The Otago Rugby Football Union has made its first profit in seven years.
Last year the union had to be rescued from liquidation by the Dunedin City Council and other backers.
Now its latest annual report shows the financial turnaround the public has been demanding.
A year ago it had debts of $2.35 million, after a run of losses from 2006 totalling more than $10 million.
But with much of that debt written off, large cuts to spending and loyal sponsors, the union made a profit of $217,805 last year.
Chairman Doug Harvie says it has been a lot of hard work but the union is paying back its debts and is sustainable, although its financial situation remains precarious.
Mr Harvie says he is cautiously optimistic about the future.
He says there are still big challenges to spend more on grassroots rugby in Otago and lift the union's income across the board.
