Basketball: Bailing out BBO cost $163,843

Basketball Otago's financial salvation cost the community $163,843.

That is how much debt the organisation reported its creditors were willing to forgo when it presented its long overdue financial accounts for 2014 at its annual general meeting earlier this week.

Last year will go down as one of the toughest in BBO's history.

It faced financial ruin and was forced to cease trading in October 2014.

BBO's operating deficit for that financial year was a staggering $150,974, leaving it with an accumulated debt of almost $250,000.

Liquidation appeared inevitable, but the Keep Basketball in Otago group raised $61,875 and that gave BBO the wriggle room it need to broker a deal.

In May this year, an agreement was reached with its creditors to pay 30c in the dollar.

That wiped $163,843 of debt from its books.

It is not quite a clean slate. BBO was still $23,285 in the red as of December 31, 2014.

But that is a much improved position from 2013, when the organisation had negative equity of $98,030.

The losses were not just recorded on the balance sheet, though.

A restructure saw office and events manager Sandy Wallace made redundant after five years of service midway through last year.

Former general manager Markham Brown resigned in June last year, three months before BBO ceased trading.

And with the future of the organisation unclear, director of development and Nuggets player-coach Mark Dickel moved north to join Canterbury Basketball.

There were also wholesale changes to the board.

Basketball New Zealand played an instrumental role in keeping BBO afloat during the tumultuous period, and Sport Otago provided administration assistance as well.

Basketball Otago employees Greg Brockbank and Katherine Richards were singled out in the annual report for their contribution.

‘‘The efforts of these two in the office to get us through the year were substantial,'' BBO chairman Karl Andrews wrote.

‘‘Through all the turmoil and uncertain times, the calibre, commitment and passion of our huge volunteer base has shown through.

Teams needed coaches, managers and administrators and our sport continued to thrive thanks to the hard work and dedication of all the people behind the scenes.''

Andrews said BBO expected to return a ‘‘medium surplus'' for the year ending 2015.

That was mostly down to operating with a skeleton staff for the period and the goodwill of the community.

 ●Russell and Rae Garland have been made life members of Basketball Otago for their 40-plus years of service to the sport.