The directors of defunct rugby union club Melbourne Rebels are seeking $30 million from Rugby Australia as part of a damages claim launched in the Federal Court over the demise of the club.
The directors also want the court to return control of the Rebels to them, so the team can continue to play in the Super Rugby Pacific competition, according to a statement of claim released to the media.
The consortium has claimed to be on the way to raising that sum, though Rugby Australia chair Daniel Herbert was scathing of the consortium’s rescue plan, describing it as “embryonic”. The directors have previously warned that a lack of support for the deal would result in legal action. The statement of claim includes allegations Rugby Australia broke several company laws in its handling of the financial problems besetting teams in the competition and unfairly preferenced the financial needs of other clubs, most notably the NSW Waratahs. The directors also allege that Rugby Australia is obliged to indemnify the directors for the tax debts accrued by the club and now assigned as personal debts to the directors.
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