The Australian Rugby Union has confirmed the Western Force or the Melbourne Rebels will be cut from Super Rugby from next year, with a decision to be made in the next three days.
Western Force have the axe hanging over their heads. Photo: Photosport
The two teams will be consulted as the ARU further examines their financial position.
The ARU chairman Cameron Clyne says they looked at three teams, the Brumbies, Force and Rebels before deciding the Brumbies were safe.
"At the request of the Board, ARU management completed an exhaustive analysis on three of our teams - the Brumbies, Western Force and Melbourne Rebels.
"The purpose of the analysis was to assess each of those teams on their financial sustainability, high performance and commercial factors, examining a range of metrics, with a view to identifying which of those three teams to remove from the competition.
"After reviewing management's findings, the Board made the decision to eliminate the Brumbies from the process and identified that consultation is required with both the Western Force and Melbourne Rebels to further understand their financial position," Clyne said.
He says the financial burden placed on the ARU by having five Super sides was hurting rugby in Australia.
"Super Rugby has placed an increasingly heavy burden on the ARU business in recent years and the acceleration of revenue declines in our Super Rugby businesses has placed the game under extreme financial pressure.
"The additional funding provided by the ARU to offset Super Rugby losses has severely limited our capacity to invest further in our grassroots and high performance areas such as player and coach development," he said.
Clyne says in addition to revenue declines in Super Rugby, the changing global Rugby marketplace has posed challenges for the southern hemisphere competition.
"Since the ARU expanded to five Super Rugby teams in 2010, the economy we operate in globally has changed dramatically.
"With the incentives on offer in Europe, the player exodus has been significant in Australia and indeed across our SANZAAR partners. Based on recent performance trends, it is evident that we do not currently have the playing depth in Australia to service five teams in Super Rugby.
"Performance declines by our teams since the expansion of Super Rugby has had a direct correlation with declines in revenue across their businesses."
Clyne confirmed the ARU's support for the restructured format for the 2018 season.
"We agree that the 18-team competition was unsustainable and that a return to a 15-team competition will provide a more engaging and overall improved product for fans."
Clyne also stressed it was an ARU decision to drop a team.
"It is important for me to clarify firstly that the decision to remove a Super Rugby team from Australia was a decision made by the ARU, not by SANZAAR."
-RNZ
