Defunct Melbourne Rebels seeking $30 million in compensation from Rugby Australia

After being shuttered by Rugby Australia and dumped from Super Rugby, the Melbourne Rebels have taken this action.

Directors of the defunct Melbourne Rebels have accused Rugby Australia of significant breaches of the Corporations Act in a bold bid for $30m as part of a damages claim launched in the Federal Court.

Action was launched on Wednesday with demands the actions of RA, which shuttered the Rebels and booted them from both the men’s and women’s Super Rugby competitions, be “both exposed and explained”.

The Rebels were closed down in May having been placed in administration owing its creditors $23m, including $11.5m to the Australian Taxation Office, and after mediation failed.

As part of an ongoing quest to rebirth the club, its directors released a statement on Wednesday lashing the behaviour of the governing body that they said had failed to serve the Rebels equally.

“Their conduct needs to be both exposed and explained. RA have had many months to explain their actions and have failed to do so,” the directors said.

“The Rebels directors believe that the simple reason for this is that there is no defence to their conduct.

The Rebels ran out of support in Melbourne. Picture: Robert Cianflone/Getty Images

“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.

“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 (ATO) (as well as other broader employment liabilities) incurred when Rebels players were playing for Rugby Australia teams.”

After being disbanded, Rebels players joined other Super Rugby franchises or played overseas.

As part of the action, the directors are also seeking an urgent order granting them the right to inspect Rugby Australia’s books, wanting an insight into where an $80m line of credit RA received was being spent.

“The constitution requires that the assets of Rugby Australia be applied for the benefit of all members,” the directors said in their statement.

Rugby Australia chief executive Phil Waugh and Rugby Australia chair Daniel Herbert shut down the Rebels in May. Picture: Morgan Hancock/Getty Images

“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 Rugby World Cup and the subsequent suppression of the Rugby World Cup independent report).

“The Rugby Australia Board and executives don’t seem to understand that Rugby Australia is a union of members.

“The Rugby Australia Board has a legal obligation to act in the interest of all members, they do not have the ability (or legal right) to pick and choose the clubs and/or states they wish to survive and those that they wish to destroy.”

The Rebels made the Super Rugby finals for the first time in 2024, losing their final game 47-20 to the Hurricanes in New Zealand.

Originally published as Defunct Melbourne Rebels seeking $30 million in compensation from Rugby Australia