Secret Melbourne Rebels merger plan exposed
Explosive leaked documents reveal there were secret plans for the Melbourne Rebels to join forces with another club months before it collapsed.
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EXCLUSIVE
Explosive leaked documents reveal there were secret plans to fold the Melbourne Rebels in with a New Zealand team seven months before the club collapsed.
Rugby Australia had demanded the Rebels join forces with the Moana Pasifika franchise based in Auckland, the documents claim.
Now the Rebels are in voluntary administration with just $17,000 in the bank three weeks out from the start of the Super Rugby season.
A new club based on the United States west coast would have been added to Super Rugby under the merger plans to ensure broadcast revenue was maintained.
Japan or Hawaii were also considered potential bases, but a California based team was the top priority to increase interest in the game ahead in the world’s biggest sporting market.
“As at 18 July 2023 Rugby Australia was requiring Melbourne team to be known as Rebels Pasifikia in its dealing with Rebels, Victorian Government, the British and Irish Lions Tours to Australia in 2025,” a leaked document says.
The move was part of a push to get the MCG to host the World Cup final in 2027 in exchange for a Victorian Government handout.
A 16-page dossier prepared by the “Melbourne Rebels Board and Rugby Victoria” revealed that the problems at the club were well known by Rugby Australia and the Victorian Government last year.
The documents seek to blame Rugby Australia for the club’s woes, with a section headed “undisputed facts and propositions”.
The leaked documents also claim that Rugby Australia gold-plated the Wallabies disastrous World Cup trip to France last year.
Separately, sources claim that up to $6 million was “over spent” on the failed campaign, with a private chef flown to France for the players being just one example of the no-expenses spared largesse.
The documents also claimed that Rugby Australia had refused to release a report on the World Cup, which was expected to detail the spending.
The World Cup campaign report was overseen by former Wallaby Andrew Slack.
The three person panel – which also included Rugby Union Players Association CEO Justin Harrison – planned to deliver its recommendations to the Rugby Australia board before the end of last year.
Rebels sources were angry about the World Cup spending as they pored over the financial problems at the club.
More than 30 people attended a 25-minute creditors meeting held online on Thursday morning.
The meeting was told the Australian Taxation Office was owed $11.6 million in unpaid tax, with debts incurred over five years.
Loans from creditors, including board members, were $5.7 million.
The Victorian Government, which has offered the Rebels one month’s free rent on AAMI Park, was owed almost $2 million.
That was made up of $1.1 million of unpaid stadium rent and $700,000 owed to the State Revenue office for unpaid payroll tax.
The creditors meeting was told that Rugby Australia was likely to be liable for up to $8 million of the Rebels debt.
That was made up of a $6 million broadcast shortfall and $2 million of the tax bill, the meeting was told.
The leaked document claims that Rugby Australia: “Reneged on commitments made to find additional $1.7M for each Super Rugby Licensee for 2023 Season and a further $1.7M for 2024 new allocated over funds for the Joint Venture Partners.”
The former Rebels board includes Paul Docherty, who is linked to companies that are facing up to $70 million of debts, including unpaid tax.
Prominent lawyer Tim North, QC, angel investor Lyndsey Cattermole, Gary Gray, Georgia Widdup, a co-managing director at Triple Eight Capital, forensic accountant Owain Stone, and Neil Hay made up the rest of the board.
The leaked documents claim that Rugby Australia did not reinstate funding after the Covid-19 pandemic.
It is claimed that additional payments of $8 million were received as part of a Rugby Australia deal with a New Zealand broadcaster.
The Rugby Australia board, made up of Dan Herbert, Phil Waugh, Pip Marlow, Brett Godfrey, Dr Jane Wilson, Matthew Hanning, Karen Penrose and Joe Roff, who does not have a vote – faced calls to stand aside following Australia’s humiliating World Cup defeat. None of them have.
Waugh, who is also RA chief executive, said: “Rugby Australia is aware of a document that has been circulated to the media today and is purported to be signed off by the Melbourne Rebels Board and Rugby Victoria.
“Our immediate focus and priority is to work through the voluntary administration process diligently and appropriately with the administrator, and to engage with the key stakeholders to ensure that the team can participate in the 2024 Super Rugby competitions.
“Given this, we do not intend to respond to the various accusations and assertions within the document.”
The office of Victorian Sports Minister Stephen Dimopoulos said in a statement: “The Melbourne Rebels are an important member of Victoria’s sporting landscape which helps pack our calendar with professional sport fixtures and major events, providing lasting benefits for the state’s visitor economy.
“The Government is aware the Melbourne Rebels are working closely with Rugby Australia following the club entering into voluntary administration.”
stephen.drill@news.com.au
Originally published as Secret Melbourne Rebels merger plan exposed
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