Melbourne Rebels’ Future Secured with Employee Entitlements Guaranteed
The Melbourne Rebels have secured a lifeline after a crucial meeting on Friday night, with the peak body Rugby Australia (RA) acknowledging the positive outcome. The Rebels’ employees will receive 100% of their entitlements, bringing some much-needed relief to the club.
RA expressed their satisfaction with the result and stated that they will continue evaluating the viability of future business models for the Melbourne Rebels. The decision-making process was intense, with the administrator ultimately having the deciding vote after the creditor vote ended in a tie regarding the consortium deal.
Sources present at the meeting revealed that the Australian Taxation Office (ATO) had voted against the proposal due to concerns about the club’s $11.6 million tax debt. The ATO representative emphasized the need for a thorough investigation into the Rebels’ alleged trading while insolvent since 2018.
The first-stage distributions to employees and creditors amount to $4.28 million, with the directors also agreeing to fund the administrators for their work. The consortium is now focused on raising additional funds to secure the club’s future until 2025 and beyond.
Despite the positive outcome, the consortium still faces challenges, including negotiations with RA and the ATO to retain control of the club. The directors are optimistic about the future but acknowledge the work that lies ahead.
Following the meeting, the Rebels suffered a defeat in a Super Rugby clash, with coach Kevin Foote expressing disappointment in the lack of support from Rugby Australia. The club is under immense pressure, both on and off the field, as they strive to secure a finals campaign while dealing with financial uncertainties.
As the season progresses, the Rebels are not only fighting for a spot in the finals but also battling to retain their players amidst interest from other clubs and codes. The future of the Melbourne Rebels hangs in the balance, but with the recent developments, there is hope for a brighter tomorrow.