NZRU approve loan to Otago Rugby

The Otago Rugby Football Union (ORFU) has accepted a financial loan from the New Zealand Rugby Union (NZRU) to address concerns over a likely impending loss for last year.

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Coupled with their accounts being in the red for the last five years, the ORFU approached the NZRU, who confirmed there was an undisclosed amount lent, while Jeremy Curragh has been appointed to oversee the transition to profitability.

NZRU provincial union and community rugby general manager Brent Anderson said that the monies being handed out were not representative of a crisis, but simply the desire to help the Otago union get their balances back into the black.

“For some time, we have been aware of the financial problems facing Otago Rugby,” Anderson said.

“It’s important to remember this is an incredibly stressful time for the Union, the Board and the staff. That’s why we have been working with Otago to help them get a clearer picture of their financial position.”

Mr Anderson said that Curragh’s appointment and the loan itself did not come from any financial inquisition into the union’s finances, but was indicative of the national body wanted to help the ORFU reassess their viability and health for the future.

“There have been no forensic auditors or accountants,” Anderson said.

“The NZRU has provided personnel support to Otago to help them assess their current situation and to look for viable solutions for the future.”

Mr Curragh – who serves as the chief executive of New Zealand based company Natureshop (the country’s fastest-growing exporter), as well as working with Merrill Lynch and Lellman Wearne Curragh Limited - comes with a history of improving union’s finances.

He worked with Bay of Plenty rugby for three years, where losses of nearly three quarter of a million dollars were turned around into the union yielding profits.

Bay of Plenty board chairman Bruce Cameron lauded Curragh’s impact, who also headed from the Bay to Southland to assist ‘change’ manager Stuart Heal address the Southerners finances.

"Apart from an uncanny knack of pulling rabbits out of hats, Jeremy has an extraordinary ability to implement board strategy with the upmost clarity and without confusion. As well as the commercial side, he's brought with him a huge HR perspective - hardnosed commercial decisions backed by strong strategy,” Cameron said.

Mr Curragh helped turn the Bay and their off field position around, and he will now work with the ORFU to ensure a positive outcome for all parties.

Mr Anderson said the loan would ensure that Otago rugby was able to stay on their own two feet in the coming months.

“As well as picking up responsibility for the appointment of Jeremy Curragh, we have provided Otago with a loan in order to give them breathing space to help them resolve their financial difficulties.”