Two years of pandemic cancellations sees liquidation of Arnold Classic Australia

Having last been held at the Melbourne Convention and Exhibition Centre in 2019 before being cancelled in 2020 and 2021, the company behind the Arnold Classic Australia event has entered liquidation.

Administrators Dye & Co Pty Ltd have been appointed to wind up Arnold Classic Australia Pty Ltd, which also traded as the Arnold Sports Festival, Arnold Sports Festival Australia and Arnold Strongman Australia.

Backed by Hollywood star and bodybuilding legend Arnold Schwarzenegger, ’Arnold’ branded multi sports events are held around the world, attracting thousands of participants in sports from bodybuilding to boxing, as well as new and emerging activities.

In Australia, Melbourne-based gym owner Tony Doherty had founded and run Arnold Classic Australia Pty Ltd. However, the 2020 event, due to have been held from 20th to 22nd March, was hit by the first wave of Victoria and Australia’s Coronavirus lockdowns.

At that stage the company, which had presold tickets and exhibition stands, is understood to have rolled over rather than refund attendees and exhibitors. Having done the same in 2021, while also issuing some refunds, exhibitors - including US drinks giant Bang Energy - launched legal proceedings in Victoria against the company in an attempt to claw back money they allege they had paid.

The liquidator to Arnold Classic Australia estimates that while the majority of claimants received refunds, about 700 ticket holders will be left out of pocket by a total of more than $100,000 as a result of the event’s collapse.

Doherty, whose Max’s Muscle TV program ran for six seasons on Foxtel, was vocal a self-appointed spokesperson for the fitness industry and the Vic Active during Victoria’s lockdowns, and was a frequent critic of the Victorian Government’s actions in imposing lockdowns on the gym industry.

Asked about his financial difficulties, Doherty told The Sunday Age that postponing the event four times, after restrictions forced him to shut the 2020 event had cost him $1.6 million.

He explained “it’s pretty hard to recover from.

“It is correct that the pandemic devastated our expo business, causing significant financial loss. However, at all times we have remained positive and are working hard re-establishing our businesses, which is progressing well, and we are looking forward to the future.”

Doherty declined to answer questions from The Sunday Age about whether he was facing personal bankruptcy as a result of the festival now being disbanded, as he had predicted in during the pandemic.

Doherty, who has given his name to a chain of gyms in Victoria and Western Australia, is still hosting and promoting the International Federation of Bodybuilding and Fitness’ IFBB PRO national finals in Brisbane on 28th October.

The IFBB PRO competition, which is separate to the Arnold Classic, has drawn large crowds to its state competitions.

A report prepared by the liquidator to Arnold Classic Australia, Hamish MacKinnon of Dye & Co, confirms that Doherty’s business was a victim of lockdowns.

MacKinnon wrote in his report “I have been advised in March of 2020, that the restrictions imposed by the Victorian government in response to the COVID-19 pandemic resulted in the Melbourne Convention and Exhibition Centre closing and forcing cancellation of that year’s event just one week before it was due to run.

“At this time, the company had received monies from exhibitors and ticket sales to the public; with considerable amounts expensed on the event for printing, merchandise and on a range of marketing, PR and advertising.”

The report explains that the Arnold Classic offered ticket holders and exhibitors options for refunds or rollover packages to use at the next year’s event.

A little over a quarter of all ticket holders - or 723 ticket holders representing $111,602 in ticket sales - decided not to seek a refund and chose the rollover option and are still owed refunds on their tickets, according to the report.

The Sunday Age suggested that Schwarzenegger, whose strong pro-COVID vaccination stance has caused division in the bodybuilding community.

At the time of writing, the Arnold Sports Festival Australia 2022 Facebook page remains active, although it does not list event dates.

Images: Arnold Schwarzenegger (left) being interviewed by Tony Doherty at the 2018 Arnold Classic (top) and promotion for the Arnold Classic Australia (below).