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Knights Members Club chairman Nick Dan will argue Nathan Tinkler's ongoing financial dramas are causing the Newcastle 'brand' widespread damage when his group confronts the mining magnate's people on Monday night.
KMC directors will meet with Hunter Sports Group's chief executive Troy Palmer to discuss Tinkler's ownership of the club amid an attempt from the Australian Taxation Office to wind up the Knights and Newcastle Jets over an outstanding $2.7m debt.
The reclusive tycoon is also being chased for money on several other fronts, including a $600,000 bill from the NSW Government for use of Hunter Stadium.
But Palmer insists Tinkler will not hand back control of the NRL club to the KMC and that all monies owed will be paid in the immediate future.
While recognising Tinkler's takeover of the club had resulted in an increase in memberships and better training and playing facilities, Dan is concerned the millionaire's financial woes are impacting on the club's reputation and long-term health.
"Yes, we're very happy with the way memberships have increased and the money spent on facilities but we've got look more broadly at the brand and how it's going in the area," Dan told Sky Sports Radio on Monday.
"I do firmly believe creditors need to be paid in a timely manner.
"There are a lot of small business people (affected) ... anybody who's done their work deserves to be paid.
"It (HSG's business operations) does need some improvement. Troy has said they could have done some things better and that's how I look at it too."
KMC are now awaiting the outcome of an independent audit into HSG's finances to ascertain whether Tinkler had met all obligations outlined in the original takeover document.
"The auditors started looking at the bookwork last week and they have to look at three milestones: that the sponsorship level for the year reached $10m, (junior) development payments of $2.5m (had been made) and confirm the ($20m) bank guarantee is still in place," Dan said.
"That's why we've got the auditors going in to have a look at things because we're not privy to the movements."
There are fears the $20m bank guarantee could drop to $10m if KMC agree to a request from HSG to extend the deadline protecting the deal from December 31 to January 31.
But despite KMC's concerns, Dan was reluctant to demand Tinkler hand back the NRL licence.
"It's a privately owned club and it's in their hands what happens from here," he said.
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