Australian Olympic breakdancer Rachael 'Raygun' Gunn is demanding $11,000 in legal fees from the owner of a Sydney-based comedy club who planned to stage a show based on her.

Raygun the Musical was set to star Stephanie Broadbridge - but it was pulled at the last minute after promoter Anthony Skinner was sent a legal letter claiming the musical infringed on Gunn's intellectual property. 

Australian correspondent Murray Olds says Skinner offered Gunn's legal team $550 in compensation - a bid the team swiftly rejected.

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