But while it is stalling, its best local player, Darryl Jones, has signed with the Nelson Giants.
Jones joined the Nuggets in 2005 and had four seasons with the franchise. He was one of only three players from the 2007 side to return last season.
His departure follows that of stalwart Jamie Blake, who has gone overseas.
Coach Don Sims indicated he was happy to return before he went back to the United States after the 2008 season. However, he wanted a two- or four-year contract and was hopeful of an increased budget. It seems unlikely Basketball Otago will be able to meet those terms.
The board met on Thursday night to consider whether it would be financially viable to field a team in the National Basketball League next year.
Basketball Otago chairman John Gallaher said the organisation would not be making any public statement until next week.
"I'll be in a position to give you an update in the early part of next week," Gallaher said.
"The board met [on Thursday night]. We had a very good discussion. We've got some discussions to complete and we are working towards getting that all tidied up next week."
Gallaher declined to comment further but said D-day was at the end of the month when the first instalment of the NBL fees was due.
It is believed to be $5000, but it is money Basketball Otago would be loath to part with unless it was confident the Nuggets would survive.
Meanwhile, the Canterbury Rams are also in a battle for survival after losing their coach and naming sponsor.
Coach Bert Knops resigned after growing frustrated at a lack of activity in putting together a campaign for 2009, and Marley, which came up with a $50,000 rescue package to bail out the Rams last season, has pulled out, citing the worldwide financial crisis.
If the Nuggets and the Rams fall over, the South Island would be left with just one franchise, Nelson, in the competition.
