Manawatu Union in good financial heart

Manawatu Rugby Union chief executive John Knowles says the union will declare a financial surplus for the season.

That's timely considering that Manawatu's premier place is under threat and the New Zealand Rugby Union keeps saying seven Air New Zealand Cup unions are forecasting deficits.

It will also represent a remarkable turnaround following Manawatu's almost crippling $454,000 deficit last season.

The latest financial information has been passed to the NZRU, which will use it as part of its criteria in sorting out four teams to be cut from the 14.

Knowles said it was premature to announce an end-of-year result, because the auditors had yet to do their work.

The financial year ends on November 30 and the result is usually announced at the annual meeting in February.

"With the help of businesses and the community, coupled with the cost savings implemented earlier, we have had a half-million-dollar turnaround in our performance this year," said Knowles.

"This is a great achievement,"

Raising more than $300,000 from businesses and the community in October has helped.

He said the $180,000 equity deficit from last year would not have fully recovered.

Knowles said that if the competition was left intact at 14 teams, his union would improve its equity position (by which liabilities exceed assets) by the end of next year, with companies pledging continued sponsorship. "This may not be the case if we are relegated to division one.

"But there are sufficient indicators to show that we will be able to maintain a strong, sustainable position in the future should we stay in the premier competition in 2010."

With a decision looming on December 10 as to which unions will be dumped to division one, it has been difficult for Manawatu to commit to commercial or player contacts.

Knowles added that after the fine performance by the All Whites last Saturday, the NZRU had to be concerned about future support.

He said a decision to cut premier teams was premature in light of the players' collective agreement negotiations.

"With a likely reduction in the level of player payments, the competition will be far more affordable for all unions currently involved in the competition. I don't understand why the decision is not delayed for a time until this piece of work is completed.

"It is more a case of the NZRU's determination to narrow the window of time to 12 weeks than anything else.

"That issue can be rectified if there is a willingness to do so. I hope New Zealand rugby does not pay a hefty price for this decision."

For Manawatu, that would be counted in dollars.

- © Fairfax NZ News