In a blog on the Griffin Legal website, McGrath said Kennedy needed to take responsibility for a host of problems that have led to the Brumbies considering a private equity partnership to stabilise their financial future.

McGrath, who was the ARU chairman from 2007 to 2012 and the Brumbies' chairman from 1999 to 2005, detailed 19 problems he felt had plagued the club and contributed to its off-field struggles.

The Brumbies board stood down its chief executive, Michael Jones, in March. But Jones took the decision to the ACT Supreme Court and was reinstated until agreeing to a payout two months later.

Some stakeholder relationships remain strained, although the Brumbies are starting to rebuild their relationship with former major sponsor, University of Canberra.

The Brumbies have not started advertising for a chief executive three months after Jones left the club, with ARU integrity manager Phil Thomson standing in as interim boss.

Thomson and Kennedy declined to comment on Wednesday night.

The Brumbies are set to announce another loss at the end of the year despite projections of a $2 million turnaround following a record deficit of $1.68 million last year.

McGrath said the Brumbies needed leadership and described as "shambolic" the negotiations of a payout to Jones.

"At what point does it become obvious that an organisation is in crisis and that urgent action is required," McGrath wrote.

"The litany of governance issues which have beset the Brumbies organisation in the last 12 months reads like a fiction story.

"That these are real events in the history of a great organisation is a demonstration of an abject failure of governance by the board, led by the chair."

McGrath said members had become disaffected at all levels and there had been poor communication from the top of the organisation.

The Brumbies made the first week of the Super Rugby finals despite a year filled with off-field drama.

The club has held talks with the ARU about the potential of a private owner stepping in to help out financially while the ARU centralising operations remains an option.

The face a nervous wait to see if major sponsor Aquis will remain with the club beyond the end of the year. The future of an $8 million, six-year deal hinges on the ACT election and the outcome of the Canberra Casino redevelopment.

Jones is still locked in legal disputes with some parties and McGrath said some long-standing partners of the Brumbies had been left to "carry the can" of the saga.

Several Super Rugby clubs are struggling financially, with the ARU taking over the running of the Western Force.

"I can summarise the governance and organisational breakdown in one statement – the Brumbies do not treat those associated with the organisation in the manner they have been treated," McGrath wrote.

"All of this should also be seen in the broader context of the crisis of rugby in this country. The current funding model is not sustainable.

"This is generally "code" for less funding from and more control by the governing body (the ARU). The "code" however generally excludes NSW and Queensland from the equation – we will see.

"The ARU are in the process of either taking control or encouraging private investment. The absence of a sponsor for the June Test series against the English and the cessation of the sponsorship deal by Asteron Life for the Super Competition at the end of the current season, will place further pressures on the ability of the ARU to fund the Super Unions.

"Yet the Brumbies remain in a stalemate with an organisation (UC) and other stakeholders which if not resolved and relationships not re-established will result in the loss of control to the ARU as the only available option.

"It need not be the case.

"I understand it has been made very clear to the chair some months ago that stakeholders have lost confidence in his ability to lead the organisation.

"While he stays, crisis will continue and will not be resolved. The actions of the chair of the Essendon Football Club are offered as an example and who for the good of the club resigned. I implore the current chair of the Brumbies to follow this example and go."