How the axing of a top Australian team could throw the Rugby World Cup final at the MCG into doubt

Melbourne Rebels officials said it was a ‘sad day’ and a lawsuit is looming after Rugby Australia rejected an application from a consortium seeking to take over the embattled club, opting instead to close the club after fourteen seasons to close.

The news was delivered to staff and players on Thursday morning as the club prepared for a first-ever appearance in the Super Rugby final and RA chairman Daniel Herbert said the upset member of the Rebels board, including some who were part of the resurrection consortium,’ left rugby stakeholders in Victoria in the lurch due to poor financial management of the club.

“And while this isn’t an attack on people individually, it’s people who love rugby, we’re now six years removed from Rugby Australia paying $13.8 million of the rebels’ debts in 2017 and another $6 million dollars in funding,” Herbert said. as the lack of financial viability of the consortium’s proposal and a lack of detail emerged as the main reasons for RA’s decision to close the club.

“Tens of millions of dollars have been spent on this franchise, more than any other Super Rugby club, and (now the time has come) there must be another $23 million in debt.

Rugby Australia boss Phil Waugh confirmed the club would not be saved

“I think they’ve failed rugby stakeholders in Victoria and rugby stakeholders more broadly.”

The Rebels went into administration in January this year with debts to creditors of more than $23 million and all bailout plans were abandoned, with players signed after this season to get their deals paid out, with clubs in Japan, Europe and even the NRL were about to strike. on people like superstar Taniela Tupou.

It also raises extreme doubts about Victoria’s chances of hosting the 2027 Rugby World Cup final, with Victoria State Sports Minister Steve Dimopoulos questioning whether the state would continue to host rugby events.

‘The Victorian Government is extremely disappointed that Rugby Australia has decided not to support the Melbourne Rebels beyond the team’s 2024 season, after we made it clear we expected them to commit to a team at the elite level of the sport in Victoria ‘ says Dimopoulos. said.

However, RA boss Phil Waugh insists Victoria is still a contender to host the final.

“We are deeply committed to working with Visit Victoria [and] the Victorian Government,” he said. ‘International rugby has been very successful in Australia for a long time. And we are confident that this will continue.’

Waugh said the consortium led by business heavyweight Leigh Clifford, which put forward a plan to fund the club until 2030, had not provided substantial details, with Herbert calling it “embryonic” and “very underdeveloped”.

“When the rebels went into voluntary administration I was very clear that we would make a decision as quickly as possible with all the relevant information,” Waugh said.

‘We received that information last week and had a presentation this week. We then analyzed all the information and made the decision as quickly as possible to provide certainty to players and staff.

‘RA does not take this decision lightly, but must act in the best interests of the game and its stakeholders, and to provide certainty to the Rebels players and staff, and to all Super Rugby clubs as they plan for the Super Rugby 2025 Pacific Season.

‘Given the lack of details available to RA, the lack of transparency and the significant doubts about the proposed financial model of the Consortium, RA has determined that there is an unacceptable level of risk associated with entering into a Participation Agreement with this Consortium for the period 2025 .Super Rugby Pacific Season.’

Waugh said they remained committed to a strong rugby presence in Victoria and would now focus on “supporting the affected staff and players at the Rebels”.

It could mean the Melbourne Cricket Ground will not host the 2027 Rugby World Cup final

“It is a testament to the players, coaches, team management and support staff that they have managed to put together such a competitive season on the pitch in extremely difficult circumstances. first time ever,” Waugh said.

“I would like to thank the rugby community for their patience and continued support of the code. Rugby Australia’s current focus is on supporting the affected staff and players at the Rebels.”

The man behind the failed consortium, Leigh Clifford, suggested there could be another lawsuit to resolve the matter.

“The Melbourne Rebels never want to go to court, but Rugby Australia’s actions in turning its back and failing to negotiate an $18 million common sense bailout plan has left the Club with no choice,” he said.

All of the club’s staff, including coach Kevin Foote, will be out of a job when the Rebels’ season ends, which will likely be in two games, pending what would be considered a miraculous win in the finals given the situation that the players now face.

RA and the Rugby Union Players Association (RUPA) are still discussing options for player movement within Australian rugby.

But players who were under contract with the Rebels until the end of 2025, including the likes of Wallabies star Tupou, have the option to play abroad as their contracts are now void.

The Rebels will play their final match of the regular season against Fijian side Drua in Fiji on Saturday, having already secured a first finals berth despite the tumultuous events of 2024.