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MRU reduces its expenditure The Manawatu Rugby Union has reduced its expenditure budget for 2009 by $500,000 from that of 2008. Following a $434,000 loss announced at its recent AGM, John Knowles (CEO) and the Board of Manawatu Rugby have considered every aspect of the business and reduced expenditure levels to reflect the loss. "The reduction in expenditure must also take into account a possible reduction in revenue generated from sponsorship, gaming trusts funding and gate sales". Knowles said, "I am delighted that most of the Union's sponsors were continuing to provide support, however the same level of financial support cannot be expected from sponsors when they too are feeling the effects of the recession. A conservative approach is needed as the recession also affects every business and family in New Zealand." he said. We will certainly have to take a lot of care in managing our expenditure this year. There are further costs that can be taken out of the business as we move into the 2010 financial year, but our cost cutting will not be fully realised in 2009.
As part of this reduction, four current staff members have lost their jobs and others have had a reduction in their hours. One full time position that was made vacant at the end of last year has not been replaced and two further positions have shifted from full-time to seasonal part-time employment. Considerable expenditure has been taken from the areas of Professional Rugby, Administration, Match day costs and Marketing. Community Rugby funding will continue to be maintained, but each activity will be closely scrutinised. It is understood that the roles of the rugby development officers will be reallocated to existing staff members currently working in the professional arm of the Union. "In times like the present, we have to maximise the use of staff and consider the way in which work is allocated. There is no room for seasonal work patterns. This is now an all year round operation", Knowles said. In spite of these changes, Knowles has indicated that the union will only just reach break even point at year end, but look set to recover to a reasonable position by the end of 2010. The Board will continue to monitor things quite closely at its monthly Board meeting and further adjustments are possible if income streams are not realised. |
