Former Wallabies fullback Israel Folau’s multi-million payout from Rugby Australia could reportedly take a major hit if the sport’s governing body is forced into insolvency.
Folau was sacked by RA last year over his homophobic social media posts, including one stating hell awaits homosexuals.
The two parties agreed to an out-of-court settlement in December after Folau sued RA for religious discrimination.
While the terms weren’t made public, it’s understood to be around $3 million, which is the remainder of his four-year contract.
According to The Australian, the settlement is being paid off in instalments with those payments at risk should RA be forced to declare itself insolvent, Folau would become an unsecured creditor and depend on its assets, he’d likely be paid out only a few cents in the dollar.
Folau has been playing rugby league with French-based club Catalans Dragons in the Super League, although competition is currently suspended due to the coronavirus pandemic.
He is reportedly expecting his first child later this year with former Silver Ferns star wife, Maria Tutai’a.