The Australian Rugby Union's attempt to save $6 million a year could end up bankrupting them after the Western Australian government threatened to sue the rugby governing body for more than $100 million.
The ARU's decision to axe the Western Force has been widely condemned, and the issue looks set to play out in the courts on multiple fronts.
RugbyWA, backed by billionaire mining magnate Andrew Forrest, will find out on Wednesday whether they can appeal the Force's axing in the NSW Supreme Court.
And WA Premier Mark McGowan has written to ARU chief executive Bill Pulver to inform him the State is investigating the prospect of suing the ARU over the Force's axing unless the team is reinstated.
The Premier said $17 million was spent on new headquarters for the Force and $95 million was spent on redeveloping the team's home ground nib Stadium, which is also used by A-League outfit Perth Glory.
Mr McGowan said the hefty investments were made with an expectation and understanding that the Force would continue to participate in the Super Rugby competition.
He said if the ARU went bankrupt over the matter, it would be their own fault.
"My ultimatum to the ARU is this - reinstate the Force or we'll use every tool at our disposal to get our money back," Mr McGowan told reporters on Monday.
"And if that means the ARU goes bankrupt, so be it."
The ARU claim they axed the Force primarily for financial reasons.
Forrest had already pledged to bankroll any potential future losses by the Force before the ARU made their decision.
It means the Force's exit will only save the ARU about $6 million a year - the approximate proportion of TV rights money the franchise would have received.
Thousands of fans rallied at the Force's headquarters on Sunday to protest the ARU's decision to cull the franchise.
Forrest said the decision lacked financial merit and hinted the Force could play elsewhere if unsuccessful in their Supreme Court appeal.
The other two teams culled from Super Rugby for next season, South Africa's Cheetahs and the Kings, have survived by joining Europe's Pro 14 competition.
The Force's looming demise could also have severe ramifications for Perth Glory.
If the Force exit the scene, Glory will become the sole major tenant at nib Stadium - potentially leading to a significant rent increase to play games there.
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