ACT Brumbies chairman Matt Nobbs has shut down suggestions the Super Rugby franchise is following the path of the Melbourne Rebels by heading into voluntary administration and dismissed any suggestion of a potential merger.
On Monday night, The Australian reported the Brumbies were heading down the path of the Rebels, who are said to have debts of up to $20 million, according to the newspaper. The Roar understands that figure is closer to $15m.
But Nobbs slammed suggestions the Brumbies were about to head under.
“We would not even go into voluntary administration because we don’t have any (substantial) debt,” Nobbs told The Roar.
“The only debt we have is to Rugby Australia, which originally was a grant, but then was converted by Rugby Australia into an interest bearing loan.
“It was $1.7m, it’s now 1.1m. Everything is up to date, and we’ve never fallen behind.
“We report monthly on our financials. It was a condition of the loan.”
Brumbies chairman Matt Nobbs says the Super Rugby franchise won’t be leaving Canberra. (Photo by Daniel Pockett/Getty Images)
While all signs point to 2024 being the last season for the Rebels despite putting together one of their strongest rosters, one option for the state to keep a Super Rugby presence would be to merge with another franchise.
But Nobbs said he had been assured that option was off the table, as well as any idea of relocating the franchise.
“I’ve got assurances from RA that there will be no merger, that the Brumbies will not be relocated and Rugby Australia do not want to run the Brumbies,” Nobbs said.
Privatising the Brumbies is still an option for Australia’s most successful Super Rugby franchise, who this season have 18 players in the men’s side that have come through the system’s pathways and academy structures.
On Tuesday afternoon, the franchise will hold an investor meeting to explore new revenue opportunities.
Nobbs admitted the uncertainty in the game at present wasn’t helping any of the stakeholders, but the long-time Brumbies chairman said he was confident the franchise would deliver on the field in both the men’s and women’s competitions.
“It’s not the right message that we should be sending about the game, particularly when you’re three weeks out from a Super Rugby season,” Nobbs said.
“I just want to put it to bed that we are not going into voluntary administration.
“We’re preparing for a Super Rugby season, we’re preparing for a Super W season, and we have a red hot chance of winning the Super Rugby competition and performing above expectations in the Super W competition.”
Lee Byron
Roar Rookie
that would be interesting to know.
Footy Franks
Roar Rookie
Bring back the bears, Vlandys gets tribalism and the people, RA don’t . Get Vlandys and rugby would be booming here.
ScottD
Roar Guru
Thanks for that clarification Jack.
Paul
Roar Rookie
I have no clue whats going on. News over the last 24 hours says the Rebels debt is double what was originally reported, and now there's a debate over who's paying their tax debt and talks about mergers. I hate this, I have this ball in the pit of my stomach and tension in my jaw. I can only hope the backs to the wall mentality comes out on the field. I hope the Rebels smash all comers and if they can't win a reprieve go out with a bang.
LuckyPhil
Roar Rookie
Bliksem, if the Brumbies merged with the Rebels, how will they stay connected to their fans when they would only get 3 home games in a season? Wouldn't work under the current system.
LuckyPhil
Roar Rookie
Australia's biggest sports market it might be, but for a fringe sport like Rugby is in Melbourne, they need to be winning. Winning changes everything.
LuckyPhil
Roar Rookie
Wouldn't work Skip. Teams don't play enough at home as it is, you couldn't cut this in half and make it work.
Brendan NH Fan
Roar Rookie
Sadly it could well be the A sides but it gives the money to the Union not the SRP team who need it. While I want to see more centralization it's important that the SRP teams are able to go get their own money.
Biscuit man
Roar Rookie
Who says they are going to saddle up with them? Why would they want to work with a pack of ex players who have never run a professional sport before and are more interested in petty politics than building a commercial sports business. I'd say of News Ltd invests it wont be on friendly terms.
Cec
Roar Rookie
Mini tour for fringe & Aus A would be awesome, perhaps package that with SRNZ teams also looking for games for their non-test players.
Cec
Roar Rookie
Agree I think the product would have been fine but the boardroom just got it wrong.
Jack
Roar Rookie
Employees receive the credit for tax payed even if the employer does not pay it to the ATO. It’s very bad administration by the Rebels. More so to keep signing players. Bad faith negotiation. Trading while insolvent?
Jack
Roar Rookie
Tax deducted from employee wages would be the ATO. This is in effect money in trust. I’m amazed the ATO allowed the unremitted tax to be so high.
Brendan NH Fan
Roar Rookie
The only issue is the league in which they play is not great selling outside of its Region. If I where the Brumbies I would be on to the URC and Prem teams looking to get games next year during the November test matches and also during the first two weeks of the 6Ns. Munster would sell out 41k again for the Brumbies and the Irish teams have 4 weeks off in November so Brumbies could do a 4 game tour of Ireland. Would probably net them close to a million with the right planning. Have a team do the same in England.
Brendan NH Fan
Roar Rookie
Times have changed but not in a good way. Recent Gregor Paul article said that NZR are also burning through their golden egg. If SR and NRC/NPC are such money holes as they currently are and both Unions are losing hand over fist in trying to keep things going then its not just Rebels and Brumbies but it is every SRP team. IF RA can't afford to bail out Rebels and Brumbies then they are down to 3 teams, if they bail out the Brumbies and move them to Melbourne then they will still make a loss. It is why SL have focused on All Blacks, Maori, XV, Fern and 7s as none of those need to be tied to the South Pacific where there appears to be no money. The problem now is that NZR and RA are not competing with the 6N or the JRU or SARU they are competing with companies. Toulouse has the operating budget for the club of half the RA Budget or more than 25% of NZR. Either RA and NZR need to run SRP at a non-loss making league (either increase income by 3-5 times or cut costs) or they need to bring in more money into the Union which means more tests. Maybe after all this people will view the collapse of the 3 English teams differently after they two loss a few million in income each year.
Brendan NH Fan
Roar Rookie
And thats the point, lots of people will give you a reason why they don't go to a game but then its fixed they have a new reason. RA need to work with what they currently have.
FieldGoal
Roar Rookie
Yeah, maybe.
FieldGoal
Roar Rookie
They are paying him in Big Macs?
Cec
Roar Rookie
:shocked: Do I laugh or cry. That’s a shame.
ScottD
Roar Guru
If it was PAYG (employee income tax) then the players would all have had tax liabilities well before now so while that is what the paper said, I doubt it because it would have been public knowledge. No player would keep quiet about something like that for the last three years.