The cheque has been written and the Otago Rugby Football Union is still in existence, but Steve Tew is adamant the controversial deal will not set an unhealthy precedent.
As part of the rescue package announced on Wednesday night, the New Zealand Rugby Union loaned the debt-saddled Otago union $500,000 and wiped a $270,000 debt.
But Tew denied it would send a message to the other 13 major unions that help would be available if they got themselves in similar trouble.
"I'm not so concerned about the word 'precedent'. You can't argue it is not a precedent because we have done it, so it is," Tew told the Otago Daily Times yesterday.
"The key message we have to get through here is we were very reluctant to do this.
"There are unions that are pleased and assured Otago will play in the ITM Cup. But there are a number of unions which will raise their eyebrows about what has been happening down there in Otago.
"That is why we are keen to reinforce this message. It is not meant to say you can do what you like and we will come and fix it. Because we won't.
"We do not want to be seen to be rewarding those unions that end up in trouble when we don't reward unions that do the job well."
Tew said the NZRU would be keeping a close eye on decisions made by the Otago union in the next few years, though nothing had been decided on the form the new board would take.
"Half a million dollars is a lot of money to loan an entity so we will use the opportunity that gives us to rewrite the constitution focusing on best practice governance and processes. We want the right people sitting around the board, making the right decisions."
The NZRU would not demand a place on the new ORFU board, he said.
"I don't think that helps anyone. But certainly for a period of time we will be keeping a very close eye on governance and management of this organisation to make sure our investment is protected."
Tew admitted there were no cartwheels done at rugby headquarters when the deal was stitched together to bail out Otago.
"There is still an awful lot of work to be done, and it has not been without its grief. It was a balanced decision."
The NZRU's $500,000 loan was to be paid back back within five years on "standard terms". The loan was on top of the $270,000 written off.
"This is the first time we have written off money we have loaned to a union in the modern era, so that has weighed on our mind quite heavily.
"In the end, we made a considered decision late last year and earlier this year to provide Otago some bridging finance while we assisted them to find out where they were at.
"Money was always at risk. If they had liquidated, we would have lost that money at any case.
We have written off some debt which was owed to us. By doing so other parties have cleared some debt to enable this organisation to continue."
Tew felt provincial unions were turning the corner financially. If Otago, Canterbury, which was feeling the impacts of the earthquake, and Auckland, which distributed money to clubs before announcing profits, were taken out of the equation, just two unions in the ITM Cup would record a financial loss this year.
The salary cap was only relevant for two or three of the larger unions, he said.
Part of the deal to keep Otago going was to get two category A tests at Forsyth Barr Stadium over the next two years.
Tew effectively confirmed Dunedin would get a Bledisloe Cup game next year, the first test between the All Blacks and Australia in the city since 2001.
Category rating of tests was almost irrelevant now, he said, as the IRB had set up an international programme.
France was due to tour next year, with England coming in 2014.
"We are mindful it is looking like we have an incredibly and unique rugby venue [Forsyth Barr Stadium] there. It will be great for the All Blacks as it is proving for the Highlanders.
"We are mindful that your community has invested heavily in developing that facility. We certainly have a role to play. We never gave any guarantees but gave an indication if all things were equal we would push plenty of rugby through it."
