Tough times for rugby union
Jobs are on the line at the Taranaki Rugby Football Union in a restructure understood to be connected to its precarious financial state.
On Friday, chief executive Laurence Corlett confirmed the TRFU was looking at restructuring in what he described as a ‘‘difficult period for rugby in New Zealand’’.
‘‘It is a very challenging time for our organisation, as it is for many others around the country,’’ Corlett said.
‘‘Unfortunately, due to the issues with Yarrow Stadium, we entered this lockdown period already compromised financially.’’
The former Taranaki Bulls and Hurricanes player said it had been a pretty tough four to five weeks.
The Ministry of Social Development website shows the Taranaki Rugby Union Inc relied heavily on the wage subsidy scheme to get through.
It has received $148,903.20 in subsidies for 24 employees while
Taranaki Rugby Promotions Ltd, 100 per cent owned by the union, received $184,140 for 27 employees up until May 12.
The TRFU was already in financial strife before the Covid19 crisis. In 2019 it was more than $818,000 in the red after the 2018 season.
While the closure of the two main covered grandstands at Yarrow Stadium due to earthquake risk contributed as much as $565,000 towards the deficit, the union was already seeking to drastically reduce costs when the Covid-19 crisis began.
That crisis has seen the start of the Mitre 10 Cup, a national provincial competition unions heavily rely on to generate income, pushed back more than a month. It is now due to kick off on September 11, after being pushed back from early August. An amended draw is being prepared.
Funding from the New Zealand Rugby Union had also been reduced.
Corlett said the union been in discussions with about the potential changes.
‘‘It has been a consultation period for the last week and a had staff half,’’ he said.
‘‘We have taken a lot feedback on board, and haven’t made a decision yet.’’
He said the union was working hard to communicate directly with staff to ensure any decisions made did not impact negatively on any facets of rugby in Taranaki.
Corlett did not answer questions about how many jobs could be lost. However, he indicated he would provide further details early this week.
‘‘Out of respect for TRFU staff potentially affected, we will not be commenting further until the process is complete." of we