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With just $17,000 in the bank, Rebels’ fate to be decided within weeks

February 13, 2024
in News
With just $17,000 in the bank, Rebels’ fate to be decided within weeks
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The future of the Melbourne Rebels beyond the 2024 season will be known by early March after documents filed to the corporate regulator revealed the embattled Super Rugby franchise had only $17,300 in the bank.

The grim financial state of the Super Rugby franchise was laid bare in a creditors meeting held on Thursday, the minutes of which were filed to the Australian Securities and Investment Commission on Monday.

The Melbourne Rebels’ fate will be decided within the next few weeks.

The Melbourne Rebels’ fate will be decided within the next few weeks.Credit: Eddie Jim

The administrators agreed to meet again by March 4, when they will hand down a report determining whether the Rebels should be wound up.

Auditors from PwC appointed to investigate the club’s financials revealed the Rebels owe $11.6 million to the Australian Taxation Office, $5.7 million to board members, and $2.8 million to suppliers – which include sponsors that paid their fees upfront.

Adding to the list of debts is the $1.1 million in unpaid stadium fees, $720,000 owed to the State Revenue Office and $250,000 in superannuation owed to employees.

The seven-person Rebels board is demanding Rugby Australia cough up $8 million they say is owed to the club. They allege the governing body owes $6 million for underfunding the club over a number of years, and an additional $2 million to cover the cost of Rebels’ player wages while they were on Wallabies duties.

PwC’s Martin Ford, the administrator appointed as chair, said he would need to investigate these claims before – or if – any action could be taken.

But even if Rugby Australia fork out that money, the Rebels will need a big helping hand to pay off their remaining debt. Administrators said the club has just $17,300 left in the bank, and assets consisting of office furniture, gym equipment and two cars. The value of those assets are not known.

Rugby Australia has been contacted for comment.

‘It’s become about arguing’: Rebels fans in despair

The grim financial state has been a blow to the fans of the beloved Rebels, who are holding on to hope that the team can find a way through.

One of those fans, Rebels fanatic Lucas Hainsworth, said his identity was so strongly tied to the club that he “wouldn’t know how to express himself in another way” if the club were to collapse.

What the Melbourne Rebels owe

$11.6m owed to the Australian Taxation Office $5.7m owed in loans$2.8m owed to suppliers, including amounts advanced by sponsors$1.1m owed to MOPT 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

“We’ve forgotten what the spectacle of rugby is. Fifteen [players] that love to compete for 80 hard minutes, and then after it give each other a hug and be a family together,” he said.

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“We need to go back to our fundamentals and I think that’s why fans have stepped away from the game. It’s become about politics, it’s become about arguing.”

Adding to the frustration is the inability for spectators to purchase home ground tickets or Rebels memberships this season – with the first round just a week away.

The delay comes as Rugby Australia and the state government-operated Melbourne and Olympic Parks Trust continue to finalise an agreement on the cost for the use of AAMI Park.

Asked about this issue on Friday, and Rugby Australia boss Phil Waugh said:

“We can’t go on sale until we confirm the delivery of the ’24 season, and how we’re going to deliver it. [We’re having] very constructive conversations with the Victorian government and the [trust].”

He indicated they hoped to finalise the issue early this week.

The trust declined to comment, directing questions to Rugby Australia.

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