Melbourne Rebels say Rugby Australia owes club $8m as $20m debt revealed, including $11m tax bill

The Melbourne Rebels have squared up with Rugby Australia in an extraordinary report. ASIC documents also state RA needs to inject more money for the Rebels to survive this season.

There are doubts over the Melbourne Rebels future as $20m of debt has been revealed.

The Melbourne Rebels say Rugby Australia owes them over $8 million in an extraordinary creditors report, which confirmed the broke Super Rugby club owes nearly $20 million.

The documents state RA will need to provide even more money to the Rebels to help them pay staff and survive this Super Rugby season, which is just days away from kick-off.

The ASIC documents reveal the Melbourne Rebels board believes RA owes them over $2m in their footballers’ ‘pay as you go’ tax and claim they have been short-changed $6m in Super Rugby funding.

“An amount in excess of $2m the board believes represents the PAYG for Melbourne Rebels players while they were on Wallabies duties; and … an amount in excess of $6m being the alleged underfunding of the Company by RA over a number of years,” the ASIC document states.

The Melbourne Rebels are in debt crisis. Picture: Morgan Hancock

The Rebels’ full financial malaise is on show in the document, with the Melbourne club owing $11.6m to the Australian Taxation Office.

A number of creditors are listed, including Rebels board member Lindsay Cattermole who is owed nearly $350,000, Tim North is owed $120,000 while NewSTAR sports agency — which manages Wallabies and Rebels stars Taniela Tupou and Carter Gordon — are owed around $20,000.

The larger creditor claims include:

*$11.6m owed to the Australian Taxation Office (ATO)

*$5.7m owed in relation to loans provided primarily by related parties

*$2.8m owed to suppliers, including amounts advanced by sponsors

*$1.1m owed to Melbourne Olympic Park Trust relating to unpaid stadium usage, plus an additional amount in relation to future lease liabilities under the existing agreement

*$712k owed to the State Revenue Office in relation to unpaid payroll tax

The documents detail unpaid superannuation owed to employees is $250k. The document also revealed Rugby Australia needed to give additional funding to the club to fund wages in order to ensure it would survive this season.

“The Chairperson advised that given the financial position of the Company it was necessary to obtain funding from RA to ensure the Administrators could continue to trade and meet operating costs, including wages,” the document states.

The Australian reported on Monday the Australian Taxation Office has made the seven board members personally liable for the club’s debt — or $1.65m each.

They were listed as “joint and several” debtors, meaning if one did not pay, the rest would still have to settle the bill.

The tax claim was likely to ignite a bigger legal battle than the $4 million Israel Folau settlement, which toppled former Rugby Australia chief executive Raelene Castle.

The Rebels board members each received directors penalty notices in late November, which gave them 21 days to pay the tax or put the club into voluntary administration.

The matter was not resolved before the tax office deadline.

The ASIC document also showed Rebels directors have ploughed some of their own money into the franchise to keep it afloat.

“The Chairperson also noted that the directors, and entities/people associated with the directors, have advanced $5.7m to the Company to support the club,” it reads.

It is also stated the Rebels will continue to use the facilities situated at AAMI Park at no cost.

The only assets the Rebels have is $17,300 in the bank and “plant and equipment, consisting of office furniture, gym equipment and two motor vehicles.”

A second meeting of creditors is expected by no later than Monday, 4 March 2024.