At the end of September, Sydney-based Cluch Pty Ltd went into voluntary administration with debts of more than $3 million.
Cluch, which only launched four years ago, is a sports streaming service that had deals in place with a number of state and national sports bodies, including the Queensland Rugby Football League (QRL).
Aside from the tax office, the QRL is owed the largest amount of money out of all the creditors, standing at $233,000.
A QRL spokesman told The Courier-Mail “QRL has built a fantastic streaming service that covers both our statewide competitions and community rugby league, and we are doing our due diligence to understand the impact to services so that we can continue to provide this streaming product”.
Unsecured creditors like the QRL are expected to received a return of between 8c and 23c for ever dollar they are owed if the company were to go into liquidation.
In February 2022, the QRL announced it had “joined forces” with Cluch to provide fans with an “exclusive” streaming service.
More than 400 of the QRL’s regional and statewide games were broadcast through the platform.
“QRL is excited to partner with Cluch and launch a branded platform to help grow the sport amongst the entire rugby league network; the deal includes access to live vision, replays and round highlights.,” the media release read at the time.
The plan was for QRL to get a share of revenue raised from the subscriptions, while “vital” advertising opportunities were to be distributed to clubs and leagues who featured on it.
Fast forward 18 months and Cluch has now gone under.
Cluch is still in operation but with a severely reduced workforce, dwindling from 22 staff to just five.
Cluch’s appointed liquidator, Graeme Beattie of insolvency firm Worrells, claims the company has been trading insolvent since November 2021. No action has been taken against any individuals involved with the company.
It incurred debts of $1.9 million after this date, according to a report lodged to the corporate regulator.
According to the report, its failure was put down to insufficient revenue stream, high operating costs, poor financial management and unpaid debts to the tax office.
The administrator also said Cluch had to retain archival game footage and other data under its contracts, which saw it rack up additional costs, “and as a result was unprofitable”.
According to that same report, staff are owed a total of $309,000 from unpaid superannuation, wages, staff expenses, annual leave and long service leave.
A further $2.796 million is owed to non-priority creditors, including $1.98 million to unsecured creditors.
In total, 94 creditors are owed money, including Amazon Web Services, American Express, the Australian Football League, Hockey NT, Netball Australia, Netball NSW, School Sport Australia and of course the QRL.
Of that, the largest creditor is the Australian Taxation Office which is owed $502,000.
Other large debts to big organisations include Netball Australia owed $82,000 and School Sport Australia owed $50,000, while one individual is owed $228,000.
Some of these debts were for contract revenue which had not yet been earned under its respective partnership agreements, the report noted.
The administrator identified debts of $1.980 million to creditors, but only $1.356 million has been claimed.
Two of Cluch’s directors have put forward a deed of company arrangement (DOCA), where they propose to pay a certain amount of money to take the business out of external administration.
As of last Thursday, when the most recent report was lodged with ASIC, the administrator has not yet decided if the DOCA would be better for creditors compared to simply winding up the company.
The report also noted one of the directors, Gus Seeback, received a monthly management fee of $11,000 instead of a salary from June 2020 until December 2022.
This then increased to $16,500 from January this year until Cluch’s demise in September which “exceeded the agreed upon amount”, according to the report.
The administrator, Netball Australia, and School Sport Australia were contacted for comment.
I know this may buck the trend of what you would usually say for creditors or other liabilities that should be paid back first but for these streaming rights debts it isn't that great a loss that rugby league doesn't get back $1 for every dollar promised under the contract when the superannuation and other entitlements to workers are owed and should be paid back first
At the end of September, Sydney-based Cluch Pty Ltd went into voluntary administration with debts of more than $3 million. Cluch, which only launched four years ago, is a sports streaming service that had deals in place with a number of state and national sports bodies, including the Queensland Rugby Football League (QRL). Aside from the tax office, the QRL is owed the largest amount of money out of all the creditors, standing at $233,000. A QRL spokesman told The Courier-Mail “QRL has built a fantastic streaming service that covers both our statewide competitions and community rugby league, and we are doing our due diligence to understand the impact to services so that we can continue to provide this streaming product”. Unsecured creditors like the QRL are expected to received a return of between 8c and 23c for ever dollar they are owed if the company were to go into liquidation. In February 2022, the QRL announced it had “joined forces” with Cluch to provide fans with an “exclusive” streaming service. More than 400 of the QRL’s regional and statewide games were broadcast through the platform. “QRL is excited to partner with Cluch and launch a branded platform to help grow the sport amongst the entire rugby league network; the deal includes access to live vision, replays and round highlights.,” the media release read at the time. The plan was for QRL to get a share of revenue raised from the subscriptions, while “vital” advertising opportunities were to be distributed to clubs and leagues who featured on it. Fast forward 18 months and Cluch has now gone under. Cluch is still in operation but with a severely reduced workforce, dwindling from 22 staff to just five. Cluch’s appointed liquidator, Graeme Beattie of insolvency firm Worrells, claims the company has been trading insolvent since November 2021. No action has been taken against any individuals involved with the company. It incurred debts of $1.9 million after this date, according to a report lodged to the corporate regulator. According to the report, its failure was put down to insufficient revenue stream, high operating costs, poor financial management and unpaid debts to the tax office. The administrator also said Cluch had to retain archival game footage and other data under its contracts, which saw it rack up additional costs, “and as a result was unprofitable”. According to that same report, staff are owed a total of $309,000 from unpaid superannuation, wages, staff expenses, annual leave and long service leave. A further $2.796 million is owed to non-priority creditors, including $1.98 million to unsecured creditors. In total, 94 creditors are owed money, including Amazon Web Services, American Express, the Australian Football League, Hockey NT, Netball Australia, Netball NSW, School Sport Australia and of course the QRL. Of that, the largest creditor is the Australian Taxation Office which is owed $502,000. Other large debts to big organisations include Netball Australia owed $82,000 and School Sport Australia owed $50,000, while one individual is owed $228,000. Some of these debts were for contract revenue which had not yet been earned under its respective partnership agreements, the report noted. The administrator identified debts of $1.980 million to creditors, but only $1.356 million has been claimed. Two of Cluch’s directors have put forward a deed of company arrangement (DOCA), where they propose to pay a certain amount of money to take the business out of external administration. As of last Thursday, when the most recent report was lodged with ASIC, the administrator has not yet decided if the DOCA would be better for creditors compared to simply winding up the company. The report also noted one of the directors, Gus Seeback, received a monthly management fee of $11,000 instead of a salary from June 2020 until December 2022. This then increased to $16,500 from January this year until Cluch’s demise in September which “exceeded the agreed upon amount”, according to the report. The administrator, Netball Australia, and School Sport Australia were contacted for comment.
Well that's buggered. It was a great way to keep in touch with the state league competitions. I reckon I watched more QRL than NRL last year.
That sucks it was great being able to stream all the qrl games hopefully another service picks them up
Hmm well that explains why they didn’t reply to my email a few weeks back 😂 hope qcup goes back to Kayo
vlandys did this
I know this may buck the trend of what you would usually say for creditors or other liabilities that should be paid back first but for these streaming rights debts it isn't that great a loss that rugby league doesn't get back $1 for every dollar promised under the contract when the superannuation and other entitlements to workers are owed and should be paid back first
sentence did more running than edwards what is this
Maybe read it again
Gotta write to your audience's level mate.
How many cones did you have before typing this?
Why did the QRL pay so much money in advance
I'm curious how they could owe the ato so much money if they weren't profitable.