New Zealand: Tasman Makos face rugby union crunch

Tasman has been struggling financially and the New Zealand Rugby Union announced yesterday it had until next Wednesday to balance its budget and keep the Makos afloat.

A final decision was expected yesterday but Tasman was given a brief reprieve to consider the implications of a $150,000 grant from the NZRU. The grant was part of a three-pronged rescue package handed out to the country's 26 unions after the NZRU forecast a likely surplus of $7.5 million for 2008.

However, Tasman chairman Nick Patterson said yesterday the NZRU handout was not enough to save the Makos. The union still had a budget shortfall of $234,000 and could not continue operating unless it secured additional funding.

"We appreciate the offer of money but, quite clearly, we have a budget shortfall of around $350,000 and the cash that is being offered is, unfortunately, not enough to close that gap. So we really need some pretty magical sort of support to come forward in the next three or four days or the consequences are inevitable.

"We are getting indications of support but whether they turn into the sort of cash we need is anybody's guess. There are lots of people out there batting for us I think we'll have to wait and see what happens."

Mr Patterson said the Tasman board would meet on Monday to decide whether to try to stay in the Air New Zealand Cup. The board would not consult its member sub-unions Nelson Bays and Marlborough unless the budget shortfall was significantly reduced.

Mr Patterson said that if the Tasman Makos were kicked out of the Air New Zealand Cup, the consequences would be disastrous for rugby in the top of the south. Playing in the second-tier Heartland competition was a poor substitute and would be "an extremely retrograde step".

Although yesterday was the second time the NZRU had deferred its decision on Tasman's future, chief executive Steve Tew said Wednesday's deadline was "non-negotiable". If Tasman couldn't balance its books by then, it would be out of the cup.

"They still have a significant funding gap between what they know they can bank in 2009 and what it will cost to be a bare bones union in this competition," Mr Tew said.

"They've got to decide whether they want to convince us whether they can manage that gap and survive. It's not going to be straightforward for them."