The New Zealand NBL has wiped its hands of debts that its newest Auckland club left behind in Tasmania.
The Southern Huskies are believed to owe hundreds of thousands to creditors from last season that had left their owners out of pocket in the vicinity of $700,000.
But key staff that includes players, coaches and their general manager accuse the franchise of unpaid wages while Basketball Tasmania, state government, multiple councils and the Silverdome wait for their bills to be paid.
The Huskies were allowed to relocate from Tasmania and rebrand in Auckland in spite of the mounting debts.
"The Huskies do hold a New Zealand NBL franchise through to 2023 and applied to relocate the franchise to Auckland in New Zealand," New Zealand NBL general manager Justin Nelson said.
"Subsequently, this application was approved by the New Zealand NBL board."
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But Nelson declined to clarify its position on a club that could face insolvency.
"We won't get into the situation in Tasmania - it's not for us to comment on any further," Nelson said.
Nelson last year said "the crew behind the Southern Huskies are doing a wonderful job" and that the owners were "in it for the long haul".
The club provided an exit report in September to the state government including profit and loss statements.
But the department of justice is still pursuing $60,000 from a $200,000 government grant handed to the owners towards operational costs.
That bill is in addition to a further $200,000 owed to taxpayers separately for unpaid rent on the Silverdome.
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