Rugby Australia faces $30million lawsuit from Melbourne Rebels

Rugby Australia took control of the Super Rugby team Melbourne Rebels in January 2024 when the Franchise was placed into voluntary administration after accruing debts of almost $23 million and then in May, Rugby Australia decided not to reinstate the franchise for the 2025 Super Rugby Pacific competition.

The Rebels’ viability was spotlighted over the past year with their chairman Paul Docherty – whose company was the team’s major sponsor – having fallen into financial difficulties.

Directors of Melbourne Rebels have now commenced proceedings in the Federal Court over the club’s exclusion from Super Rugby Pacific.

The allegations in a joint statement issued by club directors include breaching of funding obligations, liability of RA for payment of Wallabies players, and misleading conduct. The plaintiffs will be seeking more than $30 million.

The statement noted they are seeking “significant damages and indemnities” and wish for the Rebels to continue to play in Super Rugby.

The statement said “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 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 9th October.

The directors’ statement also said they “will be providing the court extensive documentation demonstrating that RA was aware of the financial situation of the Rebels at all times”.