The Wollongong Hawks the only club to have competed in all 31 NBL seasons cannot come close to the $1.5million capital required by Basketball Australia for the new competition.

While the Hawks will play out the remainder of the 2008-09 season, chairman Richard Clifford said he was very disappointed that a great era in Wollongong's sporting history was coming to an end.

He criticised the new financial criteria, which requires a $1million up front guarantee in addition to $500,000 in capital and other annual costs.

''It is very disappointing that we have in effect been forced out of the new competition by the need to provide financial backing that we believe is unrealistic and not sustainable, even before taking into account the current economic climate,'' Clifford said.

''We have everything going for us, except the extra financial backing required for the new competition.''

Clifford said Basketball Australia's expectations were ''unsustainable''.

''In recent years the NBL has had five teams fold, and yet they want to raise the bar at a time when economic conditions are very tough, affecting sponsorship and attendances at games.

''It doesn't make a lot of sense, from our perspective.''

But Basketball Canberra's CEO Mark Cartwright defended the new criteria, despite it meaning an ACT bid was unlikely for this year's competition.He said the million dollar guarantee would ensure a greater security for the competition in the long term, and ensured clubs involved were financially viable.

''You can't do it any other way,'' Cartwright said. ''It is sad to see a proud regional club like Wollongong depart, but the new league has to make hard decisions and part of that is clubs who are going to be part of it need a strong financial base.''

Cartwright said it was doubtful that there would be a Canberra bid before the February 27 deadline, but refused to close the book on the prospect.