The Melbourne Rebels have launched a multi-million dollar lawsuit against Rugby Australia after being axed 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 they 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.
More than $30 million is being sought in the lawsuit to cover debts owed by the club, including to the Australian Tax Office, as well as damages.
With a share of private equity funding previously secured by Rugby Australia, the Rebels say they can return to the field based out of a new home in Tarneit, in Melbourne’s western suburbs.
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 the club, 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 Rebels were axed by Rugby Australia in May after entering voluntary administration five months earlier with debts exceeding $23 million.
Many players and staff have since joined other clubs.
A private consortium had put forward a plan to fund the club until 2030, which was supported by the administrator, but Rugby Australia voted against the deal at a creditors' meeting.
The deal was contingent on Rugby Australia handing back the team's competition licence, but instead the governing body opted to cut the club, saying it didn't demonstrate sufficient financial viability.
At the time, Rugby Australia said it did not take the decision lightly, however, "it must act in the best interests of the game and its stakeholders".
The Rebels said they have no trust or confidence in Rugby Australia and want its conduct assessed by the Federal Court as an impartial third party.
"We are fighting to not only save the professional men’s and women’s rugby teams, but to maintain the successful pathways from grassroots junior rugby in Victoria through to the elite level," the club said in the statement.
Rugby Australia has been contacted for comment.
