Otago Rugby produced a $51,000 cash loss for the 2010 year and, although any loss was disappointing, union general manager Richard Reid said compared to many other unions this was a satisfactory result.
"But $50,000 is still money lost. It does not make it right. I hate losing any amount of money. But we have been making adjustments for a long while now. Over the past three years we have taken $1.25 million out of the expense line," Reid said.
"And for any little business that is a lot of money. I'm not sure whether it impacted on our performance on the field but we have been adjusting staff for a long time now."
Other unions were likely to announce huge losses, with Waikato set to record a $400,000 loss and Southland about the same. Wellington would also post a loss of more than $200,000.
Unions could not continue to bleed money and the obvious answer to reduce costs was to cut players.
"That is like in any business. The biggest cost centre within provincial unions was the first XV. If you were looking at trimming expenses then that is where you would start. There is nothing unusual in that. That is what any business does."
Otago spent about $1.1 million to run its top team last year, about the mid level of spenders in the ITM Cup.
When professional rugby was set up the domestic provincial competition was supposed to be semi-professional with players to become fully professional at the next level up.
"I would like to think it will become like that but when you are allowed to pay up to $60,000 for one player then it may not be possible. You are paying a full-time wage for a part-time job.
"Players deserve to get paid but the amount they get paid is too high ... the players might argue that is what they are worth in the world market but when you compare it to what the average person is getting for working a 40-hour week then you do wonder."
He said it was a pipe dream that all unions would agree to pay within their means, and said in the end the problem would have to be solved by the New Zealand Rugby Union and the New Zealand Rugby Players' Association.
But with the national union and the players association just into the first year of a three-year deal it might be hard to get the two around the negotiating table.
"If enough pressure came on it may happen but at this stage I haven't heard of anything."
