The NBL lurched into crisis on Tuesday night when Townsville followed Wollongong into voluntary administration.

The Hawks will hold a creditors meeting at 3.30pm on Wednesday to inform members of their financial plight, as they attempt to attract new investment to keep the club alive.

With less than a month remaining to turn their dire situation around, the Hawks and Crocodiles potential exits could leave the NBL with just six clubs.

Gaze, speaking as host of a Melbourne morning radio show on SEN, said the game had reached a critical situation and needed a dramatic overhaul.

“I have never held this view at all throughout this challenging phase of the NBL, but I have reached a position where I think they are better off regrouping and shutting it down,” Gaze said.

“Even if these two teams [Wollongong and Townsville] somehow find a way to get through administration, nothing is going to change significantly to turn around their plight because ... it is a slow burn.

“So shut it down, regroup and get the right model because the model is broken.”

Gaze is a legendary influential figure in the NBL, playing for the Melbourne Tigers – who were rebranded Melbourne United this season – as well as in the NBA and also at five Olympic Games for Australia.

Townsville was under a community-ownership model, while the Hawks voted for James Spenceley to take over as owner nine months ago.

While the NBL has released statements issuing a rallying call for community support, Gaze said the time had come for sustainable change.

“Don’t put Band-Aids over it because the model is broken and there needs to be new ideas and a new thought process on how the competition should be run,” he said.

“This is death by a thousand cuts, because it is dwindling away and away to a point where now you’ve got two teams in jeopardy, six teams in the competition.

“It is not good.”

Prior to the Townsville announcement, NBL chairman Graeme Wade last week told the Mercury the league was prepared for any scenario, whether the Hawks remained in the competition, or if a new franchise in Brisbane or Canberra was established.

On Tuesday night, the NBL released a statement, declaring they were optimistic Townsville and the Hawks could survive.

“Our priority is the long-term viability of clubs. We know that clubs operating in regional areas can be successful, but they have to be able to operate independently,’’ Wade said in the statement.

“Similar to the move for the Wollongong Hawks, it is an opportunity for the local community and businesses to rally together and demonstrate their passion for their team.

“We know this is achievable. In recent years the league has worked closely with the Cairns Taipans and they have capitalised through strong management and community engagement on financial support from the NBL.

“The Taipans have just finished one of their most successful seasons ever, with their finals tickets selling-out in a matter of minutes and they are not the only club to have achieved this feat."