One of Australia’s biggest sporting codes is hit by bombshell $30million lawsuit that could spell financial disaster

The Melbourne Rebels are seeking $30 million from Rugby Australia in a lawsuit launched after the club was dissolved by the governing body.

In a claim filed to the Federal Court on Wednesday, the club is seeking a declaration that it can resume control of the Rebels so the team can continue to play in the Super Rugby competition.

‘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,’ the club said in a statement.

‘Amongst other things, the Rebels will assert that Rugby Australia has breached various sections of the Corporations Act.’

The club is also seeking that the court order Rugby Australia to open its books for inspection to determine claims it failed funding responsibilities for the Rebels, including when players were representing the Wallabies.

In the statement, the club said it believed there had been ‘unacceptable and unauthorised spending’ by Rugby Australia, including during the 2023 Rugby World Cup.

The Rebels claim Rugby Australia executives and directors continued to reassure it, and other teams, that a large private equity deal would provide a financial lifeline to the sport.

‘Rugby Australia did secure an $80 million loan facility, but they chose only to provide funding, indemnities or other financial support to the NSW Waratahs and subsequently the ACT Brumbies in preference to the Melbourne Rebels,’ the club said.

The Melbourne Rebels have launched a $30 million lawsuit against Rugby Australia

The Melbourne Rebels were axed by Rugby Australia in May (RA CEO Phil Waugh)

 The Rebels were axed by Rugby Australia in May after entering voluntary administration five months earlier with debts exceeding $23 million.

‘While this is undoubtedly a sad day for the Melbourne Rebels, the clarity that this decision provides for our players and staff is welcome,’ a statement from the Rebels said at the time.

‘The club will continue to work with RA and the Rugby Union Players Association [RUPA] regarding next steps for players and staff.’

A consortium led by business heavyweight Leigh Clifford put forward a plan to fund the club until 2030 dependent on RA handing back the licence to them, with funding promises.

The directors of the Rebels also want the team to continue playing in the Super Rugby Pacific competition

But RA boss Phil Waugh said the identity of the consortium members had not been disclosed, their credentials were unable to be fully assessed and the lack of detail made available created an ‘unacceptable level of risk’ and the decision was made to shut the club down.

Many players and staff have since joined other clubs.

Rugby Australia has been contacted for comment.