"We have all these little costs that keep nibbling away and nibbling away and we probably have survival funds for another two or three years only."
The club would be forced to either increase fees paid by the already struggling clubs or raise a mortgage, he said.
Mr Way has asked the council to provide the three fields used primarily by the junior boys and grade teams which he said the council did for other sports, including tennis and cricket.
The fields are also used by the inner-city clubs when the council-owned parks are closed.
The council, in a written response to Mr Way, had encouraged the union to submit the request to the 2012-22 Long Term Plan.
The park, with an estimated market value of between $2 and $3 million, has been on the market since last November.
While it is zoned for use for community facilities, the union had been given an indication it could be changed for residential or commercial use.
Mr Way said it was difficult to tell any prospective buyers when the land could be occupied until the council had found them new fields.
Hamilton Mayor Julie Hardaker said the council was in the early stages of working with the union and putting the various options to council - one of which including finding three other fields. The options would then be reported to council for its input.
Melville Junior Rugby delegate Ra Peters said the club used the facility four or five times a season when the club grounds were out of action.
They would have to find somewhere else as a back-up if it was sold, which could including going out to Ngaruawahia.
"If we have got big senior games on down at the club and there's seven games on, then they ask us to transfer. It just probably means we wouldn't get any home games."
All the other rugby fields, with the exception of Melville Rugby Club's fields on Collins Rd, are owned by the city council.
However, Ms Peters said the sale had been on the cards for about 10 years. "I will believe it when I see it," she said.