Exclusive: The financial disaster at the Melbourne Rebels’ is double previous estimates, with the club’s long-term future in doubt as debts hit $20 million.
It can also be revealed that Victorian taxpayers are forking out $50,000 each time the
Rebels play at AAMI Stadium.
The new details have emerged about the collapsed club ahead of a creditors’ meeting on Thursday.
The Australian Taxation Office (ATO) was owed at least $10 million, which included up to five years of unpaid tax on players’ and staff wages.
Board members were owed as much as $6 million as they put their own skin in the game, while suppliers made up the bulk of the remaining debt.
Rugby Australia has confirmed it will underwrite players’ wages this season, with top star Taniela Tupou signing on for as much as $500,000 this year.
There are questions about the payment of wages to the club’s 40 staff, including coaches and administration team members. Rugby Australia has provided limited funding to pay those wages, but a deal on the remainder of the season was yet to be inked.