Rugby Southland suffers loss worth 0.5 million dollars
Rugby Southland has to post a financial loss of around half a million dollars in 2010. This statement was released by Owen Shaw the chairman of Rugby Southland and he added that such situations are a result of extremely challenging rugby environment. Financial
accounts are yet to be closed and finalised, but the estimated loss is anticipated to be around $480,000. Shaw admitted that revenue from donations and grants was drastically less than expected.
Roger Clark, General Manager for Highlanders said that it’s not for him to choose whether the financial crisis at Southland gives a bad image to his new employer. In a statement released yesterday, it was clearly stated that Rugby Southland admitted that
such a huge blow out of $480,000 was unacceptable and it was caused by inability to cut costs and reduction in grants. It was uncovered last month that Southland will be under a loss of $400,000. The chief executive for Rugby Scotland for twelve years who
retired in May, Clark claims that he has worked as hard as he could for the Union.
He said, “I have done as much as I can to help them and to help generate revenue. People can read into it what they want to but I can put my hand on my heart and say I did all I could for that organization.”
He also revealed that the budget for Rugby Southland was not overly bright and numerous people also agreed to it, so they must have been certain about meeting targets.
As far as any sporting organisation is concerned, budgeting has always been difficult and another drawback about it is the fact that the budget has to be decided before the revenue comes in. In such scenarios, budgeting is done based on assumptions and ideas.
Owen Shaw said, “What people don’t realize is you have to commit costs about a year out from actually taking the field. Then you have to guess the revenue situation which, as anyone in business knows, can be very difficult.”
He believes there is criticism that they didn’t regulate when their revenue condition didn’t meet the target forecasted. But then again it isn’t as easy as it seems.
Southland had set previous year’s budget abruptly after winning the Ranfurly Shield in 2009. Owen Shaw said that maybe it was too optimistic in practicality.
He added, “When it became evident the budgeted income would not be achieved, we were unable to make changes as players had already been contracted and operational costs committed to.”
Shaw said there have been a number of meetings arranged in series with all the players to keep them alongside each other of the situation. It is assumed that one of such meeting s were held this week.
He explained, “I don't believe (the players) have got anything to be concerned about ... their actual payments have been getting paid on schedule.”
After consistent pressure by community funders, Shaw has assured the replacement of Change Manager in Licensing Trust Community off Southland will take place and he has already shortlisted a few.
Finances of Rugby Southland will be overlooked by Change Manager, as it will try to trade its way out of this disputed and insolvable situation and generate a report on how the union should sustainably operate in future to overcome and avoid such losses.
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