Melbourne gets franchise

The southern Australian city was chosen by independent arbitrators after the board of SANZAR (South Africa New Zealand Australia Rugby) failed to reach an agreement last month between it and a competing bid from South Africa's Southern Kings.

Former World Cup winning captain David Kirk and retired New Zealand High Court judge Barry Paterson conducted the review of each bid before deciding on Melbourne.

The existing Super 14 competition will be reorganised along a conference system with five teams now in each of the three countries.

SANZAR said a 15th Super rugby team in South Africa would have reduced broadcasting revenue by between US$15-20 million over the term of a contract.

"The Melbourne application provided considerably greater commercial benefit...than the Southern Kings application," SANZAR said in a statement.

"This is a vote for commonsense," Australian Rugby Union managing director John O'Neill said in a statement.

"Melbourne has an extraordinary capacity for sport and we can now deliver them a Super rugby side they can embrace and support in an established competition of genuine international standing."

The team will play at the purpose-built rectangular stadium opposite the Melbourne Park tennis centre and within sight of the Melbourne Cricket Ground.