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Steelers unanimously approve $2.6mil bailout
The deal was approved at an Extraordinary General Meeting of the Illawarra District Rugby League Club earlier this week. The club members voted unanimously in favour following a recommendation from the Steelers' nine-member board of directors.
As a result of the deal, WIN Corporation father-and-son owners Bruce and Andrew Gordon will gain a 20 percent holding in the property at 1-5 Burelli Street Wollongong, including all building, structures, car park and plant.
The deal means if the Steelers decided to sell the land or building at a future date, the Gordons would have a 20 percent stake in it.
The Steelers will now be able to clear a $2.6 million debt owed to St George.
The original debt was $8.2 million in 1999, during the early days of the St George Illawarra Dragons joint venture.
In 2006, WIN Corporation paid the bulk of the Steelers' $8.2 million debt to St George in return for a share of the Steelers' stake in the joint venture and a seat on the board.
St George retains it's 50% share in the joint venture while receiving a financial boost as the balance of the loan is finally repaid.
The Steelers club's property, plant and equipment was valued at almost $15 million, according to the 2007 financial report. The club reported a $962,169 loss in 2007.