The owner of Wellington Phoenix football club is facing legal action over NZ$3.5 million ($2.7 million) in unpaid taxes, clouding the team's future in the Australian A-League, according to media reports in New Zealand.
The Dominion Post newspaper said Tuesday New Zealand's Inland Revenue Department had moved to liquidate five companies owned by property developer Terry Serepisos, including Century City Football which operates the Phoenix.
The newspaper said Century City Football owed the largest sum, NZ$1.5 million ($1.2 million), in unpaid income tax, sales tax and employee health contributions.
The application for liquidation is due to be heard in New Zealand's High Court on Dec. 13.
In a written statement on Tuesday Serepisos acknowledged the tax liability but said ''an arrangement'' existed between his companies and Inland Revenue to resolve the matter by the end of the year.
Serepisos said despite that arrangement Inland Revenue was following normal legal procedure in seeking the liquidation of the debtor companies. He was satisfied the matter would be resolved ''to the satisfaction of both parties''.
The Wellington Phoenix is New Zealand's only fully professional football team and is coached by Ricki Herbert, who led New Zealand to an unbeaten record at this year's World Cup in South Africa.
Football New Zealand chairman Frank van Hattum said the tax matters were Serepisos' personal affair, but ''anything that affects the Phoenix as an organization going forward is a worry.''
Century City Football faced a separate liquidation proceeding in September when the government-owned Accident Compensation Corporation, which provides New Zealanders with accident and disability cover, took court action over unpaid levies. Proceedings were dropped when the money was paid.
