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Thread: World Rugby announces $150 million relief fund

  1. #16
    Legend Contributor Alison's Avatar
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    Quote Originally Posted by GIGS20 View Post
    McLean qas very happy to hear that he won't be prosecuted for trading while insolvent due to civid 19, however their insolvent trading in 2019 will still stick.
    Yep. There must be some reason why those accounts are being kept well hidden. RUPA had to sign a non-disclosure agreement to even see an extract. If it could all be blamed on COVID there would be no reason why they were not shown to member unions (at least) at the AGM.

    Personally, I think they should have all kicked up a stink at the AGM about the finances. To my knowledge, not one member union even raised it (as per usual). The trading loss tells only one part of the story. The balance sheet is the key and we have no knowledge as to what that shows (though we can probably make a pretty good guess.)

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    Quote Originally Posted by Alison View Post
    Yep. There must be some reason why those accounts are being kept well hidden. RUPA had to sign a non-disclosure agreement to even see an extract. If it could all be blamed on COVID there would be no reason why they were not shown to member unions (at least) at the AGM.

    Personally, I think they should have all kicked up a stink at the AGM about the finances. To my knowledge, not one member union even raised it (as per usual). The trading loss tells only one part of the story. The balance sheet is the key and we have no knowledge as to what that shows (though we can probably make a pretty good guess.)
    I find it hard to believe that the RA balance sheet, even back in 2019 would show many real assets.

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  3. #18
    Legend Contributor Alison's Avatar
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    Quote Originally Posted by JSJ View Post
    I find it hard to believe that the RA balance sheet, even back in 2019 would show many real assets.
    The balance sheet at 31 December 2018 showed overall net assets of just $26.8million.

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    Can't say I thought much of Master's take - he lost me when he started talking about club and country as though they were somehow separate things in Australia. They aren't; RA owns it all.

    I also suspect he is not really understanding the delay on financials (or doesn't want to), which as I read it is only because of the ASIC requirement for the auditors to sign off on subsequent events. To me, that doesn't mean there aren't audited accounts adequate to most purposes, only that they can't be formally submitted to ASIC. Mind you, the more they sit on them and pretend it prevents their release, the more you have to wonder...

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    Legend Contributor Alison's Avatar
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    My understanding (as a layperson) is that under the Corporations Act, the directors have to make a statement pertaining to the period between the end of the financial year to which the report relates (31 Dec 2019 in this case) and the date the directors’ report is signed (usually just before the AGM).

    Generally, that statement is to the effect that in that intervening period, no item, transaction or event of a material and unusual nature has arisen, in the opinion of the directors, to affect significantly the operations of the company, the results of those operations, or the state of affairs of the company in future financial years.

    It seems to me that the arrival of COVID-19 in this case means that either the directors cannot make that statement because they have doubts about RA’s continuation as a going concern, or they HAVE made that statement but the auditors disagree and therefore cannot form the opinion that the financial report is a true and fair view of the financial position and performance.

    I guess what happens next will all depend on the WR ‘loan’; whether the rest of this season can be sufficiently salvaged to enable RA to meet its debts as and when they become due and payable in 2020; and - crucially - the TV deal for 2021 and beyond.

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