The Melbourne Rebels have taken Rugby Australia (RA) to court and are seeking more than AUS$30 million in damages following their axing from Super Rugby Pacific earlier this year.
The Rebels had indicated in May that they would sue RA – after the governing body announced the club’s axing – and their participation in Super Rugby came to an end following their quarter-final defeat to the Hurricanes in June.
In January, the Rebels entered voluntary administration after accumulating a debt of almost AUS$23 million.
RA subsequently assumed control of the club before making the decision not to reinstate the franchise for the 2025 season.
RA allegedly breached funding obligations and oppressed the Rebels
And now former directors of the Rebels filed documents in the Federal Court of Australia on Wednesday in which they alleged RA breached funding obligations and oppressed the club by failing to pay employment liabilities when the club couldn’t.
They also allege that RA encouraged the Melbourne Rugby Union to continue to trade although they were aware of its debts and refused to “properly” consider a proposal by businessman Leigh Clifford to salvage the club.
Rebels ‘absolutely devastated’ as Rugby Australia delivers brutal verdict over club’s future
The Rebels representatives released a statement which read: “The Rebels are a member of Rugby Australia and had a legal expectation that they would not only be treated fairly but that they would be treated equally to other members.
“Amongst other things, the Rebels will assert that Rugby Australia has breached various sections of the Corporations Act, has unlawfully oppressed the Rebels and is obliged to indemnify the Rebels for liabilities to the Australian Taxation Office [as well as other broader employment liabilities] incurred when Rebels players were playing for Rugby Australia teams.”
A RA spokesperson told Nine’s Wide World of Sports the governing body had not yet seen the statement of claim lodged by the Rebels in the Federal Court and had no further comment.
Rebels’ Women’s side also affected
Last week, RA announced that the Rebels would not compete in next year’s Super Rugby Women’s tournament.
“The conduct of Rugby Australia in destroying the Rebels – the men’s and women’s teams — demonstrates an appalling lack of judgement by the national body,” the Rebels representatives’ statement read.
The statement added: “With backing from the Private Equity backed consortium, the Rebels can be back on the field at a new home in Tarneit in Melbourne’s western suburbs as soon as the Court clears the path.”
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