Melbourne Rebels' days in Super Rugby Pacific are officially numbered, after Rugby Australia announced it won't reinstate the franchise's licence.
Rugby Australia chief executive Phil Waugh has told the Rebels players of its decision, which is based on the team's lack of "financial viability".
"Rugby Australia (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," it said.
"RA advised the known representatives of the consortium of this outcome this morning, noting that the application did not demonstrate sufficient financial viability."
The team are currently at Lautoka, where they're preparing to play Fijian Drua in their final round-robin game of the season.
With their first ever quarter-final berth already secured, their next match could be the last in their 14-year history. In January, RA reclaimed the club's license in January, after it was revealed the Rebels had debts in excess of $20 million.
A proposal by a consortium led by former Qantas chairman Leigh Clifford to take over the Rebels ownership was accepted, but RA has decided not to hand over the club's licence.
"The application relied upon projections for revenue growth and cost savings that RA believes are overly optimistic, raising significant doubts about the long-term sustainability of the proposed licensee," RA added.
"Further, the consortium's proposed alliance with Western Melbourne Group (WMG) regarding co-location at Tarneit, which is central to the proposed model, is early stage and is not yet agreed between the parties.
"The consortium has made it clear that it is seeking a contribution from RA of several million dollars to cover forecast operating losses - this is in addition to the standard funding that would be available under a participation agreement.
"The identity of the Consortium members has not been disclosed to RA and, as a result, the credentials of the Consortium were unable to be fully assessed."
Players contracted to the team for 2025 and beyond may now be redistributed to Australia's four other franchises, although many will likely be left to fend for themselves. RA says there's simply too much risk with involving a private consortium as the team's new owners.
"Given the lack of detail made available to RA, the lack of transparency and the significant doubts over the consortium's proposed financial model, RA has determined that there is an unacceptable level of risk associated with entering into a participation agreement with this consortium for the 2025 Super Rugby Pacific season.
"Regarding the Melbourne Rebels players, RA and the Rugby Union Players Association (RUPA) have been contingency planning for the possibility of this outcome, and met with players last week to discuss options for player movement within Australian rugby.
"This process will continue in the coming weeks, as RA engages with RUPA, players and other Super Rugby clubs, regarding options for player movement. RA will communicate further details regarding this process in due course."
