Rugby Australia has ramped up its bid to take control of the ACT Brumbies, sending in auditors for another round of financial investigation.
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Having already proven their solvency once, it's understood auditors are now trawling through the club's financial history in an effort to find a way to void their licence. RA does not have the power to simply acquire the licence without a suitable reason for doing so.
The effort comes as the national governing body accelerates its push for centralisation of the five Super Rugby franchises. Chairman Hamish McLennan has claimed this is the only way to save the sport and improve Wallabies results after a disastrous World Cup.
The NSW Waratahs have jumped on board and recently agreed to terms for RA to take over all aspects of the organisation.
The Queensland Reds and Brumbies, however, have pushed back at the scope of the takeover. Both teams have thrown their support behind centralising their high-performance rugby programs but have publicly rejected the notion of handing over off-field operations.
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Under the proposed plan, all commercial, marketing and intellectual property will be handed over to the governing body, with the state and territory unions left to solely focus on grassroots and community rugby.
The Brumbies fear this will open the door for the Sydney-based organisation to move the franchise away from Canberra.
Chief Minister Andrew Barr recently revealed RA officials stopped short of making a long-term commitment to keep the team in the ACT in his discussions with the governing body.
The Brumbies are in a tough negotiating position, given their recent financial struggles. The team is more than $1 million in debt and has spent the past year attempting to sell up to 49 per cent of the business to raise much needed funds.
The debt arose after RA abruptly cut its annual distribution to the Super Rugby franchises, leaving a giant hole in the team's finances.
RA offered to wipe the debt if the franchise agreed to centralisation terms and when they didn't, requested to examine the team's financial status and demanded the Brumbies prove their solvency.
The club was able to do so, however it's understood RA has sent auditors back in for another round of financial investigation.
It's understood the Brumbies are frustrated at the way RA has navigated what has become an increasingly tense process and officials are eager to work with the governing body to come to a fair resolution.
A number of conversations have been put on hold with McLennan and RA chief executive Phil Waugh currently in France for international meetings. Waugh is due to return home at the end of this week while McLennan will remain abroad until after Sunday's World Cup final.
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