Melbourne Rebels 2024

[OneOrThree]

Whispers nobody rejected the DOCA agreement

Oh you big tease you......tell us more.

 

[KevinO]

Oh you big tease you......tell us more.

I have very limited information,

25 creditors accepted $19mil of remuneration, $0 rejected. It’s carried

 

[KevinO]

That's the message i received,

 

[Ignoto]

Also half the fans will be international, as a travelling fan I'd rather a sports event in Richmond rather than Homebush or Brisbane.

 

[Derpus]

Dunno bout Brisbane but hes fucking dead right about Richmond v Homebush. Homebush may as well be in Mordor.

 

[KiwiM]

I have very limited information,

25 creditors accepted $19mil of remuneration, $0 rejected. It’s carried

Sorry for the dumb questions but what does this mean for the Rebels future/Tarniet proposal?

Does this mean that $19 mil is what the final debt number is?

EDIT - I now see the article below.

 

[stoff]

https://www.theage.com.au/sport/rug...-winning-rescue-bid-vote-20240503-p5fopj.html

Its done. Apparently a tied outcome so the administrator had to split it. ATO did not support.

 

[KevinO]

Sorry for the dumb questions but what does this mean for the Rebels future/Tarniet proposal?

Does this mean that $19 mil is what the final debt number is?

Means we live to keep fighting for survival, not out of the woods, but 1 step closer

 

[Highlander35]

As per standard for Union in Australia, it seems like the most tumultuous outcome moving forward. Another 60 days of shit it seems.

 

[Braveheart81]

"The Rebels consortium must jump two hurdles before it can retain control of the company: Rugby Australia handing back the licence for the Super Rugby competition, and the Australian Taxation Office releasing the directors from their personal liability over the club’s $11.5 million in tax debts."

These seem like monumental hurdles, particularly the ATO one.

 

[LeCheese]

The Rebels consortium must jump two hurdles before it can retain control of the company: Rugby Australia handing back the licence for the Super Rugby competition, and the Australian Taxation Office releasing the directors from their personal liability over the club’s $11.5 million in tax debts.

This is the significant part - can't see the ATO being too keen, regardless of RA's likelihood of handing back the license.

 

[Dctarget]

This just means it falls on Philly to announce next week they're pulling the plug on the Rebels.

 

[Strewthcobber]

The DOCA says the consortium has 7 days to pay an initial contribution, which is the 15% + paying the administrator. Guestimate - that is $3m.

They then need to pay the outstanding employee dues in a month or so - another $1.5m ish

 

[LeCheese]

This just means it falls on Philly to announce next week they're pulling the plug on the Rebels.

Nah, they'll let the ATO be the bad guy

 

[Rodzilla]

This is the significant part - can't see the ATO being too keen, regardless of RA's likelihood of handing back the license.

The consortium has to sue RA and then ask for the licence back.
I agree regarding the ATO. They don't support the DOCA and it wont be great publicity if they are seen to favour a sporting club at the same time going so hard after SME's and the directors.

 

[KevinO]

Nah, they'll let the ATO be the bad guy

The ATO could choose to enter into another payment plan, then it's up to Phil.

 

[Strewthcobber]

It's actually entirely up to the director's from here. They have committed to re-capitalising and operating the Rebels for two years based on their own set conditions.

They can still do that if either ATO or RA don't come to the party by waiving the condition.

The obligations of the Directors and the Investor Group set out in item 11 are subject to and conditional on:
a) the ATO providing a release of the Directors in respect of the DPNs (DPN Condition); and
b) RA confirming in writing that the Participation Right remains, or the Court making a declaration that the Participation Right is, in full force and effect (Participation Condition).
One or both of the DPN Condition and the Participation Condition may be waived by the Deed Proponents in their absolute discretion.

 

[LeCheese]

The ATO could choose to enter into another payment plan, then it's up to Phil.

Could, yes. I suppose it'll depend on their previous arrangements and confidence in receiving payment. I can't see them dropping the DPNs altogether though, which is what's being asked of them. Horrible precedent as @Rodzilla says

 

[LeCheese]

Regardless, I'm happy that it's not the end of the road for the Rebels yet. Hopefully they can find a way forward that satisfies all parties and changes are made that result in a sustainable team in Melbourne.

 

[stoff]

There is a provision to commence legal action against RA for the alleged debts regardless of the outcome with the ATO. The funds recovered will be used to bring the creditors other than the excluded creditors (the directors) up to $0.35 in the dollar. All money recovered above that goes to the ATO.

There is another provision that enables MRRU to go after RA for the licence as soon as they make the initial funding contribution.

I think there is only one certainty here - its going to be messy, drawn out, public and expensive.