Rugby Australia backs Rebels as club sinks in debt

Rugby Australia chief Phil Waugh says they are ‘committed to the Melbourne Rebels for the 2024 season as the Super Rugby franchise slips into voluntary administration.

Rugby Australia boss Phil Waugh. Picture: Getty Images

Rugby Australia chief Phil Waugh says they are “committed” to the Melbourne Rebels for the 2024 season as the Super Rugby franchise slips into voluntary administration.

Waugh told The Australian that RA wanted a five-team competition for the 2024 Super season and was working through “next steps” with the Rebels and their financial advisers.

The Melbourne Rebels club directors have appointed Wexted Advisors and the Australian understands VA paperwork will be signed imminently.

The Rebels powerbrokers met Wexted on Thursday morning to discuss the financial operations going forward with players and staff needing to be paid.

It is understood that the Rebels may request a $500,000 cash injection to pay wages of footballers and staff, having been denied crucial funding by Rugby Australia in recent weeks.

Waugh revealed they have also been in regular contact with the Rugby Union Players Association and said RA was “committed” to the Rebels franchise.

“RA is committed to ensuring the participation of the Melbourne Rebels in the 2024 Super Rugby Pacific and Super Rugby Women competitions,” Waugh told The Australian.

“We are working through the financial implications of that with the Rebels – however we are absolutely committed to ensuring the continuation of the Rebels in 2024.”

“We have been liaising with RUPA throughout this process to ensure the players and their representatives are well informed.”

“We are still going through the process with the Rebels and their financial advisers, and evaluating the possible next steps – those discussions are confidential in nature, however I can assure you that the conversations are constructive.”

“RA is committed to five Australian Super Rugby teams for round one this year.”

“We have been in discussions with the Rebels since prior to Christmas about their financial position.”

Rugby Australia have been meeting regularly to manage the Rebels’ situation.

It’s understood that some within the Super Rugby hierarchy are pushing for Australia to slim down to four teams and ditch the Rebels for season 2025.

Melbourne Rebels chairman Paul Docherty. Picture: Getty Images

The Rebels dire financial situation could shatter the Victoria government hosting the rugby World Cup. The Victorian government is eager to host the final of the Rugby World Cup in 2027 – the MCG has a capacity of more than 100,000.

A Victorian Government spokesman has said the Rebels were an “important” part of the state’s sporting landscape.

The state government is likely to offer a package of more than $50m for rugby to host the RWC final and semi-finals, as well as future funding for the Rebels and the club’s highly-regarded community programs that have led to a boom in participation numbers among young players with Pacific Island backgrounds.

The timing is embarrassing for Rugby Australia officials, several who are expected to be guests of Visit Victoria – the tourism arm of the government – this weekend at the Australian Open tennis.

The Melbourne Cricket Ground from Princes bridge. Picture: NCA NewsWire / David Crosling

And in a little over a month, Super Rugby’s entire round two of matches are to be held in Melbourne – titled ‘rugby round’.

News the Rebels are going into administration comes as rugby broadcaster Nine Entertainment and Stan have considered a strong bid for the Football Australia television rights to the Matildas and Socceroos matches.

The RA deal with Nine is up in 2025 and any move towards the round ball could be a big blow to the code’s hope of a big broadcast deal.

Rugby Australia chair Daniel Herbert is expected attend the tennis finals as a guest of Nine.

Rugby Australia recently borrowed $80 million from Pacific Equity Partners.

The Melbourne team are reportedly in debt up to the tune of $9 million.

The Herald Sun has reported Rebels chairman Paul Docherty – the club’s major sponsor – is a director of 10 companies that have lost at least $70 million.

Andrew Kellaway of the Rebels. Picture: AAP Image/Scott Barbour

Insiders claim Melbourne was considering handing back its licence to Rugby Australia because it could not pay its bills, including up to $1 million owed to AAMI Park, where it plays.

KPMG has been appointed administrator to eight companies linked to Hiro Brands, which Docherty has been a director of since 2021.

The Australian has learnt that Docherty may step down as Rebels chair following the reports.

A Melbourne insider said it had been hard to deal with RA recently. “It’s hard to hold of anyone in the head office,” one Rebels insider said. “I think they’ve got their heads in the sand.”

The Super Rugby competition starts in a month, with venues booked and marquee players such as Wallabies and Rebels stars Andrew Kellaway and Taniela Tupou needing to be paid.

If the Rebels are to fold, it will cause chaos with RA’s broadcasters Channel 9 and Stan, who have the rights until 2025.

The broadcaster will likely demand a reduction in media rights fees if the Rebels disappear for season 2024.

Rebels CEO Baden Stephenson. Picture: Daniel Pockett/Getty Images

Last December the Melbourne Rebels wrote to players and staff to assure them their jobs would be safe for next year amid revelations the club is millions of dollars in debt.

In an interview last year, Rebels CEO Baden Stephenson said Rugby Australia funding cuts had placed massive financial pressure on all five Super clubs to pay their players, with millions stripped from their budgets.

Stephenson, who feels there has been a targeted approach to throw a “grenade” at his club, said all clubs were facing a “$1.7m wage gap” to pay their players after RA cuts since 2020.

The timing of the Rebels potentially going into voluntary administration should set off alarm bells for World Rugby chiefs Bill Beaumont and Alan Gilpin, who arrive in Australia this weekend for the World Sevens in Perth.