Wayne Keith Smith @WayneKeithSmith 2m2 minutes ago
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BREAKING: Melbourne Rebels to sue ARU for several million as fight breaks out between WA and Vic governments to keep a Super Rugby team.
Pear. Shaped.
So, not quite... but almost... The lead isn't backed up. The facts about the Force and WA govt are stale
The Melbourne Rebels owners are to sue the Australian Rugby Union for a multimillion-dollar amount as the Victorian and West Australian Governments battle to retain a Super Rugby team in their state.
Rebels owner Andrew Cox was asked by The Australian today to confirm that he intends to take legal action against the ARU but reaffirmed only that he is reserving all his rights.
It is understood that the ARU has counteracted by offering to buy back the Melbourne franchise, presumably to close it down, unless it wants to reactivate the proposal to move the Canberra-based Brumbies to the Victorian capital.
The ARU is embroiled in controversy as it attempts to reduce the number of Super Rugby teams from five to four. The Western Force have long been regarded as favourites for the axe but that has changed dramatically.
Further complicating the issue is that the West Australian Government is prepared to compensate the ARU for the $5 million the Victorian Government had pledged to the ARU to stage a Bledisloe Cup Test in Melbourne. Additionally, it is understood the WA Government is prepared to fund the Force for $2 million a year, which would surely resolve any questions about its financial sustainability.
But it is understood that the Victorian Government now is considering matching the WA offer to provide support for the Rebels. Certainly the Victorian Government is adamant that it wants to retain a Super Rugby presence in Melbourne. If the Rebels were to get that level of support, their financial crisis also would be over.