Super Rugby Courthouse Rd1 - Rebels v RA

[oxleymoron]

Rabble has issued 5pm deadline tomorrow for talks with RA regarding funding.

Their argument is they need to exist to meet the various broadcast agreements for the next 2 years

https://www.smh.com.au/sport/rebels-set-wednesday-deadline-for-ra-rescue-plan-discussions-20240305-p5f9xy.html

[Burgs]

"...has issued 5pm deadline tomorrow..."
Would have to think "or what" if I was RA. They don't exactly have the upper hand here.

The (almost) bottom line of the article is an interesting take on matters-

With $6m of the Rebels debt owed to its own passionate supporters and the possibility of negotiating a deal with the ATO, there is still a possibility of the Melbourne club finding a financial saviour to meet an effective debt as low as $5m.

[GIGS20]

"effective debt as low as 5m"

Assuming RA pay every cent of the bullshit claim that they have made, and assuming that their own slimy motherfucker board members don't get their slice of the pie and assuming that the ATO negotiate a settlement of the tax debt, then they only need to find 5 mill to make it to the lofty heights of zero.

Rugby Australia voted for liquidation in the court case that granted them an extension. What's the best they have an urgent appointment washing their hair?

[jargan83]

If the Rebels can win this it would be a somewhat Pyrrhic victory wouldn't it?

Rugby Australia is already leveraged with debt up to it's eyeballs, legal fee's for a court case would eat into the current loan they've got just to fund the game?

Feels like the Rebels are saying "If we go down, we're taking you with us"

[The InnFORCEr]

Feels like the Rebels are saying "If we go down, we're taking you with us"

And this is why I have little sympathy for them, they have created the entire mess themselves and now want somebody else to foot the bills yet again.

[AndyS]

Equally though, the Rebels racked up something like $8M in debt while Mitchell owned them, then $13M while RA owned them, then another few million (largely pre-paid by RA) while Cox owned them...so what did RA really think was going to happen over the last 7 years? Even more so when cutting funding, yet they just walk away and leave the VRU to get on with it, no oversight or questions asked...?

[shasta]

Equally though, the Rebels racked up something like $8M in debt while Mitchell owned them, then $13M while RA owned them, then another few million (largely pre-paid by RA) while Cox owned them...so what did RA really think was going to happen over the last 7 years? Even more so when cutting funding, yet they just walk away and leave the VRU to get on with it, no oversight or questions asked...?

Fair enough. And a nice bit of Devil's Advocacy, Andy. But still, after arranging our demise and the sale to the VRU, RA might have expected some changes in governance and a little honesty. Even if you allow for the $8 million they say RA "owes" them in reduced funding, there are still other debts somewhere north of $12 million. This has been mounting since the $1 sale and has been pretty much hidden all along, while they tried to buy success. That reduction hit all franchises but the smoking gun for the Rebels & VRU is their attempts at hiding the true situation by not filing reports to the regulator since that $1 sale in 2017. That plus everyone concerned doing a "Sargeant Schultz" re responsibility for it. Add to that not paying their taxes, ground fees etc and it's hard not to think there was an attitude of "F@ck 'em. We're just going to carry on and, when the piper wants paying we'll get RA to bail us out."

The bottom line is RA can't realistically afford to bail them out. Nor should they after that behavior. If there is any future for a franchise in Vic it has to be a fresh start as a privately run business - like our team was fortunate to find.

[GIGS20]

And this is why I have little sympathy for them, they have created the entire mess themselves and now want somebody else to foot the bills yet again.

Tough call though.

We did everything we could to avoid the axe, then a billionaire created a competition to keep the team alive until COVID Forced RA to get us back.

Hard to blame the Rebels for throwing everything they've got at it.

(Personally reckon they're fishing for an out of court settlement, rather than a court case)

[Burgs]

I'm not sure if "Daddy doesn't love me" is much of a defence though...?
Ultimately Directors of a Company are where the buck stops.

[AndyS]

Have to agree Shasta, however they got there, $20M is a staggering amount of money and surely has to be too much to duck. If it actually eventuates, the court case is going to be fascinating, if probably morbid, viewing. Wonder if both parties won't be very keen to get the shutters pulled down on the whole thing, super secret squirrel.

[GIGS20]

Have to agree Shasta, however they got there, $20M is a staggering amount of money and surely has to be too much to duck. If it actually eventuates, the court case is going to be fascinating, if probably morbid, viewing. Wonder if both parties won't be very keen to get the shutters pulled down on the whole thing, super secret squirrel.

I think the Rebels are banking on RA not wanting their skirts lifted.

If it goes to insolvency Rebels are going to be fully exposed anyway so there's no risk to them. The case is just one example of them betting with house money.

[jargan83]

Discovery should be wild given it might open the financials of Rugby Australia.

[brokendown gunfighter]

this is turning out to be a rather large can of worms!

[wallabydarnd]

I am sure the old Boys club will get together and sort it out quietly

[slomo]

There's a spreadsheet somewhere, that will disclose the full picture!..