'Unauthorised spending': Rebels launch lawsuit against Rugby Australia
NEWS: The Melbourne Rebels are seeking “significant damages” from Rugby Australia in a lawsuit launched after the franchise was dissolved by the governing body.
In a claim filed to the Federal Court on Wednesday, the franchise is seeking a declaration that it can resume control of the Rebels so the team can continue to play in the Super Rugby competition.
The Rebels directors are seeking AUS$30 million in damages.
“The Rebels are a member of Rugby Australia and had a legal expectation that they would not only be treated fairly but that they would be treated equally to other members,” the franchise said in a statement.
“Amongst other things, the Rebels will assert that Rugby Australia has breached various sections of the Corporations Act, has unlawfully oppressed the Rebels and is obliged to indemnify the Rebels for liabilities to the Australian Taxation Office [as well as other broader employment liabilities] incurred when Rebels players were playing for Rugby Australia teams.”
The team also wants Rugby Australia to open its books for inspection to determine claims it failed funding responsibilities for the Rebels, including when players were representing the Wallabies.
In the statement, the franchise said it believed there had been “unacceptable and unauthorised spending” by Rugby Australia, including during the 2023 World Cup.
The Rebels claim Rugby Australia executives and directors continued to reassure it, and other teams, that a large private equity deal would provide a financial lifeline to the sport.
“Rugby Australia did secure an AUS$80 million loan facility, but they chose only to provide funding, indemnities or other financial support to the NSW Waratahs and subsequently the Brumbies in preference to the Melbourne Rebels,” the franchise said.
They added: “The constitution requires that the assets of Rugby Australia be applied for the benefit of all members.
“The Rebels believe that this has not been the case and that there has been unacceptable and unauthorised spending [perhaps best exemplified by the unauthorised and excessive spending at last year’s World Cup and the subsequent suppression of the Rugby World Cup independent report].”
The Rebels were axed by Rugby Australia in May after entering voluntary administration five months earlier with debts exceeding AUS$23 million.
Many players and staff have since joined other teams.
Rugby Australia has been contacted for comment.
Additional source: The Age
