Another expensive nut cracks, ORFU liquidated?

### stuff.co.nz Last updated 20:18 27/02/2012
Otago rugby union heading into liquidation
By Mike Houlahan – Fairfax NZ News
With debts of $2.35 million, and a loss from the last financial year of $862,000, the decision was made at a press conference in Dunedin tonight, with NZRU CEO Steve Tew and chairman Mike Eagle in attendance. The 126-year-old union, which has not held the Ranfurly Shield since 1957 or won the National Provincial Championship since 1998, will cease trading by Friday. The New Zealand Rugby Union (NZRU) is taking immediate steps to support community rugby across the Otago region. “We are stepping in to support community rugby and all the amateur players, volunteers, administrators, and others who have a stake in the game,” said NZRU chief executive Steve Tew. Otago has a long and proud rugby history and the union has played a vital role in the rugby community for 131 years so this is a sad day.
Read more + Q&A

What does this situation mean for Forsyth Barr Stadium? (via Stuff)
The Highlanders still intend to play at the stadium and today’s events do not impact on that. The Highlanders will host their first home game for the season this weekend. Our desire is for a team from Otago to participate in the ITM Cup, but it is too early to discuss what will happen in that regard. Any issues relating to the financial impact on the stadium should a representative team from Otago not play in the ITM Cup are for the stadium owners to comment on.

http://www.odt.co.nz/sport/rugby/199277/orfu-be-put-liquidation

Related Posts and Comments:
17.2.12 Does the insolvent ORFU deserve any more community support?
11.2.12 Where’s this going, ODT?
14.12.11 Davies “in the middle of a conversation” – how to fudge DVML…
2.12.11 DVML gets into bed with ORFU
13.10.11 MAD Classics #26 – You’re a crook or a businessman?

Posted by Elizabeth Kerr

4 Comments

Filed under DCC, DVML, Economics, Events, Heritage, Media, People, Politics, Project management, Property, Site, Sport, Stadiums

4 responses to “Another expensive nut cracks, ORFU liquidated?

  1. Lindsay

    Well, at least the NZRFU have a slighly better grip on reality than the ORFU who would have borrowed their way further into debt if humanly possible.

    • Elizabeth

      On TV3 Sports Tonight Wayne Graham looks deathly sick.

      ### tvnz.co.nz Published: 7:58PM Monday February 27, 2012 updated 20:38
      Otago Rugby Union to be liquidated
      Source: ONE Sport
      The Otago Rugby Football Union is going into liquidation after posting a loss of $862,000. The decision was announced at a press conference in Dunedin tonight and the union will stop trading on Friday. ONE News reporter Max Bania was at tonight’s meeting and said the atmosphere was one of “shock and disbelief.” He said the Otago Highlanders are a seperate entity and will not be affected by tonight’s decision.
      Read more

      ****

      ### 3news.co.nz Mon, 27 Feb 2012 8:52 pm
      Otago Rugby Football Union to be liquidated
      The Otago Rugby Football Union (ORFU) will go into liquidation on Friday, with debts of over $2 million. The announcement was made at a press conference in Dunedin on Monday evening.
      Read more

      • Elizabeth

        [Wayne Graham] said ‘owning Carisbrook had become a millstone around the union’s neck, while matters such as how much it would cost to play at Forsyth Barr Stadium were never considered’. Incredible! So ORFU would arrive at the new stadium, with no idea of how much or who would pay? This is almost precocious.

        ### ODT Online Tue, 28 Feb 2012
        Shocked silence over news ORFU faces liquidation on Friday
        By Steve Hepburn
        More than 130 years of rugby history is likely to come to a juddering halt on Friday when the Otago Rugby Football Union, saddled with debts of more than $2.2 million, goes into liquidation. About 100 supporters and officials were stunned into silence on hearing the union had posted a loss last year of $862,000 and might not be able to field a team in this year’s ITM Cup.

        The ORFU had 180 creditors in the local business community, who were owed $180,000, and union staff would be out of a job on Friday. The union also had a loan of $1.2 million with the Bank of New Zealand.

        Four parties had been involved in negotiations to continue: the Otago Rugby Football Union, the New Zealand Rugby Union, the Bank of New Zealand and Dunedin Venues Management Ltd. Those parties could not agree on a way forward.

        Read more

  2. Peter

    ‘Nobody does it better’. Thank you, Mr Graham.