Rugby Australia's Legal Battle with Melbourne Rebels Directors

Rugby Australia is preparing to counter-sue the directors of the defunct Melbourne Rebels. The directors have sued RA for A$30 million in damages following the club's closure. RA alleges financial mismanagement and deceptive conduct by the directors, leading to significant financial losses.

Rugby Australia has announced plans to mount a legal counter-claim against the directors of the shuttered Melbourne Rebels, who have filed a lawsuit demanding A$30 million in damages from RA over the club's downfall.

The governing body, which previously rejected a May rescue proposal for the financially troubled club, accuses the directors of financial mismanagement and misleading conduct. RA asserts the financial misrepresentation dates back to 2018, allegedly leading them into providing costly support and a participation license to the club.

Despite RA's interventions, including financial backing to ensure player and staff welfare, the Rebels succumbed to voluntary administration with debts exceeding A$20 million. RA has criticized the viability of a proposed debt recovery plan accepted by creditors, maintaining its stance against the framework set by the Rebels directors.

(With inputs from agencies.)