The Western Australian government has threatened to bankrupt the Australian Rugby Union if the Western Force are not reinstated. Premier Mark McGowan says the state government is getting legal advice and the options include suing for restitution of more than $100m, which would bankrupt the ARU, or suing for reinstatement.

“My ultimatum to the ARU is this – reinstate the Force or we’ll use every tool at our disposal to get our money back and if that means the ARU goes bankrupt, so be it,” he said on Monday.

McGowan said the ARU had acted with great disrespect to WA taxpayers and if they went bankrupt, that was their own fault. The premier has written a letter to ARU chief Bill Pulver saying rugby union is considered to be an integral part of WA sport.

He said $17m was spent on new training headquarters for the Force in Mount Claremont and $1.5m for an annual Road Safety Commission sponsorship deal. He said $95m was also spent on nib Stadium, which A-League club Perth Glory use too.

McGowan said the investments were made with an expectation and understanding that the Force would continue to participate in the Super Rugby competition. He told Pulver the state government believed the decision to axe the Force was a breach of the ARU’s commitment to WA.

Thousands of fans rallied in Perth on Sunday, with billionaire backer Andrew “Twiggy” Forrest again slamming the ARU’s decision to cull the Force as lacking financial merit and even hinting the club could play elsewhere if unsuccessful.

Rugby WA is expected to learn on Wednesday whether it will be granted the right to appeal the ARU’s decision in the NSW Supreme Court. 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.