The Auckland Rugby League is also back at the negotiating table, and have put a new proposal to Watson and his representatives. The ARL failed to gain agreement with Watson in December but are believed to be confident they can stitch up a deal this time.
There is also a third mystery bidder in contention. Little is known about the identity of this group but they are believed to be Waikato-based businessmen who have funds from Chinese backers.
The Warriors' owners remain keen to conclude a sale in the next few weeks to minimise disruption to the club during the NRL season.
Meanwhile, Fale says his group is still considering legal action against the ARL for an alleged violation of a confidentiality agreement signed between the two.
"Our attorney here [in the US] and our legal representatives in New Zealand are still looking at our options," said Fale. "It's something we would rather not do, but it depends on the circumstances. If we sue the ARL and win, they will have to fork out a lot, which won't be good for the game.
"But they have been trying to stab us in the back and we're not in a position where we will let anyone walk all over us . . . that is not going to happen to us."
Fale says his consortium was open to partnering with the ARL to buy the Warriors, and had some preliminary discussions during which they asked the ARL to sign a non-disclosure agreement.
"We had agreed to fund the semi-professional competition they wanted, and basically said whatever you need to succeed, we will take care of it. We laid out our plan . . . we have a formula that works, a structure that works to be a championship organisation.
"Then we find out they were re-entering a bid. What had changed from before, when they were unable to acquire the Warriors, and now they have gone back directly to Eric? We find that to be extremely untrustworthy."
ARL chairman Cameron McGregor disputed Fale's claims.
"We don't see how we are in violation of anything," said McGregor. "We haven't disclosed any discussions with them and until they come up with a specific case, we don't know what they are referring to. It feels like typical American politics . . . let's get litigious. It might be scare tactics or a smokescreen."
McGregor said the ARL had not had any formal discussions with Fale's consortium and had not signed any agreements, aside from the non-disclosure agreement.
"We had a conversation with Mr Fale and ultimately we agreed we wanted different things for rugby league in New Zealand, and nothing further has come of our discussion."
McGregor also said the ARL had been gathering information on a potential bid since October, well before the Fale consortium's interest became known.
Fale remains committed to acquiring an NRL franchise and becoming the first Pacific Island owners of a professional sports team but said this episode had made his group think twice.
"If these things are acceptable in rugby league in New Zealand, then we will have to reconsider our position," said Fale.
"You can't build a legacy without alignment and support, and we would be totally setting ourselves up for failure. "
Fale also questioned the motivations of critics of his group's grand plans first outlined in the Herald on Sunday three weeks ago.
"Everyone thought the Wright brothers were crazy," said Fale. "Everyone thought Bill Gates or Steve Jobs were crazy. Anyone with new ideas always gets questioned. We have busted our arses on this one, looked at all the numbers, and we have no doubt we will succeed."
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