Melbourne Rebels Sue Rugby Australia for $20 Million Damages

The Melbourne Rebels, a defunct Rugby team, are suing Rugby Australia for A$30 million in damages after their shutdown due to financial troubles. The directors hope to regain control and resume play after Rugby Australia rejected a rescue deal, causing the club to dissolve in June.

In a significant legal move, directors of the now-defunct Super Rugby Pacific team Melbourne Rebels have filed a lawsuit against Rugby Australia for $20 million in claimed damages. The lawsuit revolves around the team's voluntary administration in January due to surpassing A$20 million in debt.

The Rebels were officially shuttered in June after Rugby Australia rejected a proposed rescue deal from the club's directors. On Wednesday, they lodged a formal claim with Australia's Federal Court, aiming to resume control of the team.

The lawsuit highlights alleged unfair treatment, and with Rugby Australia already grappling with financial losses, this legal battle adds another layer of complexity to their fiscal challenges.

(With inputs from agencies.)