Dunedin hosts the national games every second year and participation at February’s event was down on expectations.
This led to a deficit of $193,350.84 for this year’s games and the Dunedin City Council had to write off most of that — $148,364.03, excluding GST.
The council has agreed to underwrite the games until 2036.
They are Dunedin’s largest recurring event, involving about 60 sports and bringing economic benefits estimated at $3 million to $4m.
This year’s event had been expected to break even or run at a surplus.
Participant registrations were budgeted at 5500, but finished well short on 3801.
Revenue from sponsorship also fell short of the expected level.
Games manager Vicki Krestila told the council there would need to be a complete evaluation of what was delivered and how.
The need for a hub, including a programme of live music, was one activity likely to come under scrutiny.
The marketing model and structure of registration fees were other areas that would need to be looked at.
She had been involved in the games from 2014.
This year was the first loss since then, other than for the 2022 games that were cancelled because of Covid-19.
There had been an expectation they could continue to grow from the 2020 attendance, but it did not happen.
A decrease was "primarily attributed to the prevailing economic conditions", a report for the council said.
Lack of communication about how registrations were tracking was troubling for the council.
Deputy mayor Cherry Lucas said she was told in November expenditure would be curtailed if registrations were not coming in close to budget.
This information would have been known in early or mid January.
The full council was not told the event was well over budget until late last month.
Ms Krestila said she advised her team leader of the unfolding situation in early January and her general manager was also filled in.
Board member and Cr Andrew Whiley said he also should have notified colleagues.
The Dunedin (New Zealand) Masters Games Trust is required to write to the council to request an underwrite if a loss has been forecast.
In November, the trust was confident budgeted targets would be met and no underwrite was sought.
It was evident in January the expected participant numbers were not coming through and by that stage commitments had been made, Ms Krestila said.
Data about the origin of participants showed a slip in the number from Dunedin, from 2049 (42.8% of the total) in 2020 to 1420 (37.4%) this year.
There was also a fall in both the number and proportion of participants from the rest of Otago and Southland.
Asked by Cr Brent Weatherall about cash reserves, Mrs Krestila said any surplus was used to cover the cost of the cancelled 2022 games.
The trust had about $75,000 of stock left over from 2022 and about $55,000 was able to be used this year.
At last week’s meeting, the council agreed to work with the trust to ensure the event’s future sustainability.
Cr Whiley said this year’s games had gone well overall.
"The event was a success.
"Unfortunately, our local representation wasn’t as strong as we would’ve liked.
"We need stronger support from the sporting organisations around Dunedin and I think you’ll see that happen."
