Editorial: Innovation vital to survive

On the night of February 27, I was watching the television news with astonishment.

Otago rugby union was in so much financial trouble, it was poised for liquidation, facing a $2.35 million debt and a loss of about $750,000 this year.

This dire financial state put Otago's participation in the ITM Cup at risk and raised questions about other rugby unions.

How could all this happen?

We are a rugby nation. Otago has a long, proud tradition in our national game, one that has spanned 131 years. It represents a large catchment of fans and I was left scratching my head as to how the people in charge of such an organisation could let things get so out of control.

The reasons given are the union's Carisbrook valuation caused it to accumulate too much debt and this emerged as a problem when the ground sold for far less than expected. The union also over-stretched itself in buying players.

As of yesterday, the union has delayed a final liquidation decision until this Friday. Here in the Bay, things are very different.

The Bay of Plenty Rugby Union is set to announce its fourth straight profit - similar or slightly less than last year's $51,000.

The recession has hit businesses hard and organisations such as rugby unions are no different. Many of the same business practices apply.

In this current climate, it is crucial businesses adapt and change. It is often the case that the old way is no longer acceptable. New ways of doing things and more efficient, flexible models must be invented.

Or businesses die.

And within such change, innovation is key.

Such creativity is evident at the Bay of Plenty Rugby Union.

Yesterday's article about the union's plans to offer up to 2000 children the chance to have their names printed on the very jerseys worn by the Steamers this season is brilliant and inspirational.

As part of the union's Kids Club, each child aged 5 to 12 can get their name on the Steamers' playing and training jerseys plus enjoy all other Kids Club benefits - seasons tickets, discounts on merchandise, a personalised birthday letter, competitions and the chance to be a ball boy/girl.

If 2000 young fans sign up, that's worth $100,000.

It is clear to me we have a rugby union team thinking of new ways to engage the community and fans, and new ways to survive in a tough economic market. Its leaders are positive and full of energy.

Other unions, and indeed other businesses, may want to look at Bay of Plenty and learn from them. I look forward to seeing what they come up with next.