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.
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