Melbourne Rebels dealt another blow in $22m debt woes, as CEO cut

Melbourne Rebels’ hopes of surviving its $22m debt crisis have hit another snag, after the club confirmed the role of CEO has been made redundant.

Rebels staff have been told to apply for a government handout. Picture: Getty Images

The cash-strapped Melbourne Rebels’ hope of getting help from the Victorian Government have been dealt a blow with no bailout deal currently on the table.

Rugby Australia boss Phil Waugh jetted into Melbourne but there was no scheduled meeting with Sports Minister Steve Dimopoulos.

The Victorian Government has previously said it supported the team, but it’s understood there was no cash to be handed over at this point in time.

The Melbourne Rebels debts have now hit $22m, including almost $2 million owed to the Victorian Government.

Waugh met coaches and players at the Rebels on Thursday in a bid to reassure them their season would go ahead.

The club takes on the ACT Brumbies at AAMI Park in just over a week, with a last-minute deal made to keep the team’s season alive.

Insiders say that the players, including star recruit Taniela Tupou, were determined to prove doubters wrong.

However, there remains questions about whether the club will survive beyond the current broadcast deal, which ends next year.

The Rebels will still play this season despite its debt crisis. (Photo by Morgan Hancock/Getty Images)

Rugby Australia has previously been in talks with the Victorian Government about a handout.

Any deal would be tied to the MCG being host of the 2027 Rugby World Cup final and potentially both semi-finals.

However, that fixture decision was due to be made by World Rugby.

Administrators PwC told all Rebels staff this week they were all losing their jobs, with some to be taken back and employed by Rugby Australia until June.

Rugby Australia has confirmed five staff would not be re-employed, including its chief executive.

“RA can confirm that the role of Rebels CEO, currently held by Baden Stephenson, has been made redundant,” RA said in a statement on Thursday.

“A new CEO contract has not been offered for Baden to continue with the club. RA would like to thank Baden for his years of work at the Club and recognises this has been a difficult period for him and his team.”

The staff who lost their jobs were told to apply for a government handout instead of Rugby Australia being forced to foot the bill for their payout.

“Affected staff members (including those offered contracts by Rugby Australia) will be able to claim a redundancy package via the government’s Fair Entitlements Guarantee (FEG) scheme,” RA said in a statement.

Administrators and the Rebels board were working to get a deal with the Australian Taxation Office over its $11.6 million debt.

The Rebels board has claimed that RA was responsible for up to $8 million of the club’s debt, which the governing body has rejected.

“For the last two weeks, RA provided funding to the administrator to pay administration staff costs from the date of their appointment until 14th February,” an RA statement said.

‘It was necessary for RA to step in regarding funding, given the limited funds in the Melbourne Rebels entity.

“As previously indicated, all player contracts for Super Rugby Pacific and Super Rugby Women’s team members will be honoured by RA in 2024.”

Rugby Australia must field five teams in the Super Rugby to honour its TV rights commitments this year.

However there are questions about whether Rugby Australia can support all five teams into the future.

The governing body, which also controls the Wallabies, has an $80 million loan with Pacific Equity Partners.