The New Zealand Rugby Union will step in to fill the void left by the liquidation of the Otago Rugby Union.
NZRU looks to keep rugby strong in stricken province
The New Zealand Rugby Union will step in to fill the void left by the liquidation of the Otago Rugby Union.
The Dunedin-based union will cease trading on Friday with debts of NZ$2.35million (£1.24million), but the NZRU are naturally keen to preserve the future of one of the country's strongest provinces, one which has produced 156 All Black players in its 131-year history.
NZRU chief executive Steve Tew said: "We are stepping in to support community rugby and all the amateur players, volunteers, administrators and others who have a stake in the game.
"Otago has a long and proud rugby history and the union has played a vital role in the rugby community for 131 years so this is a sad day."
NZRU will appoint local officials to operate community rugby and hold talks with local clubs to keep them sustainable.
Tew added: "In addition, we will be immediately assessing the viability of entering an ITM Cup team from the region in the 2012 competition. This will need to be self-funding beyond the normal NZRU contribution if any plan is to be viable.
"We will be urgently discussing this with players and potential sponsors to see if we can achieve this.
"It is important to also stress that today's events do not impact on the Highlanders franchise which operates as a separate legal entity. Unlike ITM Cup players, Investec Super Rugby players are contracted by the NZRU and not by a union."
