Not hosting a test and more expenses from defending the Ranfurly Shield have contributed to the Otago Rugby Football Union posting a loss.
Its annual report for the 2019 year showed the union recorded a loss of $115,098. The union recorded a profit of $131,589 for the 2018 year.
It had indicated even at last year’s annual meeting it would struggle to make a profit. In World Cup year, there are fewer tests played in New Zealand and last year only three were played — in Wellington, Auckland and Hamilton..
With no test at Forsyth Barr Stadium, the union lost out on more than $100,000 of income.
In 2018, the union hosted the test between France and the All Blacks and that boosted its income by $115,378 against a test income of just $274 for last year.
The union is set to host a test between the All Blacks and Scotland on July 18 which would be a boost, though it looks doubtful whether it will go ahead.
The Ranfurly Shield was won by Otago at the end of the 2018 season and there was real hope it would be a boost for the union, both in raising the profile of the game and also helping financially and also getting more people to games.
But that failed to materialise as crowds did not come through the gate.
There was a crowd of about 8000 for the first defence of the year against Southland but subsequent games never attracted the numbers expected. Otago lost the shield in the final home game of the season against Canterbury.
It cost $507,441 for Mitre 10 Cup home games and Ranfurly Shield challenges as opposed to 2018 when the union spent just $170,203 in hosting Mitre 10 Cup games.
It also hosted defences against Thames Valley in Wanaka and against North Otago in Oamaru last year.
The union still had total assets of more than $1million though that total had dropped from last year.
Otago Rugby Football Union general manager Richard Kinley said in the report the deficit was no surprise.
‘‘As anticipated, financially 2019 was a challenging year, with a recorded loss of $115,098.
‘‘Our continuing challenge is to source the funds required to deliver rugby across the province, without passing on significant costs to our members and potentially creating a barrier to participation.
‘‘Commercial revenue, trust funding and gate income were all below our budgeted expectations, a reflection of the current environment we are operating in, and a consistent theme right throughout the country,’’ he said.
The union spent just over $1.5million on its Mitre 10 Cup campaign, which includes player wages and the cost of running the team. It received $1.7million in funding last year from New Zealand Rugby.
NZR is undertaking a review of the game and this may change the role of the union although the Covid-19 virus may bring a halt to the review.
The Otago union recorded a slight increase in player numbers which was a boost. It had 8060 players.
The rise was mainly due to a freeing up of rules in the colts grades which allowed more players to take the field.
The retention rate for referees was at 80%, above the national average of 75%, while there were 682 coaches in Otago, again a slight increase.
The union’s annual meeting was set for Monday but has been postponed indefinitely.
