Melbourne Rebels shut down by Rugby Australia after 14 seasons

[The InnFORCEr]

The Melbourne Rebels have been shut down by Rugby Australia after 14 seasons and will play their last game of Super Rugby next month.

Rugby Australia chief executive Phil Waugh informed Rebels staff and players of the impending closure at a 10am meeting on Thursday at AAMI Park.

The news came just hours before the Rebels players were due to fly out to Fiji for their last regular-season game on Saturday, and ahead of the club’s first-ever finals appearance the following week.

Waugh and Rugby Australia chairman Dan Herbert will address media in Melbourne on Thursday to explain the decision to shut down the club.

The Rebels have been in administration since January this year with debts owed to creditors exceeding $23 million including an $11.5 million debt to the tax office.

As a result of the Rebels’ administration, Rugby Australia assumed all payments for the players’ wages and funded the club for the 2023 season. It also stripped the club of its right-to-play licence.

A consortium led by business heavyweight Leigh Clifford, the former chairman of Qantas and chief executive of Rio Tinto, put forward a plan to fund the club until 2030 that was dependent, in part, on Rugby Australia handing back the licence.

But after receiving the details last week, Rugby Australia have elected to not support the plans and re-issue the licence. It now open the prospect of the consortium suing Rugby Australia for allegedly underfunding the club for several years.

Rugby Australia previously alleged that the club had misused funds it had given the club to pay the Australian Taxation Office.

After “scenario planning” discussions with RA in recent weeks about their futures, Rebels players will now enter in contract negotiations with head office and other Super Rugby franchises about moving to a new club.
No players can be forced to move elsewhere by Rugby Australia. Players who were contracted to the Rebels through to the end of 2025 have the option of leaving Australia and playing overseas, given their original contract is void.

The closure of the club could create further tensions between the sport’s governing body and the Victorian state government.

This week Victorian Sport Minister Steve Dimopoulos wrote to the newly installed president of Rugby Victoria, Elizabeth Radcliffe, reiterating his support of the Melbourne Rebels continuing to play in Victoria.

“The Melbourne Rebels are an important part of Victoria’s sporting landscape providing benefits for Victoria’s visitor economy by helping fill our professional sporting fixtures and major events calendar and providing pathways for Victorians in community rugby clubs,” Dimopoulos said in the letter.

The Rebels were born in 2010 when Super Rugby was expanded to 15 teams, and from seven Australian bidders, a Victorian team was chosen by Rugby Australia.

Leading businessman Harold Mitchell became the Rebels’ first owner and former World Cup winning Wallabies coach Rod Macqueen was recruited to build the new club.

With high-profile signings Danny Cipriani and Stirling Mortlock in the team, the Rebels played their first season in the 2011 Super Rugby competition but success on and off the field was hard to come by.

Before this year, the highest place finish for the Rebels was ninth in 2018, and financial struggles were also a constant feature off the field.

MORE TO COME

https://www.msn.com/en-au/news/austr...b54289a02&ei=8

[Burgs]

Rugby Australia statement regarding Melbourne Rebels

Thu, May 30, 2024, 8:04 AM
Rugby Australia

Rugby Australia (RA) advises that the application from a Consortium seeking a Participation Agreement for the Melbourne Rebels to participate in the 2025 Super Rugby Pacific competition has been unsuccessful.

RA advised the known representatives of the Consortium of this outcome this morning, noting that the application did not demonstrate sufficient financial viability.

The application relied upon projections for revenue growth and cost savings that RA believes are overly optimistic, raising significant doubts about the long-term sustainability of the proposed licensee. Further, the Consortium’s proposed alliance with Western Melbourne Group (WMG) regarding co-location at Tarneit, which is central to the proposed model, is early stage and is not yet agreed between the parties.

The Consortium has made it clear that it is seeking a contribution from RA of several million dollars to cover forecast operating losses – this is in addition to the standard funding that would be available under a Participation Agreement.

The identity of the Consortium members has not been disclosed to RA and, as a result the credentials of the Consortium were unable to be fully assessed.

However, it is clear that key advisers to the Consortium include one or more former directors of Melbourne Rebels Rugby Union Pty Ltd (MRRU), meaning that an individual or individuals involved were responsible for the governance of MRRU during the period in which the Administrator considers the company may have traded while insolvent.

Since the Rebels’ inaugural year in 2011, MRRU has not been independently financially sustainable despite significant additional investment by RA over and above committed club grants. There is nothing in the Consortium’s proposal which demonstrates with sufficient certainty that this will change.

The Consortium has claimed to have committed $18m in funding, though no documentary evidence has been provided to support this. RA has been asked to rely on a verbal assurance, as well as confirmation that a portion of the committed funding will be contributed towards funding the Deed of Company Arrangement (DOCA).

No material has been provided outlining the new ownership structure, the new delivery model across two locations (AAMI Park and Tarneit) or how the historic financial challenges faced by MRRU would be mitigated under the new model.

RA does not take this decision lightly, however it must act in the best interests of the game and its stakeholders, and to provide certainty for the Rebels’ players and staff, and all Super Rugby clubs in planning for the 2025 Super Rugby Pacific season.

Given the lack of detail made available to RA, the lack of transparency and the significant doubts over the Consortium’s proposed financial model, RA has determined that there is an unacceptable level of risk associated with entering into a Participation Agreement with this Consortium for the 2025 Super Rugby Pacific season.

Regarding the Melbourne Rebels players, RA and the Rugby Union Players Association (RUPA) have been contingency planning for the possibility of this outcome and met with players last week to discuss options for player movement within Australian Rugby.

This process will continue in the coming weeks, as RA engages with RUPA, players and other Super Rugby clubs regarding options for player movement. RA will communicate further details regarding this process in due course.

Commitment to Victorian Rugby

This is a decision solely regarding the participation of a men’s professional Rugby team in Melbourne that has not demonstrated financial sustainability, and which requires substantial ongoing additional financial support. RA remains deeply committed to Rugby in Victoria and will continue to invest in the game, working with Rugby Victoria, State and Federal Government and other stakeholders to grow the game.

Further:

• RA is currently working through the appropriate footprint for the 2025 Super Rugby Women’s competition – a decision on the Rebels Super Rugby Women’s team will be made as part of this broader process later this year;

• RA will continue to fund Rugby Victoria to oversee community Rugby and grow the game within the state, and will look at opportunities to increase funding;

• RA will assume strategic and financial responsibility for junior talent development programs working closely with Rugby Victoria under a centralised high-performance structure – including Super Rugby U16s and U19s;

• RA will continue to work with the Victorian Government on development of the Victorian Rugby Centre of Excellence at La Trobe University, which promises to become one of the nation’s landmark development facilities and the home of Rugby pathways in Victoria;

• RA is evaluating options to feed Victoria’s elite men’s pathways into Australian

Super Rugby clubs – a path previously trodden by 2023 John Eales Medallist Rob Valetini when he was signed by the Brumbies as a Melbourne schoolboy.

MRRU Voluntary Administration

The Administrator reported that MRRU had accumulated almost $23 million in debt prior to entering Voluntary Administration (VA) in January this year. RA were not advised by the directors of MRRU that they had been issued with ATO Director Penalty Notices – RA was only made aware of these notices when the Administrator communicated them.

The Administrator also noted that MRRU may have traded while insolvent from 31 December 2018.

The Administrator also stated that the reasons for the company’s financial challenges were a history of trading losses, lack of readily available alternative funding sources, an excessive cost structure compared to the underlying revenue base, and insufficient revenue generated from non-RA sources including membership, sponsorship and game day receipts.

Following MRRU being placed in administration, RA stepped in to fund all operations of the Melbourne Rebels in 2024, paying player and staff wages, and meeting all associated statutory obligations connected with those payments for the entirety of the season.

RA CEO Phil Waugh:

“It has been a testament to the players, coaches, team management and support staff that they have managed to deliver such a competitive season on the field in extremely difficult circumstances – and we are looking forward to seeing the team fighting in the Finals for the first time ever.

"I want to thank the Rugby community for its patience and ongoing support of the code. Rugby Australia's focus right now is on supporting the impacted staff and players at the Rebels.

“We have a plan that will ensure Rugby has a strong future in Victoria – the infrastructure and the systems remain unchanged despite the change to the professional game in 2025, and we will continue to look for opportunities to increase that investment in the game in Victoria.

“As Australian Rugby evolves, we will consider the game’s professional footprint, and how it best serves the game and Super Rugby.

“We will continue to work closely with the Victorian Government and Visit Victoria on major events for the future, and we are looking forward to the Wallabies taking on Wales at AAMI Park this July.

“RA is evaluating possibilities for the tour game for the 2025 British & Irish Lions Tour scheduled for Marvel Stadium on 22 July 2025 and is working with the Lions on the successful delivery of that event."

[GIGS20]

Worst kept secret in the world (well since the last worst kept secret also from Rugby Australia)

I wonder how many of the Rebels players will now announce the contracts they've clearly been working on in the background. (and how many of them will end up at the Tahs)

[palitu]

and there it is

[Burgs]

I wonder how many of the Rebels players will now announce the contracts they've clearly been working on in the background. (and how many of them will end up at the Tahs)

Not mutually inclusive...?

[Burgs]

Melbourne Rebels Statement

Thu, May 30, 2024, 8:37 AM
Rebels Media

The Melbourne Rebels acknowledge Rugby Australia’s (RA) decision not to grant a Participation Agreement to a Consortium application for the Melbourne Rebels to compete in the 2025 Super Rugby Pacific season.

The decision means that the 2024 season will be the last for the Melbourne Rebels in Super Rugby Pacific for the foreseeable future.

This is the news that the Rebels club and its supporters have been dreading since the club was placed into Voluntary Administration in January. It is important to note that all player and coach pathways programs remain in place, and there has not yet been a decision made on the future of the Melbourne Rebels Super W team.

While this is undoubtedly a sad day for the Melbourne Rebels, the clarity that this decision provides for our players and staff is welcome.

The club will continue to work with RA and the Rugby Union Players Association (RUPA) regarding next steps for players and staff.

Everyone at the Rebels remains committed to, and passionate about Rugby in Victoria – and we will never stop advocating for and supporting the sport at all levels in this state. We urge all fellow Rugby fans to do the same…

We are proud of our players, coaches, and staff in delivering such a successful season in the most challenging of circumstances.

From everyone at the Rebels, a most sincere thank you to the members, fans, sponsors and partners of our beloved club over the last 14 years.

To see the smiling and encouraging faces behind the Rebels at AAMI Park in 2024 has truly lifted the team and made us feel honoured to represent such passionate fans all season.

We genuinely could not have got through the year without our fans – and we cannot thank them enough for what they have done for us.

Having said that, it’s not over yet. We have one last ride – our first ever Finals campaign – and we know that our treasured supporters will stick with us as we fight to the end to finish the season on a high.

[The InnFORCEr]

Based on that I guess we're about 53.5 hours into 48 - 72 hour timeframe

[GIGS20]

Not mutually inclusive...?

I mean their payroll is currently set up with the same employer..... I reckon it's a reason why RA haven't tried to save the Rebels.

[GIGS20]

Melbourne Rebels Statement

Thu, May 30, 2024, 8:37 AM
Rebels Media

The Melbourne Rebels acknowledge Rugby Australia’s (RA) decision not to grant a Participation Agreement to a Consortium application for the Melbourne Rebels to compete in the 2025 Super Rugby Pacific season.

The decision means that the 2024 season will be the last for the Melbourne Rebels in Super Rugby Pacific for the foreseeable future.

This is the news that the Rebels club and its supporters have been dreading since the club was placed into Voluntary Administration in January. It is important to note that all player and coach pathways programs remain in place, and there has not yet been a decision made on the future of the Melbourne Rebels Super W team.

While this is undoubtedly a sad day for the Melbourne Rebels, the clarity that this decision provides for our players and staff is welcome.

The club will continue to work with RA and the Rugby Union Players Association (RUPA) regarding next steps for players and staff.

Everyone at the Rebels remains committed to, and passionate about Rugby in Victoria – and we will never stop advocating for and supporting the sport at all levels in this state. We urge all fellow Rugby fans to do the same…

We are proud of our players, coaches, and staff in delivering such a successful season in the most challenging of circumstances.

From everyone at the Rebels, a most sincere thank you to the members, fans, sponsors and partners of our beloved club over the last 14 years.

To see the smiling and encouraging faces behind the Rebels at AAMI Park in 2024 has truly lifted the team and made us feel honoured to represent such passionate fans all season.

We genuinely could not have got through the year without our fans – and we cannot thank them enough for what they have done for us.

Having said that, it’s not over yet. We have one last ride – our first ever Finals campaign – and we know that our treasured supporters will stick with us as we fight to the end to finish the season on a high.

No mention of the legal action they threatened to launch should this exact eventuality occur.

[The InnFORCEr]

No mention of the legal action they threatened to launch should this exact eventuality occur.

The Consortium has claimed to have committed $18m in funding, though no documentary evidence has been provided to support this. RA has been asked to rely on a verbal assurance, as well as confirmation that a portion of the committed funding will be contributed towards funding the Deed of Company Arrangement (DOCA).

No material has been provided outlining the new ownership structure, the new delivery model across two locations (AAMI Park and Tarneit) or how the historic financial challenges faced by MRRU would be mitigated under the new model.

RA does not take this decision lightly, however it must act in the best interests of the game and its stakeholders, and to provide certainty for the Rebels’ players and staff, and all Super Rugby clubs in planning for the 2025 Super Rugby Pacific season.

Given the lack of detail made available to RA, the lack of transparency and the significant doubts over the Consortium’s proposed financial model, RA has determined that there is an unacceptable level of risk associated with entering into a Participation Agreement with this Consortium for the 2025 Super Rugby Pacific season.

How could they possible go to court to get the participation agreement from RA if this is what they put to RA, no court could possibly overrule RA and grant them the participation agreement with so little detail, let alone funding.

[Burgs]

No mention of the legal action they threatened to launch should this exact eventuality occur.

Hard to bluff pro bluffers.

That said, if the RA statements are all factual around what was presented to them as the Plan B, then it would be hard to justify any other response than to shut it down.

[jargan83]

The magic bullet consortium sounds just as dodgy as the Rebels directors.

[Burgs]

The magic bullet consortium sounds just as dodgy as the Rebels directors.

If not THE Rebels Directors with public "beards".

[The InnFORCEr]

Looks like they will be off to court, what a waste of time, money and emotional stress.


Clifford admonished the decision to shut down the Rebels, describing it as a “slap in the face” for sport-loving Victorians. He said the group would now move to sue Rugby Australia.

“The Melbourne Rebels never want to go to court, but Rugby Australia’s actions to turn their backs and not negotiate on a commonsense $18 million rescue plan has left the club no choice,” he said.

Leigh Clifford says the Rebels will take Rugby Australia to court.
Leigh Clifford says the Rebels will take Rugby Australia to court.CREDIT:EDDIE JIM

“Rugby Australia is shrinking the sport, [has] abandoned any pretence they are a serious national competition and cut off the pathways for girls, women, boys and men to live their dream of playing professional rugby for their local team.

“The fact that Rugby Australia recently chose to provide millions of dollars in financial support to the NSW Waratahs and provide not a cent to the Rebels says everything Victorians need to know about their priorities.”

https://www.smh.com.au/sport/rugby-u...30-p5jhul.html

[Burgs]

Looks like they will be off to court, what a waste of time, money and emotional stress.


[I]Clifford admonished the decision to shut down the Rebels, describing it as a “slap in the face” for sport-loving Victorians. He said the group would now move to sue Rugby Australia.

Wonder if they are planning to sue the ATO as well, who also voted down the proposal...