The WA Premier is considering legal action against Rugby Union's governing body to recoup more than $100 million over the axing of the Western Force.
Premier Mark McGowan has written to Australian Rugby Union chief executive Bill Pulver saying the state is "exploring all legal options" aimed at seeking compensation from the ARU.
"I think the ARU is completely ignoring everything that has been done for rugby in this state, so we're going to look at what options we have to take them to court," he told ABC Perth.
Mr McGowan said the WA Government had provided financial support including the $95 million cost of upgrading nib Stadium and $20 million for construction of training and administration facilities at Mt Claremont.
It also provides an annual $1.5 million sponsorship of the Western Force through the Road Safety Commission.
The Western Force has already initiated legal action in an attempt to appeal the ARU's decision, with a court appearance scheduled on Wednesday.
Breakaway league a winner
As community anger grows over the decision, WA's first born-and-bred Wallaby John Welborn has thrown his support behind mining billionaire Andrew Forrest's campaign to save the Western Force.
Andrew "Twiggy" Forrest, who addressed more than 8,000 Western Force supporters at a rally in Perth on Sunday, warned he would form a breakaway international league if the Australian Rugby Union did not reverse its decision to axe the WA club from the Super Rugby.
Welborn said the mining billionaire had made multiple attempts to meet with ARU chairman Cameron Kline, but so far they had all been declined.
He said it was in the union's best interest to meet with Mr Forrest — who had made it known he was willing to throw financial investment into the sport.
"He's made it very clear that his support for the Western Force extends to Rugby nationally," Welborn said.
"So far he's been snubbed.
"Cameron Kline has refused to meet with him and even now he's being cute with suggesting tele-conferences."
Welborn said if the action was not successful he would support Mr Forrest in creating a breakaway international competition — and said the mining billionaire's idea had real merit and had not been announced "off the cuff".
"The current model in Australian rugby is driven by the professionalisation of the sport in 1995," Welborn said.
"The catalyst for that model, similar to what had occurred in cricket many years before, had been the advent of what was called the World Rugby Corporation, which was a breakaway potential competition.
"It triggered the international rugby union bodies, led by the Australian Rugby Union, to create a professional competition."
Welborn said while he would welcome a decision from the ARU to reinstate the Force to the Super Rugby competition, adding that the way the union had handled the process had been arrogant and disastrous.
"This was the chairman of Australian Rugby in an open-necked shirt announcing the extermination of the second-best performing side in the competition and the fastest growing and most vibrant," he said.
"It was a decision that will go down in infamy, and in sports administration anywhere, as one of the great disasters.
"Of course I'm hopeful it can be turned around, there just isn't a reason to kill off the sport."
The ARU said in a statement while the current appeals process in the NSW Supreme Court was pending it would not be making any comments on the Western Force.
