Melbourne Rebels beg for ‘$500k bailout’

The Melbourne Rebels have appointed external financial advisers, with the cash-strapped rugby club on its knees.

The Melbourne Rebels was due to be put into voluntary administration today, with the cash-strapped rugby club on its knees.

Sydney firm Wexted have been drafted to sort the club’s $9 million debt, with official paperwork to be filed this afternoon.

It comes amid claims the Rebels have asked Rugby Australia for a $500,000 bailout to pay players’ wages.

The Rebels dire financial situation could shatter the Victorian government plans of hosting the rugby World Cup.

The Victorian government is eager to host the final of the Rugby World Cup in 2027 – the MCG has a capacity of more than 100,000.

Wexted director Joe Hayes is handling the matter following News Corp’s reports of financial woes of its major sponsor BRC Capital, which is run by Rebels chair Paul Docherty.

Board sources say they will ask Mr Docherty to step down from the chairman’s role, with his businesses owing at least $70 million.

Rugby Australia confirmed that the club has brought in outside help, but insisted it would still field a team in this year’s Super Rugby competition.

Prime Minister of Fiji Frank Bainimarama and Melbourne Rebels President Paul Docherty. Picture: AAP

The Rebels are scheduled to play the Brumbies in the season opening round on February 23.

When asked if the Rebels had sought a $500,000 bailout, Rugby Australia said: “We are working with the Rebels on their financial situation – and the immediate future. Discussions are ongoing regarding options – and those discussions are confidential in nature.

“We are currently awaiting the advice of the Rebels external financial advisers before confirming next steps.

“We are committed to the Melbourne Rebels competing in 2024.”

The Victorian Government gave $20 million to Rugby Australia in 2017 as part of a deal to keep the Rebels in Super Rugby.

The club plays at AAMI Park but was reportedly up to $1 million behind in rent payments. Victorian Minister for Tourism, Sport and Major Events Steve Dimopoulos said he supported the club’s future.

“The Melbourne Rebels are an important member of Victoria’s sporting landscape, helping pack our sport and major events calendar every year and providing lasting benefits to the state’s visitor economy,” he said.

“We support tenants of our world-class state sporting venues to ensure every Victorian can enjoy sport in their own backyard.”

Baden Stephenson had dismissed reports in December about the Rebels cash problems.

Rebels chief executive Baden Stephenson had rejected negative reports of the club’s finances in December.

“I’m absolutely not concerned about the Melbourne Rebels’ ongoing tenure, we’ve got big things coming in 2025 (British & Irish Lions tour) and 2027 (home World Cup), we’ve got a lot to be proud of but also to improve on,” Mr Stephenson said at the time.

“But we will be fine.”

Mr Stephenson and Mr Docherty did not return calls on Thursday.

[e-mail]

Originally published as Melbourne Rebels beg for ‘$500k bailout’