Eleven weeks after the Newcastle Herald exclusively revealed Nathan Tinkler’s reign was in jeopardy because of his failure to extend a $10.52million bank guarantee, the process of removing Hunter Sports Group from control has been finalised.

The agreement was reached after extensive negotiations between the former owners and the Knights Members Club, which will hold a 20 per cent minority interest under the new structure, and the NRL.

The club’s assets have been transferred to new entity Knights Rugby League Pty Ltd.

Matthew Gidley (CEO) and Paul Harragon (Chairman) will continue their roles and will be supported by an NRL management team.

The future of coach Wayne Bennett is secure at least until new shareholders are brought in.

HSG, headed by Troy Palmer, will have no further input to the club.

‘‘The Knights will continue to be Newcastle through and through,” Smith said at a press conference at Hunter Stadium on Saturday.

“The team will look the same, they will continue to be based in Newcastle and they will represent this region proudly like they have for the last 26 years.

‘‘It’s about Newcastle, it is about the community of Newcastle, and we are going to make that community connection stronger not weaker.

“The difference is that, financially, they will be one of the top tier clubs in the competition.”

After Tinkler couldn’t renew the bank guarantee, the Knights Members club accessed the $10.52 from last year.

Half of that ‘‘nest egg’’ has been used to pay HSG’s existing staff and supplier debts, leaving $5.1 million to capitalise the club.

‘‘The uncertainty is gone,’’ Smith said.

‘‘We have secured the long-term future for the Newcastle Knights.

‘‘The balance sheet and the structural position of the Knights could not be stronger.’’

Smith said negotiations had been ‘‘very complex’’ but they had ended up in the ‘‘best place for the Newcastle Knights’’.

A new board will be formed, comprised of one community representative nominated by the Members Club, two shareholder representatives initially from the NRL, and four independent directors.

‘‘The NRL as the governing body doesn’t want to run football clubs, but where necessary, where it is the appropriate thing to do to protect the long-term future of a great club like the Newcastle Knights, we will clearly step in.

‘‘The next step will be to stabilise the club, we are not in a hurry, it is a very well capitalised club, then to think about the ownership structure of the club.

‘‘I cannot reinterate enough though, that this is about Newcastle, the people of Newcastle and the proud history of this club.

‘‘There will always be a community representative on this board. It is part and parcel of the board.

‘‘What we hope is that the board is completely populated by directors from the Hunter.

‘‘That is going to be subject to people wanting to come on the board with the right skills.

‘‘It will be a Newcastle/Hunter board designed to take the club forward.

‘‘I hope the shareholder of the future is Newcastle/Hunter based.’’

The NRL has been in discussion with Wests League about their potential to become shareholders.

‘‘We want to bring in anew ownership structure with the right owners, who want a working partnership and have the same objectives as us,’’ he said.

‘‘Obliviously we will be very happy to continue talking with Wests.

Members Club director Allan McKeown said other options were considered but the final choice was aimed at securing the club’s future.

“While there were a range of options available to the Members Club we wanted to end the uncertainty surrounding the Knights and give the players, staff, fans and members a strong future,” he said.

Gidley said the agreement was a chance for a ‘‘fresh strong start’’.

Smith paid tribute to the Members Club for their diligence and co-operation.

‘‘They have done a terrific job,’’ Smith said.

‘‘They have negotiated in good faith so that we get the right outcome in the best interests of the club.’’

‘‘I take my hat off to everybody who has been involved in these talks.’’

Palmer said the company was proud of its legacy at the Knights.

“We have invested more than $20 million and the Knights now have a stable building platform which is reflected in the world class training and coaching structure from the NRL down through the elite junior programs.’’

By MATT CARR

The NRL has officially taken control of the Newcastle Knights.

In a rescheduled announcement on Saturday morning, NRL chief executive Dave Smith said the move would offer certainty players, fans and sponsors were seeking.

The Knights will continue to play out of Newcastle with their traditional jersey and logo.

“The Knights will continue to be Newcastle through and through,” Mr Smith said in a statement on the Knights' website.

“The team will look the same, they will continue to be based in Newcastle and they will represent this region proudly like they have for the last 26 years."

“The difference is that, financially, they will be one of the top tier clubs in the competition.”

The agreement follows talks between former owner Nathan Tinkler's Hunter Sports Group, the NRL and the Newcastle Knights Members Clubs.

The club's assets have been transferred to new entity Knights Rugby League Pty Ltd, which the Members Club will hold a 20 per cent stake in.

Mr Smith said keeping the Knights competitive was always the goal of the discussions and thanked HSG for their contribution to the club.

“Our first objective was to resolve the ownership dispute in the interests of the Newcastle Knights, their players, staff, sponsors, members and fans – and that has been achieved,” Mr Smith said.

“Our next task is to stabilise the business and, when the time is right, we will consider appropriate longer term ownership options for the business to position it for the future.”

The new Knights board will comprise seven members, including one community representative initially nominated by the Members Club.

Two shareholder representatives from the NRL will also be on the board, with another four independent directors.

The $10.52 million bank guarantee will be used to pay Hunter Sports Group's existing employee and supplier debts and to provide $5.1 million to the new club.

The arrangements will also fund ligitation between the Members Club and promoters Rock City.

No changes will be made to the Knights' business for the rest of the 2014 season, Mr Smith said. 

Knights chief exeuctive Matt Gidley said he was pleased with the result.

“We now have an opportunity for a fresh strong start and that will be welcomed by our proud rugby league community,” he said.

Members Club director Allan McKeown said other options were considered but the Members Club, but the final choice was aimed at securing the club's future.

“While there were a range of options available to the Members Club we wanted to end the uncertainty surrounding the Knights and give the players, staff, fans and members a strong future,” he said.

Hunter Sports Group chief executive Tory Palmer said the company was proud of its legacy at the Knights.

“We have invested more than $20 million and the Knights now have a stable building platform which is reflected in the world class training and coaching structure from the NRL down through the elite junior programs.

“We will continue our involvement as a major sponsor for the next five years and  support the Knights from the sidelines.”

Check back here for updates, tweets, photos and video from the press conference as soon as they become available.