Newcastle may become a community-owned club by 2018 if supporters buy into the Knights under a share offering based on the models of international sporting giants Green Bay Packers and FC Barcelona.
Seven Newcastle businessmen on Saturday launched Our Knights, One Chance, a proposal to hand fans control of the NRL club. The initiative seeks to raise a minimum of $15 million by selling shares for $500 each, with the maximum stake capped at 4 per cent for individuals or companies.
The NRL is in possession of the Knights in a caretaker capacity after Nathan Tinkler's ownership unravelled in spectacular fashion. The governing body has stated its intention to sell off the wooden spooners at the appropriate time, but those negotiations have been put on the backburner as they battle with clubs over the new funding agreement.
Former Knights chairman Rob Tew, one of the chief facilitators of the ambitious project, believes the community can provide a sustainable model for the club's future.
"The scale of cost involved in professional sporting clubs around the world has increased awareness that, if the community is not invested, it's extremely difficult to function long term," said Tew, a Knights life member.
"We now have the governing body in charge and ... that can't continue long term.
"Historically, we have a footprint here that goes from the Hawkesbury River to Coffs Harbour and the New England tableland.
"There are 1.5 million [people] in that catchment and we believe that's a sufficient catchment number to support an NRL club.
"[Raising $15 million] is the minimum, the optimum is $20 million.
"Green Bay Packers had a 4 per cent cap, which we have drawn on. We've also looked at a number of other [models], such as FC Barcelona."
All funds raised will be held in a trust account and the money will be returned to shareholders if sufficient funds are raised. If the club is trading profitably after three years, it is predicted there will be a surplus of up to $7.5 million available.
Tew believes it will be evident if there is the community support required by February and he hopes to work with the NRL to achieve the goal. If all goes to plan, the ownership model will be in place before the start of the 2018 season.
The Knights have won back-to-back wooden spoons and won just one game in 2016. The Wests Group has long been mooted as a potential owner, although the latest development may change the landscape.
The Western Force last month launched a similar community ownership model in a bid to bring financial sustainability to the Super Rugby franchise.
