MELBOURNE (Reuters) – The directors of defunct Super Rugby Pacific team Melbourne Rebels have sued Rugby Australia (RA) for A$30 million ($20 million) in damages as part of a claim over the club’s extinction.
The Rebels went into voluntary administration in January with debts of over A$20 million and were shuttered at the end of the season in June after RA rejected a rescue deal presented by the club’s directors.
The directors lodged a claim with Australia’s Federal Court on Wednesday.
They said in a statement they wanted to be “entitled to resume control of the Rebels” so the team could continue to play in Super Rugby.
“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 statement said.
Governing body RA said they needed time to inspect the Rebels directors’ claim before commenting further.
The Rebels directors had threatened RA with legal action in May when the governing body confirmed it rejected a rescue deal brought by a consortium.
The consortium was led by businessman Leigh Clifford, whose daughter Georgia Widdup sat on the Rebels’ board.
RA can ill-afford a costly legal battle, having reported a loss of A$9 million in 2023 and spent more than A$6 million to ensure the Rebels could complete their 14th and final season of Super Rugby this year.
RA said in April it had drawn down A$50 million of an A$80 million loan taken out in November from a private equity company.
($1 = 1.4826 Australian dollars)
(Reporting by Ian Ransom in Melbourne; Editing by Muralikumar Anantharaman)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.