Otago Rugby Going Broke

The ODT reports that Otago Rugby lost $0.75 million last year. The Union's income has reduced by more than $1 million a year, as crowds have dwindled over the last few years. The disappointing attendance of 7,500 for the recent Highlanders game continues this trend. And the appointment of an Australian coach instead of local legend, David Latta, is not likely to inspire loyalty from fans.
Otago Rugby was lucky to be bailed out by the City Council's purchase of Carisbrook for a very generous price of $7 million. But a business cannot carry on making losses every year. The Dunedin City Council has guaranteed Otago Rugby's overdraft, and there is a real risk that this guarantee will be called upon.
And, of course, the Stadium is relying on Rugby for a major share of it's income. Only the top seven teams in this year's National Championship will be in the top division in 2011. Otago finished seventh last year. The Stadium may have to attract crowds with a second-division team team.