Rugby Australia faces $30 million lawsuit from axed club

In Australia, the Melbourne Rebels have initiated a $30 million lawsuit against Rugby Australia following the club's dissolution earlier this year. The Rebels, which entered voluntary administration with debts over $23 million, are seeking a court declaration to regain control and continue participating in the Super Rugby competition. They allege that Rugby Australia has breached the Corporations Act and failed to meet funding responsibilities, particularly during the Wallabies' representation. The club claims there was unauthorized spending by Rugby Australia, especially during the 2023 Rugby World Cup, and that the governing body favored other teams for financial support despite securing an $80 million loan facility. The Rebels were disbanded in May, leading to many players and staff joining other clubs, while a consortium's proposal to fund the Rebels until 2030 was rejected due to concerns over its viability. The situation has raised significant questions about the financial management and future of rugby in Australia.