Rugby Australia to counter-sue Melbourne Rebels in escalating legal dispute

Rugby Australia (RA) has announced its intention to file a counter-claim against the recently defunct Melbourne Rebels, escalating an already bitter legal dispute.

The move comes after the club’s directors filed a lawsuit in Australia’s Federal Court, seeking Aus$30 million (US$20 million) in damages for debts allegedly owed by the governing body.

The legal battle stems from Rugby Australia’s decision earlier this year to revoke the debt-ridden club’s Super Rugby playing licence and shut down the franchise after 14 seasons.

The governing body opted against pursuing a rescue deal, citing the club’s ongoing financial issues.

In response to the lawsuit, RA issued a strongly-worded statement rejecting the claims made by the Melbourne Rebels’ directors and accused them of attempting to deflect responsibility for the club’s financial mismanagement.

RA’s counter-claim will allege that Melbourne Rebels Rugby Union Pty Ltd (MRRU) and its directors engaged in misleading and deceptive conduct regarding the club’s financial status dating back to 2018.

"RA is preparing a counter-claim against MRRU (Melbourne Rebels Rugby Union Pty Ltd) and its directors for misleading and deceptive conduct concerning the financial position of MRRU dating back to 2018," said RA in a statement released.

"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.

"Had RA not been misled or deceived, it would not have provided MRRU with a participation licence and thus not lost in excess of $35 million that was paid to MRRU since at least July 1 2018."