Anthony Mundine has lost money on his Central Coast holiday resort after selling the property last week to the Salvation Army.
Mr Mundine had hoped to turn Dooralong Valley Resort, which he bought for $5.5 million last July.
Residents had threatened legal action after reports that Mundine's consortium – which included lawyer Adam Houda and Bulldogs' star Hazem El Masri – planned to develop a youth rehabilitation centre and mosque, which residents feared would disrupt the tranquil valley, according to a report in The Daily Telegraph.
However the threats never came to fruition as Mr Mundine last week sold the property for an undisclosed amount following the exit of El Masri from his board of directors.
McGrath Estate Agent's Stuart Davies said the undisclosed price was "in line with current market conditions'' and less than what the previous buyers paid.
Dooralong's facilities include 45 cottages, a salt water pool, sand volleyball court, a golf driving range, tennis courts and conference rooms.
The Salvation Army’s major Glenn Whittaker said the charity was yet to decide how the property would be used.
"The Army's vision is to maximise the potential of the site with multiple campuses,'' he said.
"They may sell some other properties to develop it.''