John Kirwan says New Zealand rugby should learn from the NRL, whose crowds and competition have strengthened because supporters care about it.
The All Blacks great believes New Zealand's domestic game has lost identity and tribal loyalty under its current franchise structure.
"The franchise system has worked for us for the first 20-odd years, but rugby is about tribalism and traditionalism."
Kirwan proposes an eight-team trans-Tasman competition, potentially including New South Wales clubs Randwick and Manly.
He also wants traditional contests, including the Battle of the Bridge and Battle of the Bay, restored to the calendar.
"The NRL, like everyone says, 'oh, JK I'm sick of you talking about the NRL,' but they are moving fast, their crowds are up, they've got a competition that people care about."
A broader tournament involving Japan, the United States and South Africa could provide another model, ending with a play-off series.
"We've already isolated ourselves by getting rid of South Africa. Who have we got? We've got the Aussies and that's it. So why don't we just go back?"
Kirwan also claims South Africans are unhappy with their domestic competition. He says New Zealand Rugby must act without waiting for World Rugby.
"But we need to do something drastic and we need to make some decisions and we need to not worry about World Rugby because they move too slow."