Rebels survival hopes fading as CEO and staff lose jobs, coaches given four-month contracts

The Melbourne Rebels’ hopes of surviving beyond this season are swiftly fading after 10 administrative staff, including chief executive Baden Stephenson, were made redundant, with the remaining staff and coaches put on four-month contracts to see out the Super Rugby campaign.

A day out from Super Rugby Pacific’s glitzy launch in Auckland, administrators PricewaterhouseCoopers began the process of winding up the Rebels on Tuesday by terminating the employment of all staff members, excluding players (given Rugby Australia is a party to their contracts).

Rugby Australia subsequently put a small number of administrative staff and the Rebels’ high-performance staff, including Kevin Foote’s coaching team, on new short-term contracts that will run to the end of the season in June.

Stephenson, who has been chief executive of the Rebels since 2017, was informed by Rugby Australia CEO Phil Waugh he would not be offered a new contract. Nine other staff were given the bad news on Wednesday, and players and coaching staff were also addressed by Stephenson.

Rugby Australia’s head of human resources, Rachel Buckling, was in Melbourne on Wednesday to handle the new contract arrangements.

Rugby Australia declined to comment when asked about the job losses on Wednesday.

Rebels chief executive Baden Stephenson was made redundant.

The Rebels were placed in voluntary administration this month after it emerged they owed as much as $20 million in debts, including to the Australian Taxation Office and the Melbourne and Olympic Park Trust. Rugby Australia has taken back the Rebels’ licence and the club is under major pressure to survive.

Auditors from PwC appointed to investigate the club’s finances revealed the Rebels owe $11.6 million to the Tax Office, $5.7 million to board members, and $2.8 million to suppliers – which include sponsors that paid their fees upfront.

Adding to the list of debts is $1.1 million in unpaid stadium fees, $720,000 owed to the State Revenue Office and $250,000 in superannuation owed to employees.

The grim financial state of the Super Rugby franchise was laid bare in a creditors meeting on Thursday, the minutes of which were filed to the Australian Securities and Investment Commission on Monday.

Waratahs captain Jake Gordon, Brumbies captain Allan Alaalatoa, Rebels captain Rob Leota, Force captain Michael Wells and Reds captain Tate McDermott at the Super Rugby Pacific season launch.

Administrators said the club has just $17,300 in the bank, with assets consisting of office furniture, gym equipment and two cars. The value of those assets are not known.

It was felt the future of the Rebels beyond the 2024 season would become clear by early March but the mass job losses paint a grim picture.

Speaking at the Super Rugby Pacific launch on Auckland Harbour on Wednesday, Waugh sidestepped questions about the Rebels’ future but SRP chairman Kevin Malloy gave a strong indication the competition was contemplating a restructure in 2026, and the Rebels’ demise had “accelerated” the review.

“I wouldn’t call it a cloud. I think it’s just a reality that we have to deal with,” Malloy said.

Rebels players in a huddle at training.

“We feel really engaged and involved in understanding exactly what Rugby Australia are working through. And part of that conversation is obviously starting to think about the future, but I think we’ve signalled well in advance of this tournament that we’re doing that anyway, and logically 2026 has been the timeframe with media rights cycles and that sort of thing … so [that’s when] we would think about if there would be any material change in the competition … clearly what’s happened with the Rebels has just brought that conversation forward slightly.”

“There’s always going to be a review on how it accelerated to the point it’s at, but we’re close to all clubs.

Asked whether the Rebels’ plight will place a cloud over the Super Round in Melbourne, Waugh said: “We’re working through that process. I think it’s exciting. You’ve got six games in one of the greatest sporting markets in the world.

“And as we heard from Trevor (Waugh was referring to Rob Leota), the captain of the Rebels up there, it’s an exciting and a huge opportunity for the locals to come out and support rugby and see some of the best players in the world.”

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