Edinburgh Rugby have been ordered to leave Murrayfield and repay £1.4million (€2m) in advance funding to the Scottish Rugby Union (SRU) by the end of business tomorrow.
The SRU announced today that Edinburgh, one of two remaining professional clubs in Scotland, had terminated their operating agreement with the sport's national body.
Future funding to Edinburgh has been withdrawn, and the club owned by Bob Carruthers have been told they can neither play or train at Murrayfield and must vacate the stadium.
A statement from the SRU said: "Scottish Rugby has confirmed today that the operating agreement between Edinburgh Rugby and Scottish Rugby has been terminated by Edinburgh Rugby.
"Consequently Edinburgh Rugby no longer have any rights to play or train at Murrayfield and Scottish Rugby has asked when they plan to vacate the stadium."
Edinburgh have threatened to take court action in their row with the SRU over Magners League and Heineken Cup fees. Edinburgh claim they are owed a substantial six-figure sum, which the SRU dispute.
The row led Edinburgh to withdraw 12 players from Scotland training for a week last month, heightening the tensions between the two parties.
The SRU stated: "Scottish Rugby now requires immediate repayment of a proportion of the funding the governing body has advanced Edinburgh Rugby since July 2006.
"The deadline for this repayment, which amounts to almost £1.4million, is close of business on Friday August 3rd 2007."
The statement adds: "Despite further efforts being made by Scottish Rugby this week to achieve an acceptable outcome to the dispute in the best interests of the sport, Scottish Rugby now confirms that, regrettably, these actions have had to be taken."
Carruthers had earlier confirmed he would hand back control of the club to the Scottish Rugby Union for the right price.
Before handing back control to the SRU, Carruthers is seeking full reimbursement of the money he and brother Alex have invested in the capital club since taking charge on a franchise basis last year.
