AFP – Rugby Australia yesterday rejected a consortium’s bid to take over the debt-laden Melbourne Rebels and shut down the club after 14 seasons in Super Rugby.
The team went into voluntary administration in January owing almost AUD23 million (USD15 million) – a large portion of it tax debt.
Rugby Australia (RA) stepped in to reclaim the club’s playing licence while paying staff wages for the 2024 season, before a consortium led by former Qantas chairman Leigh Clifford put forward a rescue plan.
But it was contingent on Rugby Australia handing back the licence, which they have opted not to do, saying the bid “did not demonstrate sufficient financial viability” with “significant doubts” over the funding model. “Since the Rebels’ inaugural year in 2011, Melbourne Rebels Rugby Union Pty Ltd has not been independently financially sustainable despite significant additional investment by RA over and above committed club grants,” Rugby Australia said in a statement.
“There is nothing in the consortium’s proposal which demonstrates with sufficient certainty that this will change.”
The Rebels, currently seventh in the 12-team table, are preparing for their first playoff campaign since joining Super Rugby in 2011.
They play Fijian Drua away tomorrow ahead of a quarter-final the following weekend, which could be their final game, and said they had been “dreading” the news.
