Glenn also said that he was approached "indirectly" with the offer of a Super Rugby licence but was quick to turn it down.
"It was a bad idea," Glenn told the Herald on Sunday.
"It was a hollow gesture offering the investment in the franchises because no authority, no power goes with it. [They are saying] 'you put the money in and can call them your own but we choose the players, coaches and games'. If you have got the capital to do all that, then great. But they are broke and in my opinion they have been mismanaged at all levels. As long as the government keeps bailing them out, they are not going to get any better.
"That has got to stop."
At a time when rugby in this country needs corporate support, these are salutary words. The Otago situation seems the tip of the iceberg at provincial level but even with Super Rugby the NZRU are yet to come up with an attractive investment model.
"If you want to sell a business, it's got to be a real business," says fellow Warriors owner Eric Watson. "If you want to set up a franchise, you need to do it like the NRL and other global sports franchises do it.
"The owners own it, they run it, they make the decisions - you can't half sell something. It is not up to me to [talk] about how the rugby union should think, behave and operate but I think the way the NRL does things is brilliant. It works, it is a fantastic, even, sporting competition and good from the owner's point of view too."
Glenn decided to invest in the Warriors after becoming "caught up in the enthusiasm of a cinderella sport".
"[In this country] there is the mighty rugby union and then there is league," says Glenn. "League has come round the corner and seen the gap. I think we are on the verge of something huge."
Despite buying a half share in the club, the 73-year-old billionaire is adamant that he won't become involved in recruitment and operational decisions, unlike some other wealthy sports owners.
"If they want capital [for a big purchase] then they have to talk but I doubt I will get involved," says Glenn.
"If we ever saw something big as a possibility - like a Sonny-Bill Williams perhaps - but not him, not after the way that he has been trumped up. Somebody like that could come along from anywhere; who knows?"
Both men outlined their continuing commitment to the Warriors development strategy, which has been highlighted by their Toyota Cup successes over the last two seasons.
"In 2007 we increased our spend significantly in our junior grades and obviously it is paying off," says Watson. "We aim to at least double our investment in this area over the next few years. This club is all about developing New Zealand players."
"We are saying build a field and they will come," says Glenn, paraphrasing Kevin Costner from Field of Dreams. "We hope to double playing numbers in New Zealand league over the next few years. Rugby has been amazing for this country and hopefully other sports can get to that level; if we can raise the flag in league and get it near the same footing as rugby - watch out."
