Rugby Australia is preparing to counter-sue the seven Melbourne Rebels directors, accusing the group of deceiving the peak rugby body from at least 2018 about the former rugby club’s financial position.
A scathing statement released by Rugby Australia on Thursday came a day after the directors of the defunct Super Rugby club launched a damages claim against Rugby Australia in the Federal Court, demanding $30 million from the peak body.
Rugby Australia is accusing the seven Melbourne Rebels directors of misleading and deceptive conduct. Credit: Getty Images
Rugby Australia closed down the club in May amid a fiery and unsuccessful mediation process with the directors of the club.
It had been placed in administration, owing its creditors $23 million – including $11.5 million to the Australian Taxation Office. The ATO had, before the club’s administration, notified the directors they would be held personally financially liable for the debts.
The administrators found the club had been trading while insolvent since at least 2018. Rugby Australia is now alleging that the body was misled about the club’s financial position, and would not have provided its participation agreement for the Super Rugby Pacific competition if it had known.
In a statement released on Thursday, Rugby Australia said:
“RA is preparing a counterclaim against [Melbourne Rebels Rugby Union] MRRU and its directors for misleading and deceptive conduct concerning the financial position of MRRU dating back to 2018. 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 1 July 2018.
RA believes that the MRRU directors were knowingly concerned in and/or aided and abetted MRRU’s misleading and deceptive conduct.”
The statement added: “RA was notified by the [appointed administrators of the Rebels] that the directors of MRRU had received ATO Director Penalty Notices. RA received a garnishee order from the ATO in December 2023. MRRU never informed RA of the Director Penalty Notices.
After MRRU was placed into administration, RA stepped in to fund all operations of the Melbourne Rebels in 2024, paying player and staff wages, and meeting all associated statutory obligations connected with those payments for the entirety of the 2024 Super Rugby Pacific season.
“As the national governing body, RA will continue to do what is in the best interests of the game nationally and remains focussed on protecting and promoting rugby across Australia.”
The Rebels have been contacted for comment.
More to come
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