Super Rugby’s Melbourne Rebels falls behind on tax bill, stadium fees

[GIGS20]

I'll open the bidding at a dollar.

Why start the bidding at market value of the item on offer? no chance of getting a bargain there!

[wholetruth]

Apparently, there is a story in The Australian that Super Rugby clubs need $9m from Rugby Australia. Anyone seen it?

[jargan83]

I assume you're referring to this, however it is paywalled.

https://www.theaustralian.com.au/spo...7ce-1702639851

[wholetruth]

I assume you're referring to this, however it is paywalled.

https://www.theaustralian.com.au/spo...7ce-1702639851

Looks like it. Anyone buy the The Australian<

[shasta]

Looks like it. Anyone buy the The Australian<

No. But I'd hazard a guess it's an end of year rehash of stuff we already know. The Rabble & Tahs are in deep doo-doo. The Ponies are a little less so. RA will want the keys to the Melbourne Bullshit Castle, The Tahs have already caved. The Ponies may yet keep most of their lollies.

[GIGS20]

The biggest question in my mind is how the rebels kept their financial difficulties quiet enough to not be mentioned in the initial list of teams asking for a bailout in the centralisation discussions.

They appear to still have plenty of traction in head office

[valzc]

Just weeks after RA were approved an $80m loan, the Weekend Australian has learnt Super Rugby club CEOs are now preparing to invoice RA for $1.7m each to help run their franchises.


It follows a video conference on Monday last week where the state CEOs were told by Rugby Australia CEO Phil Waugh they would not be receiving $1.7m in funding .


That response from Waugh has angered some of the state chiefs, who are now preparing a letter and invoices. All Super Rugby franchises are understood to be making a loss and are forecasting a loss for next year.


“The money is important to all of us because none of us are in the black, $1.7m would be a huge boost for each franchise … because there are concerns that the Tahs are now being financially helped out while others are struggling,” said a Super Franchise source.


The ACT Brumbies, the NSW Waratahs – who are rumoured to be projecting a $5m loss next year – and the Rebels are all operating under immense financial strain.


The Waratahs are the only franchise to have fully committed and agreed to RA’s centralised model meaning they are under the full control of the governing body.


“I can’t see it not turning into a massive shitfight,” said one club boss when contacted by The Weekend Australian.


Rugby Australia’s Phil Waugh did not return calls from The Weekend Australian.


Rugby Australia are enduring tough financial times, with Harvey Norman recently declining to renew their deal as the naming rights sponsor of the Super Rugby Pacific competition.


Recently ousted RA chair Hamish McLennan’s close relationship with the Harvey Norman CEO Katie Page was vital in the brokering of the sponsorship deal in 2021. They had invested around $5 million into the code as major sponsor.


Last year The Australian reported that the Brumbies, a Canberra-based team, and the most successful Australian side in Super Rugby history, had started a process to sell up to 49 per cent of the club to local or international backers. Twelve months on, no one has bought the franchise.


Waugh recently gave assurance the ACT Brumbies will stay in the nation’s capital amid centralisation discussions.


But there are concerns about RA’s financial situation worsening as demands for more funding for many of the five Super Rugby franchises and cost blowouts put pressure on an already struggling balance sheet. RA recently secured a $80m credit facility with private equity group Pacific Equity Partners, funds which it said would be earmarked for the development of the game, with a particular focus on the women’s game, pathways and community.


The PEP money will be used to pay off RA’s existing $25m loan with global financial firm ARES, and it is understood that RA’s 2023 financial accounts will show both an operating loss of several million dollars for the year given cost blowouts from the Wallabies doomed World Cup campaign and also debts of between $30-40m.


A previous $10m loan from World Rugby will be extinguished from money that the global governing body would have paid RA for participating in the World Cup, meaning RA has little to show in terms of revenue from the national team playing in what is usually the most lucrative tournament in the sport.


The Waratahs are understood to have made further financial losses of several million dollars, and forecast a similar result in 2024, and the Western Force relies on funding from billionaire benefactor Andrew Forrest to keep it in a stable position.


One source said RA could easily burn through $30m or more of its loan in 2024, and potentially more, meaning it could have more well north of $50m debt on its balance sheet in 12 months time – as well as the additional burden of paying interest on the loan.


The code has endured a tough time with the recent disastrous World Cup campaign which saw Eddie Jones resign after just 10 months in the job. Despite repeated denials, he finally took up the Japan head coaching job this week.

[jargan83]

Phil Waugh right now:

[Burgs]

RA- "oooh, not an invoice!!!"

I get the sense that RA are exercising a bit of retribution for not coming to their dictatorship party, under the convenient cover of being near broke.
Surely a responsible CEO would have said, "Look you blokes, we're skint but we can do $700k now and will work on the rest." Not just "you get nothing for the product you have delivered."
It is a fair assessment by the other four to read the Tahs deal as an exclusive bale out at their expense. Where is the Tahs money coming from if not from what the other four are owed?

[shasta]

RA- "oooh, not an invoice!!!"

Yep. That should fix it.

If not ......................"bring out the comfy chair"!!!

[jargan83]

So the $1.7 million that's being withheld by Rugby Australia, where is this money from?

Is it extra funding or is it the money that goes to the 5 franchises from the TV rights for Super Rugby?

[shasta]

So the $1.7 million that's being withheld by Rugby Australia, where is this money from?

Is it extra funding or is it the money that goes to the 5 franchises from the TV rights for Super Rugby?

Not 100% sure but I think it stems from the funding cuts during Covid - which was also when RA "invited" the WF to rejoin SR Australia. IIRC RA may have given a commitment to raise it again when circumstances improved. So I suppose there's an argument that that time hasn't arrived.

Some ES commentators & franchise officials have ditched referring to Covid, preferring "when the Western Force came in". Same old, same old.

[Burgs]

So the $1.7 million that's being withheld by Rugby Australia, where is this money from?

Is it extra funding or is it the money that goes to the 5 franchises from the TV rights for Super Rugby?

My understanding from earlier articles is that it is the broadcast deal funds.
My reading is that it is clearly owed by RA.

[Tazzmania]

Looks like Mr Docherty's has ATO issues with four of his companies under the BRC umbrella.

[jargan83]

BRC Capital faces crunch as investments including Hiro Brands fail​

BRC Capital, a major investor in technology companies and real estate, is facing questions about its solvency after four subsidiaries were wound up in the last month, adding to financial pressure dogging the Melbourne Rebels.

The investment company is a key sponsor of the Super Rugby club, one of five in the league, and its chairman, Paul Docherty, also chairs the Rebels.

Four of BRC Capital’s investments – 3DMediTech, Hiro Brands, Aware Environmental, and HoodAI – have been placed into administration or issued with wind-up orders over the last four weeks.

Directors of some BRC Capital investments have received penalty notices from the Australian Taxation Office, alerting them to the non-payment of tax over a period of several years.

Rebels insiders are questioning the solvency of the football club, which The Australian Financial Reviewrevealed last week was struggling to pay its tax bills and was behind on stadium fees. Sources said the ATO had also issued penalty notices to the club’s directors over failures to make payments – a move that could later lead to administration.

https://www.afr.com/technology/melbo...0231213-p5er56

Rest of the article is paywalled unfortunately.