“We chose him because nothing rhymes with Johnston,” St George Leagues club czar Danny Robinson joked, a reference to the sporadic “Oust Doust” campaigns that surfaced whenever the Dragons had a losing run. It was Robinson who suggested Johnston take the role, when travelling by car to the funeral of Kelly Cassidy, the executive assistant who suffered a stroke at the age of 41. Robinson knew WIN would inevitably replace the Steelers as St George’s equity partner and told his chairman: “Johnno, with a new owner and Peter [Doust] retiring, we need a CEO who knows his way around the place.” And so Johnston discussed the prospect of stressful days and phone-filled nights with his wife and children before deciding to swap the club chair for the CEO’s hot seat. In no doubt where they stand: Dragons fans vent their frustrations at CEO Peter Doust. Credit:Robert Peet

With three-and-a-half university degrees acquired during the past 18 years, where he has worked for three different businesses in three different industries, it’s inevitable he won’t have time to finish the fourth. Loading His background in finance, together with the far-sightedness of Robinson and Doust, is evident in the Dragons’ decision to take a $6.6 million loan from the NRL to cover the rising debts of the St George Illawarra NRL club, rather than fund it through St George Leagues Club profits. The Dragons had been funding the debts of both sides of the joint venture since 2002 when the Steelers could no longer pay their way. Had they allowed the leagues club to continue meeting the debts of the football club, there would not have been the cash to refurbish and revitalise the licensed club premises. The result would have been declining patronage and revenue, coupled with the increasing taxes on poker machine receipts. Inevitably, the day would have come when the club was forced to go to a bank for a massive loan to refresh facilities and resurrect patronage. Interest payments could have forced the club into a position of minor partner when forming a joint venture with a developer for use of the expansive Kogarah premises.

Rugby league does not have a good record with equity partners and real estate. Back in business: The Dragons return to form with victory over the Tigers last weekend. Credit:AAP When Russell Crowe and Peter Holmes a Court acquired the Rabbitohs in March 2006 for $3.2 million, the duo turned their attention to the South Sydney Leagues Club, which the administrator described as “asset rich, cash poor”. The Souths leagues club owed $3 million, but owned a four-storey building, 10 residential units and a 298-space car park. Crowe and Holmes a Court couldn’t raise the funds to buy the leagues club assets, so in 2007 they formed a partnership with Albert Bertini’s company Trivest to develop the site. In 2013, Trivest went into liquidation with debts of $43 million and the 50-year-old Souths leagues club died with debts of $5.65 million.

The building was later sold to the Salvation Army, reportedly for $45 million, and the football club, which had offices in the building, pays rent on the same floor space. Loading Manly had an overdraft of $7.5 million secured by the football club’s real estate in 2002 when developer Max Delmege bought the football club building for $2.5 million. Delmege then joined with current Manly owners the Penn family to buy the leagues club and adjacent car park for $15 million. The Penns sold the leagues club site and the car park to a developer in March 2015. The only assets remaining of the original Sea Eagles are poker machines, operating at a bowling club in north Manly. The football club rents premises at Narrabeen. Unlike Souths and Manly, St George emerged from the Super League war with a long-term partner, but have not sold off the farm.

St George Leagues Club has almost zero debt, $12 million in cash in the bank and owns the vast premises known as the "Taj Mahal". Loading A corner site is being developed as a childcare centre. It will open in December and should return the leagues club $500,000 a year in 18 months time. The leagues club, aware that poker machine income will diminish, is considering other uses for the Kogarah site, which has a giant car park. Without any rezoning applications, it can be used by health services, aged care and offices for community services, such as the police. The NRL club is debt-free following the repayment of a loan to the NRL, principally via WIN’s payment to the Steelers, although St George Leagues Club paid $800,000.

The partnership of the wealthy WIN company and St George Leagues Club will fund future football club debt as the Dragons seek to become a permanent top-four team. “We have time on our side,” said Robinson as the grand old club consolidates its future.