Rugby Australia (RA) has reacted to the Melbourne Rebels’ determination to launch authorized motion following its Tremendous Rugby Pacific axing, claiming the membership’s administrators are trying to “shift blame for his or her monetary mismanagement”.
RA introduced in Could the Rebels wouldn’t take part within the Tremendous Rugby Pacific competitors subsequent 12 months.
The Rebels had amassed a debt of just about $23 million previous to getting into voluntary administration in January.
They filed a press release of declare within the Federal Court docket on Wednesday, looking for $30 million in damages from RA.
RA launched a media assertion on Thursday, disputing claims made by Rebels’ administrators.
The nationwide governing physique mentioned it might launch a counterclaim towards the Rebels.
“Rugby Australia is disenchanted by the Melbourne Rebels Rugby Union Pty Ltd’s (MRRU) inaccurate and deceptive feedback within the media and rejects the MRRU administrators’ ambit claims and makes an attempt to shift blame for his or her monetary mismanagement,” RA’s assertion learn.
“RA reiterates that it has complied with all its contractual obligations to MRRU.
“RA is getting ready a counterclaim towards MRRU and its administrators for deceptive and misleading conduct regarding the monetary place of MRRU courting again to 2018.
“Primarily based on that deceptive and misleading conduct, RA granted MRRU a participation licence for the Tremendous Rugby competitors and offered related funding and funds to MRRU.
“Had RA not been misled or deceived, it might not have offered MRRU with a participation licence and thus not misplaced in extra of $35 million that was paid to MRRU since not less than 1 July 2018.”
RA mentioned it believed the membership administrators have been “knowingly involved in and/or aided and abetted MRRU’s deceptive and misleading conduct”.
“Given the insolvency of MRRU, its administrators positioned it into voluntary administration on January 29, 2024,” the assertion learn.
“The administrator reported that MRRU had amassed virtually $23 million in debt previous to getting into voluntary administration and famous that MRRU’s administrators might have traded whereas bancrupt from 31 December 2018, which is a breach of the Companies Act.
“The administrator additionally acknowledged that the explanations for the corporate’s monetary challenges have been a historical past of buying and selling losses, lack of available different funding sources, an extreme value construction in comparison with the underlying income base, and inadequate income generated from non-RA sources together with membership, sponsorship and game-day receipts.
“RA was notified by the administrator that the administrators of MRRU had obtained ATO (Australian Taxation Workplace) director penalty notices.
“RA obtained a garnishee order from the ATO in December 2023.
“MRRU by no means knowledgeable RA of the director penalty notices.”
RA mentioned it funded the Rebels in 2024 after the membership was positioned into administration, together with paying participant and workers wages.
On Wednesday, Rebels administrators mentioned they needed a “declaration that they’re entitled to renew management of the Rebels so the staff can proceed to play within the Tremendous Rugby competitors”.
“The Rebels are a member of Rugby Australia and had a authorized expectation that they might not solely be handled pretty however that they might be handled equally to different members,” a press release learn.
Along with looking for damages, the Rebels mentioned they needed the “proper to examine the Rugby Australia books” to find out whether or not there had been “fiduciary and governance failures”.
