Melbourne Rebels axed from Super Rugby after Rugby Australia reject rescue deal

The Melbourne Rebels are set to conclude their tenure as a Super Rugby team at the conclusion of their 14th season next month.

This decision follows Rugby Australia's announcement on Thursday, stating the rejection of a rescue deal proposed for the team amidst their financial crisis.

Established in 2011 as part of Super Rugby's expansion to 15 teams, the Melbourne Rebels have operated in one of Australia's major sports markets. However, they have faced financial challenges and have been under administration since January, accumulating debts amounting to A$23 million ($15.20 million).

While Rugby Australia had initially agreed to support the team for the ongoing season of Super Rugby Pacific, CEO Phil Waugh conveyed to players and staff on Thursday that the franchise would cease operations thereafter.

A consortium had presented a plan to sustain the club until 2030, contingent upon Rugby Australia relinquishing the franchise license. However, Rugby Australia turned down the proposal citing insufficient demonstration of financial viability.

“RA advises that the application from a consortium seeking a participation agreement for the Melbourne Rebels to participate in the 2025 Super Rugby Pacific competition has been unsuccessful,” RA said in a statement.

“RA does not take this decision lightly, however it must act in the best interests of the game and its stakeholders, and to provide certainty for the Rebels players and staff, and all Super Rugby clubs.

“Given the lack of detail made available to RA, the lack of transparency and the significant doubts over the consortiums proposed financial model, RA has determined that there is an unacceptable level of risk,” the statement added.

Rebels are positioned seventh in the ongoing Super Rugby Pacific table with five wins from 13 matches.