Crusaders post $297,000 loss

Relevant offers

Rugby

Referees tackle sticky breakdown area Mission accomplished: one down Crusaders' field day Food bill hit family Argentina trip to chase third rugby cup win Former sevens star steps up for Longest Day Ticket price hike rejected by Crusaders Crusaders, All Blacks miss Laureus Awards Crotty shaping up to replace SBW Relaxed West Coast vibe contributes to the fun

The Crusaders deny they are in financial crisis after recording a $297,000 loss for the 2009 season.

Poor crowds – caused by the reconstruction of the Deans Stand at AMI Stadium and the recession – have been blamed for the franchise recording their first loss since 1997.

Crusaders chief executive Hamish Riach said the completed stadium and a plan to reduce ticket prices next year would help draw fans and get the balance sheet back in black.

"It is a big figure and we are as motivated as anyone could be to turn it around. I don't think it is a crisis," Riach said.

"There are some things we have in place to get the crowds back and keep them coming back. A new stand and a receding recession aren't going to solve things by any means, but they are going to at least give us an opportunity to swing things in our favour."

Last year the Crusaders made a $300,000 profit, but a 30 per cent reduction in crowds, one fewer round-robin match and not hosting any play-off matches gouged a massive hole in the balance sheet.

The return of All Blacks first five-eighth Dan Carter and an extra round-robin match are positives for next season, although the loss means there will be no pay-out to feeder provinces Canterbury and Tasman and that will impact on their ability to woo new players through lucrative contracts.

"No businesses can sustain losses on an on-going basis without there being an impact," Riach said.

"We are looking to minimise those ... but clearly if it was to continue, it would have very serious ramifications."

The Crusaders are not the only rugby entity to struggle this season, with Canterbury expected to announce a loss of around $800,000 at its annual meeting in February.

But the embattled Tasman union will buck the trend and record a six-figure profit.

Although he would not release the exact figures, chief executive Peter Barr said the union had taken a massive step forward in reversing its financial misfortunes – the first profit since it was formed in 2006.

The result ends a horror run for Tasman who last year recorded a net deficit of nearly $2 million, although the majority of that was viewed as a paper loss, and the union's operating losses were about $200,000.

Now the balance sheet has been sent to the New Zealand Rugby Union and Tasman will use it as evidence to back their argument as to why they should not be among the four teams culled under the proposal to reduce the NPC to 10 teams.

Prudent spending has proved to be a winner for Tasman who have also not ruled out taking legal action in their fight to remain in the top-flight premier competition.

They are also paying back the $340,000 loaned to them by the NZRU last year, to be repaid over 10 years.

The NZRU hopes the four demoted teams will be joined by Mid-Canterbury and Wanganui in the new Division One competition and it is understood the new Heartland unions have been given until December 1 to decide.

Last night the Mid-Canterbury board was expected to discuss the proposal before consulting local clubs.

- © Fairfax NZ News