Melbourne Rebels’ financial woes cast dark cloud over Super Rugby Pacific future

Captains photo with the Super Rugby Pacific trophy: (from left) Allan Alaalatoa of the Brumbies, Jake Gordon of the Waratahs, Meli Derenalagi of Fijian Drua, Brad Shields of the Hurricanes, Rob Leota of the Rebels, Scott Barrett of the Crusaders, Luke Jacobson of the Chiefs, Patrick Tuipulotu of the Blues, Michael Wells of the Force, Billy Harmon of the Highlanders, James Lay of Moana Pasifika and Tate McDermott of the Reds. Photo / Photosport

Super Rugby Pacific’s official launch at the Auckland waterfront on Wednesday attempted to publicise the dawn of its third season.

The pressing problem is, however, all anyone wants to know is whether the Melbourne Rebels are about to collapse.

Marketing campaigns, cultural performances and the 12 team captains who attended the launch largely faded into background noise as the drums beat louder around the Rebels’ uncertain future.

With a new commission to prioritise the competition and further rule shifts to enhance the on-field product, Super Rugby Pacific is taking positive strides. Yet it’s impossible to escape the increasing likelihood the Rebels are on borrowed time.

While Rugby Australia boss Phil Waugh maintains the Rebels will see out this season, there are no guarantees beyond that. Reports from Australia suggest the Rebels owe over A$20 million ($21.28m) - and have a mere A$17,300 in the bank. Unless the Victoria state government or an unlikely white knight emerges with an 11th-hour bailout package, the Rebels stand on the verge of ceasing to exist.

Australian teams, other than the Brumbies, have contributed little jeopardy to Super Rugby in recent years. This is not the form anyone wants to witness, though.

“There’s two streams - how we deliver this season with as little disruption as possible and what does 2025 and beyond look like,” Waugh said. “Players and management want to know what their careers look like. We’re working around the clock.

Brumbies captain Allan Alaalatoa and Rebels skipper Rob Leota. Photo / Photosport

“There’s always going to be a review on how it accelerated to the point it’s at. There’s a lot going on in the background but right now the focus is on this season and securing the performance of the team. All the other aspects of how we ended up here, we’ll dive into that over the next period of time.”

The Rebels board is demanding Rugby Australia pay the embattled club $8m they say is owed but with administrators to next meet by March 4 and deliver a report as to whether the team should be dissolved, even that unlikely payout isn’t enough.

The Super Round in Melbourne - the second week of this year’s competition when all six matches are staged there - could be the beginning of the awkward end for the Rebels.

Australian rugby has long battled to support five teams from a player depth and financial perspective. On a personal level, though, Rebels captain Rob Leota offered an insight into the turmoil everyone in the franchise is facing.

“It’s hard. We’re all human and it’s okay to have those downtimes,” Leota said. “Some things in life you just find out and you’ve got to keep rolling. You have two options - whether to throw in the towel or have a crack. From the youngest to oldest guy, we’re trying to keep a common goal and stay aligned.

“We know there’s people working in the background at the club that we trust. The message from them is to keep ourselves ready for round one. The biggest challenge for us as leaders and coaches is how we apply ourselves at training.”

The Rebels, established 14 years ago, consistently struggled to gain a foothold in Australia’s AFL-dominated sporting capital. The irony is the Rebels have this year assembled one of their best rosters in history after recruiting Wallabies prop Taniela Tupou, lock Lukhan Salakaia-Loto, wing Filipo Daugunu, former Hurricanes and All Blacks midfielder Matt Proctor and English halfback Jack Maunder.

Rugby Australia CEO Phil Waugh. Photo / Photosport

While the continued uncertainty could galvanise this year’s squad, the grim financial picture threatens to spark widespread ramifications for future players and Melbourne’s aspirations to host the 2027 Rugby World Cup final.

“I was born in Melbourne,” Leota said. “Guys like Christian Leali’ifano and Pete Samu had to go interstate to chase their dreams so I’m very grateful to be in this position. There’s so much talent in Victoria and you don’t want to see that get missed. You want to see the younger generation have that chance.”

The Rebels’ plight is far from an isolated instance in the volatile global rugby landscape. Hurricanes captain Brad Shields was at glamour English club Wasps when they collapsed in 2022. Since then, fellow English clubs Worcester Warriors and London Irish have both folded. So, too, four teams - L.A. Giltinis, Austin Gilgronis, Toronto Arrows, Rugby New York - in America’s Major League competition.

New Zealand Rugby is not insulated from major financial challenges either, as it contemplates unfulfilled private equity promises and hefty Covid wage subsidy repayments from the provincial unions.

With Super Rugby Pacific broadcast negotiations set to begin in the next two months, finalising the Rebels future - and potential replacement teams - is the competition’s clear priority.

The messy situation leaves new Super Rugby Pacific chairman Kevin Molloy unable to commit to 12 teams beyond this year.

“I wouldn’t call it a cloud. It’s a reality we have to deal with,” Molloy said. “We’ve got a 12-team competition for this season and we’ll have to take our time to work through what it looks like for 2025 and beyond.”

New Zealand Rugby boss Mark Robinson projected a positive outlook for Moana Pasifika, despite the team shifting from Mt Smart to North Harbour Stadium, but he conceded contingency planning for the Rebels was under way.

“We’ve been briefed by Phil and his team right the way through so we understand what Rugby Australia is working through,” Robinson said. “Part of that conversation is starting to think about the future but we’re doing that anyway. Logically 2026, with the broadcast rights cycle, we would think about if there will be any material change to the competition. What’s happened with the Rebels has brought that conversation forward.”