Dunedin City Council chief executive Jim Harland says it is "entirely appropriate" the council will appoint a director to a new-look Highlanders rugby board.
The Highlanders will receive financial underwriting for two years and its board will be overhauled under the terms of a bail-out deal with the New Zealand Rugby Union revealed yesterday.
While the financial assistance is a boon for a franchise that has not turned a profit since 2006, the changes to the board are perhaps the most obvious sign of a rescue package.
The DCC, which has bought Carisbrook and is part-funding a new stadium, will get to appoint a director and the NZRU will retain its three independent directors.
Four provincial union directors will drop to three.
Previously, Otago appointed two board members, Southland one and North Otago one, and the new board will have to decide, with the unions, whose place will be sacrificed.
Significantly, the NZRU will also have the right to appoint a Highlanders chairman at any time, for any reason.
The changes have been made to attempt to prop up a franchise that has quickly become the runt of the New Zealand rugby litter, failing both on the field and in the accounts, and NZRU chief executive Steve Tew is pleased the DCC has indicated its desire to help.
"I think the commitment to the stadium is an important step forward for the city, so it's appropriate to have the DCC involved," he said from Tokyo yesterday.
Mr Harland said the DCC had an "active interest" in having a successful rugby franchise in the South.
"The majority of revenue in the new stadium will come from professional rugby, and the Highlanders are the vehicle for that," he said.
"Having an influence at director level will assist the council to ensure its tenant is as successful as it can be."
The council had not yet begun the process of appointing its Highlanders director but he could not rule out the possibility of a councillor getting the role.
The Otago Daily Times understands the Highlanders made six-figure losses in each of the last two seasons.
"There's no secret the Highlanders have needed some financial assistance over the last couple of years," Mr Tew said.
"We don't have any magic answers. We've made a firm commitment but it won't be forever."
Asked if that meant the NZRU would consider shifting the Highlanders franchise, Tew replied: "That's not on the cards at the moment. We can't guarantee there'll be a franchise anywhere forever . . . But we've made it clear we want the Highlanders to be there."