RA chief executive Phil Waugh and chairman Daniel Herbert flew to Melbourne to deliver the devastating blow for the financially-stricken club.

Staff and players were called to Rebels headquarters on Thursday as they were preparing to fly to Fiji for their final-round clash against the Drua on Saturday.

The crushing news comes as the club, currently seventh on the ladder, are preparing for their first finals campaign in 14 years in the competition. Melbourne have been in voluntary administration since January with debts owed to creditors exceeding $23 million including an $11.5 million debt to the tax office.

RA cut staff and took over player and coaching payments for the season, with the Rebels handing over their competition licence.

A private consortium put forward a plan to fund the club until 2030, which was supported by the administrator but RA and the ATO voted against the deal at the creditors’ meeting.

It was contingent on RA handing back the licence but the governing body opted to cut the club, saying it didn’t demonstrate sufficient financial viability and presented an “unacceptable level of risk”.

In a statement on Thursday RA said the consortium’s projections for revenue growth and cost savings were “overly optimistic” and requiring additional funding from head office.

“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,” RA said.

“RA does not take this decision lightly, however it must act in the best interests of the game and its stakeholders, and to provide certainty for the Rebels’ players and staff, and all Super Rugby clubs in planning for the 2025 Super Rugby Pacific season.”