WA could bankrupt Australia Rugby Union

The Western Australian government is threatening to sue the Australian Rugby Union for a figure which would bankrupt the ARU, a report in Australia says.

The fallout from the Western Force's axing from Super Rugby continues with the State Government now flexing their muscles in terms of possible legal action at a potential $1m price tag.

The West Australian are reporting the State Government has told the ARU it is investigating money they have invested under the thought the Force's place in Super Rugby was guaranteed. Particularly the redevelopment costs of the stadium in Perth which the Force uses.

According to the West Australian report, the Government has thrown $95 million at the venue and also put $17 million up for RugbyWA's headquarters.

 The State Government also sponsors the Force to the tune of $1.5 million a year through the Road Safety Commission and offered to bring forward $4 million in payments for the Bledisloe Cup to be staged at the new Perth Stadium.

The report said Premier Mark McGowan sent a letter to ARU chief executive Bill Pulver on Friday with a warning shot.

"These investments were not made lightly and were made with the clear expectation and understanding that the Western Force would continue to participate in the Super Rugby competition," the letter read.

"Therefore, the WA State Government believes the decision by the Australian Rugby Union to remove Western Force from the competition is in breach of its commitments to the people of Western Australia.

 "With this in mind, I can confirm the the WA State Government is now exploring all legal options aimed at seeking compensation from the ARU."

 

 

Photo by: GETTY IMAGES Caption: A Western Force supporter waves a flag during Bledisloe Cup test between the Australia and the All Blacks in Sydney.