The Melbourne Rebels were dissolved by Rugby Australia after it rejected a bid from a private consortium to rescue the franchise.
The Rebels have been in voluntary administration since January and owe creditors more than A$23 million, including tax of A$11.5 million.
RA have taken over running the team through to the 2024 season and are covering the costs of players and staff this season, raising hopes after potential buyers proposed rescue plans.
However, the governing body rejected the offer, instead choosing to remove the Rebels from Super Rugby Pacific at the end of the season.
News broke earlier Thursday.
Chief executive Phil Wharfe and chairman Daniel Herbert flew to Melbourne on Thursday to break the news ahead of Saturday’s match against Fiji’s Drua.
Rebels head coach Kevin Foote said the players’ reaction was “total silence, total despair, nobody said a word.”
The Rebels have struggled since their formation in 2011, but Melbourne had their best season ever in 2024.
They have already qualified for the playoffs and are set to reach their first Super Rugby final.
Foote’s side will face Fiji’s Drua in their final regular-season game on Saturday before likely facing either the Hurricanes or the Blues in the quarter-finals.
“I said we have a chance to finish really strong and our team and our players are really motivated to achieve that,” the Rebels head coach said.
“We’re going to take on the challenge with pride.
“It’s been a very difficult and stressful situation for the whole family. I’m motivated towards the end of the season, but after that it’s a break.”
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RA is not convinced
The timing of the announcement was particularly harsh for the rebels as they prepare to conclude their historic election campaign, but Waugh said he broke the news “as quickly as possible”.
RA remained unsure whether the private consortium backed by the Rebels board had the financial strength to rescue the franchise.
The governing body also claimed RA had never received any of the information it had requested from it, and criticised the consortium for a lack of transparency.
“Now is not the right time,” the governing body’s CEO said.
“When the rebels went into self-management, I made it clear that a decision would be taken as soon as possible after obtaining all the appropriate information.
“We received the information last week, had a presentation this week, then analysed all the information and made a decision as quickly as possible to give certainty to our players and staff.”
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