Melbourne Rebels boss Paul Docherty quits after club’s cash fail

The chairman of the Melbourne Rebels Paul Docherty has quit after the club went into voluntary administration.

Carter Gordon of the Rebels, left, celebrates scoring a try against the ACT Brumbies at AAMI Park. Picture: Getty Images

Embattled Melbourne Rebels chairman Paul Docherty has stood down from the rugby union club’s board after its spectacular financial collapse.

Mr Docherty has agreed to walk away from the club where he was also the major sponsor.

Rugby Australia has insisted the club will field teams this season, with the first game scheduled for February 23.

It follows News Corp’s reporting about the $70 million of debts at 10 of Mr Docherty’s companies and revelations he milked millions from members of a secretive business network called the Young Presidents’ Organisation (YPO).

Neither Mr Docherty nor the YPO members are accused of any wrongdoing.

Embattled Melbourne Rebels chairman Paul Docherty has agreed to walk away from the club where he was also the major sponsor. PIcture: Getty

Mr Docherty has not returned calls but the Rebels chief executive Baden Stephenson confirmed the businessman had cut ties with the club and left his official role.

“The whole Rebels board have stood down when going into voluntary administration,” he told News Corp.

“Rugby Australia will work through the new governance structure, which hasn’t been determined yet.”

The Rebels club were now likely to beg for a bailout from the Victorian Government, amid concerns the club will fold.

Rugby Australia confirmed that it was working with administrators from PwC of the club and that it was in talks with the government.

The cash strapped league has taken on an $80 million debt of its own and was unlikely to be able to prop up the Rebels, who were at least $9 million in the red, for more than a season.

Rugby Australia CEO Phil Waugh. Picture: Getty Images for Rugby Australia

Rugby Australia chief executive Phil Waugh said the Rebels’ players and staff would be supported during the club’s voluntary administration.

“The Victorian Government has been a long-standing and significant supporter of professional and community Rugby,” Mr Waugh said.

“Through our strong partnership – forged through decades of staging major events in Melbourne – our focus is to work with the Victorian Government and its key agencies, including Melbourne and Olympic Parks Trust, to ensure the Rebels’ participation in the 2024 Super Rugby season and the continuation of professional Rugby in the state.”

The Victorian Government was already owed at least $1 million in unpaid rent from the Rebels on their home ground AAMI Park.

Josh Kemeny of the Rebels during a match between the Rebels and Brumbies at Leichhardt Oval in Sydney. Picture: Getty Images

However, the rectangular shape of the pitch in the AFL heartland of Melbourne means that it can only be used for rugby or soccer.

Melbourne Storm already plays league at AAMI Park, leaving few easy options to replace the Rebels.

Victorian Sports Minister Steve Dimopoulos said on Monday that he supported the club, “which helps pack our sport and major events calendar” and provided “lasting benefits to the state’s visitor economy.”

His office did not answer questions about whether there would be a new lifeline for the club.

Any move to bailout the Rebels would be difficult at a time when Victoria was battling a horror budget, with widespread cuts planned.

Rugby Australia reassured players and fans that it will field teams in the 2024 Super Rugby Pacific and Super Rugby Women’s competitions.

The governing body also confirmed that a Super Round, with all matches to be played in Melbourne on the first weekend of March, would go ahead.

Originally published as Melbourne Rebels boss Paul Docherty quits after club’s cash fail