Pontypool RFC has lost its High Court bid for reinstatement to the Premiership league.
The club has battled against the Welsh Rugby Union's decision to drop it from the league, following a 12-team reorganisation.
The club now face a legal costs bill estimated at around £400,000. Today, a senior judge said the club should have accepted an offer from the WRU to allow it to drop the case weeks ago.
Earlier today the defending barrister indicated that there was a chance Pontypool could play in the Premiership. However, the WRU barrister has disputed this claim, saying that the league will include the Carmarthen Quins.
The backers of Pontypool rugby club have been given a week to find up to £250,000 to cover a potential legal bill or face being relegated.
The club are fighting a High Court battle to prevent the Welsh Rugby Union relegating them under a reorganisation of Premiership rugby.
It would see see the number of teams reduced from 14 to 12, with Pontypool set to be one of the teams to lose out.
The court was told today that the club cannot meet the WRU's costs if it loses. They have until next Thursday to prove they can pay or the case will not continue.