Group Nine are set to lose a second first grade outfit for 2021 with Junee indicating they can't fulfil their commitment this season.
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A late player exodus has led to their current situation.
After a crisis meeting at Tuesday night's training and a further on Wednesday evening, Junee president David Holt doesn't believe it is tenable to play on.
"Unfortunately we will be unable to field a first grade squad with the players we've got left," Holt said.
"The nucleus of our first grade squad have vacated our club so the amount of players and the calibre of players we've got we won't be able to play.
"If you talk player safety there is no way we can put a first grade team out there."
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The Diesels' pending departure follows that of Cootamundra, one of the oldest clubs in the competition, pulling the pin on 2021 last year.
Holt revealed around six to eight first grade players have expressed their desire to leave the club in the past fortnight.
"They put to us a number of problems and the club was already addressing most of those problems," Holt said.
"The solutions couldn't be a short-term fix.
"Nothing was organised for this season, there was a lot of disorganisation, and it takes time to build up to a competitive level."
However the club is still hoping to be able to field teams in reserve grade, women's leaguetag and the Wiessel Cup this season.
After going through last year's Sullivan Cup competition undefeated they have strong numbers in the under 18s and have been boosted by a number of new faces in leaguetag.
Holt is also confident they will have a competitive reserve grade outfit with their remaining stocks.
He believes it is important for the club to keep a presence in Group Nine this season.
"We've applied to the group to field reserve grade, ladies leageutag and under 18s for this season," Holt said.
"The decision will be up to the other clubs within Group Nine but if we are given that opportunity to retain what players we've got we've got a foundation we can rebuild the club on.
"We're already looking at next year.
"If we are unable to field reserve grade we will have to go into recess and it becomes a very hard task to build any club culture or anything really."
Group Nine clubs will determine whether the Diesels will be allowed to play on in a more limited capacity, with the season scheduled to start on April 10.
However Holt expressed with disappointment at how some clubs have been looking to make the most out of the Diesels' misfortune.
"'I'm a little bit disappointed in some clubs, not all, but some clubs," he said.
"They have increased that unrest over the last couple of weeks by contacting our players, the ones who were remaining, and not just senior players but the ones in the junior ranks.
"That has been very disappointing as we were trying to settle things down as a club."
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