Northern Edition

Select Edition

Northern Northern
Southern Southern
Global Global
New Zealand New Zealand
France France

Melbourne Rebels face yet more problems in fight to stay alive

Rebels players react after conceding the first try of the match during the round four Super Rugby Pacific match between Melbourne Rebels and Queensland Reds at AAMI Park, on March 15, 2024, in Melbourne, Australia. (Photo by Asanka Ratnayake/Getty Images)

A vote to save the Melbourne Rebels may prove to be only a stay of execution, with the debt-ridden Super Rugby Pacific club facing further hurdles in its bid to stay alive.

ADVERTISEMENT

Creditors on Friday voted to accept a proposal by a private investor group that includes current directors rather than liquidate the club, which has debts of more than $23 million.

The consortium, involving former Qantas chairman Leigh Clifford, proposed a Deed Of Company Arrangement (DOCA), which guaranteed employees 100 per cent of their entitlements but would leave unsecured creditors with as little as 15 cents to the dollar.

Video Spacer

Chasing the Sun on RugbyPass TV | RPTV

Chasing the Sun, the extraordinary documentary that traces the Springboks’ road to victory at the 2019 Rugby World Cup, is coming to RugbyPass TV.

Watch now

Video Spacer

Chasing the Sun on RugbyPass TV | RPTV

Chasing the Sun, the extraordinary documentary that traces the Springboks’ road to victory at the 2019 Rugby World Cup, is coming to RugbyPass TV.

Watch now

Committing to an investment of more than $25 million over the next five years, the plan involves a move to Melbourne’s western suburbs to share facilities with A-League club Western United.

The proposal was recommended by PwC voluntary administrator Stephen Longley, who also said in his report last week that the club may have operated insolvent for more than five years.

Fixture
Super Rugby Pacific
Rebels
11 - 38
Full-time
Blues
All Stats and Data

It’s believed Longley had the deciding vote on Friday after the creditor vote was tied.

However, the DOCA is dependent upon the Rebels regaining the Super Rugby participation licence from Rugby Australia (RA), which took control when the club entered voluntary administration in January.

RA, which has propped up the club this season, taking over the wages bill for players and staff, has given no indication of its plans for the club, who joined the competition in 2011.

ADVERTISEMENT

It’s believed RA voted against salvaging the club, with the Australian Financial Review reporting that the governing body claimed the independent report by Longley was biased towards the former directors.

The Rebels’ second obstacle is the Australia Tax Office, which also voted against the proposal, a source told AAP.

As well as the licence, the new deal is dependent on the ATO releasing the directors from their personal liability over the club’s $11.5 million in tax debts.

The likelihood is that the matter will end up in the courts, leaving players, coaches and Rebels staff in limbo.

ADVERTISEMENT

The meeting occurred just hours before the Rebels were scheduled to host the Blues in a Super Rugby Pacific match at AAMI Park on Friday night.

Including this weekend’s round, there are only five matches remaining before finals, with Melbourne on target to make the playoffs for the first time.

Consortium spokesperson Georgia Widdup welcomed the successful vote and urged the governing body to support the new plan for rugby in the state.

“The Melbourne Rebels are an integral part of the sporting fabric of the state and play a critical role in making Melbourne the sporting capital of the world,” she said in a statement.

“Today’s decision ensures the women’s and men’s club can progress plans for our financially sustainable future.

“There is still a lot of work to do, but with the vote out of the way and a lot of community and government goodwill behind the club, we can finally get excited about what the future holds, and we urge Rugby Australia to support rugby in Victoria.”

Related

ADVERTISEMENT

LIVE

{{item.title}}

Trending on RugbyPass

Comments

0 Comments
Be the first to comment...

Join free and tell us what you really think!

Sign up for free
ADVERTISEMENT

Latest Features

Comments on RugbyPass

J
JW 5 hours ago
Does South Africa have a future in European competition?

I rated Lowe well enough to be an AB. Remember we were picking the likes of George Bridge above such players so theres no disputing a lot of bad decisions have been made by those last two coaches. Does a team like the ABs need a finicky winger who you have to adapt and change a lot of your style with to get benefit from? No, not really. But he still would have been a basic improvement on players like even Savea at the tail of his career, Bridge, and could even have converted into the answer of replacing Beauden at the back. Instead we persisted with NMS, Naholo, Havili, Reece, all players we would have cared even less about losing and all because Rieko had Lowe's number 11 jersey nailed down.


He was of course only 23 when he decided to leave, it was back in the beggining of the period they had started retaining players (from 2018 onwards I think, they came out saying theyre going to be more aggressive at some point). So he might, all of them, only just missed out.


The main point that Ed made is that situations like Lowe's, Aki's, JGP's, aren't going to happen in future. That's a bit of a "NZ" only problem, because those players need to reach such a high standard to be chosen by the All Blacks, were as a country like Ireland wants them a lot earlier like that. This is basically the 'ready in 3 years' concept Ireland relied on, versus the '5 years and they've left' concept' were that player is now ready to be chosen by the All Blacks (given a contract to play Super, ala SBW, and hopefully Manu).


The 'mercenary' thing that will take longer to expire, and which I was referring to, is the grandparents rule. The new kids coming through now aren't going to have as many gp born overseas, so the amount of players that can leave with a prospect of International rugby offer are going to drop dramatically at some point. All these kiwi fellas playing for a PI, is going to stop sadly.


The new era problem that will replace those old concerns is now French and Japanese clubs (doing the same as NRL teams have done for decades by) picking kids out of school. The problem here is not so much a national identity one, than it is a farm system where 9 in 10 players are left with nothing. A stunted education and no support in a foreign country (well they'll get kicked out of those countries were they don't in Australia).


It's the same sort of situation were NZ would be the big guy, but there weren't many downsides with it. The only one I can think was brought up but a poster on this site, I can't recall who it was, but he seemed to know a lot of kids coming from the Islands weren't really given the capability to fly back home during school xms holidays etc. That is probably something that should be fixed by the union. Otherwise getting someone like Fakatava over here for his last year of school definitely results in NZ being able to pick the cherries off the top but it also allows that player to develop and be able to represent Tonga and under age and possibly even later in his career. Where as a kid being taken from NZ is arguably going to be worse off in every respect other than perhaps money. Not going to develop as a person, not going to develop as a player as much, so I have a lotof sympathy for NZs case that I don't include them in that group but I certainly see where you're coming from and it encourages other countries to think they can do the same while not realising they're making a much worse experience/situation.

144 Go to comments
TRENDING
TRENDING Sacha Feinberg-Mngomezulu suffers new injury setback Springboks flyhalf's latest injury worry
Search