Cash-strapped Rugby Australia has been thrown into further turmoil with the shock resignation of businessman Peter Wiggs who quit after his "captain's pick" for new chief executive was rebuffed by other board members.

As rugby deals with the fallout from coronavirus and decline in crowd numbers over the past decade, Mr Wiggs, the founder of private equity company Archer Capital, had been touted as the person with the financial acumen to reshape Rugby Australia for a more sustainable future.