Melbourne Rebels axed after Rugby Australia reject rescue deal

MELBOURNE :The Melbourne Rebels will cease to exist as a Super Rugby team at the end of their 14th season next month after Rugby Australia announced on Thursday that it had rejected a rescue deal for the crisis-hit side.

The Rebels were founded in one of Australia's two biggest sports markets when Super Rugby expanded to 15 teams in 2011 but have been in administration since January with debts of A$23 million ($15.20 million).

Rugby Australia (RA) agreed to bankroll the team for the current season of Super Rugby Pacific but on Thursday chief executive Phil Waugh informed the players and staff that the franchise would be shuttered after that.

A consortium had put forward a plan to fund the club until 2030 if RA handed back the franchise licence but the governing body rejected their proposal because it did not "demonstrate sufficient financial viability".

"This is a very difficult day for rugby and for rugby fans in Melbourne, the players and the staff but we felt we had to get to a decision," RA chairman Daniel Herbert told reporters in Melbourne on Thursday.

"What has been put forward carries significant risk."

The Rebels' creditors had voted in favour of the consortium's plan on the recommendation of the club's appointed administrator.

However, RA said the Rebels had not been independently financially sustainable since 2011 and nothing in the consortium plan suggested that would change.

Businessman Leigh Clifford, who led the consortium, slammed the decision and said the group would sue RA.

"The Melbourne Rebels never want to go to court, but Rugby Australia’s actions to turn their backs and not negotiate on a commonsense A$18 million rescue plan has left the club no choice,” he said in a statement.

Herbert said tens of millions