A decision on where the 15th Super rugby franchise will be located will go before an independent arbitrator after SANZAR members predictably reached a stalemate.
With the Australian Rugby Union pushing for the new team to be based in Melbourne and South African officials supporting the Southern Kings bid, a result was never likely following a lengthy meeting in Brisbane.
The SANZAR executive committee did not enter a vote, referring the matter to arbitration.
The arbitration process will be set up quickly, with a final decision binding.