Already a subscriber?Administrators for the Melbourne Rebels say the rugby union club may have operated insolvent for more than five years, a situation it blamed on cost and funding pressures that coincided with low match-day and sponsorship revenue.
“It is my opinion that it is in the best interest of creditors for the company execute the proposed deed … it provides for the prompt payment of employee entitlements in full,” the report, written by PwC partner Stephen Longley, said. The report confirmed the club owes $23.2 million to creditors – the ATO is owed more than $11.5 million, and other creditors, including board directors, are owed almost $6 million.
Ms Widdup alleged the huge debt pile was caused by Rugby Australia not honouring promised funding commitments. The directors claim they relied on these RA representations and continued to trade the club based on them. They are planning to sue the governing body.No other rugby union club that competes in Super Rugby and received funding cuts – the ACT Brumbies, the NSW Waratahs, the Queensland Reds or the Western Force – have traded while insolvent.
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