Melbourne Rebels taking Rugby Australia to court as Israel Folau-like saga looms

Rugby Australia hoped it had put its days of protracted legal battles behind it in 2019. The Melbourne Rebels’ decision to take their axing to court could see things get ugly fast, writes JAMIE PANDARAM.

srael Folau and Rugby Australia had a lengthy court battle. Picture: Mark Metcalfe/Getty Images

Rugby Australia faces another Israel Folau-style protracted legal battle after axing the Melbourne Rebels.

The Rebels will not be given a participation license for Super Rugby Pacific for the 2025 season, and presumably now comes the long and painful legal fight between its backers and RA.

There will be no Rebels team playing the British & Irish Lions at Marvel Stadium in July 2025.

The Rebels have confirmed they’re “going to the Federal Court” to protest the decision, while consortium leader Leigh Clifford said: “The Melbourne Rebels never want to go to court, but Rugby Australia’s actions to turn their backs and not negotiate on a common sense $18 million rescue plan has left the club no choice.”

Meanwhile, players about to jump on a plane to Fiji for their final regular season match against Drua this weekend are wondering what their future holds.

Some, like five-eighth Carter Gordon, already had handshake agreements to join NSW Waratahs if the Rebels folded.

NSW are likely to be the biggest beneficiary of a professional rugby club in Victoria folding.

Now run by RA, the Waratahs are running dead last in the Super Rugby Pacific competition and will be flooded with Rebels talent in a bid to get them competitive next season.

RA said in a scathing statement that there was “an unacceptable level of risk” in entering into a participation agreement with the consortium backing the Rebels.

Israel Folau took Rugby Australia to court after his controversial sacking. Picture: Mark Metcalfe/Getty Images

The statement suggests the consortium was still tied to former Rebels directors who presided over the club while it may have been trading insolvent, and that no meaningful guarantees had been given, no key information verified, that would allow RA to trust they could sustain the franchise from next year and beyond.

This was an inevitable decision.

Whispers about the Rebels’ financial woes have been floating around for years.

Many insiders had wondered aloud to this masthead last season: “How are the Rebels still operating?” Or, “I hear the Rebels have no money”.

RA was shocked when it finally looked into the club’s books.

But of course, the club directors take an entirely different view, and say RA have deliberately underfunded the club.

This will be the basis upon which they mount their legal case, which threatens to turn into yet another ugly courtroom saga that RA wished had ended with Folau in 2019 – which ultimately ended with a multimillion dollar settlement with the player, along with millions more to lawyers.

The Rebels briefed their lawyers months ago. They won’t go down swinging.

There is much at stake.

Rugby Australia chairman Dan Herbert and CEO Phil Waugh. Picture: Albert Perez/Getty Images

If directors are found guilty of trading while insolvent, the professional ramifications would be enormous, including the inability to run other companies or sit on other boards.

Which is why the expected courtroom brawl is expected to get nasty.

RA have made what they’ve determined to be the prudent financial decision, but in any case, all legal battles result in both sides getting coated with mud.

The Folau case spelled the end for chief executive Raelene Castle and chairman Cameron Clyne.

RA, now run by former Wallabies Phil Waugh and Daniel Herbert, must brace for ugly sniping and excoriating critiques of the organisation’s operating habits.

Already owing $50 million of debt, RA can ill afford another expensive legal showdown but they’ve made a firm decision and must now see it through.

The casual observer can only shake their head at the predicament of how the NRL can start a new team in Papua New Guinea with players to live in fenced compounds, while RA can’t keep a professional team afloat in Melbourne.