The Golden Lions Rugby Union (GLRU) is bankrupt, Beeld newspaper reported on Friday.

This was why negotiations with Guma TAC to buy a 49.9 percent stake in the club had fallen through, said the Afrikaans daily, quoting from a document obtained by Sport24.

The document is part of Guma TAC businessmen Robert Gumede and Ivor Ichikowitz's explanation on why they had terminated the agreement.

It says the GLRU owes Absa R30 million, a loan that needs to be repaid by Monday, and is not in a position to pay salaries.