Melbourne Rebels’ debt doubles to $20 million

The financial disaster at the Melbourne Rebels’ is double previous estimates, as Victorian taxpayers are hit with a $50,000 bill each time they play at AAMI Stadium.

Victorian taxpayers are forking out $50,000 each time the Rebels play at AAMI Stadium. Picture: Getty Images

Exclusive: The financial disaster at the Melbourne Rebels’ is double previous estimates, with the club’s long-term future in doubt as debts hit $20 million.

It can also be revealed that Victorian taxpayers are forking out $50,000 each time the Rebels play at AAMI Stadium.

The new details have emerged about the collapsed club ahead of a creditors’ meeting on Thursday.

The Australian Taxation Office (ATO) was owed at least $10 million, which included up to five years of unpaid tax on players’ and staff wages.

Board members were owed as much as $6 million as they put their own skin in the game, while suppliers made up the bulk of the remaining debt.

Rugby Australia has confirmed it will underwrite players’ wages this season, with top star Taniela Tupou signing on for as much as $500,000 this year.

There are questions about the payment of wages to the club’s 40 staff, including coaches and administration team members.

Rugby Australia chief executive Phil Waugh. Picture: Getty Images for Rugby Australia

Rugby Australia has provided limited funding to pay those wages, but a deal on the remainder of the season was yet to be inked.

The Rebels board was stood down when the club was put into the hands of PwC last week when it went into voluntary administration.

Board members have claimed Rugby Australia promised a deal to sort out their finances, which never appeared.

Rugby Australia has denied the suggestion.

The crisis at the Rebels comes as companies linked to former Rebels chair Paul Docherty went into administration with more than $70 million debt.

It is not suggested that Mr Docherty has done anything wrong.

Negotiations were deadlocked at an emergency meeting between Rugby Australia and the Victorian Government last week.

Sports Minister Steve Dimopoulos with Victorian Premier Jacinta Allan. Picture: NCA NewsWire / Luis Enrique Ascui

Sports Minister Steve Dimopoulos has said he “supported” the Rebels but no deal has been done to rescue the Super Rugby team.

Rugby Australia chief executive Phil Waugh said in Melbourne last week that he had “sensible constructive conversations” with government officials.

“The Victorian government has always been very supportive of Australian Rugby,” he said.

Any bailout for the Rebels risks setting a precedent for handouts from other struggling sporting clubs, including Victoria’s A-League teams in the future.

The Melbourne Olympic Parks Trust, which runs AAMI Park, was owed at least $1 million by the Rebels.

The Trust said: “Melbourne & Olympic Parks does not disclose financial details of its contractual relationships with its tenant clubs, including the Melbourne Rebels.”

The first Rebels game is just 18 days away, adding urgency for a new stadium deal.

Originally published as Melbourne Rebels’ debt doubles to $20 million