Rugby Australia fire back at 'misleading and deceptive' Rebels

Rugby Australia are preparing a counterclaim against axed Super Rugby Pacific club Melbourne Rebels “for misleading and deceptive conduct”. The governing body has slammed the Rebels’ attempts to “shift the blame” for their booting in May, having entered voluntary administration five months earlier with debts exceeding $23million.

More than $30m is being sought by the Rebels in a Federal Court lawsuit filed on Wednesday to cover debts owed by the club, including to the Australian Tax Office, as well as damages. The club are also seeking a declaration that it can resume control of the Rebels, so they can continue to play in the Super Rugby Pacific competition.

With a share of private equity funding previously secured by RA, the Rebels say they can return to the field based out of a new home in Tarneit, in Melbourne’s western suburbs. The club are also seeking that the court order RA to open its books for inspection to determine claims it failed funding responsibilities for the Rebels, including when players were representing the Wallabies.

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RA responded emphatically in a statement on Thursday, attacking “inaccurate and misleading comments” and rejecting directors’ “claims and attempts to shift blame for their financial mismanagement”.

“RA is preparing a counterclaim against MRRU and its directors for misleading and deceptive conduct concerning the financial position of MRRU dating back to 2018,” it read.  “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 $35m that was paid to MRRU since at least July 1, 2018.”

RA claims it was never informed of penalty notices handed down by the ATO, while administrators believed the Rebels may have traded while insolvent since December 2018 in breach of the Corporations Act. RA believes that the MRRU directors were knowingly concerned in and/or aided and abetted MRRU’s misleading and deceptive conduct,” the RA statement read.

“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.”

A private consortium had put forward a plan to fund the club until 2030, which was supported by the administrator, but RA voted against the deal at a creditors’ meeting. Most players and staff have since joined other clubs, with an 11-team Super Rugby season set to begin in February.