The Canberra Times can reveal the Australian Baseball League club is in the midst of an ownership transition with a new group hoping to rebuild the Cavalry.

Club bosses have confirmed the Cavalry have entered administration and plans are in place for the team to compete in the 2021-22 ABL season.

It is understood the decision to enter administration is one step in a larger process to build a more sustainable model for the club, which includes a revamped ownership structure.

The Cavalry felt the wrath of the COVID-19 pandemic like most businesses, with the financial hit compounded by the intense bushfires which had caused major disruptions during their 2019-20 campaign.

The hazardous air quality caused by smoke which blanketed Canberra during the bushfires forced the Cavalry to cancel games at Narrabundah Ballpark and robbed the club of at least 35 per cent of its revenue for the financial year.

Then came a global pandemic which saw the club left without crucial sponsorship dollars.

The administration process is part of a bid to cut the club's losses over the past two years as well as fixing up an ownership structure which came under fire leading into the 2020-21 season.

Club officials are working closely with ABL head office, with a league board meeting this week likely to provide more information on the new owners.

The new ownership structure is said to include existing directors and shareholders, while an existing major sponsor has expressed interest in coming on board.

It is believed an interstate sporting organisation has also shown interest in bringing the Cavalry under their growing stable.

It comes after Donn McMichael left his post as the club's chief executive, though at the time kept his ownership stake, days out from the 2020-21 season opener amid concern of a player revolt.

Then-ABL boss Cam Vale flew in to speak to Cavalry management and players to ensure they would field a team for a series opener as the squad voiced concerns about roster management.

Players have privately alleged contracts had been tampered with in recent years before being lodged with the ABL which led to a breakdown in trust between the squad and some staff.

Now a new ownership consortium will look to strengthen relationships with the playing group leading into a new season which begins later this year.

The Cavalry organisation also runs Australian Ice Hockey League outfit the Canberra Brave, who launch their season on May 8 after the 2020 competition was axed amid the pandemic.