Otago Rugby Union ‘Has Run Out Of Money,’ Will Be Liquidated

Wellington, New Zealand. The Otago Rugby Union will be placed in liquidation on Friday, potentially winding up one of New Zealand’s strongest provincial teams that has produced 156 All Blacks in 131 years.

The Dunedin-based union is due to report a loss of several hundred thousand New Zealand dollars to its annual meeting after years of deficits and while facing almost 2 million New Zealand dollars ($1.7 million) in negative equity.

New Zealand Rugby Union chief executive Steve Tew and Otago union chairman Wayne Bennett said on Monday that there was no choice but to call in liquidators.

The Otago Highlanders will continue to play in the Super 15 competition as they are operated by a separate and independent organization.

“The situation at Otago is unprecedented in our history,” Tew said. “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 200,000 [New Zealand] dollars over the last two months.”

Tew said the NZRU was were all prepared to help, but in the end, the financial hole was just too substantial. “The union had debts of 2.35 million [New Zealand] dollars 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 said negotiations were taking place with contracted players and sponsors to determine whether Otago could enter a team in New Zealand’s national provincial championship later this year. Otago is one of New Zealand’s top-four provinces after Auckland, Wellington and Canterbury and its absence would send shockwaves through New Zealand rugby.

Otago is one of New Zealand’s proudest provinces, having won the national championship twice in its current format. It has been the home province of players such as David Kirk, captain of the first All Blacks team to win the Rugby World Cup, and Jeff Wilson, who represented New Zealand at both rugby and cricket.

Associated Press