Rugby Southland has reported a surplus of $177,000 at its annual general meeting on Tuesday night — a strong result on paper, but one the organisation says needs to be viewed with important context.

The surplus includes approximately $80,000 that had been budgeted as a repayment to the Ministry of Social Development (MSD) for wage subsidies received during the Covid period. However, New Zealand Rugby (NZR) has since agreed to cover this liability on behalf of all 14 provincial unions — a one-off adjustment that significantly improved Rugby Southland’s bottom line.

Removing that factor, the Union’s true operational profit sits just under $100,000 — still a notable achievement that exceeded expectations.

“This is a result we can be proud of,” said Rugby Southland CEO Hua Tamariki. “It reflects a lot of hard work behind the scenes, careful management, and strong support from our community and commercial partners. But we’re under no illusion — some of this came down to timing and circumstances we couldn’t predict.”

The 2024 financial result puts Rugby Southland in a stronger equity position and provides the organisation with flexibility heading into a period of uncertainty.

Looking ahead, the Board has approved a deficit budget for the 2025 financial year. The deficit reflects in part the largest portion of NZR funding cuts, as the current funding cycle from New Zealand Rugby enters its third and final year. Despite this, the Union remains confident that, with a lift in local support from funders, sponsors, and fans, they can make significant strides in reducing the deficit.

“We’re committed to delivering value at every level of the game,” Tamariki added. “The decision to run a deficit next year hasn’t been taken lightly, but it reflects our long-term view — that investing now will pay dividends for the future of rugby in the province. We are hopeful that with increased local backing, including hitting our target of 10,000 fans at our season opener against Otago, we can eat into this deficit considerably.”

“This result gives us a platform, but our focus is firmly on sustainability,” said Tamariki. “We’ll continue to make smart, strategic and operational decisions that put people and rugby first.”

Rugby Southland Chairman Murray Brown said the full Board are pleased with the progress of the CEO and management team, recognising the recent work undertaken to realign the organisation with a view to meet the challenges and demands that lie ahead.  

“This year’s surplus is a good result, and the operational performance was especially pleasing — it shows we’re tracking well internally,” Brown said. “But there are some big conversations happening at a national level that will have a direct impact on all provincial unions. We need to remain agile and financially disciplined as those changes come into play.”

Among those national-level developments are the NZR provincial funding review, the Sky broadcast agreement, and the current Collective Employment Agreement negotiations — all of which could reshape how rugby is funded and delivered across the country.

Rugby Southland remains focused on supporting grassroots participation, developing pathways for players and coaches, and sustaining the strong community connections that underpin the game in the region.

Article added: Wednesday 16 April 2025