Sacking Reds coach Richard Graham is the start of further significant ructions at the franchise this month.

Chief executive Jim Carmichael and most of the board will be culled and the Australian Rugby Union will need to organise a financial package to bail out the struggling operation, according to commentator Greg Martin.

He predicted new chairman Damien Frawley would survive but there would be widespread upheaval as the Reds tried to regroup from an awful start to the expanded Super rugby series.

"It's a whole fresh start," he forecast.

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"I believe from what I have been told, there is a $2m loss in the last few years so she's in a terrible place and the ARU who haven't got much money, will have to bail the Reds out."

Frawley was assigned to complete a report into the Reds' failings last year and after five weeks he recommended Graham be replaced.

However then chairman and former Wallaby Rod McCall who stepped down last month, refused to take that advice and Graham was kept on as coach despite a winning mark about 28 per cent.

After an opening defeat to the Waratahs then a limp 22-6 failure against the Force this year, Graham has been chopped. Players had lost confidence in his ideas and administrators knew they had to find some remedy.

Martin said the Reds had not moved on from their success in 2011, they were still living on the fumes of that triumph and had been unable to replace top players like Will Genia, Quade Cooper and James Horwill.

He was not optimistic there was imminent improvement as Graham's assistants Matt O'Connor and Nick Stiles had taken over. The Reds might be spending some time towards the bottom of the competition points table.

Fox commentator Martin said fans could smell bullshit from miles away, they did not want to be associated with repeat failure and would not go to games until they sensed some improvement..