The Nuggets' survival could hinge on the outcome of a review of the National Basketball League by the sport's governing body.
Basketball New Zealand has begun a review of the competition and, among other issues, is looking at the viability of the 10 existing franchises.
Its recommendations will be presented to representatives of the franchises at the end of July.
Basketball Otago chief executive Mark Rogers told the Otago Daily Times yesterday there was no guarantee the Nuggets would still be around next year.
"There are various organisations in the North Island which have expressed interest in securing a franchise," he said.
Over the past four seasons the Nuggets have managed nine wins from 71 matches, not a record, Rogers acknowledged, that enhanced the Nuggets' prospects of remaining in the league.
"It is an issue for us. If we can't continue to deliver at a good level there could be repercussions for basketball in Dunedin, including losing the franchise."
Basketball New Zealand chief executive Dale Stephens confirmed two groups had expressed informal interest in joining the league but said there were no concrete plans to expand or contract the league.
While the Nuggets had a poor record there was value in keeping them in the NBL, he said.
"It is important to us that the sport is accessible at that level right across the country. It is just unfortunate that they haven't had the results that they would have liked."
Rogers questioned whether the Nuggets remained viable under the current format but embraced the review, which he hoped would address key issues like travel and talent equalisation.
Because Otago is the southernmost franchise, its travel bill is up to three times as much as some of the North Island teams.
To cut travel costs the Nuggets played four double-headers this season. The tough schedule did little to improve their win-loss ratio.
Stephens was not optimistic there would be any relief soon.
"Travel equalisation is something that has been used before and dumped . . . it will be considered again this year. But the trick is getting a formula that actually works properly."
The other major hurdle the Nuggets face is recruiting players.
The cash-strapped organisation struggles to match the salaries other teams offer and many players see the Nuggets as a dead end.
But there may be some good news on that front.
"As to talent equalisation we have discussed a number of different ways . . . Whether we do it by salary cap or by points system, as they use in the Australian NBL, are options that are being discussed at the moment."
