Vanquished former Melbourne Rebels pledge court action against Rugby Australia next week

The Rebels’ board members who owe almost $8 million to the tax office are threatening to take Rugby Australia to court.

A lawsuit against Rugby Australia is expected to be filed as early as next week as the vanquished former Melbourne Rebels board goes to war.

They will demand that Rugby Australia pay up to half of its $7.8 million tax bill owed to the Australian Taxation Office.

The board, which includes Tim North, KC, have warned they are prepared for a long legal fight.

However, they remain at risk of losing their homes as the ATO has made them personally liable for the club’s debt.

Ryan Louwrens of the Rebels in action. Picture: Getty

It comes amid claims any deal Rugby Australia might get from the Victorian Government to host the rugby World Cup at the MCG in 2027 was likely to be cut in price.

Sources close to the Rebels faction claim that a draft of the legal case has already been written up.

The paperwork was likely to be lodged on Tuesday or Wednesday next week in the Federal Court

Rugby Australia chair Daniel Herbert this week rejected a bid to save the Rebels, labelling a rescue plan “embryonic”.

The former Rebels directors also included Georgia Widdup, high profile business leader Lyndsey Cattermole, under pressure businessman Paul Docherty, community rugby icon Neil Hay, forensic accountant Owain Stone and Gary Gray.

Ms Widdup’s father, Leigh Clifford, the former chair at Qantas had claimed to have a consortium willing to pay $18 million to the Rebels and move them to Tarneit.

The former directors had claimed they were not part of the consortium but the names of those behind the plan were never revealed.

Georgia Widdup. Picture: Supplied

Rugby Australia CEO Phil Waugh and Rugby Australia Chair Daniel Herbert. Picture: Getty

Ms Widdup was in a meeting with Rugby Australia this week where the plan was outlined.

Sources claim Rugby Australia director Matt Hanning had repeatedly sought to clarify whether Ms Widdup was part of the consortium.

Ms Widdup wrote to Mr Herbert “expressing concern” about Mr Hanning’s conduct, a leaked email said.

“He frequently interrupted the presenters and made adverse comments about the presentation and the participants,” Ms Widdup wrote.

“The members of the consortium have invested significant time and resources to provide Rugby Australia with a pathway to maintain a viable presence for rugby union in Victoria. “This may not suit Rugby Australia’s short or long term goals (which I note have never been articulated to us), but the efforts are genuine and did not deserve to be dismissed in the manner that they were and with the contempt that was shown to all of us.”

Rugby Australia chair Daniel Herbert. Picture: Getty

Mr Herbert responded to Ms Widdup via email, saying: “Whilst our representatives may have posed some tough or uncomfortable questions, they were put in a firm but respectful way.

“It was the view of our representatives that the answers provided to those questions were not responsive nor adequate and given the number of comments made by or on behalf of the Consortia to the media about the advanced state of the proposal, the answers were therefore wholly unsatisfactory. “

Steve Dimopoulos, Victoria’s Sports Minister, said: “The Victorian Government is extremely disappointed that Rugby Australia has decided not to support the Melbourne Rebels following the team’s 2024 season, after we made it clear that we expected them to commit to a team at the elite level of the sport in Victoria.”

Originally published as Vanquished former Melbourne Rebels pledge court action against Rugby Australia next week