Border Bulldogs has collapsed and will probably not compete for two years.
Last month the union, which has fallen into multimillion-rand debt, was suspended by the South African Rugby Union (Saru).
Border Rugby Union president Pumlani Mkolo did not respond to a number of calls.
Following the appointment of former Border Rugby CEO Basil Haddad as the Saru administrator, retrenchments of staff have begun.
Union boss Piet Heymans, who is CEO of Sport Employees Unite, said: “Basically there has been a consultation process that has now been followed with regard to restructuring and retrenchments.”
The union represents non-player employees.
“There is going to be some serious restructuring.
“There is no doubt about it, that entity [Border Rugby Union] is totally insolvent and there is no ways it can operate as a going concern.
“We are busy now with the process in terms of consultation and the negotiations about retrenchment packages and alternative employment.
“There will be a skeleton staff remaining, so some of the staff can apply for those positions, but it has not been concluded yet,” Heymans said.
“Security and the ground staff have been taken over by [Buffalo City Metro], which will now take the stadium back because the Border Bulldogs will not be playing.”
Heymans said the union would still be involved with club rugby, women's rugby and some coaching development.
“Other than that there is no prospect that the Border Bulldogs will be able to play next year, or the year after for that matter,” said Heymans.
“Just looking at the whole financial liability and the debt that needs to be resolved I think it is just impossible.
“The big challenge is to bring down the debt to an acceptable level, and once that is achieved I think Saru and the administrator will then decide the way forward in terms of what is the best way to redesign the whole operation.
“So I think the immediate thing is it is just impossible to operate with such a massive debt in the union and once that is brought down they will certainly look at re-establishing the team and coaches and players.”
The entire Bulldogs squad saw their contracts run out in October, so with no new contracts possible all the players became free agents.
Bulldogs stalwart and former captain Blake Kyd said the non-renewal of contracts did not come as a shock to the players.
“I wouldn’t say it took us by surprise as they did tell us in July that because of the financial situation it was looking like they would not be able to offer us contracts at the end of October,” said Kyd.
“So we did hang onto the hope that things would come right but as it came closer towards the end of October it became more real that we weren’t going to be getting anything. So there were a few guys who made a plan beforehand, but there are a lot of guys who are sitting without anything at the moment.”
Over the past few years a number of players have come through the Border system and gone on to represent the country at various levels.
Makazole Mapimpi and Lukhanyo Am became Springboks.
Kyd said: “My personal opinion is it is a big blow for rugby in the region, because East London is such a big area with so much rugby talent.”
Former Border rugby commercial and marketing manager Akhona Mgijima also lamented the collapse.
“It is true, at the moment the staff are being retrenched effective immediately, and there is nothing much we can do, Border does not have any money,” said Mgijima.
“We have been told and if it does not have money we cannot be paid, so it was inevitable.”
Haddad was contacted for comment but said he was not able to comment as any queries had to go through SA Rugby's GM of communications Andy Colquhoun, and despite a call and SMS to Colquhoun, he did not comment by the time of going to print...