Rugby Australia prepares counter-claim to Melbourne Rebels' $30 million lawsuit

The legal dispute between Rugby Australia and former Super Rugby team Melbourne Rebels has escalated this week with Rugby Australia preparing a counter-claim to Melbourne Rebel’s $30 million lawsuit lodged by the directors on Wednesday 9th October.

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 decision by Rugby Australia to not reinstate Melbourne’s Super Rugby licence in May has triggered legal disputes which has escalated this week.

Rugby Australia have responded to Melbourne Rebels lawsuit in a strong statement and revealed that they are compiling a counterclaim of their own.

“Rugby Australia is disappointed by the Melbourne Rebels Rugby Union Pty Ltd’s [MRRU] inaccurate and misleading comments in the media and rejects the MRRU directors’ ambit claims and attempts to shift blame for their financial mismanagement,” the statement read.

“RA reiterates that it has complied with all its contractual obligations to MRRU.

“RA is preparing a counterclaim against MRRU and its directors for misleading and deceptive conduct concerning the financial position of MRRU dating back to 2018. Based on that misleading and deceptive conduct, RA granted MRRU a participation licence for the Super Rugby competition and provided associated funding and payments to MRRU.”

Rugby Australia response issued on Thursday said it had relied on the alleged misleading and deceptive conduct in allowing the club to be part of Super Rugby.

“Had RA not been misled or deceived, it would not have provided [the Rebels] with a participation licence and thus not lost in excess of $35 million that was paid to [the club] since at least 1 July 2018,” the statement said.

“RA believes that the MRRU directors were knowingly concerned in and/or aided and abetted MRRU’s misleading and deceptive conduct.”

The directors issued a response on Thursday afternoon to RA’s statement, alleging the governing body has made “completely false and self-serving counter-claims about the Rebels” adding “we believe this to be a desperate attempt to deflect attention from the reality of the situation that the RA executive and board have put the sport into.

“We want an independent person to decide whether the conduct of Rugby Australia meets the standards required by law – and that will now be a Federal Court Judge.’’

Rugby Australia said it “will continue to do what is in the best interests of the game nationally and remains focussed on protecting and promoting rugby across Australia”.