Super Rugby Pacific club deny voluntary administration status – report
Melbourne Rebels players form a huddle during a Super Rugby match.
The Melbourne Rebels have denied that they have entered voluntary administration, but the move is potentially on the table for the cash-strapped Super Rugby Pacific outfit.
According to an AAP report, the Rebels’ chief executive Baden Stephenson spoke to the team’s players ahead of training on Friday after it was reported earlier in the week that the club, who are up to AU$9 million in debt, had formally entered into voluntary administration.
The Rebels is believed to owe the Australian Taxation Office about AUS$1 million in hire fees for their home ground AAMI Park, which is managed by the state government’s Melbourne and Olympic Parks Trust.
Players reassured about contracts and salaries
A source told AAP that Stephenson reassured the Rebels players that their contracts and salaries were guaranteed for the 2024 season, with their first Super Rugby Pacific game set to take place against the Brumbies at AAMI Park on Friday, February 23.
There were concerns about the futures of Rebels players like Wallabies front-row Taniela Tupou, who joined the club in the off-season from the Reds, and former Test back-row Lukhan Salakaia-Loto, who made the move from Premiership outfit Northampton Saints.
The Rugby Union Players Association (RUPA) also held a meeting with the players to reaffirm their payments would be met under the Collective Bargaining Agreement.
Stephenson also e-mailed club members to inform them that the Rebels board was continuing to work with Rugby Australia (RA) on their financial situation and future.
“The ongoing work with Rugby Australia is a testament to our shared commitment to ensuring the long-term viability and success of the Melbourne Rebels,” he wrote in an e-mail.
“We assure you that our collaboration will persist as we collectively navigate the challenges and opportunities that lie ahead.”
The club appointed Sydney-based firm Wexted as an external financial advisor to assist with the debt situation. Wexted previously dealt with the Waratahs, and the Rebels board will be meeting over the weekend as they seek a way to avoid going into administration.
Financial problems for key sponsor
Battling for revenue, the Rebels were dealt a massive setback due to the financial problems of its key sponsor, BRC Capital, whose chairman, Paul Docherty, also chairs the Rebels.
RA have guaranteed its presence for this year’s Super Rugby Pacific tournament but not beyond that – a decision which has angered the Rebels which feels it has been singled out as other Super Rugby clubs are also under severe financial pressure.
Five clubs are needed to satisfy the current broadcast deal, which expires at the end of the 2025 campaign. The Melbourne Rebels haven’t made the Super Rugby play-offs in 12 seasons since being brought into the tournament in 2011.
READ MORE: Key Wallabies duo at risk as Melbourne Rebels set to enter voluntary administration – report