Australian Rugby Union boss John O'Neill predicts the other Australian Super franchises will accept some measure of private equity or ownership after resolving the dramas surrounding the Melbourne licence on Tuesday.

The ARU announced it had reached an agreement for control of the fifth Australian Super franchise with the Melbourne Rebels consortium, headed by business identity Harold Mitchell.

Melbourne, who will play at the new 31,000-capacity Rectangular Stadium in the city's sporting precinct, will join an expanded 15-team competition next year when Australia, New Zealand and South Africa will field five teams each.

Tuesday's announcement ended several months of uncertainty over who would control the Melbourne franchise.

O'Neill described the process as "challenging" but said the outcome was good for rugby, Melbourne, and the ARU.

Mitchell said his group had been doing plenty of work on finalising major appointment, including those of coach and chief executive.

He said announcements on those positions would be made in the future, along with more details about the various investors in his consortium.

He didn't rule out participation and investment from the rival Vic Super15 group and businessman Kevin Maloney, who had also previously expressed interested in being part of the Melbourne franchise.

While the Victorian Rugby Union is not an equity partner in the Melbourne franchise, O'Neill described it as "a stakeholder".

O'Neill said finalising ownership of the Melbourne team had been the ARU's "first order of priority for 2010" and the process had not shaken his faith in private funding of the sport.

"We made a strategic decision nearly two years ago that rugby needed private equity on a nationally controlled regulated basis and nothing that has happened in the last two years has changed my mind," O'Neill told AAP.

"I think that you will see private equity or private ownership come into the other (Australian Super) franchises.

"No one is pushing it, but I think Melbourne has led the way and I suspect that others will follow in the fullness of time.

"It is a very significant landmark in terms of Australian rugby's competitive position, vis-a-vis, the other football codes, particularly AFL, NRL and football.

"I think if we resisted the introduction of private ownership, the game would be significantly diminished and, over time, we would lose our competitive edge."

O'Neill said, the ARU would inevitably continue to provide central funding for all the Australian Super franchises.

Mitchell was sanguine about Melbourne's financial prospects.

"Private equity has got to understand that this is not a large money-making venture, it won't lose money," Mitchell told AAP.

He expressed confidence in rugby's ability to thrive in the crowded Melbourne sporting marketplace.

"Melbourne is a great supporter of all sports," Mitchell said.

"If we put together a team which is successful, our group is quietly confident of doing that, Melbourne will support us."

Despite the frequent instances of AFL and NRL player misbehaviour over the last year, Mitchell was confident his budding franchise could avoid such problems.

"We've seen other sports get themselves into problems and I can promise you, this won't happen with this club and rugby union generally," Mitchell said.

The ARU announced on Monday it would ease its restrictions on foreign players for Melbourne, allowing them to sign up to ten overseas-born recruits.

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