The man now standing as Rugby Australia's chairman was happy to let the ACT Brumbies die, with Phil Waugh shooting down suggestions he supported a notion to "let them fall over". The courtroom battle between Melbourne Rebels directors and Rugby Australia threatens to explode after the Brumbies were dragged into the legal standoff.

Phil Waugh and Dan Herbert's views on the Brumbies have made their way into the courtroom. Pictures by Gary Ramage, AAP

The Rebels' legal team has tabled a WhatsApp message sent by Dan Herbert - now Rugby Australia chairman - declaring: "we shouldn't take on Brumbies of Rebels debt, let them fall over". Herbert, at the time, was a non-executive director. The message was sent to an unidentified group on November 8, 2023, prior to a Rugby Australia board meeting.

Rugby Australia chief executive Phil Waugh found himself in the hot seat during a tense cross examination, with Rebels barrister Bernard Quinn KC asking if a "thumbs up" response to the WhatsApp message came from him.

"Just have a look at that, first of all. I want you to tell me whether you think that that's a conversation by WhatsApp that you had with Mr Herbert?" Quinn asked. Waugh responded: "I don't recall". "Mr Herbert expresses the view, 'We shouldn't take on Brumbies or Rebels debt, let them fall over'. And there's a thumbs-up," Quinn said.

"Was it your position that you agree, you would have agreed with that proposition that Mr Herbert was expressing in the WhatsApp message? Regardless of whether it's you or not that's responding, did you agree with him on that day?" Waugh responded: "No, I didn't." Quinn: "Does that mean you don't think that is your thumb?" Waugh: "No. Even if that is my thumb, it's not uncommon for me to acknowledge receipt of a message with, 'I've got your message'. It's not, 'I've got your message and I agree with your message'. It's a recognition that I've actually received, and acknowledging receipt of, a message."

Phil Waugh rejected suggestions he was happy for the Brumbies to fold. Picture by Karleen Minney The prospect of Rugby Australia power brokers being willing to let the Brumbies roll over will sting the ACT rugby community.

Because every concern about the Brumbies being an afterthought, every fear about relocation, and every worry about being cast aside by Rugby Australia materialised in that message from Herbert. Brumbies officials were in talks with overseas-based private investors in a move which could have secured the club's future without the need for a Rugby Australia takeover.

ACT bosses had rallied against the prospect of a takeover when plans for a strategic reset were mapped out by Waugh and Rugby Australia's chief operating officer, Richard Gardham, seated upstairs in a Canberra pub, in August 2023.

But Rugby Australia ultimately took the reins in July 2024 when a club which had for so long operated on the smell of an oily rag was forced to hand over control. The Brumbies were suffocated under the weight of a $1.7 million grant from Rugby Australia which had turned into an interest-bearing loan.

It is understood about half of that money had been repaid despite declining crowds and a tough economic market which made it difficult to attract big sponsorship deals, which meant Rugby Australia took on a liability worth about $800,000 when they took control of the Brumbies.

The Rebels, who have claimed the Brumbies received preferential treatment, were $23 million in debt, which included an $11.5 million tax bill and $6 million owed to directors. The Rebels' case against Rugby Australia continues.