Israel Folau payout could be at risk if Rugby Australia goes bankrupt

Sacked Wallaby Israel Folau's big payout from Rugby Australia could reportedly be at risk if the governing body goes under due to the coronavirus pandemic.

The former fullback sued Rugby Australia for religious discrimination after he was axed over his homophobic social media posts, with the two parties agreeing to a private out-of-court settlement – reportedly AUD $3 million – in December last year.

According to a report in the Australian, the settlement is being paid off in instalments and those payments could be decreased significantly if the financially strapped Rugby Australia is forced into insolvency – which would mean Folau would end up becoming an unsecured creditor and likely only get paid out a few cents in the dollar.

Folau is currently playing for French rugby league club Catalans Dragons in the Super League, which is suspended due to the pandemic.

The 31-year-old is reportedly expecting his first child with Kiwi netball great Maria Folau.

[Source: NZ Herald]

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