New structure for Highlanders

The Highlanders franchise has agreed to change its governance and operation, which will include assistance and greater involvement from the New Zealand Rugby Union (NZRU).

The changes will be implemented following a review of New Zealand's southern-most Super rugby franchise, given the financial difficulties it experienced in 2008-2009 and a projected financial shortfall for 2009-2010.

The NZRU will underwrite the financial performance of the Highlanders for the next two financial years.

A key outcome of the review is a restructuring of the Highlanders board.

Three independent directors will be appointed by the NZRU, one independent director by the Dunedin City Council and three directors by the provincial unions within the Highlanders region.

It will be regarded as a transition board for the next two years.

A new-look board will be required to assesss existing business strategies at the franchise and adopt a recovery plan.

The NZRU reserved the right to appoint a chairman at any time.

The Highlanders have been the least-successful New Zealand franchise in recent years.

They placed 10th in this year's Super 14 and haven't placed higher than seventh since last reaching the semifinals in 2002.

NZRU chief executive Steve Tew said the changes announced today were intended to improve the on- and off-field performance of the Highlanders and ensure that the franchise was operating in a sustainable way.

"We recognise the importance of the Highlanders to rugby in the deep south, and to their many fans," Tew said.

"We are delighted that the Dunedin City Council has chosen to be involved and are also pleased with the response of the Highlanders board to the need for change."

Highlanders chairman Stuart McLauchlan said he welcomed the changes and was grateful for the continuing support of the NZRU.

"There is a clear desire from all parties involved to make this work," he said.

 

Caz...

You are incorrect. The DCC is not giving the Highlanders any money. Reread the article again, and you will see the NZRFU are backing the Highlanders. The DCC are simply providing advice by having a director on the board. The NZRFU are also appointing 3 other independent directors, which could end up being someone from the uni, someone from Fonterra, someone from Cadbury, or even someone from the Invercargil City Council. If you are in fact referring to the DCC funding the Multipurpose Stadium, then that is a separate issue and not to be confused with this one. There is no money changing hands from the DCC to the Highlanders.

 

The world's best laughing circus

This must be the deciding factor for many to leave Dunedin once and for all. Where else in this country or in the world would ratepayers be expected to bail out a poorly-performing rugby team? The DCC is a joke. Bundle the lot of them together and promote Dunedin overseas as "The world's best laughing circus."

Fiscal infamy

When the movie comes out, the whole country will be laughing themselves silly - except Dunedin ratepayers who are the butt of the jokes. The Dunedin City (Rugby) Council are apparently prepared to finance rugby to our very last cent - during the worst financial climate for decades. Democracy? Transparency? Consultation? More like North Korea. I can't wait to see this travesty exposed as it deserves to be seen - sordid and under-handed!

Crossing the rubicon

So, Messrs Harland and Chin have done it. They have crossed the rubicon. All is revealed, the DCC will officially become involved, not only in building a new multi million dollar stadium but also take a financial interest in the only potential user of the facilities. Not only that, council has also purchased the ORFU's debt by paying a false premium price to take ownership of Carisbrook. These would have to be the most blatant moves ever by council to take the citizens' treasure into such high risk ventures. Activities which are about as far removed from core council functions as you could possibility get. What on earth, you would have to ask, gives them the right to take these decisions? What indeed, are they thinking about? These would have to be the most hare brained collection of ideas ever devised.  You would have to wonder why there is not rioting in the streets by the long suffering citizens. Where will it end? Where indeed?

gplusa

The DCC is not giving the Highlanders any money - if you actually read the article: "The NZRU will underwrite the financial performance of the Highlanders for the next two financial years" Where does it say DCC giving the Highlanders money? If you can find it I'll do a nude run down George Street. The DCC are having an "independent" director on the board to provide advice.

If no money, then why ?

The purpose of the new Highlanders board is to provide financial advice to the Highlanders franchise. That is the sole reason why any changes have been deemed necessary. NZRFU are there as the main underwriters, as they have always been. The ORFU simply manage the Highlanders for a fee. The mystery is why the DCC have been invited onto the board. If they have no financial interest in the Highlanders franchise, as has been loudly proclaimed on this forum. Then they have have no more place on the board than you or I. Why was Fonterra not invited to sit on the board instead ? As for the ability to provide the best possible financial advice, that just doesn't hold any water. With all due respect to the elected councillors, and the hard working council employees, there are 112 companies listed in the Dunedin Yellow Pages under "Financial Services". If it's just about getting the best financial advice, and nothing more, hire the most qualified people for the job. If that's all it is.

Everyone is a little confused...

The Highlanders are not the Otago Rugby Union. They are a franchise owned by the NZRFU, and managed by Otago, Southland and North Otago Rugby Unions. That out of the way, the DCC have have a person added to the board to provide expertise in running the organisation. This is a completely different issue to what is being discussed here. Also, where did the fact that the DCC has poured millions into Carisbrook come from? The ORFU paid for it by selling corporate suites in the 90s. And the recent work has cost millions, hence the ORFU is now in trouble by paying for all of this. Another point. How much does the DCC pour into the arts? Millions into the Regent Theatre. Millions into other theatres. Why do we need more than one theatre? Can't everyone just use the Regent Theatre? And why did it need an upgrade. It has been fine for years the way it was. And what's with having two museums? Why don't we just have one? And why do they need upgraded? Surely they meet the existing purpose so are fine for the future and never need any money spent on them. And what about the sewers? Why did we need another outfall at Tahuna? Poo goes down the toilet ok? The sewers have been fine for a hundred years so why can't they last another hundred? I also notice there is a library at Port Chalmers. Why do they need one there? Can't everyone use the one in town?

Highlanders vs ORFU

If the Highlanders and ORFU are different entities why are we even considering buying Carisbrook at all? We don't need another stadium, and if the Highlanders aren't the ORFU why do we care who owns Carisbrook so long as the Highlanders agree to play in the new one? The ORFU can go sink or swim on its own.

 

In reality we all know that it's really just the same actors - the ORFU can pretend it's the same as the Highlanders when it suits and not when it wants.

 

Part of the larger problem here of course is that there's a conflict of interest here with CST board members also having been board members of the Highlanders - their recommendations to the council can't be seen to have been unbiased.

 

But how about telling us the whole story?

Some amazing elements to this story which have not yet reached the light of day.
Many would say that the finances of the ORFU don't belong in the public domain, but of course they do because of the bailing out of the ORFU debt situation by public money. Lets add up some of what we know.
The DCC have poured a lot of historical money into the "improvements" of Carisbrook which was until recently, a private property. They have then paid the ORFU some $7m for the privilege of buying Carisbrook. A ground they don't actually need and which will incur future costs to demolish the existing facilities and "improvements" that we have paid for. The fact that they had to borrow that $7m so that the ORFU could pay the DCC back the overdue debt of $2m and with the residue pay off the BNZ and then bank the remaining $1m should be of grave concern to all ratepayers.
Not many would know that The Trusts Charitable Foundation Inc granted the ORFU a sum of $888,577.49 between the 1st April last year and the 31st March of this year. This grant was the single biggest grant that this interesting pub charity granted this last financial year and carried on its support for rugby activities in this city.
Now it has been announced that the DCC will be directly involved with running this losing business.
Since when has the DCC had a mandate to get involved in running a professional rugby team? What are we going to call it? Harlander's Highlanders? Chin's Chokers? Or simply the Ratepayer's Rort?

I wonder how many of these

I wonder how many of these decisions are made over a few G&Ts in Fernhill Street? Known many years ago as 'The Tartan Mafia'.

 

TTCF

One wonders how the TTCF managed to grant applications to the ORFU since it clearly states on their web site that "Not authorized purposes" include http://www.ttcf.org.nz/authorisedpurposes.html "Sporting: Clubs, players or events that are; * Professional or commercial groups/players/clubs that receive any sort of payment or reimbursement for playing. * Workplace sports or social teams. * One-off tournaments in particular where there is an entry fee and prizes."

Flogging a dead horse

First we had to buy a new football stadium in order to keep the rugby team. Then we had to buy the old stadium in order to pay off the rugby team's debts. Now we are having to buy the team itself. Does this sound a bit like Chrysler and General Motors? Propping up a false economy is only delaying it's demise. Doing it with public money is downright irresponsible.

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