Melbourne Rebels officials have declared it a ‘sad day’ and a legal battle will follow after Rugby Australia rejected a takeover application from a consortium determined to close the club after 14 seasons.
As the club prepares to compete in its first-ever Super Rugby final, the news was delivered to staff and players on Thursday morning, with RA chairman Daniel Herbert saying angry members of the Rebels’ board, including some from the revival consortium, were calling for ‘the club’s poor finances’. Management is disappointing rugby stakeholders in Victoria.
“I personally love rugby, but it’s been six years since Rugby Australia paid $13.8 million in Rebel debt in 2017 and committed a further $6 million in funding,” Herbert said. The lack of financial viability of the consortium proposal and lack of detail were revealed as the main reasons for RA’s decision to close the club.
‘Tens of millions of dollars have been spent on this franchise – more than any other Super Rugby club – and they are (now) $23 million back in debt.
The closure of the Melbourne Rebels could have major implications for Victorian rugby.
Australian Rugby boss Phil Waugh confirmed the club would not be saved.
‘I think they have let down rugby stakeholders in Victoria and they have let down rugby stakeholders more broadly.’
The Rebels went into administration in January this year with creditors owed more than $23 million, and all rescue plans were abandoned following attacks from clubs from Japan, Europe and even the NRL with players under contract beyond this season. Like superstar Taniela Tupou.
It has also raised extreme doubts about the state’s ability to host the 2027 Rugby World Cup final, with Victorian Sports Minister Steve Dimopoulos questioning whether the state will continue to host rugby matches.
‘The Victorian Government is extremely disappointed that Rugby Australia has decided not to support the Melbourne Rebels beyond the team’s 2024 season. We made it clear that we expected them to commit to a team at the elite level of the sport in Victoria,’ Dimopoulos said. he said
But RA coach Phil Waugh insists Victoria are still in the running to host the finals.
‘We are very committed to visiting Victoria (and) working with the Victorian Government,’ he said. ‘International rugby has enjoyed great success in Australia for a long time. And we are confident that it will remain so in the future.’
Waugh said a consortium led by business tycoon Leigh Clifford, which had presented plans to fund the club until 2030, had failed to provide any substantive details, with Herbert calling them ’embryonic’ and ‘grossly underdeveloped’.
“When the rebels went into voluntary administration, we made it very clear that we would make decisions as quickly as possible based on all the appropriate information,” Waugh said.
‘We received the information last week, made a presentation this week, analyzed all the information and made a decision as quickly as possible to give certainty to the players and staff.
‘RA does not take this decision lightly but must act in the best interests of the game and its stakeholders and provide certainty to Rebels players and staff and all Super Rugby clubs in planning for the 2025 Super Rugby Pacific season. .
‘Given the lack of detail provided to RA, lack of transparency and serious doubts about the financial model proposed by the consortium, RA believes that there is an unacceptable level of risk associated with entering into a participation agreement with this consortium in 2025. I decided there was. Super Rugby Pacific Season.’
Waugh said he remained committed to maintaining a strong rugby presence in Victoria and would now focus on ‘supporting staff and players who have made an impact at the Rebels’.
This could mean the Melbourne Cricket Ground will not host the 2027 Rugby World Cup final.
‘It was testament to the players, coaches, team management and support staff that they were able to deliver a competitive season on the field despite extremely difficult circumstances and we look forward to seeing the team battle it out in the final. ‘For the first time,’ Waugh said.
‘We would like to thank the Rugby community for their patience and continued support of the code. ‘Rugby Australia’s focus at present is to support the Rebels’ affected staff and players.’
Leigh Clifford, the man behind the failed consortium, suggested there could still be a court battle to resolve the issue.
‘The Melbourne Rebels never want to go to court, but Rugby Australia’s actions of turning their backs and refusing to negotiate a common sense $18 million rescue plan have left the club with no choice,’ he said.
All club staff, including coach Kevin Foote, will lose their jobs at the end of the Rebels’ season. This is likely to be two games while we wait for what could be considered a miraculous finals win given the circumstances the players are currently facing.
RA and the Rugby Union Players’ Association (RUPA) are still discussing player movement options within Australian Rugby.
But players with contracts with the Rebels until the end of 2025, including the likes of Wallabies star Tupou, now have their contracts void and the option to play overseas.
The Rebels will play their final game of the regular season against Fiji Drua on Saturday in Fiji, having already secured their first finals berth despite the tumultuous events of 2024.
