Rugby: ORFU financial position 'very tender'

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By Steve Hepburn on Wed, 25 Jan 2012
Otago | ORFU
Wayne Graham.
Wayne Graham.
Otago Rugby Football Union chairman Wayne Graham admits the union's financial situation is "tender" but a full picture will not be known for another couple of weeks.

The ORFU's annual meeting is scheduled for next month and Graham confirmed the union would report a loss - "and we can't afford a loss" - but he could not say how much it would be as the financial accounts had not been finalised.

"But I think it is no secret that our financial position is very tender at the moment. With what has happened over a period of time, we have to be really watching our pennies," Graham said.

He confirmed the union had received assistance from New Zealand Rugby Union staff.

"Things are extremely tight at the moment and we are working through it as quickly as we can. But we want to make sure we have the true picture and then work on a recovery plan."

Graham said the situation was serious and the union was still working hard but "it is not going to be an easy road we face".

"We have always said we wanted to go down to the stadium with a clean slate and no hangover from Carisbrook."

The union has consistently recorded losses in recent years, including a $51,000 cash loss last year and more than $750,000 the previous year, although that was mainly depreciation on Carisbrook.

At last year's annual meeting, then ORFU general manager Richard Reid warned of tough financial times ahead. He has since left the union.

Staffing levels have dropped significantly in the past five years, from 36 in 2006 to 14 last November when Reid left.

By then the union had instigated talks with Dunedin Venue Management Ltd (DVML) about running the commercial operations of the union. If that eventuates the union will employ half a dozen people, all in rugby operational matters.

Talks are continuing between the two parties, although the union has gone ahead and relocated to new offices in the south stand at Forsyth Barr Stadium.

The union had planned to advertise for a rugby director to manage all rugby-related matters for the union but that had been put on hold, Graham said, until an agreement was reached with DVML.

 

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Stop wasting money

Submitted by macka on Wed, 25/01/2012 - 2:59pm.

Stop spending money on imports when there are perfectly good local boys worthy of a jersey. Why are we paying these players to come down when they are only going to turn around and leave? They don’t support local club rugby and they are not putting back into the community as they leave at the end of the season. If you select loyal local players, you know they are going to stay in the area as they generally have family here; family and friends are going to come to the games to support them thus creating revenue for ORFU, they support their local club, and they put back into the community.

  Phil Mooney’s leaving article last year gave some insight into the disarray within the Otago Rugby Union.  If the finger has to be pointed at somebody, it should be at Laurie Mains; he contracts all the players therefore he is selecting the team……not the coach!  How can somebody coach a team when they can’t even select the players they want in the team?  Perhaps the union needs to look locally rather than investing money in imports that are only going to turn around and leave?   Richard Reid has gone, which is a step in the right direction, Laurie Mains should be the next as I believe he is causing the demise of Otago rugby.

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Spend less

Submitted by Baxter on Wed, 25/01/2012 - 12:38pm.

I bet the ORFU wanted to go down to the stadium with
"a clean slate and no hangover from Carisbrook".

Who wouldn't want the balance of their mortage written off, and a nice new house paid for by someone else?

Welcome to the real world ORFU. Unlike the rest of us who can't afford the stadium and are subsiding you to be there, at least you get to use the stadium.

As above, you either need more income (though charging high prices to use a stadium I've paid for seems a bit off, it's the financial reality of using an unaffordable venue). Or like the rest of us, spend less.

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ORFU

Submitted by md on Wed, 25/01/2012 - 10:31am.

Is there no end to the greed of Dunedin’s professional rugby fraternity?  We are now being further conditioned to their expectation that ratepayers, via the offices of DVML, will “run the commercial operations of the Union”.  Someone (Mr Cull maybe) needs to tell them that professional rugby is not a core activity or responsibility of local Government and its ratepayers.

Just maybe they could ask all rugby-heads for a financial bailout.   While they are at it they could have a whip around for the promised capital contribution for the stadium and, just so there is no confusion, I mean cash not debt.

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Charge more

Submitted by MikeStk on Wed, 25/01/2012 - 7:14am.

Oh come on, we've given the ORFU $7m and they want us to believe they've already spent it all - perhaps they could simply start spending a lot less than they take in - that's not so hard to understand, fewer jobs for the boys mind you - maybe a few rugby players will end up being paid  like the rest of us - some may even have to wear the shirt the guy playing the same position last year wore, it might not be tailored as well - that's why rugby jerseys are that baggy shape.

Look, the solution is very simple - charge more for tickets, if you can't pay your bills you're not charging enough - in general everything to do with the stadium is suffering because rugby is not charging enough for tickets - you've got this new expensive venue that has to be paid for, time to double your ticket prices - after all the rugby fans keep on gushing about how wonderful the place is - time to get them to put their money where their mouths are.

And just how much is the ORFU paying for clubrooms in the stadium? Market rates? If DVML is charging them less than the going commercial rate they're a state subsidy undercutting the rest of the local real-estate market - I can see why they might want a stadium rates reduction if they're not actualy charging their tennants the real costs - the stadium and the ratepayers shouldn't be subsidising professional sports people.

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