Cape Town - Western Province Rugby is in financial meltdown - with the potential for it to deepen considerably over a potentially crippling lawsuit.

WP Rugby (Pty) Ltd had already projected at a board meeting in July to make a loss of R11.2 million for the year, but that may pale into relative insignificance if legal proceedings instituted against them by Aerios, a company whose stated commercial focus is to sell sponsorship rights predominantly in sport, are successful.

Sport24 has reliably learnt that Aerios (Pty) Ltd is claiming just over R72m from WP Rugby. The dispute centres on a sponsorship contract entered into between WP Rugby and DHL (headline sponsors of Newlands, plus the Stormers and WP) without the consent of Aerios - holders of the commercial rights of the union.