While the Otago Rugby Football Union will indeed report a surplus of $489,332 at its annual meeting tonight, it is a figure the union is keen to point out comes with some healthy asterisks.
Such a financial windfall was "not the result that was expected or planned for, and was largely the result of factors outside the union’s control," ORFU chairman Peter McCormack said in a statement.
The biggest factor in the skewed profit was New Zealand Rugby agreeing to take over the liability for the long-running stoush with the Ministry of Social Development.
Otago, along with the other 13 NPC unions, was to be on the hook for Covid wage subsidy repayments, and had budgeted accordingly, but the national rugby body has dealt with that.
The flip side of that generous move is it has signalled its grants to the provinces will drop as a result, so that is a potentially dark cloud looming.
The other factors behind Otago’s hefty profit were investment returns being much higher than anticipated, and a boost in compensation funding from NZR for Super Rugby players injured and unable to play in the NPC.
Operationally, for the 2024 financial year, the ORFU budgeted an $8500 profit and reported an operating profit of $43,443.
Total revenue dropped from $4.53m to $4.39m, while expenses fell from $4.5m to $3.9m, the biggest drop being high-performance rugby (down from $2.47m to $1.84m).
The Otago union has long been focused on cutting its financial cloth to fit and it remains in a solid position with equity rising from $2.45m to $2.94m.
McCormack said the ORFU was taking a "cautious approach" to the next financial year and had approved a deficit budget of $119,000.
"The board has agreed to take a cautious financial approach to 2025 while we await the outcomes of a number of factors that may have a major impact on our funding levels over the next three years.
"These include the provincial union funding review, the Sky broadcast agreement, and the Collective Employment Agreement negotiations."
As well as the looming NZR funding cut, the ORFU has highlighted allocation of All Blacks tests to Dunedin "may not continue at past levels", a reference to the new Christchurch stadium.
Otago chief executive Richard Kinley reported overall player numbers in the province had dropped from 8148 to 7843.
Coach numbers remained the same with 585 registered, but referee numbers dropped from 112 to 103.
The ORFU will be looking for two new board members as Sarah Middleton and Leanne Ross stand down tonight.
