Axed Super Rugby club Melbourne Rebels has launched a $30 million course suit against Rugby Australia in the Australian Federal Court in a bid to rejoin the Pacific competition.
The Rebels are demanding a stunning compensation package after Rugby Australia decided to ax the Melbourne-based team in May after 14 seasons. It was because it had accumulated nearly $23 million in debt that it was placed into voluntary administration at the beginning of the year.
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Rugby Australia rejected efforts to save the Rebels on the grounds that they had “failed to demonstrate sufficient financial viability”, and the court action cost the already financially struggling governing body, which had taken out an $80 million line of credit from Pacific Equity Partners earlier this year, a huge deal. It can cause damage. To get out of trouble.
Adding spice to the situation is that if the Rebels are successful, they could be looking into Rugby Australia’s finances.
The Australian rugby team has already spent half of its costs and is hedging its bets on next year’s British and Irish Lions tour and the 2027 Rugby World Cup to raise money to pay off debt, according to the report.
But they may not have time to wait for such a major event, as Rebels directors seek “substantial damages and indemnification”.
The Rebels’ press statement also said they wanted “a declaration that the team is entitled to resume control of the Rebels so that they can continue to play in Super Rugby competition.”
In response to their desire to “examine the literature on Australian rugby”, the rebel directors are demanding that “an independent person determine whether the conduct of Australian rugby meets the standards required by law.”
“There is no trust and confidence in the board and management of Rugby Australia,” the statement said.
“Their actions must be exposed and explained.”
Former Rebels players have already left life in Melbourne, with almost all of them having been reassigned to other Super Rugby franchises in Australia or moving overseas.
So, if they win, they will have to build their roster from scratch to participate in the 2025 season.
