Leaked Melbourne Rebels documents claim Rugby Australia wanted to ‘destroy’ Super Rugby by underfunding competition

An explosive Melbourne Rebels manifesto claims Rugby Australia underfunded Super Rugby in order to ‘destroy’ it, with a plan to merge with Moana Pasifika also revealed.

The Melbourne Rebels board has accused Rugby Australia, including chief executive Phil Waugh and chairman Daniel Herbert, of deliberately underfunding Super Rugby.

The Melbourne Rebels board have slammed the Rugby Australia directors for overseeing an unrestricted World Cup budget and accused the governing body of deliberately underfunding the Super Rugby structure as to “destroy” it.

Explosive documents obtained by The Australian also reveal the Melbourne franchise has privately been known for the past seven months as “Rebels Pasifika”, with it set to merge with fellow Super Rugby team Moana Pasifika this year.

The board document circulated revealed the Melbourne Rebels leadership felt they “could not” survive because of RA’s funding cuts, which saw $1.7m slashed during the Covid pandemic and not reinstated, accusing Rugby Australia of “oppressive conduct”.

The Rebels claim that RA’s leadership, headed by former Wallabies Phil Waugh (chief executive) and Dan Herbert (chair), were leading a board that had acted in a “unconscionable” and disrespectful manner towards Super Rugby clubs.

“RA treatment of Super Rugby and state members is so unreasonable as to be unconstitutional and unconscionable as it had been determined to destroy the current structure by under-funding SRL (Super Rugby licensee) members,” the Rebels document states.

Newly appointed Rugby Australia Head Coach Joe Schmidt (C) poses for pictures with Rugby Australia CEO Phil Waugh (L) and Director of High-Performance Peter Horne (R)

The Melbourne Rebels went into voluntary administration last week – understood to be owing $20m with over $11m owed to the tax office. Former Melbourne Rebels’ board members, who include prominent lawyer Tim North, KC, were expected to claim that Rugby Australia was partly responsible for the tax bill because they were a signatory on player contracts.

They slammed RA’s secrecy around its alleged 2023 World Cup budget ‘blow out’ and head office in turn stonewalling the franchise’s attempt to see the figures from the Wallabies’ disastrous campaign in France.

“RA and directors breached the constitution in acting against members interests and in part have favour (sic) themselves with no restrictions on RA’s own 2023 WC budget.’” the document states.

“Further they failed to enable inspection of RA’s records pursuant to clause 14 of the Constitution.”

Clause 14 in the Rugby Australia constitution states a “voting Member is entitled to inspect the minute books, accounting records and other documents of the Company”.

Since the Wallabies humiliating World Cup defeat there have been public and private calls for the RA board, made up of Herbert, Waugh, Pip Marlow, Brett Godfrey, Dr Jane Wilson, Matthew Hanning and Karen Penrose, to stand aside.

A detailed report into the failed World Cup campaign was overseen by former Wallaby captain Andrew Slack but it has not been publicly released. The three person panel – which also included Rugby Union Players Association CEO Justin Harrison and high performance specialist Darlene Harrison – is understood to have delivered its recommendations to the Rugby Australia board at the end of last year.

The Australian also understands the report has not been distributed beyond the boardroom and some Super Rugby leaders are frustrated it has not been seen by them.

A confidential 16-page document which was circulated by the Melbourne Rebels Board and Rugby Victoria repeatedly states the constant underfunding of the Super Rugby clubs was a threat to their existence and the five-team competition.

The Australian understands that only “a third” of that contentious $1.7m total is now being passed on to the Super Rugby clubs as they fight for survival. The Rebels say they and other clubs have been constantly short changed.

“RA was involved in misleading conduct in making representations about fixing “under funding” over a period from 2021 to 2024 which has been relied upon,” it states.

“RA is a party to the Broadcasting Agreements not the Super Rugby Licensees and it receives funding on behalf of its Members but has:

(a) 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 secret documents also reveal the Rebels were due to merge with Moana Pasifika imminently.

“(b) Not provided any additional funds secured by the last Agreement with NZRU Incorporated and its Clubs and the Broadcasting Agreements for 2024-2030.

(c) Continued to operate as under the imposed Covid reductions in funding knowing that all its Super Rugby Licensee members were all in financial difficulty to supply the teams to RA so it could receive the funds as a National Joint Venture partner.”

When contacted by The Australian, Waugh said he was aware of the document but their priority was to work through the Rebels’ voluntary administration process.

“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 document also reveals that as of 18 July 2023 RA was “requiring the Melbourne team to be known as Rebels Pasifika in its dealing with Rebels, Victorian government, the British and Irish Lions Tours to Australia in 2025”.

The new joint venture between the Rebels and the Auckland-based Moana Pasifika was to see an increase in broadcast money to RA.

“The Joint Venture parties agreed that the revenue share model for the completion for 2024 and 2025 is received from the host broadcasters which included additional payments to RA which are as follows;

“2024: NZD $8.75 million paid in quarterly instalments by 31 March, 30 June, 30 September and 31 December 2024; and

“2025: NZD $8.75 million paid in quarterly instalments by 31 March, 30 June, 30 September and 31 December 2025.”

The Rebels and Rugby Victoria also claim that Rugby Australia were in breach of contract by forcing Super clubs to take responsibility for RA debts in player contracting – including in relation to the Wallabies.

“RA acted in breach of contract in not supporting members and forcing members to assume responsibility for the RA debts in player contracting including in relation to the international representation,” the document states.

Several Super Rugby club leaders have repeatedly told The Australian that they would struggle to pay players and staff if RA did not restore funding back to its pre-pandemic levels.

“The current model enables RA to reduce funding and support. Without satisfactory sharing of funds that RA has received as the representative for Australia in the Joint Venture, the Super Rugby Licensee cannot survive. There has been an imposed reduction in funding now for at least 5 seasons of the Super Rugby Pacific Competition.”

Former Fiji prime minister Frank Bainimarama and former Melbourne Rebels president Paul Docherty.

Rebels say the “RA Board” has bought the “current demise of the goodwill in the sport upon itself”.It also claims the RA board has sought to “turn its Member Unions against each other”.

They say the game had neglected the grassroots.

The Rebels write; “The people behind the members organisations were all once players. They are all “custodians” for future players. Most of them are Volunteers. These people are disrespected by RA”.

It says that RA has forgotten that the real growth of the game comes through the “enhancement of the players pathways and the retention of players within Australia, which is the only way to compete successfully internationally”.

It also states “a continuation of the current RA board’s approach will cause irreparable damage to State relations, player retention, sponsor relationship and spectator and gross roots’ respect and support for this sport”.

Rugby Australia are currently in a tough financial situation.

There is a potential scenario that the Wallabies could be owned by private equity. The brand of what was once the most beloved national team has been used as guarantee to Pacific Equity Partners for its $80m loan to Rugby Australia in November.