The union has reported its financial performance and annual report this week and has recorded a profit of $527,349 for last year, helped by getting more than $500,000 from the government wage subsidy.
But with no wage subsidy available this year and funding still limited, the projection for the 2021 financial year was for a deficit of more than $300,000.
Board chairwoman Rowena Davenport said in the annual report the projection came from reduced funding by New Zealand Rugby and the ongoing impact of Covid-19 on our sponsors.
"Given the exceptional circumstances the ORFU are currently operating under and the one-off nature of the financial support that saw a surplus reported for 2020, the board has taken a break-even approach over the 2020 and 2021 financial years in determining the 2021 budget," she said.
Davenport said the union was grateful for the guidance and assistance received from staff at New Zealand Rugby and the Ministry of Social Development.
The financial support in relation to Covid-19 had enabled the union to proceed with some certainty in 2020, ensuring management could focus on the safe delivery of rugby across the province.
As well as the pressures forced on the union by Covid-19, the game is also facing changes at all levels.
Davenport is involved in some committees at a national level to look at where the game is heading.
"Twenty-twenty-one is shaping up to be a year of transition for rugby in New Zealand. Our national body, NZR, is working with its stakeholders to reset, rebuild, and begin to implement initiatives to reimagine our game."
An optimisation review started in 2019 was carried out in response to societal changes and the rapidly evolving sporting landscape that had contributed to a worrying trend in rugby’s engagement and participation rates.
In 2020, in the wake of the pandemic, NZR kicked off the Nga Miro review to encompass the reimagining of rugby, with a strong focus on financial resilience.
NZR had also identified a potential private equity partner.
Silverlake would provide the capital injection required to create commercial opportunities for growth in revenue to assist with reinvestment back into grassroots rugby.
"The ORFU has been a strong advocate for the work being undertaken by NZR, we understand the need to adapt and want to ensure we are engaged in the process to be in the best position to provide a voice for the provinces and for community rugby.
"We want to ensure that rugby in Otago is accessible, inclusive, and sustainable, and that we are giving our participants a great experience to create lifelong engagement with our sport that benefits our entire community."
The game in Otago got back on its feet and club competitions were played in Dunedin and in the country areas.
But due to Covid-19, registered playing numbers across the country were down in 2020, the national total down 15% compared with 2019.
In Otago, while overall numbers were down 10%, the region bucked the national trend with teenage players up 4% and senior players down 3%. Junior numbers were down about 800 players (19%). This was mainly as a result of the Rippa in schools programme being unable to be delivered because of Covid-19.
Limited representative and development programmes took place, and the union was committed to reintroducing programmes this year.
