Knights board approves $100m buyout

The Newcastle Knights board have cleared the way for a proposed $100 million takeover by mining magnate Nathan Tinkler, giving an in-principal approval of the plan.

Knights members will have the chance to vote on the buyout plan within the next couple of months.

Tinkler, who took over the Newcastle Jets A-League club this year, has offered to guarantee the club $10m a year for the next 10 years, wiping out $4m in debt in the process.

The Knights currently raise $7m a year in sponsorship but have constantly struggled to break even financially.

The club had rejected a $10m offer from Tinkler two months ago.