The Griffith Blacks have put 2020 aside and will now focus on getting back on field next year.
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The club's decision comes as Southern Inland Rugby Union prepare to hammer out a plan for this season in Wagga on Monday night.
SIRU organisers have said first grade is the priority but they hope to have firsts, seconds and thirds for men and women, with kick off from July 18.
Griffith isn't the only team to pull out, Albury won't field a first grade side either.
"We thought with the minimal training and minimal contact training we wouldn't be ready," Griffith Blacks president Dan McGreal said.
"It's beneficial for us to pull out this year and focus on next year."
Mr McGreal said there as massive amount of work for volunteers but it was the prospect of limiting crowds which was key in the club's decision.
Another concern is the amount of travelling players may have to do to get a game, and Mr McGreal said travelling to Wagga each week with the club's teams would be difficult.
"We'd be trying to get 50 to 60 players on the bus and we couldn't guarantee that number," he said.
The potential risk of players returning to Griffith - and their employers, with COVID-19 was another cause for concern and Mr McGreal said the health of players, the club and the community was considered.
Mr McGreal said the preparation for this year's season wouldn't go to waste.
"We've got all our merchandise and will carry that over to next yer, none of it will go to waste that's for sure."
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