The Australian Rugby Union (ARU) yesterday scrapped its new national domestic competition, touted as a bridge to the Super 14, after just one year because it racked up millions of dollars in losses.
The ARU said it was abandoning the Australian Rugby Championship because it had lost A$4.7 million (US$3.8 million) in its inaugural year.
Continuing the competition "would be fiscally irresponsible," the union added.
The eight-team competition was touted as a way to revitalize the code in Australia when it was launched last year, with administrators envisaging it as a bridge between grassroots club rugby and the Super 14 provincial tournament.
But instead of providing a conveyor belt of talent for Super 14 teams and the Wallabies, with each team a composite of several existing club sides, the championship proved to be a drain on the ARU's finances.
"Continuing with the ARC was considered by the board to be an untenable financial risk for the ARU and rugby as a whole," ARU deputy chief executive Matt Carroll said.
Carroll said the championship ran A$2 million over budget in its first year and financial predictions showed it was set to lose A$3.3 million in its second season.
It said a review of the game's structure in Australia would be carried out in the new year.
"While the format of ARC and the stakeholder investment strategy has proven to be flawed, the concept of an affordable high quality rugby competition remains a key strategy," Carroll said.
The Rugby Union Players Association said it was disappointed with the decision because the players were overwhelmingly in favor of the competition and indications were that rugby supporters viewed it positively.
"We can't help but feel this decision is premature," association chief executive Tony Dempsey said.
■LATHAM JOINS WORCESTER
AP, BRISBANE, AUSTRALIA
Wallabies fullback Chris Latham will join English rugby side Worcester from next year on a three-year contract.
Latham, 32 and a veteran of 78 tests, confirmed the signing yesterday, but rejected media speculation he had accepted as much as A$2 million (US$1.78 million) to leave Australia.
"I can confirm that I have signed, but the financial side of things that have been reported that's way out," he told reporters.
Latham may be available for Australia's first nine tests next year before joining Worcester.
The Australian Rugby Union is expected to release him from existing contract obligations before the Wallabies' end-of-year tour next year.
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