A prominent Melbourne businessman is taking South Melbourne FC to court over a loan secured in 2004. It is alleged the terms of the loan included time limits and a debenture charge over the assets of the club, and they have since been breached.

The money, he claims, is in excess of two-hundred thousand dollars. Although negotiations for repayment had started several years ago, they have since soured and there is current legal action afoot. The club has been a flag bearer for Hellenism in Melbourne and Australia in general and now finds itself on the brink of receivership, should the court action prove successful.

Further, it is understood that the club entered into a Memorandum of Understanding with the State Government of Victoria in 2009 where the club received payments in excess of $25,000 per month. This MOU facilitated the creation of a lease, ensuring the long term tenure at Lakeside Oval. To this date, it is understood, that this lease has not been executed by all sides.

All of which the club categorically denies. Leo Athanasakis, the club’s president, assures that the club is in no economic strife. “The Club is in a sound financial position and will publish its financial accounts prior to the end of the year in accordance with its long standing practice,” he said. “The club has no debt other than this liability now to him.

The club owes nothing to players, owes nothing to other creditors.” In fact, he says, the club will be “declaring a profit of close to $150,000”. The president explains the delay is normal, with most sporting clubs waiting six months for the government’s approval. “The Lease has now been signed six months ago and it’s currently within parliament as the process dictates with other leases that involve crown land.

It happens with bowling clubs, tennis clubs or any other club that signs a lease with the government, they go through the same process and they all take about six months before they come back.” “So it has been signed by South Melbourne and the government and they go through parliamentary process, red tape in other words,” he says.

The club will also be seeking legal advice over what he calls “riddled and misleading” article published in Ta Nea. The article only uses unnamed callers to back up its claims the club is in financial turmoil and blames the club of unfairly raising the cost of subscription for juniors to $3,500. The subscription, the president says, is not for juniors, but is a highly intensive training regiment for 14-21 year-olds.

The program has already sold out, offers 5 days training a week and has full time staff outside of the normal teams.