NZRU concerned by overspending
ESPNscrum Staff
January 2, 2011
Southland skipper Jamie Mackintosh leads the celebrations following victory over Auckland, Southland v Auckland, ITM Cup, Rugby Park, Invercargill, New Zealand, September 23, 2010
Southland held the Ranfurly Shield for much of 2010 but are now in a grave financial situation © Getty Images

New Zealand Rugby Union chief executive Steve Tew has revealed that Southland is not the only provincial outfit currently in financial trouble.

It emerged on Saturday that Southland has debts of over $700,000. Given that the team enjoyed a reasonably successful 2010 on the field, the scale of the union's financial problems caused has generated much surprise. However, Tew explained that a number of New Zealand's provinces are living beyond their means.

"It's not rocket science. You have to earn more than you spend or you don't survive," he is quoted as saying by the New Zealand Herald.

"At the end of last year, we made no secret that a significant number of unions are finding it very difficult to bank the income they require to sustain the business model they have put in place. Some are taking longer to adjust to the new environment, longer than they should have, but they will get there.

"There are two or three others who are on close watch by the NZRU and they will have to be very mindful of how they get through the next couple of months and how they set themselves up for the next ITM Cup."

© ESPN Sports Media Ltd.

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