Rugby Australia's Legal Battle: The Fallout with the Rebels

Rugby Australia (RA) prepares a legal counter-claim against the directors of the defunct Melbourne Rebels, who are suing RA for A$30 million over the club's demise. RA rejected a rescue deal for the club, blaming directors for financial mismanagement and misleading conduct, and challenges the claims in court.

Rugby Australia has announced plans to counter-sue the directors of the now-defunct Melbourne Rebels. This development comes after the directors filed a lawsuit seeking A$30 million in damages against RA, alleging fault over the club's closure.

Rejected attempts to rescue the financially troubled club, following the Super Rugby Pacific season, have prompted RA to accuse directors of 'ambit claims' and attributing the financial collapse to poor management decisions. The counterclaim by RA also highlights alleged misleading conduct by the Rebels.

The ongoing legal tug-of-war underscores the complicated relationship between RA and the Rebels, with both parties laying blame and seeking court intervention. The Rebels declared voluntary administration in January due to debts exceeding A$20 million, leading to their eventual shutdown.

(With inputs from agencies.)