### ODT Online Wed, 29 Feb 2012
Time to tear off ORFU’s cloak of commercial invisibility
By Rob Hamlin
With any luck, the unlamented Otago Rugby Football Union Inc. will go into liquidation on Friday. As usual the Devil is in the detail, and in this particular instance the detail is in the last three letters of the name of this organisation. If it was the ORFU Ltd. that was to be liquidated, then the ORFU board might well be looking forward to Friday with some considerable trepidation.
The DCC purchased Carisbrook last year for seven million dollars on the basis of a professional valuation. Given that the ORFU’s has ‘only’ lost some $800,000 in the 2011 period, these figures would suggest that the ORFU’s debt at that the point of Carisbrook’s sale was over eight million dollars (7.0+2.3-0.8 = 8.5). Thus, when Carisbrook was sold in 2011, it is possible to estimate that the ORFU’s debt exceeded Carisbrook’s market value by over a million dollars. These figures, combined with chronic losses, would suggest that a recognisable state of insolvency existed at that date.
NOTE: Rob Hamlin’s blog at ODT Online was removed. Therefore, the ODT link is no longer active. -Eds.
Posted by Elizabeth Kerr