Why Western Bulldogs could struggle to pay $6million paedophile settlement after shocking sexual assaults on boy

The Western Bulldogs don't have insurance to cover the record $6million damages payout over the sexual abuse a club volunteer carried out on a boy from the time he was 12 years old.

Adam Kneale, now 51, was repeatedly sexually assaulted by paedophile Graeme Hobbs, who trained the under-19s at Footscray Football Club during the 1980s.

Hobbs, who is now deceased, first raped Kneale in an administration building at the AFL club's home ground in 1984 when he was just 12.

He was first introduced to Hobbs through a schoolmate, who suggested the club volunteer was a source of 'easy money'.

What followed was a disturbing pattern of abuse that occurred until Kneale was in his mid-teens.

Kneale would meet Hobbs at the top of a stairwell at the Bulldogs' home ground Whitten Oval at the start of games and Hobbs would hand over cash and direct him to come back and see him after halftime.

Then, Hobbs would take the boy into a secluded area at the oval - like an office or change room - and rape him.

On other occasions, the pair would meet at the western oval car park and travel in a taxi off club grounds - once, to Sydney with cheer squad members on a coach, where Hobbs forced Kneale into a sexual act while hidden under his coat.

Eventually, Hobbs took Kneale to several other homes of predators, where they also raped him.

When his daughter was born, Kneale realised he had to turn Hobbs in to police, knowing the man was abusing other children including those 'not long out of nappies.'

After Kneale was awarded the record $5.9million damages payout last week, the AFL club immediately declared their intent to appeal the verdict.

The Bulldogs will appeal the liability and damages costs, according to The Age.

It is understood the club doesn't have insurance coverage for the damages awarded by the court.

Last week in a Supreme Court in Victoria, a jury awarded Kneale $3.35million for pain and suffering, $2.6million in loss of earnings and $87,500 for future medical expenses.

Kneale reported Hobbs to police in 1993, when he was 21. This led to Hobbs and another man being jailed for their crimes and their part in a paedophile ring.

Meanwhile, the Bulldogs recorded a total statutory profit of over $5.1million in their annual report.

Their operational profit was at least $1.3million, the seventh consecutive year of total profits exceeding $1million.