Rugby Australia faces a new legal and financial headache after directors of the now-competition-less Melbourne Rebels commenced proceedings in the Federal Court over the club’s exclusion from Super Rugby Pacific.
The allegations in the statement of claim include breaching of funding obligations, liability of RA for payment of Wallabies players, and misleading conduct. The plaintiffs will be seeking more than $30m.
A joint statement issued by club directors said “significant damages and indemnities” are being sought, and they wish for the Rebels to continue to play in Super Rugby.
“The Rebels are seeking an urgent order granting the Rebels the right to inspect the RA books, including accounting and loan records, to determine whether (and the extent to which) there has been fiduciary and governance failures by RA,” the joint statement said.
The governing body said it would comment when it has reviewed the 54-page statement of claim, which was lodged with the Federal Court on Wednesday.
The Rebels’ viability has entered the public spotlight in the past year after their chairman Paul Docherty – whose company was the team’s major sponsor – fell into financial strife.
RA took control of the club in January when it entered voluntary administration and in May decided not to reinstate the franchise for 2025.
The directors’ statement said they “will be providing the court extensive documentation demonstrating that RA was aware of the financial situation of the Rebels at all times”.
The Rebels’ Super W team has also been cut from the 2025 program.
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Last week Mel Kawa, former Rebels Super W Captain and Rugby Victoria director, said RA’s decision to also pull back funding for the Super W team was a blow for women’s rugby.
“Rugby Victoria, the Melbourne Rebels and Rugby Australia have previously worked together over the years to create this professional pathway and it’s devastating to be undoing a lot of our own hard work,” Kawa said.
RA secured an $80m loan facility in order to bridge a funding gap until the 2025 British and Irish Lions tour and the 2027 men’s and 2029 women’s Rugby World Cups, which will be held in Australia.
The 2023 RA annual report said as at 31 December 2023, $50m of that facility had been drawn.
