Canterbury R.F.U. records loss

Press, 28 December 1989, Page 12

Canterbury R.F.U. records loss

By

BOB SCHMACHER

For the first time in the 1980 s, the Canterbury Rugby Union’s financial year finished in the red. The accounts, to be presented at the annual meeting in February, will show a deficit of $1735. The union’s treasurer, lan Allott, is not too perturbed about the loss, however, and is confident that “the pendulum will swing to the right side of the ledger next year.” Mr Allott, who has been treasurer for nine of the last 10 years, said yesterday that the main contributing factor to the loss was the sharp drop in interest rates. “Our investments returned less and because our cashflow from games throughout the year was down we had fewer opportunities to invest.”

Whereas receipts from interest and sponsorship in 1988 had amounted to $376,468, this year’s receipts came to $278,224. Mr Allott said that sponsorship had been maintained at a similar level and the bulk of the loss was attributable to the drop in interest rates. Mr Allott said that white he was pleased the gate receipts for representative matches were up by about $30,000 he warned that this often occurred every second year when the traditional crowd-pulling matches against Auckland and Wellington were played at Lancaster Park.

“We will play those national championship matches away next year, but we play Queensland, Auckland and Wellington at home in the South Pacific championship to compensate and we have two excellent internationals, New Zealand versus Australia and Canterbury versus Scotland.”

Although gate takings at Rugby Park im-

proved $BOOO on the 1988 figures, the returns at Lancaster Park were almost $7OOO down on the previous year. The inclement weather at the start of the rugby season and the need to protect the Lancaster Park surface for the internationals combined to prevent club rugby from being played on the oval until well into the season.

The test match between the All Blacks and France netted a little more than $30,000 but a small loss was shown on the Canterbury versus Argentina match which Canterbury hosted on behalf of the New Zealand Rugby Football Union. The union’s total income amounted to $448,605 compared with $568,958 in 1988, while the expenditure totalled $450,340.

Mr Allott said that a general increase in staff salaries and increased costs towards the representative teams, especially the B team, represented the biggest rises in expenditure. Administration expenses were up by $20,000 and travel expenses for the B team went from $11,681 to $30,264. “The Canterbury B team travelled to the North Island for the first time as part of a three-match northern tour and extensive travel is envisaged next season. But we see this money as an investment in Canterbury’s rugby future.” A promotion which resulted in all children in the J.A.B. competitions receiving free mouthguards also cost the union $12,000. The union has maintained its policy of making loans to clubs. About $20,000 was loaned this year and the union has almost $69,000 on loan to clubs.

Because of the small loss there will be no transfer of moneys to reserve funds. Over all, though, the Canterbury union is in good heart with total net assets of SI.BM.