Melbourne Rebels 2024

[Rebel man]

Again, explain how more games people don’t care about will increase anything other than debt

You are never going to grow the game without playing it. 42 weeks a year there is no super rugby in your city. How are the teams engaging with their markets they are not. The competition structure hamstrings the teams

I had been in favour for of a move away from AAMI park for a more appropriate sized venue for a long while as we didn’t need the expense of a 30k seat stadium when we aren’t filling it.

 

[Slim 293]

I had been in favour for of a move away from AAMI park for a more appropriate sized venue for a long while as we didn’t need the expense of a 30k seat stadium when we aren’t filling it.

Are there many 5k seat capacity rectangular stadiums fit for broadcast within 10-15km of the CBD?

 

[Tazzmania]

Looks like RA about to hit back at "Rebel" directors:

Deceived into $35m loss’: Rugby’s civil war goes nuclear

Rugby Australia has hit back in a stunning counter-claim against the Melbourne Rebels in the legal case that has rocked the game, claiming they’ve been duped out of $35m.

Rest behind paywall

 

[Tazzmania]

Rugby Australia torches Rebels in bitter $30m dispute, preparing counterclaim against Melbourne club

Rugby Australia is preparing a counterclaim against the Melbourne Rebels for "misleading and deceptive conduct" it says led to their Super Rugby demise.

The cash strapped Rebels were booted out of the competition in May and this week announced they were seeking more than $30 million in damages after taking RA to court.

The Rebels are also demanding to be reinstated into Super Rugby despite most of their players now being on the books at rival clubs.

READ MORE

 

[Slim 293]

“RA is preparing a counterclaim against MRRU and its directors for misleading and deceptive conduct concerning the financial position of MRRU dating back to 2018. Based on that misleading and deceptive conduct, RA granted MRRU a participation licence for the Super Rugby competition and provided associated funding and payments to MRRU.

“Had RA not been misled or deceived, it would not have provided MRRU with a participation licence and thus not lost in excess of $35 million that was paid to MRRU since at least 1 July 2018.

“RA believes that the MRRU directors were knowingly concerned in and/or aided and abetted MRRU’s misleading and deceptive conduct.

“Given the insolvency of MRRU, its directors placed it into voluntary administration on January 29, 2024.

“The Administrator reported that MRRU had accumulated almost $23 million in debt prior to entering voluntary administration and noted that MRRU’s directors may have traded while insolvent from 31 December 2018, which is a breach of the Corporations Act.

etc. etc.

https://www.theaustralian.com.au/sport/rugby-union/rugby-australia-fight-back-in-30m-legal-fight-with-axed-super-rugby-team-melbourne-rebels/news-story/8d79b72e2a84fdbe98f73b0d60cd32f5

 

[Tomthumb]

You are never going to grow the game without playing it. 42 weeks a year there is no super rugby in your city. How are the teams engaging with their markets they are not. The competition structure hamstrings the teams

I had been in favour for of a move away from AAMI park for a more appropriate sized venue for a long while as we didn’t need the expense of a 30k seat stadium when we aren’t filling it.

Who paying for the extra games? Who’s playing g the extra games? Specifically how are they going to engage more with more games?

Move to where?

 

[Tazzmania]

RUGBY AUSTRALIA'S FULL STATEMENT ON THE MELBOURNE REBELS

Rugby Australia is disappointed by the Melbourne Rebels Rugby Union Pty Ltd's inaccurate and misleading comments in the media and rejects the MRRU directors' ambit claims and attempts to shift blame for their financial mismanagement.

RA reiterates that it has complied with all its contractual obligations to MRRU.

RA is preparing a counterclaim against MRRU and its directors for misleading and deceptive conduct concerning the financial position of MRRU dating back to 2018.

Based on that misleading and deceptive conduct, RA granted MRRU a participation licence for the Super Rugby competition and provided associated funding and payments to MRRU.

Had RA not been misled or deceived, it would not have provided MRRU with a participation licence and thus not lost in excess of $35 million that was paid to MRRU since at least 1 July 2018.

RA believes that the MRRU directors were knowingly concerned in and/or aided and abetted MRRU's misleading and deceptive conduct.

Given the insolvency of MRRU, its directors placed it into voluntary administration on January 29, 2024.

The Administrator reported that MRRU had accumulated almost $23 million in debt prior to entering voluntary administration and noted that MRRU's directors may have traded while insolvent from 31 December 2018, which is a breach of the Corporations Act.

The Administrator also stated that the reasons for the company's financial challenges were a history of trading losses, lack of readily available alternative funding sources, an excessive cost structure compared to the underlying revenue base, and insufficient revenue generated from non-RA sources including membership, sponsorship and game day receipts.

RA was notified by the Administrator that the directors of MRRU had received ATO Director Penalty Notices.

RA received a garnishee order from the ATO in December 2023. MRRU never informed RA of the Director Penalty Notices.

After MRRU was placed into administration, RA stepped in to fund all operations of the Melbourne Rebels in 2024, paying player and staff wages, and meeting all associated statutory obligations connected with those payments for the entirety of the 2024 Super Rugby Pacific season.

As the national governing body, RA will continue to do what is in the best interests of the game nationally and remains focussed on protecting and promoting rugby across Australia.

 

[Slim 293]

There are some tasty morsels in there...

Based on that misleading and deceptive conduct, RA granted MRRU a participation licence for the Super Rugby competition and provided associated funding and payments to MRRU.

Had RA not been misled or deceived, it would not have provided MRRU with a participation licence and thus not lost in excess of $35 million that was paid to MRRU since at least 1 July 2018.

RA believes that the MRRU directors were knowingly concerned in and/or aided and abetted MRRU's misleading and deceptive conduct.

RA was notified by the Administrator that the directors of MRRU had received ATO Director Penalty Notices.

RA received a garnishee order from the ATO in December 2023. MRRU never informed RA of the Director Penalty Notices.

 

[oztimmay]

Also interesting bit, from the Panda article up on the Oz: https://www.theaustralian.com.au/su...TRALOW-Segment-2-SCORE&V21spcbehaviour=append

The court documents also suggest they will also attack RA’s bungled attempt to garner between $150-$300 million from private equity under a campaign they called “Project Aurora”, that would give the successful investor 20 per cent ownership of RA’s commercial rights.


Project Aurora was pitched to Super franchises as the method to secure rugby’s long term future, and the franchises signed off on RA’s proposal to seek out a partner in January 2023.

But by September, it had become clear to RA that private equity firms weren’t going to invest the money they sought, saying they were overvaluing their product. That is why they took the $80 million debt facility.


The Rebels will claim that between January and September, RA withheld crucial information about the private equity process and interest it was attracting.


Essentially, their case will be that they weren’t fully informed that PE firms weren’t interested in rugby’s rights, and if they had been, could have started their own campaign for additional revenue far earlier than September 2023 when the pursuit for PE was finally dumped.


These technical arguments will be crucial to what played out next, and what the financial ramifications for RA may be in this case.

 

[SouthernX]

The idea RA knew nothing is laughable.

If the reds were telling New Star players they couldn’t afford them yet RA was working behind the scenes with the rebels and Piccone to make sure players of national importance still had a home in the super rugby landscape.

 

[Tomthumb]

Also interesting bit, from the Panda article up on the Oz: https://www.theaustralian.com.au/subscribe/news/1/?sourceCode=TAWEB_WRE170_a&dest=https://www.theaustralian.com.au/sport/rugby-union/rugby-australia-fight-back-in-30m-legal-fight-with-axed-super-rugby-team-melbourne-rebels/news-story/8d79b72e2a84fdbe98f73b0d60cd32f5&memtype=anonymous&mode=premium&v21=ULTRALOW-Segment-2-SCORE&V21spcbehaviour=append

Haha they were insolvent for 6 years. Claiming if only they were told a few months earlier that RA couldn’t bail them out they would have done a whip round for $20 mil no problem is hilarious

Rebels directors are better comedians than businessmen that’s for sure

 

[Rebel man]

Are there many 5k seat capacity rectangular stadiums fit for broadcast within 10-15km of the CBD?

That’s the hard part. There was meant to be a 5k stadium at the La Trobe facility but I don’t know if that is finished yet the other smaller grounds will be tied up with soccer

 

[Strewthcobber]

The Administrator's report states that the Rebels already had $18m of their total liabilities by end of 2022.

They had stopped paying their taxes at least 4 years prior.

Waiting for RA's PE seems like a pretty farcical approach to deal with that

 

[Tomthumb]

That’s the hard part. There was meant to be a 5k stadium at the La Trobe facility but I don’t know if that is finished yet the other smaller grounds will be tied up with soccer

Would that place have floodlights? Broadcasting capabilities? Adequate facilities?

 

[Rebel man]

The idea RA knew nothing is laughable.

If the reds were telling New Star players they couldn’t afford them yet RA was working behind the scenes with the rebels and Piccone to make sure players of national importance still had a home in the super rugby landscape.

Zero accountability at Moore Park. The game will be dead in 10 years here and RA has brought it all on itself

 

[Rebel man]

The Administrator's report states that the Rebels already had $18m of their total liabilities by end of 2022.

They had stopped paying their taxes at least 4 years prior.

Waiting for RA's PE seems like a pretty farcical approach to deal with that

How much of that debt was due to having to base the team in Sydney for the good of the game during covid?

 

[Rebel man]

RA’s response in a nutshell

 

[Tomthumb]

The idea RA knew nothing is laughable.

If the reds were telling New Star players they couldn’t afford them yet RA was working behind the scenes with the rebels and Piccone to make sure players of national importance still had a home in the super rugby landscape.

Wait, so RA knew that the Rebels were insolvent for over half a decade and yet did absolutely nothing about it? What’s the benefit in them doing that?

 

[Slim 293]

How much of that debt was due to having to base the team in Sydney for the good of the game during covid?

Two years after it's alleged they began trading while insolvent?

 

[Wallaby Man]

I don’t think it’s as simple as many making it out to be on either side. RA can still be liable for many aspects of the Rebels demise due to the controlling nature they have over the game and all the entities. The Rebels are provided a grant for product supplied via Super Rugby which RA happily negotiate on their behalf. Player contracts need to be cleared by RA, sponsors, competition sanctioned, matches sanctioned etc. there is a whole bunch of areas they help control and therefore have a responsibility through a de facto type relationship. They wouldn’t be able to negotiate a PE deal on the Super Rugby teams behalf if they didn’t have some legal responsibility.

To be honest both parties as bad as each other. Actually think RA will be sweating bricks, no matter how devious the Rebels board might be. There should be financial competence between the two bodies to have checks and balances to prevent where we are at.

Ignorance of the situation can still be considered malpractice.