The NRU has posted a $172,603 profit for the 2013 year, thanks to a $146,754 pay out from the privatising of the Blues franchise. Photo/Michael Cunningham
The NRU has posted a $172,603 profit for the 2013 year, thanks to a $146,754 pay out from the privatising of the Blues franchise. Photo/Michael Cunningham
It may have taken a while but the Northland Rugby Union finally has its debt under control, after posting a 2013 profit of $172,603.
However, the NRU announced at last night's annual general meeting that the over $170,000 profit recorded is largely due to the privatisation of the Blues franchise- of which Northland had a 20 per cent share but now only has 3.6 per cent.
Chief executive officer Jeremy Parkinson noted that while it was pleasing to post a profit for the second year on the trot, large chunks are from a one-off income source.
"I need to put this into perspective as $146,754 of this surplus can be attributed to the Blues, being a dividend of $91,554 - which was immediately off set against our loan with Auckland Rugby - with the remainder being $55,200 [from intellectual property ownership in the Blues] shareholding in the new ownership model of the Blues," Parkinson explained.
"[The NRU] still have approximately $231,000 of unsecured debt and debenture holders but are again budgeting for a surplus in 2014 which we will allow us to continue to retire debt and build cash reserves for the future."
Parkinson noted that if the Blues contribution was removed from the equation the NRU would have still posted a profit of $25,000.
While receiving such a one-off boost is a welcome occurrence, Parkinson said it was not likely to happen again due to the NRU's inability to buy back their 20 per cent share last year - although the NRU never budgets the Blues as an income source.
"We got offered to buy back in but we didn't have the funds, so all we have is our intellectual property ownership which is those [3.6 per cent] shares."
After sitting nearly $500,000 in debt in 2008, Parkinson said having the finances in check was reassuring.
"It's always good news when you're presenting a profit and I will probably get to keep my job for another 12 months," he laughed. "It is pleasing though, coming into the role three years ago it was pretty tough and my first year wasn't very enjoyable - we made some good people redundant and we stripped a lot of the business back but it has allowed us to trade prudently ... now we need to start putting back into the business and need to continue to deliver to the community game.
"We got good support locally from Derren [Witcombe] and George [Konia, ITM Cup coaches] picking locally with their ITM Cup team, but now we do need to get some runs on the board ... start delivering with local players."
