The Melbourne Rebels say their private ownership model has not failed, despite ...

The Melbourne Rebels say their private ownership model has not failed, despite the Victorian Rugby Union taking over the club.
Source: AFP

THERE were concessions today that a privately run a Super Rugby franchise had numerous challenges.

But as the Rebels foundation investors relinquished their ownership of the club and “gifted” 100 per cent of their shares to the Victorian Rugby Union, there was no concession the model had failed.

Inaugural Rebels chairman Harold Mitchell followed through on an early-season pledge to give up his control of the Rebels with the VRU to take over its operation.

All costs associated with that will be underwritten by the Australian Rugby Union.

The Rebels had been running at a loss since their foundation season in 2011, but ARU chief executive Bill Pulver said the club hadn’t been a failure.

Instead he lauded the achievements of Mitchell and the other investors who established the club, invested money they won’t see again, and put rugby on the map in Melbourne.

REBELS: PRIVATE MODEL HASN’T FAILED

“The reality of capitalising a new rugby franchise is that you need significant capital over the first 10 years to get it up and running, ” Pulver said.

“I would describe this as phase one and we have a sensible funding plan for phase two.”

Pulver even conceded that the ARU should have contributed more financially to the Rebels initially, a time before he took control.

“They (the shareholders) have invested a lot of their own money in this enterprise, arguably money that the ARU should have put in up front,” he said.

“I think we are very lucky to have had those investors in place.”

Article source: http://www.heraldscotland.com/sport/opinion/rankin-and-lavery-must-now-build-on-mclauchlans-good-groundwork.21456211

The Melbourne Rebels say their private ownership model has not failed, despite ...