Rugby Australia slams fresh reports of axing Brumbies

The Brumbies' excitement about their round one domination of the Melbourne Rebels was dampened on Saturday when two reports claimed Rugby Australia "powerbrokers" were considering cutting the Canberra team because of financial challenges.

Rugby Australia made a handful of staff redundant last week and is facing pressure to keep a tight rein on its spending in the wake of a World Cup disaster last year and the Melbourne Rebels going $20 million into debt and in administration.

The Brumbies are facing their own challenges off the field. The club is expected to report a significant financial loss at a delayed annual general meeting, but it pales in comparisons to the Rebels situation.

The Brumbies are also seeking private equity investment to help guarantee their long-term future. Herbert stopped short of making future guarantees, but weighed into the report about the Brumbies' viability out of frustration at the inaccuracies.

"The Brumbies are our most successful team and will play a vital part in the advancement of our aligned high performance rugby system to ensure improved performances of both our super rugby clubs and our national teams," Herbert told The Canberra Times.

"They have kept us well informed of their potential challenges and their plans to overcome these challenges, and we will continue to engage and support them."

The Brumbies enjoyed a convincing and entertaining 30-3 win over the Rebels at Friday night's season-opener, with winger Corey Toole and no.8 Charlie Cale each scoring doubles.

"We all know the style that Bernie [Stephen Larkham] was when he [was] at the pinnacle of his game as a player, and he brought that mindset since he first got to the Brumbies as coach," fullback Tom Wright said.

"Now we're starting to really relish the confidence that he's given a lot of us - especially in the backs - to play with that freedom. Fans saw some pretty cool tries scored and that starts from him."

As the ACT side celebrated, the result was salt in the wound for the Rebels, which are in danger of being booted out of Super Rugby, and their likely exit sparks speculation about the competition's future make-up.

The Brumbies are one of three Australian foundation teams and are the country's most successful club, but were locked in a war with Rugby Australia last year when the governing body attempted a takeover of the club's total operations.

The Canberran club rebuffed the attempts and were forced to prove their financial viability. They did agree to high performance alignment, but refused to hand over their intellectual property rights to ensure they had control of their future.

Still, the Brumbies are facing money struggles, pointing to a reduction in Rugby Australia's broadcast funding allocation that has put them under pressure.

Meanwhile, Rugby Australia also converted a $1.7 million grant to an interest-bearing loan last year. The Brumbies agreed to a payment plan and it has since been paid down to about $1 million.

Herbert decided to speak out to give Brumbies players, staff and fans reassurance about the club's immediate future, while the long-term vision for Super Rugby is yet to be determined.