Otago go into liquidation

Otago go into liquidation

27 Feb 2012

It has been announced that the Otago RFU will be liquidated on Friday.

The news was confirmed at a press conference on Monday, which was headed by NZRU chief executive Steve Tew and Otago chairman Wayne Graham.

The 126-year-old union reported a loss of several hundred thousand dollars at its annual meeting in Dunedin. Tew added that there was no way out for Otago, which has a negative equity of more than NZ$2 million and was due to report another large loss. The union could also face expulsion from the domestic tournament, the New Zealand Cup.

The NZRU has already helped solve the Highlanders’ financial woes last year, and it has been decided that the national body will not to do the same for Otago.

‘The situation at Otago is unprecedented in our history. We have been working hard to avoid this outcome. That is why NZRU appointed a specialist late last year to develop a recovery plan and negotiate with affected parties and also why we provided interim finance to ORFU of NZ$200 000 over the last two months,’ Tew told reporters.

‘We were all prepared to help, but in the end the financial hole was just too big. The union had debts of NZ$2.35 million and was facing a significant shortfall in revenue this year. Quite simply, it has run out of money and could not trade out of its difficulties.’

Tew also stressed that Otago’s unfortunate fate had no influence on the region’s Super Rugby franchise the Highlanders, who are a separate entity.


45 Comments

  • 1.Frik: Reply to this comment
    27 Feb 2012, 10:14 am

    So much for the strength of NZ Rugby.

    Otago has debts of NZ$2 bar and are folding. How many tens of millions of Rands are the Lions in the toilet for and they’re moving forward business as usual.

  • 2.cane: Reply to this comment
    27 Feb 2012, 10:23 am

    I think many of The NZ Provincial Unions are living beyond their means. NZRFU sending a clear message to All.

  • 3.RL: Reply to this comment
    27 Feb 2012, 10:28 am

    @cane(cane)-2: sad sad news. What will happen to the Highlanders … Wilmington they lose their franchise license?

  • 4.capebull: Reply to this comment
    27 Feb 2012, 10:33 am

    Phone Cheeky imediatly

  • 5.Wezwp: Reply to this comment
    27 Feb 2012, 10:34 am

    so delayed

  • 6.stormersboy: Reply to this comment
    27 Feb 2012, 10:38 am

    @RL(RL)-3: …Tew also stressed that Otago’s unfortunate fate had no influence on the region’s Super Rugby franchise the Highlanders, who are a separate entity.

    You should read the article. ;)

  • 7.cane: Reply to this comment
    27 Feb 2012, 10:46 am

    @RL(RL)-3: @stormersboy(stormersboy)-6:

    True Stormboy, separate!

    But still connected.
    If the Highlanders were doing well financially. Then it is unlikely this situation would have eventuated.

  • 8.stormersboy: Reply to this comment
    27 Feb 2012, 10:59 am

    @cane(cane)-7: Sure and a lot of this is down to very poor management, but also the poor gate takings over the past years, both in Super and in domestic competitions.

    The place is pretty empty when the big games aren’t happening.

    Which is sad, and where SA has the advantage. The CC is still very popular,

  • 9.the artist formerly known as gunther: Reply to this comment
    27 Feb 2012, 11:07 am

    this is sad news.

    blackpants is an otago supporter.

    maybe he can buy them with his hedgefund.

    put something back into the game.

    @stormersboy(stormersboy)-6:

    matric was the best five years of red pussies life.

    :lol:

  • 10.Delki: Reply to this comment
    27 Feb 2012, 11:16 am

    @#1 Frik – NZ consistently rates as one of the least corrupt countries in the world. A bankrupt NZ company cannot just continue ‘business as usual’. That may happen in SA but not in NZ.

  • 11.charo: Reply to this comment
    27 Feb 2012, 11:24 am

    sounds like the inevitable outcome of a small union involved in professional rugby.

    difficult to cover pro salaries in a small outlying area.

    @Delki(Delki)-10:

    oh fark, here we go again.

    ain’t nz and the kiwis just too wonderful for words.

  • 12.BWA: Reply to this comment
    27 Feb 2012, 11:26 am

    What a k@k country …. everything is so dull! even the rugby supporters don’t even pitch up for games (Loftus etc was a sell out) …. and now this? Economically : NZ = the next Zimbabwe

  • 13.ufo: Reply to this comment
    27 Feb 2012, 11:36 am

    Otago Highlanders, That’s our name
    Otago Highlanders, Here to play the game
    Otago Highlanders, Winning is our aim
    Welcome to the house of pain.

    Otago Highlanders, on the wane
    Otago Highlanders, can we remain
    Otago Highlanders, is this our endgame
    Welcome to the house of shame…

    Otago Highlanders, we do proclaim
    Otago Highlanders, cheeky watson’s to blame
    Otago Highlanders, time to start again
    Under the Southern King’s name…?

  • 14.Hurricane: Reply to this comment
    27 Feb 2012, 11:43 am

    @charo(charo)-11:
    Whats wrong?
    You have a problem with non corrupt countries?

    @BWA(Dusktill)-12:
    Maybe one day when you grow up mummy might shout you too NZ. You may even like it.

  • 15.Lions_Soutie: Reply to this comment
    27 Feb 2012, 11:49 am

    What happened to the green jersey from last year? :)

  • 16.charo: Reply to this comment
    27 Feb 2012, 11:49 am

    @Hurricane(Hurricane)-14:

    not at all – i wish ours was a little more upright.

    what i do have a problem with though, is some kiwi bloggers coming on here and espousing how wonderful nz and it’s people are, when we all know it is not perfect.

    far from it from what i read in the media.

    see the difference?

  • 17.cane: Reply to this comment
    27 Feb 2012, 11:49 am

    @BWA(Shiit for brains)-12:

    Is that why, there are 10′s of thousands of you Mothers here?

    On very street corner, in every walk of life.
    All as happy as a Somali with McDonalds 2 for 1 voucher.

  • 18.Lions_Soutie: Reply to this comment
    27 Feb 2012, 11:52 am

    @BWA(Dusktill)-12:

    Idiot

  • 19.cane: Reply to this comment
    27 Feb 2012, 11:53 am

    @charo(charo)-11:

    “ain’t nz and the kiwis just too wonderful for words”.

    You got that right charo.

    We even won an Oscar today.

    How many did you Mothers win.

    8)

    8)

  • 20.Hurricane: Reply to this comment
    27 Feb 2012, 11:56 am

    @charo(charo)-16:
    Well from the post you replyed to, i couldnt see where he said our country was perfect, you and i know NZ is not.
    But as we know dont believe the media, i dont.

  • 21.ufo: Reply to this comment
    27 Feb 2012, 12:04 pm

    in all seriousness…

    very bad news…

    hope and trust a proactive solution will be found to sort the otago union out…

  • 22.>^..^< katman: Reply to this comment
    27 Feb 2012, 12:05 pm

    @cane(cane)-17: Caner, that doesn’t explain why almost 10% of NZ’s population are outside of its borders at any given time.

  • 23.Transformation: Reply to this comment
    27 Feb 2012, 12:06 pm

    tough luck for all the otago fans. the rugby bubble is on the verge…

    the football one is tearing @ the seams too, rangers are under administration as we speak.

  • 24.charo: Reply to this comment
    27 Feb 2012, 12:08 pm

    @Hurricane(Hurricane)-20:

    yes, but delki @10 used the comment from frik to make a point about corrupt countries implying nz is clean while south africa is a pisspot (which it might be).

    however, bankruptcy is guaged by balance sheets and the lions maintain their assets are sound.

    perhaps our mate delki should engage his grey matter before frothing away in public.

  • 25.charo: Reply to this comment
    27 Feb 2012, 12:10 pm

    @cane(cane)-19:

    what is an “oscar”?

    we are in africa – don’t come here with your tendencies!

    8)

  • 26.charo: Reply to this comment
    27 Feb 2012, 12:12 pm

    @cane(cane)-17:

    hey caner, things are going down the tubes for you okes.

    all the kiwis heading for oz only to be replaced by saffas and asians.

    at least that might improve your cricket in the long term :lol:

  • 27.the artist formerly known as gunther: Reply to this comment
    27 Feb 2012, 12:13 pm

    @cane(cane)-19:

    best hobbit in a foreign language picture?

  • 28.>^..^< katman: Reply to this comment
    27 Feb 2012, 12:14 pm

    @cane(cane)-19: And you lot once caddied for Tiger Woods. That’s a great source of national pride.

  • 29.the artist formerly known as gunther: Reply to this comment
    27 Feb 2012, 12:17 pm

    @>^..^< katman(katman)-28:

    yes but that was before he became a black @rsehole.

  • 30.ufo: Reply to this comment
    27 Feb 2012, 12:23 pm

    oscars are so noughties…

    been there done that and saw charlize in the t-shirt…!

  • 31.>^..^< katman: Reply to this comment
    27 Feb 2012, 12:25 pm

    @the artist formerly known as gunther(gunther)-29: They’ll argue that Tiger came unstuck because the Kiwi pulled out. Don’t fall for that horseshit though.

  • 32.cane: Reply to this comment
    27 Feb 2012, 12:25 pm

    @charo(charo)-26:

    There are a couple of Saffas. (make that ex saffa’s) on the verge of making the black craps.

    8)

  • 33.stormerforlife: Reply to this comment
    27 Feb 2012, 12:25 pm

    Tough luck Otago.

  • 34.cane: Reply to this comment
    27 Feb 2012, 12:28 pm

    @the artist formerly known as gunther(cunther)-27:

    That is close gunther……………………………………..very close.

    Change Hobbit for Muppit.

    8)

  • 35.>^..^< katman: Reply to this comment
    27 Feb 2012, 12:28 pm

    @cane(cane)-32: Jurie Els must be one of them.

  • 36.cane: Reply to this comment
    27 Feb 2012, 12:32 pm

    Goodnight all.

    I’m off to bed thinking of Charlize in a t-shirt.

    8)

  • 37.ufo: Reply to this comment
    27 Feb 2012, 12:35 pm

    @cane(cane)-36:

    wet dreams…!! :wink:

  • 38.ufo: Reply to this comment
    27 Feb 2012, 12:36 pm

    @ufo(ufo)-37:

    sorry… should be

    sweet dreams…!

    :evil:

  • 39.Mr Black: Reply to this comment
    27 Feb 2012, 12:39 pm

    @cane(cane)-36:

    Rather focus on her without a t-shirt, you will sleep better :lol:

  • 40.the artist formerly known as gunther: Reply to this comment
    27 Feb 2012, 12:51 pm

    @>^..^< katman(katman)-31:

    if only more kiwis would pull out.

  • 41.welcome to my life, hugh...: Reply to this comment
    27 Feb 2012, 12:53 pm

    @ufo(ufo)-38:
    what? sweetlly dreaming of being wet..?..errr ok…

  • 42.charo: Reply to this comment
    27 Feb 2012, 12:54 pm

    @Mr Black(Mr Black)-39:

    caner can sleep with a light on……

    but he battles with a hard on.

  • 43.RL: Reply to this comment
    27 Feb 2012, 12:55 pm

    @Delki(Delki)-10: give them another chance! With that brand new indoor stadium and big bumper crowds that debt can be paid off chop chop. :grin:

  • 44.wpforever: Reply to this comment
    27 Feb 2012, 18:44 pm

    rugby was great before turning professional…………players played for the jersey………clubs and provinces had far less money available………grounds were full………sad indeed if any club with a long standing history goes under

  • 45.wpforever: Reply to this comment
    27 Feb 2012, 18:56 pm

    Springboks presented a Springbok head to Otago in 1994 for their loss
    ……….what will become of that and all the clubs history

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