Axed Super Rugby club the Melbourne Rebels have kicked off a $30 million course case against Rugby Australia in the Federal Court of Australia to try get themselves back into the Pacific competition.
The Rebels are seeking the astonishing compensation sum after Rugby Australia decided to cut the Melbourne-based team in May after 14 seasons because they accumulated a debt of almost $23 million that plunged them into voluntary administration at the start of the year.
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Rugby Australia rejected efforts to save the Rebels because it “did not demonstrate sufficient financial viability”, and the court case could cause immense damage to the already financially strained governing body who took out an $80 million line of credit from Pacific Equity Partners earlier this year to bail themselves out of trouble.
Adding intrigue to the situation, is that the Rebels would be able to inspect Rugby Australia’s finances if successful.
Reports suggest that Rugby Australia has already spent half of the load and are hedging their bets on next year’s British and Irish Lions tour as well as the 2027 Rugby World Cup to be the money spinners to pay off their debts.
They may not have the time to wait for those marquee events however as the Rebels directors seek “significant damages and indemnities”.
The Rebels’ media statement also expressed they want a “declaration that they are entitled to resume control of rebels so the team can continue to play in the Super Rugby competition”.
As for the desire to “inspect the Rugby Australia books”, the Rebels’ directors are calling for an “independent person to decide whether the conduct of Rugby Australia meets the standards required by law”.
“There is no trust and confidence in the board and management of Rugby Australia,” the statement read.
“Their conduct needs to be both exposed and explained.”
Former Rebels players have already moved on from their time in Melbourne however, with nearly all of them being reassigned to other Super Rugby franchises in Australia or moving overseas.
Therefore, victory would force them to build a playing roster from scratch to be part of the 2025 season.
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