Financial problems put future of the Melbourne Rebels in serious jeopardy

The Melbourne Rebels’ very existence is under threat as financial problems plague the Super Rugby club. JAMIE PANDARAM has the details.

Jason Rogers, Head Coach of the Rebels speaks to players during a Melbourne Rebels Open Training Session at Gosch's Paddock on December 16, 2023 in Melbourne, Australia. (Photo by Kelly Defina/Getty Images)

The future of the Melbourne Rebels is in serious doubt as the Super Rugby club battles financial problems.

This masthead understands the Rebels may have up to $9 million in debt, which was only recently discovered by Rugby Australia following an inspection of their books.

It’s believed RA cannot financially bail out the struggling franchise, but is exploring all avenues in a bid to save the Rebels.

Sources have even suggested there may have to be a forced merger between the Rebels and Brumbies.

RA is determined to keep all five teams. They have not held talks of a merger if the Rebels go insolvent, and said they’re committed to rugby in Victoria.

“Rugby in Victoria is very important to Rugby Australia and it is our intent to continue to have a footprint there in both provincial and Test rugby,” an RA spokesman said.

Asked if they could guarantee the Rebels’ survival beyond the 2024 season, the spokesman said: “We are working together to overcome the challenges that the Rebels are currently navigating.”

Melbourne Rebels players at training on Saturday. Picture: Getty Images)

But Rebels chief executive Baden Stephenson is adamant the club will survive.

“I’m absolutely not concerned about the Melbourne Rebels’ ongoing tenure, we’ve got big things coming in 2025 (British & Irish Lions tour) and 2027 (home World Cup), we’ve got a lot to be proud of but also to improve on,” Stephenson said.

“But we will be fine.

“We’ve been operating with reduced funding due to Covid since November 2020, it’s been challenging no doubt for all Super Rugby clubs. I am confident in the leadership and the board that I’ve got.

“We’re not sitting back and throwing our hands up saying ‘Poor us’. We only just announced a five-year partnership with La Trobe University [on Monday].”

The Rebels have a significant tax bill that must be paid in three weeks, while one its major sponsors, BRC Capital, is facing solvency issues after four subsidiaries of the company were recently wound up, as revealed by the Australian Financial Review.

But Stephenson said the Rebels had worked out a payment plan with the Australian Tax Office.

Interestingly, no Rebels players or staff are contracted beyond 2025.

Chief Executive Officer of the Melbourne Rebels Baden Stephenson. Picture: Getty Images

Informed sources said the Rebels’ survival beyond 2025 had been speculated for several months, however, a truer picture of their balances had only emerged in recent weeks and now they face the possibility of folding after next season.

However, RA is heavily reliant on funding from the Victorian government, while the Bledisloe Cup Test last year drew nearly 84,000 to the MCG, making it a vital city for the code.

That has fuelled talk of a potential merger between the Rebels and the Brumbies – who have strong political support in Canberra but also face struggles to become financially stronger.

This comes amid a campaign by RA to centralise operations with all five Super franchises; both for rugby high performance and cost-saving financial streamlining.

The NSW Waratahs, who were on the brink of insolvency, quickly agreed to being overtaken by RA, while the Rebels have sought aid. The Brumbies, Queensland Reds and Western Force have so far been opposed to handing over financial control to RA.

Talks about how this will transpire will recommence in the new year, with RA’s new high performance director, Peter Horne, set to be announced soon once he finalises his exit from World Rugby.

Horne’s job - aside from determining who will be the next Wallabies coach - is to align the rugby programs across all Super teams and into the Wallabies, and the states can discuss the centralisation of high performance first, and then commercial operations.

Top of the list, it now appears, will be the future viability of the Rebels.

“RA has a very transparent and cooperative relationship with the Melbourne Rebels and we have a good understanding of the financial position of all our stakeholders,” the RA spokesman said.