The much-heralded Australian Rugby Championship (ARC) has been scrapped after just one year because of heavy financial losses, the Australian Rugby Union (ARU) announced yesterday.

The eight-team tournament, which featured sides from Australia's mainland states, cost the ARU A$4.7 million (US$4 million) in its first year of operation with no signs of a quick turnaround.

The ARU said it expected to lose another $3.3 million in 2008 so had no alternative other than to ditch the tournament.

The ARU established the ARC last season as part of a strategy to try to develop more top-class players so that Australia could compete with countries which have fully-fledged professional club competitions.

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