STATE League club South Launceston is in substantial debt to the Tax Office but both the club and AFL Tasmania believe the debt is manageable.
The Bulldogs revealed details of an ongoing tax debt of between $80,000 to $100,000 at their recent annual meeting.
Club president Ian Goninon said yesterday that South had been proactive in negotiating with the Tax Office and had a payment plan in place to pay off the debt over the next couple of years.
``It's no secret that South has always had financial difficulties as most football clubs have and we've worked over the past four years to modify and change the operation,'' he said.
``We've incurred some interest penalties that we are in dispute with the tax department over and have to have some things quantified.''
He said there was an existing tax debt of about $70,000 when he took over the presidency but new taxes had accrued on top of it. Goninon said the club had been in discussions with AFL Tasmania about the debt but had not asked for financial assistance.
``In this day and age things are always tough,'' he said.
``Bar trade has diminished, wages have gone up, hydro has gone through the roof.
``But we paid all our players before last year's grand final and I don't think there are any great outstandings that need to be sorted other than the tax.''
AFL Tasmania general manager Shaun Young said his organisation was aware of South's financial trouble.
``We believe it is manageable and are meeting with the club to work through this process,'' he said. ``There has been no financial assistance requested and we don't believe it is an overly big concern.
``We saw with the Devonport Football Club that the board in conjunction with their council have pretty much wiped their debt and South Launceston can get out of this position.''