He said the Warriors sale would probably proceed unopposed from within Tainui from now.
Court clears NZRL offer for Warriors
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