City got 'a good deal'

Otago Rugby Football Union chairman Wayne Graham (left) and change manager Jeremy Curragh...
Otago Rugby Football Union chairman Wayne Graham (left) and change manager Jeremy Curragh consider questions yesterday. Photo by Gerard O'Brien.
Wayne Graham says it is now time to look forward and the Otago Rugby Football Union will be talking to small creditors as soon as possible.

Mr Graham, the ORFU chairman, said he had endured a roller-coaster three weeks, with many frustrations along the way.

"But once everyone takes a breath, waits a few days and once the emotion dies down, the cold hard facts are that this deal is the best we could have done," he said.

"The simple option would have been to close the doors, and then start again. But we were encouraged by the support we received and wanted to work this out." He felt the city had got a good deal.

"Have a look at the deal, and understand what the outcome is and how good it will be for the future of the city. In rugby terms, you have secured an Otago team and a Highlanders team in the city for three years. We get three category A tests for three years and how much is that worth to the city?

"You start adding up the figures and it is good for the city."

Union change manager Jeremy Curragh said it was an Otago rugby problem but it took more than the union to fix it.

On February 27, the union announced it was entering liquidation because of a $2.35 million debt and a projected loss this year of more than $750,000.

But work over the past two weeks led to an agreement which has staved off liquidation.

The union had 180 small creditors owed $680,000.

Work would begin in the next couple of weeks, with accountancy firm WHK, to talk to the small creditors.

He was unsure how much the creditors would get back, Mr Curragh said.

Union staff were spoken to yesterday morning and a staffing review was being undertaken. But the union was already lean, and there was not much fat to trim.

Mr Graham confirmed new Otago coach Tony Brown was due to arrive back in New Zealand late next week, and he said the players had been great during the past weeks, continuing to train.

Mr Curragh and others would now look at rewriting a constitution which would bring about a new-look board.

Mr Curragh said about 75% of the work had been done, with the rest required to make the agreement unconditional.

The make-up of the board had not yet been decided, but the voting structure is bound to change. Clubs used to vote members on to the board, but the NZRU had indicated it wanted more independent members.

The current board would have to resign, after writing the new constitution - in about two months - although members could stand again for the new board. Mr Graham had indicated he would not be seeking to continue.

He said the board in the past weeks had continually focused on the future and not harked back to the past.

"We don't want to dig up old graves. I've been chair for two years and we knew there would be trouble coming two years ago.

"We inherited a lot of this. We wanted to go to the stadium with a clean slate. But we were supplied some inaccurate information and the board has started a job to sort it out and that is what we want to do."

 

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