Mains, who is standing for re-election on the board next month, said when Carisbrook was sold to the Dunedin City Council by the Otago Rugby Football Union the union ended up with a debt of $1.2 million, despite most people assuming the entire debt of the union had been cleared.
The union was now being forced to pay the debt off.
"It was a less than responsible decision made by people at that time and not just the board of the ORFU. I've been in business an awful long time and there is no way I would have agreed to that situation.''
The Dunedin City Council paid $7 million to the union for the purchase of Carisbrook in August 2009 after long negotiations, and with that money the union repaid a $2 million loan to the council.
Mains said the board had worked very hard to clear that debt and that was an ongoing process.
He could not comment on what the size of the loss would be for the past financial year as the accounts had yet to be finalised.
Board member Andrew Rooney said yesterday board members had put in significant time, effort and finance to help out Otago rugby over the past year and admitted finances were at a delicate stage.
He said no board member had formally put in their own money but many had given money through fundraising and organising events.
Rooney said the union was not at the stage of seeking public contribution and was looking at options.
Asked if it was a bleak situation, Rooney said that depended on the definition of bleak.
"I'm reasonably optimistic we can work through it and get things done. It is not all doom and gloom,'' Rooney said.
He said all provincial unions were facing tough times and it was just part of the professional era. The union had received assistance from New Zealand Rugby Union staff but the national body had not given it any money.
In an email sent to club chairmen, Graham said "many years of poor decision making have come to the fore and we are now in an extremely delicate situation.''
The Otago Rugby Football Union is due to hold its annual meeting next month.
