Provincial unions are back in the black

Photo / Thinkstock

New Zealand's provincial ITM Cup rugby unions are collectively back in the black, according to international accounting firm Deloitte.

Together, the unions achieved a combined annual surplus of about $540,000 last year - the first profit in at least six years - compared with a loss of $630,00 a year earlier.

Nine of the 14 unions made a surplus over the year. After adjusting for its restructuring package, Otago managed a surplus of $200,000.

Auckland's surplus was $127,000, against a $92,000 loss a year earlier.

In Deloitte's State of the Unions report, which examines the annual accounts of the 14 semi-professional and amateur rugby unions competing in the ITM Cup, which starts this weekend, the firm said there had been an overall improvement in financial performance in 2012, with lower costs outweighing decreasing revenues.

The combined revenue, adjusting for the Otago revamp, fell by 2 per cent to $67 million, and was down 20 per cent from $84 million six years earlier.

Over the past year, total costs dropped $2 million to $66 million.

Deloitte partner Grant Jarrold said the small collective surplus was largely a result of cost-cutting, particularly in administration, and in team and match-related expenses.

"While the unions have been able to cut back on total expenditure, they have not compromised their investment in the grassroots game which forms such a vital part in the health of New Zealand rugby."

In all, 48 per cent was spent on team and match-related costs, 30 per cent on growing the game and 22 per cent on administration, Mr Jarrold said.

In revenue, Canterbury led the way with a total of $9.5 million, followed by Auckland with $9.1 million and Wellington with $8 million.