University chairman Kelvin Fisher said the club would, at best, field two colts teams, though at one stage it looked as though it would have only one team in the competition.
Fisher said when he first joined the club, in 1993, University had nine teams - two in premier, a senior B side, three colts teams and three under-19 sides.
This season, it was likely to field just four men's teams.
Many who do not make the University A side or the top University colts side leave the club, while University B was relegated from the premier grade at the end of 2008 after struggling for many years.
This year, even the club's glamour colts side, the Blues, has been struggling for numbers, particularly in the front row.
"The numbers are not coming through. We used to have 400 players trialling at the club for the top colts team," Fisher said.
"This year we got 150 registrations. But we haven't got the members among the administrators. There are clubs who have lots of people ringing these boys day after day at home promising them the world. It ends up that the boys feel guilty if they do not play for that rugby club."
Fisher said other clubs were aggressive in targeting players who were attending university and contacted them well before they arrived in Dunedin.
He understood all clubs liked to attract younger players but wondered if those players would be given a chance to reach the top level.
"These clubs can have plenty of colts players but where do they go from there? The First XV of these clubs are not going to move on and give them a spot."
Dunedin club captain Ross O'Connell said he would not describe his club's methods in trying to attract young players as aggressive.
He admitted players from around the country were rung by club members in the off-season and letters were sent to schools around the country, but said all they were doing was "providing an outlet for young people to play sport."
"We make a wee bit of a fuss of them and give them a couple of beers and a feed at the start of the year," O'Connell said.
"But as soon as the season starts they get nothing extra. We do put on a couple of vans to get them to practice but so do lots of clubs. They all have to pay subs and the coach might shout them occasionally, but every coach does that."
O'Connell said Dunedin would possibly have four colts teams this year.
Southern club captain Blair Crawford said a member contacted prospective colts players but the club was not aggressive in seeking players.
He said no money was offered and word of mouth was the most powerful tool in attracting players.
Southern had three colts teams last year but would have only two this year.
"I think that all clubs should be limited to having only two colts teams each. There is no point of one club having four colts teams and another two clubs having none. That benefits no-one," Crawford said.
Otago University has produced 44 All Blacks, the most of any club in the country, and has won 49 banners, though it has not won a premier banner since 2004.
"They say All Black rugby is strong when Auckland rugby is strong and Otago rugby and Highlanders rugby is strong when University rugby is strong. Whether that is right or wrong, you just have to look at how Otago and the Highlanders are performing," Fisher said.
Fisher said the University club, which had its 125th anniversary last year, had tried to change its marketing this year to attract players.
Club members went round student hostels and had sent letters to people to try and attract members but the club suffered from a lack of administrators.
"Unfortunately, because our club is full of students, when they graduate we find they move on and so there is nobody left to run the club. We haven't got the guys who play third grade footy for years and then help out in administration.
"There are guys in Dunedin who have finished with the club but they have young families and time for them is precious.
"It is wonderful to have all those names on the honours board but it would be just as good to have as many administrators."
Former Otago lock Brendon Timmins has returned from Japan and has agreed to coach the Blues colts team, along with former Otago amateur rugby manager Justin Gardner.
Professional rugby had not helped the situation. Fisher said having the likes of Anton Oliver or Marc Ellis coming through the grades at the club were over.
"If Anton came on the scene now he would be signed up by Marlborough and the Crusaders and be in an academy well before he left school."
The club named its A and B sides this week and he was confident both sides would be very competitive.
Social rugby has also affected the club. The university social competition attracted more than 20 teams, but that was down from nearly 30 teams a few years ago.
