‘A shambles’: Shareholder lifts lid on collapsed streaming service

A shareholder out of pocket after streaming platform Cluch went bust, owing millions to creditors, including Queensland Rugby League, claims the venture was a “shambolic” mess.

Streaming service Cluch has collapsed owing more than $3m.

A frustrated shareholder left out of pocket from the collapse of a major streaming platform claims the venture was a “shambolic” mess a year before it finally went bust.

At the end of September, Sydney-based live streaming service Cluch Pty Ltd went into voluntary administration with debts of more than $3 million, impacting major sporting organisations including the Queensland Rugby League, the Australian Football League, and Netball Australia.

Aside from the tax office, the Queensland Rugby League is owed the largest amount of money out of all the creditors, standing at $233,000.

Chris Burnett runs Toppa Sports, which entered into a partnership with Cluch four years ago when it launched, and he claims his business has been left $55,000 out in the cold over the debacle.

“Over the last 18 months, I sent three statutory demands,” Mr Burnett said. “Basically they weren’t paying you until you forced them to pay.”

According to a statutory report the administrator lodged with the corporate regulator, Cluch had been trading insolvent since at least November 2021 and incurred debts of $1.9 million after this date. No action has been taken against any individuals involved with the company.

Cluch was a livestream platform that launched in 2019.

Mr Burnett claims that Cluch let its debt with him run up to $300,000 and he had to initiate winding up proceedings from fear of not getting his money back.

He said two days before he would have taken action against the company, the $300,000 “just popped up” in his bank account.

The company was in the process of a capital raise, which is how he believes they were able to pay him.

“It was a shambles,” he added.

Cluch launched four years ago and Mr Burnett became a shareholder, a decision he now regrets.

“The fateful day, it was October 2019,” he said. “I remember that conversation distinctly. It was a handshake, ‘let’s try this together’.”

Toppa Sports had carved out a space in recording, videoing and analysing community and larger sports games and the chance to break into live streaming was appealing.

He had a meeting with one of the three directors, Gus Seebeck, where the two men agreed to enter into a business partnership. Toppa would hold a 13.95 per cent stake in the company.

“That first year, I stupidly did a lot of (work) for free, in exchange for a percentage shareholding,” Mr Burnett said. “It was service for equity.”

QRL chairman Bruce Hatcher. The QRL is one of the largest creditors. Picture: NRL Imagery

Mr Burnett said he was shocked to learn how much Mr Seeback was receiving in payment for running the venture,

A report lodged with the corporate regulator noted that Mr Seeback received a monthly management fee of $11,000 instead of a salary from June 2020 until December 2022.

This then increased to $16,500 from January this year until Cluch’s demise in September which “exceeded the agreed upon amount”, according to the report.

“That was baffling,” Mr Burnett said. “We were scratching our heads as to why that was happening. Pretty crazy.”

Mr Seebeck was contacted for comment about his management fees, the slow repayments to creditors and the company’s insolvency.

The creditors have voted on a Deed of Company Arrangement (DOCA) where the directors pay a certain amount of money to take the business out of external administration and back under their control.

Mr Burnett said he voted against the DOCA, which will only cede him around 5c in the dollar.

Cluch is still in operation but with a severely reduced workforce, dwindling from 22 staff to just five.

The administrator, Graeme Beattie of insolvency firm Worrells, was also contacted for comment.

[e-mail]