A sports training academy has collapsed with debts of more than $5 million after running courses costing up to $23,000 that qualified its students "for nothing".

FC 11, which billed itself as “Australia’s leading sports education provider” and had links to some of the nation's biggest sporting clubs, also faces claims it traded while insolvent.

Sports training provider FC 11 has collapsed with massive debts. Video still

Sandra Williamson said her daughter, Georganna, attended an FC 11 course in Brisbane, but had been unable to find employment in the field.

"When she finished, we found out that the diploma was not worth the paper it was written on. We found that she was qualified for nothing," Ms Williamson said.

"Who would have thought that the government would do loans for a course that was such a rip-off."

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A former FC 11 employee claims the sports academy targeted students who "weren’t smart enough for university and not good enough to play professional sport".

"It was a sham. The entire business was leveraged on government grants, and when the government turned off the tap, the bottom fell out."

FC 11 purchased a licence to operate as a registered training organisation from a Brisbane-based modelling agency and received funding under the VET FEE-HELP scheme, which was plagued by rorts and scandals.

Under the scheme, the federal government offered up-front grants for enrolments in vocational courses, with students required to repay the money once they earned more than $54,000 per year.

But when the government announced a freeze on the scheme in 2016, FC 11’s business model crashed according to several former staff.

With campuses in Melbourne, Sydney, Brisbane and Newcastle, FC 11 was placed into liquidation in February, leaving a trail of financial destruction and just $4945 in the bank.

Liquidator Cor Cordis confirmed in a recent creditors report that it was investigating the company's directors, Michael Katsaris and Miltiadis Sakkos, over possible breaches of their fiduciary duties.

"Our preliminary view is that the company may have been (insolvent) from around October 2016 and remained insolvent at all times to the date of our appointment on 9 February 2018," the report stated.

Liquidators are also expected to examine whether FC 11 transferred assets to an associated company, Agoge Education Australia, which continues to offer courses in sports administration and marketing.

Mr Katsaris and Mr Sakkos have not responded to repeated phone calls and emails.

The company shut down its website on May 15, but had claimed that: "FC 11 in conjuction [sic] with Agoge Education Australia deliver nationally accredited qualifications that incorporate sports specific coaching, training [and] strength."

FC 11 forged relationships with some of the nation's biggest sporting clubs and associations, which often gave access to databases of players and supporters who were targeted with marketing material.

"FC 11 has received sanctioning from Football Federation Victoria, Football NSW, Football Queensland, Northern Football NSW, Football Brisbane, Capital Football, Netball Queensland, Netball ACT, Hockey ACT, Cricket NSW, Sydney Thunder and Sydney Sixers," its website claimed.

Prominent rugby league figure and Penrith Panthers general manager Phil Gould hailed a deal between the NRL club and FC 11, which offered a diploma of sport development for rugby league at Pepper Stadium in Penrith.

"The partnership between Panthers and FC 11 has been a wonderful acquisition for our club, particularly for our young aspiring professional players. Even if they don't make it as professional players, they know there are avenues in the game, and in sport, that they can aspire to," Mr Gould said in 2015.

But many of those relationships have soured, with Football Federation Victoria, Football NSW and Football Queensland all owed significant debts by FC 11.

One Brisbane-based creditor claimed the company was under significant financial strain when it expanded into the Queensland market in 2016.

"When I read the liquidator report I was shocked for two reasons. Firstly, FC 11 came to Brisbane in 2016 and it is clear from the liquidators report that they were under a financial cloud," the creditor told Fairfax Media.

"Secondly, despite going into liquidation ... they have started up again under the same name. I hope ASIC throws the book at them."