The Tamworth Rugby Club is battling to stay afloat after revelations that it is carrying a massive debt and did not pay player insurance for the 2016 season.
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The players were called to a meeting on Friday night where a plan to get the club back on its feet was outlined by the executive, and the coaches for the 2018 season were announced.
The 65-year-old Central North foundation club owes a range of creditors a combined $22,000, Tamworth Regional Council $44,000 and has a further $6000 of unpaid players’ insurance, ground insurance and other fees.
“Morale is through the floor at the moment, but we have a clean slate to start again,” Friends of the Tamworth Rugby Club president Mitchel Hanlon said.
Mr Hanlon was voted in as Club President at the AGM last month, although that meeting has since been deemed invalid, after it was revealed the past board formed a “shelf company”, but “failed to consult” any other members.
“It is a company now and no longer an association, and because that company is deemed insolvent the AGM is invalid and the old board has to stay involved because no one else wants their name on the board of an insolvent company,” Mr Hanlon said.
“We have to pay the debts off the company and then form a new association.”
Traditionally the club earns “about $50,000” from camping grounds over the Tamworth Country Music Festival period, and they hope to put most of that towards paying off the debts, with an aim to clear them “by the end of January”.
Central North Rugby President Tony Byrnes said that “there has been some concerns among the rugby community that all was not well, however we did not realise the depth of the problem until Mitch (Hanlon) got in there and had a look”.
“It is not a good situation but we have to be positive.
“The Zone is fully behind the new executive and will support them however we can,” he said.
When Mr Hanlon put his hand up for the role he thought he was taking on a “manageable debt of about $30,000”, although things went from bad to worse as he began to realise the true extent of the club’s woes.
“They have just been running on no money, and no resources, on all levels. Sponsorship money from last season hasn’t even been collected,” Mr Hanlon said.