How two clubs have made their finances viable
by Adrian Seconi · Otago Daily Times Online NewsOur two-part series on the health of Dunedin club rugby concludes today with reporter Adrian Seconi chatting to two clubs about their challenges and successes.
University — the most storied rugby club in Dunedin — was facing financial ruin had it not made a series of changes to the way it gathers income.
The club got hit with three chunky bills two years ago and recorded a loss of $47,239 for the year ending September 30, 2024.
That basically wiped out half the club’s remaining equity in one year. And it had to delay paying one of the invoices, so the bottom line could have been a lot worse.
The club has sprung back, ready to make the next tackle.
It posted a profit of $37,239 during the last financial period, so the finances are looking up.
But club treasurer Roger McElwain was remarkably candid, suggesting University faced a ‘‘slow spiral downwards’’ had it not taken proactive steps to address the financial shortfall.
‘‘We would have been in real trouble financially if we hadn’t changed the model,’’ he said.
‘‘And it would be just a death of a thousand cuts.
‘‘I’ll give you an example. Our medical supplies five years ago were about $5500. Now we’re talking about somewhere around $10,500.
‘‘So, it would have been just inflationary pressures and so on.’’
The club posted four consecutive losses from 2019 to 2022. Three of those losses were under $10,000, but it lost $47,962 during Covid in 2020.
That was the catalyst that spurred it into action.
University had a better result in 2023, posting a profit of $14,455. But then it got hit with those bills and carved off nearly $50,000 from its bottom line, leaving the club with equity of just over $57,000.
There is a caveat here. The University of Otago Rugby Foundation has significant assets and funds. That is not included in the club’s financial accounts.
But the point is University was living beyond its means. It either cut costs or lifted its income.
It went with option two — make more money.
University decided to outsource its fundraising and to upgrade its liquor licence in the hope of raising more funds.
It has moved from a club licence to an on-licence.
University had to pay extra for it, but it can also hold more functions.
‘‘That’s one of the things that has turned us around.
‘‘And we’ve actually changed. Well, we now use a commercial provider in terms of sponsorship and grants and things like that.
‘‘In the past, we were getting around $18,000 to $20,000 a year in terms of grants and things like that. We’re now closer to $40,000 a year in terms of grants.’’
McElwain said the club had to do something different because the traditional forms were not keeping pace with rising costs.
Outsourcing the fundraising also freed up volunteers to contribute in other areas. And the specialists were able to bring in extra revenue, so it was a win-win for the club.
It was able to contract a rugby development officer to help with recruitment and to promote the club.
The story over at Montecillo Park is very similar.
Zingari-Richmond’s bottom line looks healthier.
The club turned a $22,008 profit in 2025 and has total assets of $753,510.
But club captain Matt French said the finances remained a challenge.
Nothing was getting cheaper, and traditional revenue streams were not keeping pace with expenses.
They have a commercial tenant — Patti’s and Cream Scoop Shop — who use their kitchen to create some goodies.
That has helped replace some of the income they used to get across the bar.
“We’re not in a bad position,’’ French said.
“We’re steady, is probably the right word. But there’s always room for improvement.’’
There is also room from improvement on the field.
Zingari’s division 2 men’s team folded after ‘‘three or four games’’ this season and they did not field a division 1 colts team.
Those are the teams who have traditionally fed into the division 1 team.
French said player depth was an issue, but not as critical as it may appear from the outside.
“Our recruitment strategy so far for next year is ahead of schedule, which is good.
“We will have a div 2 team next year and we are aiming to have a premier colts and an under-21s colts as well.
“We’ve got a very young premier side. And with that, we didn’t have the same experience as what we’ve had, but you’ve got to build it from somewhere.
“I think we’ve got great building blocks for the next couple of years. We’ve just got to make sure that we stay consistent with that.’’
Recruiting players is an ongoing challenge, not just for the Colours, but for the sport, French added.
“We’ve probably all got a responsibility as clubs to ensure that we keep people interested.
“How do you do that? It’s probably diversifying what we do.
“The old days of opening the bar and they’ll come is long gone.
“So you’ve got to do events like a cultural night, like a sponsorship night, some sort of, you know, community-type thing to bring them in.
“And then it’s showcasing that, not just players but families, because if it’s a family environment, they’re more likely to buy into it as well.’’
Health check
Last financial year
University
$37,239 profit
Total assets $92,869
Green Island
$2840 profit
Total assets $257,240
Alhambra-Union
$1516 deficit
Total assets $390,385
Southern
$19,359 deficit
Total assets $283,786
Taieri
$1928 profit
Total assets $1,260,719
Zingari-Richmond
$22,008 profit
Total assets $753,510
Harbour
$16,701 deficit
Total assets $546,070
Kaikorai
$6737 deficit
Total assets $520,766
Dunedin
$18,670 deficit
Total assets $220,488