Rugby: $1m in equity for Hawke's Bay union

Hawke's Bay Rugby Union financial director Dan Druzianic and chief executive Mike Bishop congratulate each other on achieving more than $1 million in equity. Photo / Simon Cartwright

There have been plenty of historic moments for the Hawke's Bay Rugby Football Union in recent seasons but none as major on the financial front as the latest.

Union financial director Dan Druzianic told its 132nd annual meeting last night in Napier it had reached $1 million in equity for the first time . . . $1,154,158 to be precise.

"We've been slowly creeping up there for a while now and it's an excellent milestone to achieve," Druzianic said.

In addition to the history-making equity figure the other major highlight in the financial report was the announcement of a $202,248 surplus, $178,185 more than the previous financial year's. Druzianic said a key factor in the surplus was the $282,500 valuation of union land at Latham St which will be swapped for land at the proposed Northern Sports Hub at Park Island.

Revenue dropped $98,313 to $4,417,211. An $85,000 drop in NPC match income to $114,189 contributed and this was a result of no Ranfurly Shield fixtures or semifinal and final like the previous year.

"We have the second highest home crowds in the country behind Canterbury but like everybody else we are experiencing a drop in gate takings," Druzianic said.

The New Zealand Rugby Union's grant increased by $615,812 to $1,600,000. Union chief executive Mike Bishop pointed out this was the result of the national body securing more television money and realising it needed to support the provincial unions more in the wake of challenging gate takings and decreases in gaming revenue and grants.

Total expenses for the union increased by $6,002 to $4,497,463. Delegates heard commercial sponsorship reached the $1.8m mark.

Druzianic predicted a $36,094 surplus for 2017.

Bishop told the meeting overall playing numbers in the Bay had increased by 4.8 per cent. Female playing numbers had increased by 6 per cent with Olympic Games Sevens a major carrot.

The hottest general business topic last night was the union's decision to go with the Napier City Council's Park Island hub rather than the Hastings-based project supported by Sir Graeme Avery.

Hastings Rugby and Sports delegate Jack Sanders questioned the union's lack of consultation with stakeholders on the issue and the costs involved. Union chairman Brendan Mahony said the union was getting a freehold facility at Park Island but would still use the Hastings facilities if and as required.

Bishop said the union would have access to eight grass fields at Park Island and two artificial ones. One of the grass fields and one of the artificial ones would have lights.

There would also be a multipurpose gym at the venue. Mahony stressed his board would not allow the union to get into trouble over the issue.

"There will be facilities there to run a Super Rugby team should that opportunity arise," he added.

"The lack of consultation is something to look at. We're used to making hard decisions and when you get $3m worth of asset for nothing you have to take it. It was a democratic decision and we will stand by it," union director Steve Lunn said.

The only change to the top table saw former All Black and Magpies first five-eighth Blair Furlong step down after two terms as president. He was replaced by Hastings Rugby and Sports and Hawke's Bay Polo Club stalwart Paul Daniel who was elected unopposed.

"I know I've got big shoes to fill. Blair has done a tremendous job in Hawke's Bay and around New Zealand," Daniel said.

"It's been a pleasure and an honour," Furlong said before vacating the chair.

Officers elected: Patron, Neil Thimbleby; president, Paul Daniel; chairman, Brendan Mahony; directors, Kevin Atkinson, Dan Druzianic, Peter Fleming, Colin Francis, Grant Gilbert (co-opted secondary schools representative), Taine Randell and Simon Tremain.