Netball Otago annual accounts show it has already loaned the Steel $40,000 and Netball Southland has made a "significant" contribution - believed to be worth up to $160,000 - to prop up the cash-strapped franchise.
Netball Otago chairwoman Adrienne Ensor said there was no guarantee the organisation would recover any of the funds loaned to the Steel.
Netball New Zealand chief executive Raelene Castle said she was aware the situation was "challenging" but believed the Steel could dig itself out of its financial troubles.
"I don't think it is that bad," she said.
"They are facing the same things two or three of our other franchises have faced over the last four years. It is just a new experience for the Steel.
"There is no doubt they are having a difficult time, but I would use the word challenging, not grim." But Ms Copeland has serious concerns for the financial viability of the Steel and believes the economic model is not working.
"What is concerning is if you've got four of the five franchises who are creating deficits year after year, then that is not a model that is sustainable," Ms Copeland said.
"It is fair to say the situation is grim. But what I would say is we've taken a whole lot of steps to cut our cloth." Ms Copeland said the Steel would return a significant loss this financial year but could not disclose how big it would be until the accounts had been independently audited.
In the last financial period, the Steel reported a loss of $45,000.
"The good thing is we are now living within our means. We will get through it. We've got a plan and we're working through it." Netball Otago - which recorded a loss of its own for the financial year ended October 31, 2011 - quietly reduced its stake in the Steel from 40% to 20% in mid-February last year, leaving Netball Southland to pick up the slack. It increased its shareholding from 60% to 80%.
The downside of a greater stake is owing more of the debt.
Netball Southland chairwoman Debbie Hodges confirmed the association had been forced to dig into its reserves.
"As far as dollar values go, I can't put that out there right now, until the accounts have been audited," she said.
"But we have definitely put in a significant cash injection into Southern Steel."The amount, including resources, is thought to be in accordance with Netball Southland's greater shareholding, at about $160,000.
The Steel is not the only franchise draining money from the game's grassroots.
The Central Pulse, Canterbury Tactix and Waikato-Bay of Plenty Magic have all had financial concerns.
Netball New Zealand has recommended sweeping changes to its management structure.
Its members were poised to vote on proposed changes, which would see the country's 12 regional associations merge with five New Zealand ANZ Championship teams, at its annual meeting later this month.
It had been hoped, by sharing resources, the newly-formed organisations will be able to operate more efficiently.
But the vote has been delayed.
Opinion is split in the netball community and Netball New Zealand feels it needs more time to garner the support it needs to push the changes through.
