VRU looks to syndicate to save Melbourne Rebels
This slipped past me last week but there was an interesting line in it.
Nick Taylor
Friday, 14 July 2017 3:55PM
The Victorian Rugby Union is in talks with a wealthy syndicate as they battle to save the Melbourne Rebels from the ARU axe next season.
The VRU wants the syndicate, understood to include foundation shareholders, to buy the Super Rugby licence from Rebels owner Andrew Cox and hand them control of the loss making club.
The ARU is trying to cut either the Rebels or Western Force from the competition.
The move comes amid reports that Cox is in negotiations with the ARU and the Victorian Government about relinquishing his hold on the struggling club.
However, it is understood the Victorian government will not assist financially and a planned rugby centre of excellence is now unlikely to go ahead.
Cox, who bought the Rebels licence for $1, previously offered to sell it back to the ARU for $4.75 million. He then said he would not sell the club just to see it closed and warned he would start legal action against the governing body.
The ARU, that has to sign-off on any sale or transfer of the licence, was given notice for mediation by the Rebels last month but the meeting was cancelled. An ARU spokesman said informal discussions would continue.
Victoria’s Sports Minister John Eren said: “The Victorian Government will continue working with the ARU and the VRU to ensure the Rebels are here to stay.”
The VRU did not return calls.
The Force are confident they have a watertight alliance agreement with the ARU as they head into arbitration in two weeks.
They claim the ARU have obligations under the agreement signed last May by the club and the governing body that commits both parties through the current broadcast deal that ends in 2020.
