The nationwide lockdown has meant all sport has been on pause while the country battles the Covid-19 pandemic.
With no or very little money coming in, many sporting organisations are under extreme financial pressure.
Mainland Netball was the first to crack. Earlier this month, it recommended to its members it be placed in voluntary liquidation.
It could be the first domino but Otago Polytechnic Institute of Sport, exercise and health senior lecturer Geoff Simons has been heartened following a quick analysis of the clubs’ latest financial accounts.
He put his students to work investigating their financial health.
‘‘The public records of the latest financial statements of the seven premier association football clubs and the nine premier rugby football clubs show that in most instances they will survive if no club sport is played this coming winter,’’ he told the Otago Daily Times.
‘‘I’m not an accountant and someone will look at this and say you have not done this or that.
‘‘And the entries into their annual report are sometimes quite tricky. But we should be able to look at their annual accounts and [get a good idea of their position].’’
Simons said the rugby clubs leaned more heavily on sponsorship and grants than the football clubs. On average, sponsorship and grants made up 45% of a rugby club’s income compared with football clubs who were less reliant at 27%.
Bar profits were also more important for rugby clubs. It made up an average of 18% of their income whereas for football it was just 5%.
Subscriptions were significant for rugby at about 12%. That dropped to 10% after levies were taken into account, while football clubs also paid a levy which meant on average clubs made a small loss from subscriptions.
But Simons said, significantly, most of the clubs had more assets than expected yearly expenses.
‘‘The likelihood is that over the summer months each club’s expenses would be greater than its income, so on entering the start of the season their financial situation will be worse off.
‘‘However, if no sport was played this season, many expenses would be eliminated.
‘‘Most figures need to have explanations with each of them, so the picture is not as simple as outlined.
‘‘But what they do show is clubs, run mainly by volunteers, need to have funds in reserves for an unexpected occurrence like the one they are in at present.’’
