Tense time for provinces as NZRU posts record profit

While the New Zealand Rugby Union (NZRU) basks in the glow of posting a record net profit, some of its member unions are on tenterhooks ahead of the naming of the NPC premier competition participants.

A record net surplus of $20.5 million for the year ending December, 2004, was revealed at the NZRU's annual general meeting here yesterday.

The NZRU also increased its year-end reserves to $57.7m, up on the 2003 total of $37.2m.

In other highlights, NZRU vice-president John Graham was elected to replace outgoing president Tane Norton, while Andy Leslie will assume Graham's old position.

Graham played 22 tests for the All Blacks, including three as captain, and was made a CBE in 1994 for services to education and the community.

Leslie is also a former All Blacks captain, leading the side in all of his 10 tests in the mid-1970s.

While the NZRU was celebrating its good returns, some provincial unions who applied for the premier professional competition to replace the existing NPC in 2006 had their last opportunity this week to petition the NZRU bigwigs for a coveted premier spot.

Fourteens unions have applied for the professional premier competition starting next year which could consist of up to 12 teams, with a modified amateur 15-team first division also created.

The unions likely to miss out on the top tier will probably come from Counties-Manukau, Manawatu, Hawke's Bay, or an amalgamated bid from Nelson-Marlborough.

First division outfits Northland and Southland could also be feeling the heat ahead of the announcement which was originally due on May 27, but NZRU chief executive Chris Moller said yesterday a decision was due "during May."

NZRU chairman Jock Hobbs conceded some unions would be upset when competition was finally approved.

"That's probably a fair assessment but, as it's been said, the competitions review is necessary.

"It's been a collaborative approach and there have been a number of benefits that have emerged from the review beyond deciding on the actual composition of the competition structure itself.

"Provincial unions have looked at issues and the way they operate. The process of galvanising support within their provinces has been a helpful process."

Union representatives and the NZRU had the opportunity to hammer out the issues behind closed doors on Tuesday.

Moller did not rule out the possibility of some unions taking legal action if their bid failed, but he and Hobbs were confident the review and bid process had been professional and fairly handled.

Also discussed this week was the NZRU's potential bid for the 2011 World Cup.

Hobbs stressed that no decision had been made to lodge a bid, with the International Rugby Board with the May 13 deadline looming.

He confirmed the NZRU had the backing of the member unions and were to hold a board meeting today to update its position.

"Progress is being made ... and it's likely a further board meeting will be required before the 13th before a final decision is made."

Hobbs could not say whether the surplus announced yesterday would be used to enhance a potential bid for the World Cup.

"The level of reserves may provide some comfort if we were to make a bid, but I think it will be quite wrong to say because we have those reserves if that's going to be determinate factor in making a bid."

"We are receiving a presentation tomorrow (today), and there is sufficient amount of good news to keep the process moving forward."

A joint venture between the NZRU and the Government was established this month to assess New Zealand's ability to host the World Cup.

Meanwhile, former trade unionist Ken Douglas was appointed an independent director to the NZRU board, replacing Gavin Walker.

- NZPA