A vote to save the Melbourne Rebels may prove to be only a stay of execution, with the debt-ridden Super Rugby Pacific club facing further hurdles in its bid to stay alive.
The positive vote in favour of the Rebels came as the Super Rugby franchise’s head coach Kevin Foote hit out at Rugby Australia, saying they felt abandoned by the governing body.
Creditors on Friday voted to accept a proposal by a private investor group that includes current directors rather than liquidate the club, which has debts of more than $23 million.
The consortium, involving former Qantas chairman Leigh Clifford, proposed a Deed Of Company Arrangement (DOCA), which guaranteed employees 100 per cent of their entitlements but would leave unsecured creditors with as little as 15 cents to the dollar.
Committing to an investment of more than $25 million over the next five years, the plan involves a move to Melbourne’s western suburbs to share facilities with A-League club Western United.
The proposal was recommended by PwC voluntary administrator Stephen Longley, who also said in his report last week that the club may have operated insolvent for more than five years.
It’s believed Longley had the deciding vote on Friday after the creditor vote was tied.
Rugby Australia chief executive Phil Waugh has been urged to show the governing body’s hand regarding the Rebels’ future. (Photo by Daniel Pockett/Getty Images for Rugby Australia)
However, the DOCA is dependent upon the Rebels regaining the Super Rugby participation licence from Rugby Australia (RA), which took control when the club entered voluntary administration in January.
RA, which has propped up the club this season, taking over the wages bill for players and staff, has given no indication of its plans for the club, who joined the competition in 2011.
It’s believed RA voted against salvaging the club, with the Australian Financial Review reporting that the governing body claimed the independent report by Longley was biased towards the former directors. The Roar understands RA voted by proxy.
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The Rebels’ second obstacle is the Australia Tax Office, which also voted against the proposal, a source told AAP.
As well as the licence, the new deal is dependent on the ATO releasing the directors from their personal liability over the club’s $11.5 million in tax debts.
The likelihood is that the matter will end up in the courts, leaving players, coaches and Rebels staff in limbo.
The meeting occurred just hours before the Rebels were scheduled to host the Blues in a Super Rugby Pacific match at AAMI Park on Friday night. Ultimately, the Blues put got over a messy first half to run away with the match 38-11 as they scored 31 unanswered points, including four second half tries.
Rebels captain Rob Leota reacts during his side’s heavy loss to the Blues at AAMI Park on May 03, 2024. (Photo by Asanka Ratnayake/Getty Images)
There are just four rounds of the regular season left for the Rebels, with the franchise franchise on track to make the finals for the first time in their history despite their second straight loss.
Consortium spokesperson Georgia Widdup welcomed the successful vote and urged the governing body to support the new plan for rugby in the state.
“The Melbourne Rebels are an integral part of the sporting fabric of the state and play a critical role in making Melbourne the sporting capital of the world,” she said in a statement.
“Today’s decision ensures the women’s and men’s club can progress plans for our financially sustainable future.
“There is still a lot of work to do, but with the vote out of the way and a lot of community and government goodwill behind the club, we can finally get excited about what the future holds, and we urge Rugby Australia to support rugby in Victoria.”
But speaking following the loss to the Blues, Foote, who saw the Western Force culled during his time at the Super Rugby franchise, called on RA to show their hand.
“I don’t know what their intentions are,” Foote told AAP.
“I know they voted liquidation today and last week we were told that they were happy that there was a DOCA (Deed Of Company Arrangement) and now liquidation, so it would be great to hear something from them.”
Representative from the Rugby Union Players Association were in Melbourne last week to talk the club through the rescue proposal but RA haven’t been seen since in months.
Kevin Foote says the Rebels don’t feel supported. (Photo by Hagen Hopkins/Getty Images)
With coaches to be receive just one more pay cheque, Foote said the entire club was feeling the pressure.
He previously said he was hiding the possible demise of the Rebels from his young son because he knew how much the boy would worry.
“Staff and players, it’s the human element,” he said.
“There’s definitely people under massive stress, everyone is under stress as a matter of fact.
“It speaks again to their performance tonight – guys have done this since day one, before even the season kicked off they’ve been under this pressure.
“Are people feeling supported? I’d say no.”
AAP with staff writers
GusTee
Roar Pro
Fair call - Lol
Muglair
Roar Rookie
Let me be clear, I have only momentarily stopped kicking. It has not worked to date, so I am working hard on the legs to increase power when I resume.
GusTee
Roar Pro
Muglair - Absolutely with you! It is easy to put the boot into RA while it is on the ground but before doing so the kicker should at least make sure of their justification in doing so.
Jay-c
Roar Rookie
Terrible. Difference is that there is hope for the future in NSW and Western Australia. Apart from the five supporters on here, no one in Victoria cares about rugby. Is almost exclusively to blame on the management in my eyes, even from the beginning, calling themselves the Melbourne rebels meant the rest of Victoria was disregarded. A real shame, there’s no winners. But if they don’t stop the bleeding, the whole game will die. Tough decisions need to be made. They’ve had 15 years and there’s no hope for the future.
Rebel like Sarah
Roar Rookie
Or the Tahs or the Force!
Rebel like Sarah
Roar Rookie
And the Waratahs and Force this season??
MO
Roar Rookie
It may matter if they are trying to cut a deal
Micko
Roar Rookie
With this attitude you wonder why the AFL, NRL & A League are destroying SR. All you're talking about is your national team, hence the continuation of the amateur era thinking that is destroying this sport!
JD Kiwi
Roar Rookie
The original three team Super Rugby model wasn't ruinously expensive. The quality was high and it pulled in big crowds. In fact it was so successful that it fooled JON into thinking expansion was a good idea. Wasting money on and expensive league converts and extra teams full of players not good enough for pro rugby was ruinously expensive. You're wrong about Europe making the main comps domestic. Only two of the six nations did that. And neither of them went for the low cost Mickey Mouse league that you advocate - they had huge playing and financial resources. Your model would have simply resulted in a huge player drain to Murdoch's new Super League clubs which were newly cashed up and hungry for players. It would have destroyed Australian rugby at a time when it was the best in the world. https://www.afr.com/companies/how-rupert-murdoch-tied-up-rugby-union-19950911-kax1n
Jacko
Roar Rookie
Yep fantasy land
Boss man
Roar Rookie
I go back to the very beginning In their first year the Rebels were forbidden from signing any player until after the completion of the previous Super Rugby season which meant that all the other teams were able to stich up the players they wanted and left the Rebels with an initial list of older players eg Mortlock and Huxley , expensive overseas signings eg Cipriani , Lipman and Somerville a couple of expensive league players eg Rooney and Saffy and a bunch of young blokes . Not one current Wallaby player and also just to get a team together a more expensive player roster by far than any other team . And then they paid the Rebels a lesser distribution payment than the rest of the Super teams . These are facts , there are many more . Compare this to how the AFL have treated GWS and Gold Coast who were given priority draft picks and more money than the other clubs . So from day one the Rebels were pushing shit up hill and private investors had to wear the cost of trying to establish this thing because of their desire to grow the game in Victoria with little or no ARU support in fact the opposite . I lived it and it was bloody pathetic .
Muglair
Roar Rookie
Geoff's article? Rival leagues or civil war? I doubt it.
Cam Watts
Roar Rookie
Ah fair point - my bad misinterpreting your post :thumbup:
kingplaymaker
Roar Guru
Regarding the Rebels. Have a look on the main page.
Muglair
Roar Rookie
What news is that?
kingplaymaker
Roar Guru
The news today regarding the Rebels suggests that a period of civil war may be ahead. It could be two rival leagues go at each other or the whole thing collapses and indeed the Shute Shield and Hospital Cup are the domain of rugby union.
Muglair
Roar Rookie
Albeit we create the 3rd tier by pushing a new tier in above it. It is essential that all five franchises remain equal in standing, the sport will fall divided. Probably the main reason for not creating new geographic teams.
Muglair
Roar Rookie
That is not a vision but a quick fix. Whether it delivers economic results or not is probably uncertain. It will further divide and alienate the rugby community. The answer is the same as it always has been, long term strategy and vision. Has ARU/RA ever even had that? Marks was a visionary together with his supporters on the ARU board over those two decades. There must have been others in the amateur era. Murdoch, Lord and Packer were visionaries. If a visionary and inspiring leader does not emerge soon perhaps the sport just fragments back to its amateur roots. Maybe the true rugby visionaries in Australia were the founders of rugby league.
Piccolino
Roar Rookie
I agree, not too focused on how you aggregate teams but I still think the principle of starting fresh with a new tier above what we have now to compete with NZ is preferable to making a new tier below, if we want both SRP and NRC/SR AU to be financially viable.
kingplaymaker
Roar Guru
Those were totally different days. You could have a competition with whichever players you wanted. You could set the standard and costs as you wanted. 'A team' didn't need to be an extremely expensive Super rugby team. They chose a ruinously expensive international competition as the only one. The North made the main competitions domestic.