League: Club looks for a wealthy White Knight

Warriors owner Eric Watson is unlikely to respond to the interest the Newcastle Knights are showing in him as a financial saviour.

Why would he want to buy another under-performing, under-capitalised headache?

The Knights have no major jersey sponsor and interest is limited after the rampage some of their players went on in a girls' dormitory pre-season.

They have been struggling for sponsorship and money is the reason key players such as internationals Ben Kennedy (Manly) and Timana Tahu (Eels) left.

The club's latest strategy is privatisation and this weekend the Knights board will seek advice from Warriors chief executive Mick Watson on how to go about making money, as the Warriors do.

The Warriors and the Brisbane Broncos, both privately owned, are the only clubs in the Australian premiership that do not lose money.

All 15 clubs get a A$3.25 million ($3.48 million) grant from the NRL's sale of television rights, which covers the salary cap of the top squad of 25.

Most clubs require a budget of A$10 million and rely on gate takings, marketing, sponsorship and, in the case of the Sydney clubs, grants from the poker machines at associated leagues clubs.

These grants are about to be slashed thanks to a new gambling tax imposed in New South Wales.

Knights captain Andrew Johns has been among those calling for an injection of funds. The Knights were suffering from the club's refusal to seek new investment, he said.

"We are losing players every year. It's no secret we are running on a shoestring. The players suffer for it."

Coach Michael Hagan has also admitted that the club's precarious financial position is of concern.

Of course, it has to be remembered that these are the same men who just recently paid and accepted an over-the-odds wage.

Long-serving Knights chairman Michael Hill, who was always opposed to privatisation, has changed his mind. The new chairman, Mike Tyler, said this week that the club would take a responsible approach by keeping an open mind regarding the future structure.

He assured supporters that the club was a strong and viable organisation focused on securing a naming rights sponsor, launching the new stadium and allowing a new board to put strategies in place for the future.

"It is of course incumbent upon us to do everything in our power to build on the financial strength of the club," Tyler said.

"It is also incumbent upon us, however, to bear in mind the structural and cultural imperatives that have made this club what it is today.

"It is this structure that has delivered the club two premierships and 14 Australian representatives in 18 years," he said.

Then some massage for the blue-collars. "We also need to remember that a large portion of our support is derived from the strong relationship between ourselves and the Hunter community. We must respect the rights of that community.

"Despite the fact there was no significant support for privatisation from any board members, it is our intention to consider all options in a careful and structured manner," Tyler said. "I would not expect that the committee will be in a position to report to the board before six months' time."

A lot of noise has been made - but Eric Watson's not making it.