Melbourne Rebels officials declared it a “sad day” and a court battle looming after Rugby Australia rejected an application from a consortium seeking to take over the embattled club and opted to close it after 14 seasons.
The news was delivered to staff and players on Thursday morning, as the club prepares for a first appearance in the Super Rugby final and RA chairman Daniel Herbert said angry members of the board of directors Rebels, including some who were part of the resurrection consortium, had ‘let down rugby stakeholders in Victoria’ due to poor financial management by the club.
“And while this is not an attack on people individually, these are people who love rugby, we are now six years after Rugby Australia paid $13.8 million for the Rebels’ debts in 2017 and awarded an additional $6 million funding,” Herbert said. as the lack of financial viability of the consortium proposal and lack of details were revealed as the key reasons for RA’s decision to close the club.
“Tens of millions of dollars have been spent on this franchise, as well as other Super Rugby clubs, and (now) it will once again be $23 million in debt.”
Melbourne Rebels closure could have huge ramifications for rugby in Victoria
Rugby Australia boss Phil Waugh confirmed the club would not be saved
“I think they have let down rugby stakeholders in Victoria and rugby stakeholders in general.”
The Rebels were placed into administration in January this year with debts to creditors exceeding $23 million and all rescue plans were abandoned with players contracted beyond this season to have their deals paid, with clubs in Japan, Europe and even the NRL ready to attack. about people like superstar Taniela Tupou.
It also raises extreme doubts about Victoria’s chances of hosting the 2027 Rugby World Cup final, with Victoria State Sports Minister Steve Dimopoulos questioning whether the state would continue to host rugby events.
“The Victorian Government is extremely disappointed that Rugby Australia has decided not to support the Melbourne Rebels following the team’s 2024 season, after we made it clear that we expected them to commit to an elite team in the sport in Victoria,” Dimopoulos . saying.
However, RA boss Phil Waugh insists Victoria remains a contender to host the final.
“We are very committed to working with Visit Victoria (and) the Victorian Government,” he said. ‘International rugby has been very successful in Australia for a long, long time. And we are sure that it will continue to be that way.”
Waugh said the consortium led by business heavyweight Leigh Clifford, which put forward a plan to fund the club until 2030, did not provide any substantial details, with Herbert calling it “embryonic” and “very underdeveloped”.
“When the rebels went into voluntary administration, I was very clear that we would make a decision as quickly as possible with all the right information,” Waugh said.
“We received that information last week and we had a presentation this week and then we analyzed all the information and made the decision as quickly as we could to give certainty to the players and staff.
“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 to Rebels players and staff, and all Super Rugby clubs in the Super Rugby Pacific 2025 season planning. .
‘Given the lack of details made available to RA, the lack of transparency and significant doubts about the financial model proposed by the Consortium, RA has determined that there is an unacceptable level of risk associated with entering into a Participation Agreement with this Consortium for the year 2025. Super Rugby Pacific season.’
Waugh, said they remained committed to having a strong rugby presence in Victoria and would now focus on “supporting the affected Rebels staff and players”.
It could mean that the Melbourne Cricket Ground will not host the 2027 Rugby World Cup final
“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 pitch under extremely difficult circumstances, and we look forward to seeing the team battle it out in the finals for the title.” first time,” Waugh said.
‘I want to thank the rugby community for their patience and continued support of the code. “Rugby Australia’s focus at this time is to support the affected Rebels staff and players.”
The man behind the failed consortium, Leigh Clifford, suggested there could still be a court battle to resolve the matter.
“The Melbourne Rebels never want to go to court, but Rugby Australia’s actions in turning their backs and not negotiating a common sense $18 million bailout plan have left the Club no choice,” he said.
All club staff, including coach Kevin Foote, will be out of work when the Rebels’ season ends, which will likely be in two games, pending what would be considered a miraculous final given the situation they now face. Players.
RA and the Rugby Players’ Association (RUPA) continue to discuss options for player movement within Australian rugby.
But players who were contracted by the Rebels until the end of 2025, including the likes of Wallabies star Tupou, have the option to play abroad with their contracts now void.
The Rebels will play their final regular season match against Fijian Drua on Saturday in Fiji, having already secured their first place in the finals despite the tumultuous events of 2024.