Otago Rugby Union to be Liquidated

[TOCC]

No, the council received enough flack over the stadium costs

 

[SuperGrover]

It's not over yet...

Possible lifeline for Otago
Published: Friday, 2. March, 2012

The Otago Rugby Football Union (ORFU), once one of the pillars of the sport in New Zealand, put off immediate liquidation Friday and revealed the existence of a possible lifeline.

Faced with debts of NZ.35 million, the Otago Union said earlier in the week it would fold at 4pm on Friday, but at the last minute announced the move had been delayed for a week.

"We considered the state of play and where we've got to in unravelling the true position of the union, and we've decided to extend the deadline for seven days," ORFU president Wayne Graham said.

Otago's precarious financial position does not affect the Otago Highlanders Super Rugby team, which is a separate legal entity and not liable for ORFU debts.

A number of wealthy possible benefactors have been in talks with ORFU in recent days about a potential recovery package, but New Zealand Rugby Union chief executive Steve Tew declined to go into details.

He said Otago's financial future remained bleak but agreed on the need for more time. "The key parties have been talking since Monday and have identified some options that warrant further examination," Tew said.

"It makes sense for the union to delay proceedings to allow these parties more time to undertake proper analysis."

Several other provincial rugby unions in New Zealand are also wrestling with debt problems as they face rising player salaries at the same time as diluted revenues from ticket sales and sponsorship.

http://rugbyrugby.com/news/by_country/new_zealand/7000454/possible_lifeline_for_otago

 

[SuperGrover]

Is there anything Richie can't do?...

Can Richie McCaw help save the Otago union?

Chris Morris, 5:30 AM Friday Mar 2, 2012

All Blacks captain Richie McCaw is part of a high-powered rugby delegation in Dunedin to negotiate a north-south fundraising match, as part of a final push to save the Otago Rugby Football Union.

The group has been involved in behind-the-scenes discussions this week over a possible rescue package for the union, which was saddled with $2.35 million in debt and faced liquidation at 4pm today.

McCaw - a board member of the Rugby Players Association - was among rugby representatives to meet Dunedin City Council chief executive Paul Orders and Forsyth Barr Stadium chief executive David Davies yesterday.

That followed a meeting with Mr Orders on Wednesday, both also attended by Rugby Players Association chief executive Rob Nichol, Otago union change manager Jeremy Curragh and players' agent Warren Alcock.

Mr Orders would not comment yesterday, but Mr Davies confirmed a charity match between North and South Island teams and top players was among the ideas being negotiated.

Exact details - including how the match could be squeezed into a busy playing schedule - were yet to be confirmed.

However, Mr Davies said he would "absolutely do the level best we can" to make the match happen, as part of a wider rescue package.

It was revealed this week that the Otago union owed the council nearly $400,000 in unpaid rent and other charges for Carisbrook since selling the old ground.

Mr Curragh said there was "a hell of a lot of work going on" ahead of today's 4pm deadline.
"It's got to be an arrangement, and always has been, that works for all parties ..."

http://www.nzherald.co.nz/rugby/news/article.cfm?c_id=80&objectid=10789220

 

[Bardon]

When I read about Richie helping out I got a mental image of people sitting around a table with Otago on one side and the council plus liquidator on the other. Then Richie sneaking over to the wrong side and signing agreements when the liquidator wasn't looking.

On a serious note if they do manage to save it I hope they completely revamp it so it's not in exactly the same situation again in a couple of years.

 

[Waylon]

NZ rugby just had a motza with the world cup etc

It's a disgrace if they let them fold

The ARU has bailed out the Tahs and the Reds

 

[Hawko]

NZ rugby just had a motza with the world cup etc

It's a disgrace if they let them fold. The ARU has bailed out the Tahs and the Reds

NZ Rugby had a nice World Cup, but the cost of running it and paying the extortionate fees required by the IRB meant they made a multi-million dollar loss. They knew all along that would be the case so there's no point executing people for it now. But... there is just no money left in the cookie jar for bailouts.