9 Feb 2009

A cut in financial loss to ORFU

2:52 pm on 9 February 2009

The Otago Rugby Union has managed to reduce a substantial loss in its financial performance for 2008.

After depreciation, the Union lost 467 thousand dollars for the 12 months compared to 1.5 million the year before.

Chairman Ron Palenski says it's an excellent effort and the Board and staff are very pleased.

Chief executive Richard Reid says in cash terms the comparison with 2007, prior to depreciation, is a difference of more than a million dollars, which is a mixture of greater income (partly through the Springbok test) and considerably less expense.

Reid says the ORFU is not immune to the global financial crisis and it is carrying an expense line, particularly the interest payable on borrowings, which is problematical in the medium to long term.

He says ensuring the ORFU is a financially viable business, in 2009 & beyond, continues to be a high priority.