The Melbourne Rebels are seeking “significant damages” from Rugby Australia in a lawsuit launched after the club was dissolved by the governing body.
In a claim filed to the Federal Court on Wednesday, the club is seeking a declaration that it can resume control of the Rebels so the team can continue to play in the Super Rugby competition.
“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,” the club said in a statement.
“Amongst other things, the Rebels will assert that Rugby Australia has breached various sections of the Corporations Act.”
the Melbourne Rebels are taking Rugby Australia to court. Photo by James Foy/Speed Media/Icon Sportswire via Getty Images
The club is also seeking that the court order Rugby Australia to open its books for inspection to determine claims it failed funding responsibilities for the Rebels, including when players were representing the Wallabies.
In the statement, the club said it believed there had been “unacceptable and unauthorised spending” by Rugby Australia, including during the 2023 Rugby World Cup.
The Rebels claim Rugby Australia executives and directors continued to reassure it, and other teams, that a large private equity deal would provide a financial lifeline to the sport.
Get the best news, analysis, and opinion straight to your phone! Join ESPN on WhatsApp.
MORE
“Rugby Australia did secure an $80 million loan facility, but they chose only to provide funding, indemnities or other financial support to the NSW Waratahs and subsequently the ACT Brumbies in preference to the Melbourne Rebels,” the club said.
The Rebels were axed by Rugby Australia in May after entering voluntary administration five months earlier with debts exceeding $23 million.
Many players and staff have since joined other clubs.
Rugby Australia has been contacted for comment.
Copyright for syndicated content belongs to the linked Source link
