Troubled Melbourne Rebels make Chief Executive and key staff redundant

Uncertainty over the future of Super Rugby franchise the Melbourne Rebels has risen with the financially stricken club yesterday making Chief Executive Baden Stephenson and nine other administrative staff redundant while high-performance staff, including Head Coach Kevin Foote and General Manager of Football Nick Stiles, have put on four-month Rugby Australia contracts.

Having entered voluntary administration earlier this month, the staffing moves suggest that the Rebels may well not survive beyond the 2024 Super Rugby Pacific season.

The Rebels went into voluntary administration earlier this month with debts initially reported at $9 million. However, administrators PricewaterhouseCoopers (PwC) are understood to have discovered that the total debt is closer to $20 million.

The termination of employees on Tuesday, a day ahead of the Super Rugby Pacific season launch in Auckland did not impact players as they, including high-profile recruit and star Wallabies prop Taniela Tupou, are on contracts tied to Rugby Australia.

With debts to the Australian Taxation Office and the Melbourne and Olympic Park Trust, Rugby Australia has taken back the Rebels’ licence.

PwC are reported to have found that the Rebels owe $11.6 million to the ATO, $5.7 million to board members and $2.8 million to suppliers - which include sponsors that paid their fees upfront.

Adding to the list of debts is $1.1 million in unpaid stadium fees, $720,000 owed to the State Revenue Office and $250,000 in superannuation owed to employees.

The grim financial state of the Super Rugby franchise was laid bare in a creditors meeting last Thursday, the minutes of which were filed to the Australian Securities and Investment Commission on Monday.

The club has just $17,300 in the bank, with a collection of assets consisting of office furniture, gym equipment and two cars.

Speaking at the Super Rugby Pacific launch on Auckland Harbour today, Rugby Australia Chief Executive Phil Waugh sidestepped questions about the Rebels’ future.

However, Super Rugby Pacific Chairman Kevin Malloy gave a strong indication the competition was contemplating a restructure in 2026, and the Rebels’ demise had “accelerated” the review.

Malloy advised “I wouldn’t call it a cloud. I think it’s just a reality that we have to deal with.

“We feel really engaged and involved in understanding exactly what Rugby Australia are working through. And part of that conversation is obviously starting to think about the future, but I think we’ve signalled well in advance of this tournament that we’re doing that anyway.

“Logically 2026 has been the time frame with media rights cycles and that sort of thing … so (that’s when) we would think about if there would be any material change in the competition.

“Clearly what’s happened with the Rebels has just brought that conversation forward slightly.

“There’s always going to be a review on how it accelerated to the point it’s at.”

The club’s trial game against Fijian Drua on Friday is set to go ahead while all teams will gather in Melbourne for Super Round for six games between 1st and 3rd March.

Season Launch
The launch event saw players participate in a harbourside photoshoot and media interviews before the showcasing of vibrant Pacific cultures that make up the fabric of the competition.

The launch event also coincided with the release of an aquatic-themed advertising campaign for the upcoming season, taking literal inspiration from the Super Rugby Pacific tagline - The Power of the Pacific.

Image: Melbourne Rebels 2024 captain Rob Leota and coach Kevin Foote. Credit: Super Rugby