League: Game's future hinges on adopting reforms - NZRL boss

NZRL chairman Ray Haffenden. Photo / Getty Images

The New Zealand Rugby League (NZRL) reported a small operating loss for the 2008 year today but its financial future will hinge on members endorsing Sparc's game-wide review at this weekend's annual meeting in Auckland.

Chairman Ray Haffenden said while an operating loss of $12,000 indicated a healthier position than the 2007 result, the viability of the code in New Zealand was dependent on members fully endorsing the findings of the independent review committee released last month.

"In simple terms the game needs to adopt the reforms proposed to not only survive but to grow," he said.

"Our ability to attract funding in the future will be affected by the outcome this weekend when the review committee's recommendations will be considered for adoption by our members at a special general meeting."

Haffenden emphasised the NZRL was operating in an environment where funding avenues were extremely limited and competitions had been severely trimmed.

"There are enormous difficulties for us in continuing to operate the way we are," he said.

"We have been able to report a modest loss in a year when we have had little in the way of funding and through drastically trimming our investment in competition structures and general service delivery.

"Our limited means and our commitment to the independent review of the game has meant our service delivery to our members has been heavily reduced.

"At the same time we had the Sparc review going on and we tried to give the Kiwis the best opportunity of winning the World Cup by investing judiciously in the team's preparation."

In doing this, it should be noted that the profits from the World Cup were retained by the Rugby League International Federation (RLIF), Haffenden said.

"It was only the Kiwis' outstanding win and the subsequent prize money together with careful control of costs that allowed us to avoid a financial loss from participating in the tournament."

"Adopting the reforms would be the first step to improving our capability to support all areas of the game, including the development of a comprehensive suite of national competitions and coaching and development support, which would put us in a much better position to add value and make progress."

If the Sparc report's proposals are adopted, the existing board will continue to hold office until it is dissolved in May for the election of a new board in keeping with the constitutional requirements imposed.

The review was headed by businessman and former New Zealand Cricket chairman Sir John Anderson.

Its 10 recommendations include a new constitution and a new board structure of seven board members, four appointed and three elected, with equal voting rights. The appointment committee of four would have two Sparc appointees.

The board would adopt processes that included transparency, commitment to excellence and a strategy of development and delivery.

The review was sparked after the NZRL had losses of $2.2 million for the 2006 and 2007 periods and no cash reserves.

Registered playing numbers had fallen to fewer than 17,000, compared with 30,000 to 40,000 in the 1990s.

There was no national competition and the majority of district competitions were struggling, with no teams in the Otago and Tasman districts.

There had been the loss of support of key funding partners and sponsors and there was no strategic plan.

- NZPA