In a desperate bid for survival amid crippling debt, the melbourne Rebels have entered voluntary administration, according to the sydney Morning Herald.
It is believed the Super Rugby club owe in the region of $9 million and have brought in Wexted Advisors to try and alleviate their insolvency problems.
Related: Fundraiser started for World Cup-winning England coach after huge stroke
A large portion of the Rebels’ debt is owed to the Australian Taxation Office, with $1m due in fees for the use of AAMI Park Stadium, which is managed by the state government’s Melbourne & Olympics Parks Trust.
The Rebels have previously received financial aid from the state government in 2017. As part of the $20m deal with Rugby Australia for the Bledisloe Cup and 2025 British & Irish Lions Tour over a period between eight and ten years, the Melbourne club were to be retained in the Super Rugby competition.
However, Rugby Australia has given no assurances that their financial support of Melbourne will extend beyond this season, putting the club at risk of folding.
Specifically, Rugby Australia said a long-term decision on the matter would be based around whether or not the Rebels were “contributing to a sustainable future”.
A Rugby…
