Moana Pasifika called $3m loan a 'grant' in emails to Sport NZ

Now-liquidated rugby team Moana Pasifika told Sport New Zealand it was in a difficult financial position for years. Sport NZ is now working with appointed liquidators in an attempt to claw back repayment of a multimillion-dollar loan. Azaria Howell reports.

Moana Pasifika received a $3 million loan from Sport New Zealand at the time of its launch but in later correspondence referred to the loan as a “grant”, bringing a rebuke from the government agency.

The rugby club also told Crown entity Sport NZ about being in a difficult financial space for years, with its liquidation confirmed in May.

Newstalk ZB has obtained communications between the rugby franchise and the government agency regarding the $3m loan under the Official Information Act.

The financial agreement between Sport NZ and the club included an initial grant of up to $1m with no requirement to repay it, and a $3m loan facility.

In a statement, Sport NZ said it was working with appointed liquidators to seek repayment.

“We have submitted a formal creditor’s claim as part of this process and we are now awaiting the outcome,” the Crown entity told Newstalk ZB.

Sport NZ was unable to state what would happen to the loan debt if the team was sold, saying it would “depend on the structure and conditions of any sale”.

Loans formed part of a broader funding arrangement approved in 2021 to support the Moana Pasifika franchise to be established within the Super Rugby competition.

Moana Pasifika was placed in liquidation in May 2026, leaving behind a Crown loan of $2.7 million.

The communications

In May 2023, Sport NZ questioned Moana Pasifika for forecasting a conversion of an initial loan paid in February into a grant, with the Crown entity telling the team that “hadn’t been discussed” and “isn’t something we would consider at this stage”.

Sport NZ said at the time its preference was to continue to run the entire drawdown as a loan, with interest repayment terms. It advised Moana Pasifika, “assuming you will not be in a position to repay in full in Aug as originally hoped and to avoid incurring any penalties”, to formally request the drawdown be converted into 10-year repayment terms as originally expected.

Sport NZ also wrote to Moana Pasifika in May 2023 saying the club’s projections looked “overly optimistic” with regard to revenue and sponsorships.

Days after the initial discussion about the club labelling a loan as a grant, Sport NZ wrote to Moana Pasifika again.

“It is disappointing to have reference to discussions re: converting loan to a grant as there have been no such discussions I am aware of,” the entity told the club. “For the purpose of progressing your drawdown request as quickly as possible I am for now going to ignore this aspect but will obviously be something we will need to pick up later,” Sport NZ said.

The Crown entity went further: “Just to manage your expectations on this, any conversion will require Joint Ministers (Sport & Finance) to approve & possibly CABINET. I do not see the current Govt being interested in progressing this matter ahead of the elections but we will test this when next meeting the Minister,” Moana Pasifika was told.

In December 2023, then-club chief executive Pelenato Sakalia told Sport NZ it was in a difficult space financially.

“Our projected revenue for FY24, taking into account the significant increase in revenue, still only leaves Moana Pasifika in a very tight financial position where we are unable to service the principal and interest repayment for FY24. As discussed your assistance in not requiring payment in this financial year (FY24) deferring the commencement of these payments,” Sakalia wrote.

Days later, Sport NZ said it was willing to delay the receipt of payment against the loans.

The matter again came up in February 2024.

Sakalia wrote to Sport NZ’s group financial controller formally requesting “ongoing support in deferring the principal and interest repayments until March 2025″.

“We thank you for your kind consideration and we value our partnership and the support you have provided our organisation,” Sakalia added.

Sakalia followed up, days later, about finances: “We have been working to try and make sure that we can be realistic about the payment schedule.”

In March 2024, Sport NZ formally wrote to the club agreeing to defer principal repayments until March 2025, extending the repayment period for a further 22 months, and forgiving interest that would have accrued up until September 2024.

Moana Pasifika again requested a one-year grace period on interest payments in February 2025. Sport NZ later agreed to the request.

The letter from Moana Pasifika said the economic climate had placed the club under “significant financial pressure”.
Moana Pasifika suggested it would eventually be able to pay the entirety back. “We are confident that this adjustment will provide us with the financial flexibility needed to navigate this season while ensuring that we remain on track to repay the principal in full,” the letter said.

“Our commitment to honouring the terms of the loan remains unwavering, and we are optimistic that this request will support our ongoing efforts to achieve financial stability,” Moana Pasifika wrote.

In March 2025, Sport NZ chief executive Raelene Castle wrote to then-Moana Pasifika chief executive Debbie Sorensen saying she hoped it provided “some relief” as the team progresses.

“It is great to see the Moana Pasifika team being so competitive and your building fan base. I hope the balance of the season goes well. I appreciate the challenging financial times in which Moana Pasifika is operating,” Castle said.

Sorensen replied with a formal letter, thanking the Crown entity.

“On behalf of Moana Pasifika Limited, I would like to express our deepest gratitude to Sport NZ for its approval. We truly appreciate the trust and support you have extended to us, and we do not take it for granted,” Sorensen wrote.
Moana Pasifika said as it is now in liquidation, it would not be making any further comments.

Azaria Howell is a multimedia reporter working from Parliament’s press gallery. She joined NZME in 2022 and became a Newstalk ZB political reporter in late 2024, with a keen interest in public service agency reform and government spending.