Sydney Olympic FC denies Forum debt, director extends lifeline
Other documents obtained by the Financial analysis lists a $ 3.34 million loan to Sydney Olympic on the Forum’s balance sheet as of June 30, 2021, up from $ 2.7 million the previous year. History of FGFS banking transactions in June 2021, obtained by the Financial analysis, labels one transaction as “SOFC Invoices” and another as “SOFC Loans”.
“As previously stated, the Club denies any liability to the Forum Group and will contest any claims made against it by the liquidators,” Sydney Olympic said in a statement to the Financial analysis.
“Mr. Damon Hanlin has entered into an act of financial support with the club and will continue to financially support the club as part of this act which will secure the financial standing of the club for the 2022 season and beyond.
“The club are delighted to resume training and look forward to the coming season.”
The club have now turned to another manager to save it from collapse and members will vote on the financial support offered next month.
“Following the departure of Mr Papas, the club faces a funding gap which will have to be addressed if the club is to continue operating,” Sydney Olympic said in documents sent to its members.
Damon Hanlin, owner of Titan Cranes who joined the Sydney Olympic Board of Directors in June 2016, has been approached by the club to see if he is “willing to continue supporting the club and providing the funding that was previously provided by Mr. Papas ”.
The Sydney Olympic AGM notice is signed by the club’s general manager and secretary, John Boulous.
There is nothing to indicate that Mr. Hanlin or Mr. Boulous had any involvement or knowledge of the business relations of Mr. Papas and Forum.
“Since 2016, the two main financial supporters of the club are Bill Papas and Damon Hanlin, both of whom have become club directors. Together, Mr. Papas and Mr. Hanlin have covered the majority of the club’s expenses since 2016, ”the club document states.
Mr Papas resigned from the Sydney Olympic Council after the allegations against him came to light last July.
“The allegations now made against Mr. Papas have come as a total surprise to the club, which have never had knowledge of or any reason to suspect that Mr. Papas had engaged in activities alleged against him.”
Mr. Hanlin has agreed to provide a maximum of $ 1.5 million each fiscal year for three years to fund the operations and expenses of Sydney Olympic. The loan amounts will bear interest at the rate of 3 percent each year.
The club’s two new directors, Lawrie McKinna and Christopher Gardiner, passed the proposed resolutions regarding an act of financial support and a general safety act. Mr. Hanlin, as a related party, cannot vote or recommend.
Mr McKinna and Mr Gardiner support the recommendation as being in the best interests of Sydney Olympic as it may have difficulty finding money from a commercial lender on good terms given the lack of assets and club income.
“Without funding committed to fill the void left by Mr. Papas, Mr. Gardiner and Mr. McKinna believe the future of the club is uncertain and are aware that unless the funding gap is closed, directors may have to -to be resolved to liquidate the club, “he added. document says.
“Passing the proposed resolutions will give the club an alternative and a better future.”