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Thread: Melbourne Rebels Fans and The $100 Million Lie

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    Melbourne Rebels Fans and The $100 Million Lie

    Over the course of recent months, Rebels fans have argued that the Rebels may have lost $30 million but that is ok because the Victorian Government has bailed out the ARU with direct funding of $100 million since 1996. Firstly, Bwahahahahahahaha what a load of bullshit. There is no evidence, proof or sane train of thought that backs up this fantastical statement. The state governments buy events to generate economic activity within their states. Things like tourism, ticket sales tax, food and drink do not provide any revenue to the ARU. These are benefits to the local economy. The majority of ticket money goes back into paying off the stadium. Food and drink revenue goes to private vendors, hotel revenue goes to the hotel and GST revenue goes to the state. Merchandise sales do go to the ARU but $100 million worth is way way off the mark.
    So this leaves the question : How has the ARU become $100 million better off through direct funding from the Victorian Government?

    If we take into account the purchase fee to the rights of a test match then Victoria, at a fee of $5 million per test, has purchased $100 million worth of rugby matches. The problem is this, so has Perth, NSW host 3 or 4 tests a year for 4 times the investment and Brisbane hosts 2 a year for rights revenue of $200 million. This shows that other states have purchased either the same amount or significantly more. This also shows that these matches would have been played in other states if Victoria hadn't purchased them. This doesn't make the ARU $100 million better off thanks to Victoria. The ARU has earnt more test match revenue from other states.
    Seeing as the $5 million purchase fee goes towards paying the players and hospitality suites at the matches, this $100 million is used to cover ARU costs, not handed to the ARU as direct investment as claimed.
    This still leaves another major conundrum. What connection does hosting test matches have to the losses accrued by the Melbourne Rebels? Thats an easy answer, absolutely nothing. The viability of Super Rugby is in question not the viability of the Wallabies. The income earnt by the Wallabies goes back to the Wallabies to cover costs. We have all seen the ARU reports. The Wallabies are reported separately from Super Rugby.

    The issue is Super Rugby viability. As we have seen through Alisons efforts, the viability of Super Rugby in Australia has been jeopardized by the extra money spent propping up the Rebels. To then try and connect internal state based economic activity to a direct investment into the ARU of $100 million by the Victorian Government is crazy, desperate and false. There never has been any direct cash injection of $100 million made by the Victorian Government. The ARU is not $100 million in the black thanks to any state government.

    The only conclusion that can be drawn from this fabrication of an argument is that Rebels fans are liars. And Super Rugby is still unviable thanks to bailing out Melbournes franchise. But hey, i already knew this.

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    Champion valzc's Avatar
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    Yes I saw that stupid post Kala. Don't know if the same person was trying to argue that one on another thread on the Roar, but was basically shot down in flames by TWAS due to the simple fact that it's doubtful any Government body would be handing over money to the ARU or any sporting body as such. Looks like he/she is just plucking unsubstantiated figures out of the air. I believe more accurate figures disputing this post were also posted, but I can't seem to find the thread.
    After yesterday's article, no Rebels fan seems to be making any comment in response.

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    Champion valzc's Avatar
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    I though this recent comment by 'Stoff' was particularly hilarious:
    ..."But that's not the point I am making. If there is a sense of entitlement it is because we have helped bankroll the Force and Brumbies for so long. About a third to a quarter of ARU revenue is attributable to states other than NSW or QLD. However that is split up means that the other states and territories, along with NSW and QLD subsidise the franchises other than the Tahs and Reds. Given out money has been subsidising Perth and Canberra so long, why wouldn't there be a sense of entitlement? "
    No point arguing - there are just those who will not see.

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    Senior Player andrewM's Avatar
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    I've been wondering if that Stoff bloke on GnG forums has been smoking something.
    As I mentioned, all this was a Victorian Government initiative to reinvent Victoria in light of the reduction of manufacturing in the state due to the off shoring of to China etc. Hence we have had over time State of Origin, Formula 1, Bledisloe etc hosted in Melbourne.

    Whilst it may well have generated significant economic benefit for the state through hospitality etc the benefit to the ARU would have been limited to ticket sales and merchandise IMO. It's a bullshit argument for sure.

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    Senior Player andrewM's Avatar
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    I think Andrew Lascombe has been the only Rebels supporter who has commented in any great depth on Alison's piece - and he basically said that there is so much more that you don't know, so the figures that you do know (ie what Alison has reported) can't be trusted.

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    Champion valzc's Avatar
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    Quote Originally Posted by andrewM View Post
    I think Andrew Lascombe has been the only Rebels supporter who has commented in any great depth on Alison's piece - and he basically said that there is so much more that you don't know, so the figures that you do know (ie what Alison has reported) can't be trusted.
    Another stupid bullshit response - clutching at straws.

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    Now Victorian money has been subsidising the Force and Brumbies? Geez the lies just get more preposterous.

    Funding comes directly from TV revenue, memberships, ticket sales, merchandise and sponsorship. Now, unless there are a significant number of Victorian based Western Force members, fans and sponsors we don't know of, keeping in mind these same Victorian sponsors are NOT sponsoring the Rebels, then all i can do is piss my pants laughing at the absurdity of these claims.
    Then again i embarrassed Stoff earlier this year when he claimed the $6 million thrown in as part of the sale of the Rebels was in lieu of Melbourne receiving ARU funding from tv money. How do you receive ARU funding in lieu of ARU funding? And the ARU reports showed Melbourne to still be receiving ARU funding from tv revenue to fund administration aswell as this supplementary funding of $6 million to offset expected losses. Cox negotiated extra funding to cover expected losses but claims he was unaware of the viability issues of the franchise at purchase? Puh-lease

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    Quote Originally Posted by andrewM View Post
    I think Andrew Lascombe has been the only Rebels supporter who has commented in any great depth on Alison's piece - and he basically said that there is so much more that you don't know, so the figures that you do know (ie what Alison has reported) can't be trusted.
    So he is claiming the ARU have lied to ASIC? I highly doubt that. The $ facts are clear.

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