Clubs asked to cover shortfall

Otago Rugby Football Union president Adrian Read is confident he will get enough funds from metropolitan clubs to cover a shortfall in the recovery package to save the Otago union.

Read said it was solely his initiative to seek money from clubs from Dunedin to help the union's board and enable it to start with a clean slate.

Earlier this year, the union had faced the threat of liquidation due to debts of more than $2 million.

But a rescue package was put together and the union had managed to avoid liquidation, and continued trading.

Read said after all the bills had been added up and all the creditors paid, there was a shortfall for the Otago union of about $40,000.

The Otago Country board, on behalf of the country clubs, committed $70,000 to the recovery package earlier this year, and there had been a suggestion metropolitan clubs should also make a contribution.

Read said a meeting of metropolitan clubs had been held last month and they had been asked to consider contributing.

He had received a positive response.

He said there was no obligation on any club to pay some funds but he said some clubs felt they should contribute.

Other clubs would not be in a position to contibute.

Clubs have not paid affiliation fees to the union since 1998. These had covered things such as ground fees.

He said some past presidents and life members of the union had also been supportive of the venture, and had contributed.

He had no timeline to accumulating the $40,000 but hoped to have it finalised by the end of the year.

Read said the money was going into a completely separate fund from the Otago union's accounts and would not be spent on anything else but what was intended.

Read said the shortfall was not a surprise as the union was dealing with large amounts of money when trying to offset liquidation and the final figure was always going to be slightly over or under budget.

He wanted to pay off the $40,000 so the new board would start off fresh and with no debt.

Read had been a board member for more than a decade before he was named president - a mainly ceremonial position - earlier this year, after the union adopted a new constitution.

Union general manager Richard Kinley said the union had paid back all its own creditors or come to a commercial arrangement, and the idea devised by Read was independent of the union.

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