The cost of closing the Border Reivers could amount to PS1.76million, the Scottish Rugby Union's annual report has revealed.
The club were closed down at the end of last season, to much dismay within the rugby heartland of Scotland and further afield, when the SRU decided it had little prospect of becoming self-sufficient.
At the time of the closure, the SRU were five years into a 20-year rental agreement for the club's home, Netherdale.
The costs of terminating that agreement and making staff members redundant contributes to the seven-figure cost of shutting down the professional team.
In a letter accompanying the report from SRU chairman Allan Munro and chief executive Gordon McKie, the pair explained: ``Whilst the number is high it is, of course, a one-off event and less than the cost of running the Border Reivers
for a single year.
``It is also possible that a significant part of the cost will never be called upon, as we work with Gala RFC to minimise the proportion of the provision relating to 15 years of maintenance costs for the Netherdale high performance pitch.''
The SRU reported that their financial targets for the year to April 30, 2007 had been achieved, and that year end bank borrowings were PS17.4million, down PS3.6million from the previous year.
Munro and McKie reported that ``our finances are now well under control - allowing us to move forward with confidence''.
However the lack of success at international and professional club level remains a concern for the union, and they confirmed it was a fundamental reason behind the closure of Border Reivers.
The letter concluded that ``our competitors are better resourced, have greater strength in depth and can better withstand the demands being placed upon them by both professional and international rugby''.
Munro and McKie wrote: ``In order to compete, Scottish teams must be brought nearer to financial parity with their opponents and, in the absence of significant new funding, this effectively requires us to concentrate available funds.
``The inescapable conclusion, agreed unanimously by both your board and council, was that one of the existing teams would have to close. This was an extremely difficult decision to take - but one required for the future of our game.''
Describing the closure as ``a watershed'' in the relationship with Edinburgh Rugby, which the national body handed over to brothers Alex and Bob Carruthers on a franchise basis in July 2006, the SRU recognised the capital club's objection to Scotland losing its third professional side.
Munro and McKie added: ``As our president, George Jack, explained in his recent letter, considerable efforts have been made to assist Edinburgh to manage the challenges of professional rugby and it is regrettable that these efforts have not been successful.
``We remain committed to the principle of there being at least two strong Scottish professional teams and this will be an area for focus next season.''