Canterbury United said yesterday it was quitting the national football league, citing financial concerns.
The club's chairman Craig Rhodes told The Press the club, which had finished bottom of the eight-team league in the past two seasons, was not prepared to raise the $250,000 needed to take part this year.
Otago United chairman Dave Lamont said the southern team had committed to staying in this year's league, and would now be the only South Island team in the competition.
He said it was disappointing to hear of the withdrawal of Canterbury and felt every region had to have a team in the national league.
Otago United was looking at a yearly budget of about $350,000, and it had an indication from its usual funding sources they were prepared to put money into running the team.
The budget would be cut down by about a third and he said savings would be made on general overheads. Players were not paid.
Otago United relied on funding from gaming trust money, and that had dropped, so Otago United had to drop its budget accordingly, Lamont said.
The league was cut back last season from three rounds to two and Lamont said Otago United could handle playing two rounds but if it went to three rounds then Otago would pull out.
He said the bonus of Canterbury pulling out was Otago may pick up some players in the Canterbury area who still wanted to play in the national league.
The southern team had also committed to entering a team in the national youth league. It had started last year but Otago had not entered.
The draw for the youth league had yet to be finalised.
He said the Wellington Phoenix had made inquiries about having its reserve side play in the national league as it did not have anywhere for players outside the starting side to play in summer months.
Lamont said coach Terry Phelan was still contracted to the organisation in a coaching role but declined to comment further. Phelan is currently overseas.
The league was due to start near the end of October.
Otago United finished seventh last year, winning just two games.
New Zealand Football (NZF) chief executive Michael Glading said yesterday he expected this year's national championship to go ahead despite the loss of Canterbury United.
"I believe we will get at least six teams and if we get down to that we will play an extra round," he said.
"The NZF is prepared to put its hand in the pocket and keep this league alive because we believe it is important and we are totally committed to it."
NZF would be writing to teams to confirm their entry "within the next 10 days".
