Rugby: Tough year yields surplus

New financial committee chairman Dan Druzianic (left) and union CEO Mike Bishop discuss the union's 18th consecutive surplus last night. Photo Warren Buckland

The pressure was on Dan Druzianic at last night's Hawke's Bay Rugby Football Union annual meeting in Napier.

The bloke he replaced as the union's financial committee chairman, Kevin Atkinson, had delivered 17 consecutive surpluses and with dwindling crowd figures, some because of poor weather and a $100,000 decrease in gaming machine income there was considerable interest in whether or not Druzianic would deliver.

He did with a $24,063 surplus, $201,399 less than the previous financial year's.

"It was a good season on the field but it was a challenging year financially compared with the years before," Druzianic told the 131st annual meeting which attracted 46 people.

Despite the Magpies having the Ranfurly Shield up until their last defence of the season and hosting a Mitre 10 Cup Championship semifinal and final match expenses were $53,000 more than the match income figure of $648,000, $119,000 less than the previous year.

"Falling crowd numbers is a national trend. We have some of the best Mitre 10 Cup crowds in the country but it is still difficult. Our three shield defences against Heartland Championship opponents all ran at a loss as did our semifinal," Druzianic explained.

"There is a lot of competition for the entertainment dollar. The local economy is tight but we're doing everything we can to boost numbers. Our gaming machine income last year was half of what we received three years ago," he said.

The union's equity dropped almost $10,000 to $965,910 for the financial year which ended on November 30. Part of the reason for this was the $34,000 payout to clubs.

"We're poised to break the $1 million mark," Druzianic said referring to the union's belief this is the amount required to compete at the highest level as well as meet the criteria for becoming the sixth Super Rugby franchise in the country.

Revenue dropped $81,592 to $4,515,524. Total expenses increased by $119,807 to $4,491,461.

Team expenses increased by $62,000 to $1,902,000. It cost $1,765,028 to run the Magpies last year, $82,547 more than the previous year.

Druzianic predicted a $14,000 surplus for the 2016 financial year. He said $12,000 will be distributed to clubs this year.

The fact the Hawke's Bay union didn't host an All Blacks test like the previous year was the reason for the $106,124 drop in the New Zealand Rugby Football union grant to $984,188.

Delegates were told there will be a change in the constitution to allow for a change in the manner in which the judicial committees are elected and this will be outlined at the March 9 clubs committee meeting.

No elections were required last night. Chairman Brendan Mahony and fellow director Peter Fleming both retired by rotation but were re-elected.

Co-opted director Steve Lunn also retired by rotation and will offer himself for reappointment at the next board meeting.

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