Neddies News Scoop: RugbyWA and the Disappearing $1 Million Debt

Neddies News Scoop: RugbyWA and the Disappearing $1 Million Debt

Your correspondent would rather write about rugby than matters of a financial nature. Mainly because to do otherwise would be to discriminate against the forwards. But as always, this column never passes up the opportunity for a scoop in local rugby land.

Apart from having glossy pictures of Kauri Cudd and Reuben amongst its pages, the 2018 RugbyWA Annual Report released today reveals the governing body of rugby in this State is negotiating with the State Government to write off a debt of more than $1 million.

According to the Annual Report, the first instalment payable by RugbyWA to the State Government on the $1.066 million unsecured interest-free loan is due in December 2019. It goes on to state that RugbyWA has started formal discussions with the WA Government to write off this $1.066 million loan due to the significant impact it could have on RugbyWA’s operations. In other words, RugbyWA, like many rugby organisations around Australia, isn’t that flush at the moment.

There is also the normal accounting jargon to satisfy the auditors stating, in round-about terms, that if the Government isn’t feeling too charitable in those negotiations to write off the $1.066 million debt, then there would be uncertainty whether RugbyWA could continue as a going concern. In the words of chairman John Edwards: “This debt obligation remains a significant ongoing concern to the long-term sustainability of the organisation.”

So what will happen now? Someone in the media, having read this column, will write a story saying that rugby in WA is doomed unless the Government writes off the $1.066 million debt. And after a bit of arm wrestling, the Government will write off the debt – and no doubt remind every rugby player and supporter before the next State election. Just remember you read it here first.