The Canberra Cavalry owe in excess of $400,000 to creditors, with about half of that payable to the Australian Taxation Office.
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SportsLink Travel was the second hardest hit, with approximately $30,000 owed to the Australian Baseball League travel provider.
The Canberra Times revealed on Monday the Cavalry have gone into administration, with the ABL in the process of finalising whether to award their license to new owners.
It was hoped that might be finalised as early as Thursday, but it could now take until next week.
A Canberra-based bid, involving connections to MIT Services - who are the naming rights sponsor for Narrabundah Ballpark - was believed to be the leading contender, likely to edge out the incumbent owners and a Perth/USA consortium.
They narrowly lost out when the ABL privatised the clubs three years ago.
The current owners have two years remaining on their ABL licence.
But they've struggled over the past two seasons with first the bushfires and then the coronavirus pandemic hitting their bottom line.
Canberra's air turned toxic due to smoke in the 2019-20 summer, forcing numerous Cavalry home games to be cancelled.
Then the COVID-19 virus affected their sponsorship last summer.
The travel industry has also been decimated by the pandemic, not only bringing international travel to a halt, but state border closures have also impacted.
SportsLink chief executive Paul Kelly said it had been a difficult 12 months and he was sympathetic with the Cavalry.
He's a Cavalry fan, spending a lot of weekends over the summer in the stands at "The Fort".
"It's obviously a very disappointing situation for anyone. We didn't realise the impact was so severe," Kelly said.
"We wouldn't have been putting our own money up late in the piece if we knew there was issues to this magnitude.
"That's the disappointing thing - that we didn't know how big an impact it was.
"I understand the impacts that they've had over the past couple of years, but unfortunately we're now bearing the brunt of it."
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Kelly said the Cavalry's creditors could be apprehensive about dealing with the ABL club going forward - even if new owners were brought in.
He said the ABL needed to ensure whoever held the licence going forward was a long-term proposition.
"I think the Cavs will survive ... but whoever takes it on going forward it really needs to be a really long-term, stable platform because that's what people are going to want having come through this," Kelly said.
"If there's any sorts of lingering doubts sponsors are going to be a little bit jittery coming on board."
The current Cavalry ownership also run Australian Ice Hockey League team Canberra Brave and would continue to do so, with the MIT Services bid only looking to take over the Cavalry.