Melbourne Rebels CEO Baden Stephenson and nine other members of the Super Rugby club’s administrative staff have been made redundant.
And in one of the strongest indications yet that the Rebels won’t continue beyond 2024, the team’s coaches have been put on four-month contracts to see out the season.
The Roar understands that the redundancies include Stephenson’s executive assistant, one graphic artist, one sponsorship assistant, four contractors and a causal employee.
Rugby Australia chief executive Phil Waugh flew to Melbourne on Wednesday afternoon and will address the Rebels, including the high performance team and commercial department, on Thursday.
Watch every match of Super Rugby Pacific ad-free, live & on demand on the Home of Rugby, Stan Sport.
The news broke on the day the competition was launched in New Zealand.
The Herald reported “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.”
Waugh, who called Rebels skipper and Wallaby Rob Leota “Trevor” during a press conference at the Super Rugby launch, was non-committal on the franchise’s future
Stephenson has been the club’s CEO since 2017.
Baden Stephenson. (Photo by Daniel Pockett/Getty Images)
The Rebels were placed in voluntary administration this month amidst reports they owed up to $20 million in debts, including to the Australian Taxation Office and the Melbourne and Olympic Park Trust.
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.
On Monday, administrators said the club has just $17,300 in the bank, with assets consisting of office furniture, gym equipment and two cars.