Excellent News - NZRU set to bail out Otago Union

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NZRU set to bail out Otago union
LIAM NAPIER AND NATHAN BURDON Last updated 11:13 09/03/2012


The New Zealand Rugby Union (NZRU) is expected to announce a rescue package for the Otago union today after holding an emergency board meeting last night.

It is understood the NZRU has decided to step in and help the cash-strapped Otago Rugby Football Union (ORFU) as a seven-day extension on a decision about its future expires today.

But it is believed the board's decision was not unanimous, with some members worried the bail-out would open the door for other struggling unions to come cap-in-hand to the national body.

There have also been desperate attempts within the Otago area to come up with a way to fight their way out of the situation and it is understood significant progress has been made.

The decision will not be made public until 4pm.

The prospect of the ORFU digging its way out of the $2.35 million financial crisis it had found itself in appeared improbable. But, in what would be a remarkable turnaround, the 131-year-old province may now field a team and retain its place in this year's 14-team national competition.

It is understood, that after intensive lobbying, the Dunedin City Council is considering writing off $400,000 in debt owed in rentals for use of the Carisbrook rugby ground.

The council has a strong vested interest in seeing the union stay afloat with the $203m Forsyth Barr Stadium set to lose a key tenant if no agreement is reached.

It is thought last week's electric Super rugby match between the Highlanders and Crusaders - where the underdog Highlanders triumphed - was a turning point.

The council's compromise would be a major springboard to reaching the $600,000 to $1m bailout package, although the corks were far from being popped with 180 creditors owed $180,000 and a loss of at least $750,000 expected this year.

Other business parties are also thought to have pulled together to top up the package and satisfy the minimum requirements set by the NZRU.

Premature release of those details was sensitive as the manner of delivery to the public was critical.

However, the Bank of New Zealand is understood to have been "very reasonable" with the $1.2m owed to them.

Dunedin mayor Dave Cull, council chief executive Paul Orders and the NZRU declined to comment.

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