However, it is clear that key advisers to the Consortium include one or more former directors of Melbourne Rebels Rugby Union Pty Ltd (MRRU), meaning that an individual or individuals involved were responsible for the governance of MRRU during the period in which the Administrator considers the company may have traded while insolvent.
Since the Rebels’ inaugural year in 2011, MRRU has not been independently financially sustainable despite significant additional investment by RA over and above committed club grants. There is nothing in the Consortium’s proposal which demonstrates with sufficient certainty that this will change.
The Consortium has claimed to have committed $18m in funding, though no documentary evidence has been provided to support this. RA has been asked to rely on a verbal assurance, as well as confirmation that a portion of the committed funding will be contributed towards funding the Deed of Company Arrangement (DOCA).
No material has been provided outlining the new ownership structure, the new delivery model across two locations (AAMI Park and Tarneit) or how the historic financial challenges faced by MRRU would be mitigated under the new model.
RA does not take this decision lightly, however it must act in the best interests of the game and its stakeholders, and to provide certainty for the Rebels’ players and staff, and all Super Rugby clubs in planning for the 2025 Super Rugby Pacific season.
Given the lack of detail made available to RA, the lack of transparency and the significant doubts over the Consortium’s proposed financial model, RA has determined that there is an unacceptable level of risk associated with entering into a Participation Agreement with this Consortium for the 2025 Super Rugby Pacific season.
Regarding the Melbourne Rebels players, RA and the Rugby Union Players Association (RUPA) have been contingency planning for the possibility of this outcome and met with players last week to discuss options for player movement within Australian Rugby.