KEY POINTS:
Private investors could be invited to take ownership of provincial rugby and save the heartland game from financial ruin.
The Herald on Sunday has learned that several unions have informally sounded out potential corporate investors.
According to one well-placed source there are several businesses and consortiums who have
expressed a desire to invest but not under the current governance structure.
The biggest impediment to investment is the continued involvement of amateur club officials in the running of what are professional entities.
"One of the big problems is that the clubs' objectives are not aligned with those of fans and sponsors," said the source.
"One of the big reservations sponsors have is the lack of professional administrators running the provinces.
"If you could give private enterprise greater control in the running of the Air New Zealand Cup team, then there is an appetite to get involved."
While the idea of selling ownership of Air New Zealand Cup teams will incur the wrath of traditionalists, few can deny now that the provincial game has reached crisis point.
In recent months, Bay of Plenty has posted a $759,000 loss, Otago a $1.5 million deficit and Northland are $350,000 down. Even Canterbury revealed a $428,000 loss in 2007.
These ghastly numbers have been racked up despite the New Zealand Rugby Union's pumping an estimated $15 million into the 14 premier unions.
And with player costs showing no signs of abating, crowd figures dwindling and the NZRU facing its own cash crisis on account of the raging New Zealand dollar, there is a consensus among provinces that drastic action is required.
A summit will take place later this month and Taranaki chief executive, former All Black centre Mark Robinson, said: "I think it is fair to say that we are expecting some change.
"As a union, we don't discount anything. There really needs to be some very thorough research on all aspects of the game.
"There are any number of different ways things could change from the current format of the competition, to the franchise agreement with the Super franchises.
"I think in regard to private investment, it's hard to see the benefits for the investor under the current structure."
For the barriers blocking private investment to come down, there would have to be a new agreement on how to fund club rugby.
Air New Zealand Cup teams would have to be separately run, with no mandate to push surplus cash back into the grassroots.
That would, however, create issues around individual contracts where a team owner could insist on a player being made available against the express wishes of the NZRU.
"The question you have to ask about private ownership is whether the issues created would be more damaging than the existing ones and the answer would be 'no'.
"When unions are posting huge losses, getting money into the game is critical and the detail of managing players and contracts can be worked out."