The NZRU yesterday announced a three-point plan to help its 26 unions, many of which are struggling financially.
It will make additional grants equating to a quarter of its regular annual grant to all unions, with the 14 Air New Zealand Cup provinces to get a minimum of $150,000 each.
That was precisely what the Otago Rugby Football Union was going to get, chief executive Richard Reid told the Otago Daily Times.
"It's great. Because of what's happenedin the world, it's great toget some extra money at atime like this," Reid said.
The ORFU has had a torrid few years, slumping to back-to-back million-dollar losses as it grapples with a stadium it desperately wants to offload, poor results and minimal crowds.
Reid could not say exactly what the union would do with its $150,000 windfall.
"I haven't thought about it much, but it's helpful because it's essentially substitute income at a time when sponsorship and ticket sales are getting tight. It's not necessarily going to give us a big surplus all of a sudden. But it will certainly help us fill some holes.
"It could go to wages or it could go to a couple of new players, or whatever. It's not specifically tagged to anything. We just have to look at the income we get in a year and then apportion it as we can."
Reid was particularly pleased at the NZRU's decision to restructure All Black payments and how they are counted in provincial contracts.
"It makes a lot of sense. Go back a year and we had Anton Oliver, Carl Hayman, James Ryan and Nick Evans, significant players on our wage bill who didn't play for Otago.
"The NZRU has acknowledged there are All Black costs tied up in the provincial contracts and decided to pick up some of the cost, which will be hugely beneficial. And it's the sensible thing to do. It doesn't impact us too much now with just Adam [Thomson] on our books, but every little bit is helpful."
The North Otago Rugby Football Union will get a vastly smaller grant, possibly in the region of $8000 to $10,000, but chief executive Colin Jackson will take anything he can get.
"We're very pleased and very grateful. The money will be put to good use," Jackson said.
"We've got an ongoing responsibility to look after rugby for everybody and to produce a good product. Times are tough in the rugby world and it's not going to get any easier."
The NZRU was initially expected to dip into its reserves - about $80 million - for the additional grants but will now fund them out of its surplus.
At a board meeting yesterday, the national union forecast a $7.5 million surplus for the 2008 financial year based on the cashing up of successful foreign exchange transactions and profits earned from the test against the Wallabies in Hong Kong and the midweek tour game against Munster.
"Given we will be adding $7.5 million to our already strong position, we feel it is appropriate to make some contribution to the unions," NZRU chief executive Steve Tew told NZPA.
"We realise it doesn't solve everybody's problems. The world is still tough out there. The reality is that [the unions] are going to have to work extremely hard within their communities, their fans, their sponsors to ensure they have a sustainable business."
The NZRU has agreed the cost and structure of the 14-team Air New Zealand Cup is not sustainable.
It is widely expected to downgrade the status of the competition to semi-professional or amateur, and may reduce the number of teams. The two unions that were initially axed following a competition review, Northland and Tasman, appear to have contrasting futures.
Tew said Northland had met all its conditions and would play in the top flight next season.
But Tasman, while it had made progress, asked for more time and more money if it was to meet its conditions. The NZRU has told Tasman it must operate "under their own steam" in the competition.
That could spell trouble for the uneasy Marlborough-Nelson alliance, which has until Wednesday to respond.
NZRU
Help for the unions
• Immediate grants for the 26 provinces
• Provision of $1.2 million for 75% of All Black payments in provincial union contracts
• Support fund of $1 million
