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Rugby Australia fire back at 'misleading and deceptive' Rebels

Dejected Rebels players in a huddle last May (Photo by Asanka Ratnayake/Getty Images)

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.

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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.

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“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.

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“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.”

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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.

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3 Comments
F
Forward pass 71 days ago

Seems like RA promised them a big payday from selling the Wallabies brand then of course that didnt happen.

W
Willie 72 days ago

Let's see how bullish the Rebel Directors are now.

Been taking advice from Walter of Ballymore?

O
OJohn 72 days ago

The Rebel Directors have a Kings Counsel working for them (pro bono maybe) who normally charges $20,000 to $25,000 a day. He's probably a lot smarter than you.


He's either going to make a complete fool of himself or Rugby Australia are going to have to find some really really smar,t very expensive Lawyers.


Over history Rugby Australia has given the impression of bumbling idiots. The chance of them getting this one right seem very very low. Not impossible but exceedingly low. I would say bankruptcy is inevitable. The Tahs bankrupted the Tahs. Not satisfied and thinking it was just bad luck, now they are going to do the same to Rugby Australia.


It could be a good thing when Rugby in Australia is re-constituted without the Tahs being able to screw everything up for their egos. They are an arrogant, self entitled walking disaster. They think it is their god given right to do everything to benefit the Tahs and stuff everybody else.


Karma is a bewdy sometimes.

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JW 3 hours ago
Does South Africa have a future in European competition?

I rated Lowe well enough to be an AB. Remember we were picking the likes of George Bridge above such players so theres no disputing a lot of bad decisions have been made by those last two coaches. Does a team like the ABs need a finicky winger who you have to adapt and change a lot of your style with to get benefit from? No, not really. But he still would have been a basic improvement on players like even Savea at the tail of his career, Bridge, and could even have converted into the answer of replacing Beauden at the back. Instead we persisted with NMS, Naholo, Havili, Reece, all players we would have cared even less about losing and all because Rieko had Lowe's number 11 jersey nailed down.


He was of course only 23 when he decided to leave, it was back in the beggining of the period they had started retaining players (from 2018 onwards I think, they came out saying theyre going to be more aggressive at some point). So he might, all of them, only just missed out.


The main point that Ed made is that situations like Lowe's, Aki's, JGP's, aren't going to happen in future. That's a bit of a "NZ" only problem, because those players need to reach such a high standard to be chosen by the All Blacks, were as a country like Ireland wants them a lot earlier like that. This is basically the 'ready in 3 years' concept Ireland relied on, versus the '5 years and they've left' concept' were that player is now ready to be chosen by the All Blacks (given a contract to play Super, ala SBW, and hopefully Manu).


The 'mercenary' thing that will take longer to expire, and which I was referring to, is the grandparents rule. The new kids coming through now aren't going to have as many gp born overseas, so the amount of players that can leave with a prospect of International rugby offer are going to drop dramatically at some point. All these kiwi fellas playing for a PI, is going to stop sadly.


The new era problem that will replace those old concerns is now French and Japanese clubs (doing the same as NRL teams have done for decades by) picking kids out of school. The problem here is not so much a national identity one, than it is a farm system where 9 in 10 players are left with nothing. A stunted education and no support in a foreign country (well they'll get kicked out of those countries were they don't in Australia).


It's the same sort of situation were NZ would be the big guy, but there weren't many downsides with it. The only one I can think was brought up but a poster on this site, I can't recall who it was, but he seemed to know a lot of kids coming from the Islands weren't really given the capability to fly back home during school xms holidays etc. That is probably something that should be fixed by the union. Otherwise getting someone like Fakatava over here for his last year of school definitely results in NZ being able to pick the cherries off the top but it also allows that player to develop and be able to represent Tonga and under age and possibly even later in his career. Where as a kid being taken from NZ is arguably going to be worse off in every respect other than perhaps money. Not going to develop as a person, not going to develop as a player as much, so I have a lotof sympathy for NZs case that I don't include them in that group but I certainly see where you're coming from and it encourages other countries to think they can do the same while not realising they're making a much worse experience/situation.

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