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Steel's Liana Leota goes high in the air - Source: photosport -
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Southern Steel have slashed over $100,000 in costs for the upcoming trans-Tasman netball league season as they look to overcome their financial predicament and get their house in order.
Steel suffered a $45,000 loss during the 2010 financial year and will post a significant deficit for the 2011 financial year.
The franchise has gone to Netball New Zealand (NNZ) for financial assistance and the matter will be discussed at today's Netball NZ board meeting.
Southern TeamCo chairwoman Janet Copeland did not want to disclose how much of a handout they had asked Netball NZ for, but confirmed they had approached the national body and were hopeful of a positive response.
Steel shareholders, Netball Southland and Netball Otago, have also had to dig into their pockets and loan the cash-strapped franchise money.
Netball Southland chairwoman Debbie Hodges admitted they were concerned about Steel's financial issues, but had a "great deal of faith" in the board and was upbeat they would get back on track.
She said their increased support for the Steel franchise would not impact on the grassroots level of the game in Southland.
"That's always been our number one priority. We would not diminish the funds in there to the detriment of the sport. We're confident the grassroots is not going to suffer at this point in time."
Copeland described Steel's financial situation as "broken, but not terminal" and said they had taken strong measures to address the problems for the 2012 season.
Steel had already trimmed costs by more than $100,000 for the upcoming ANZ Championship season, which included considerably cutting down on player payments.
The Steel franchise have moved away from the past tradition of buying in out-of-town talent, with the focus now firmly on selecting players based in the Otago-Southland region.
Copeland said 2011 had been a nightmare time for Steel with the collapse of their Stadium Southland home and poor ticket sales at the temporary velodrome venue. The global financial crisis impacted on fans' discretionary spending and also caused a significant drop-off in sponsorship.
"When all those external factors combine and you're committed to a playing roster and don't have the income, it isn't going to work."
Steel have taken a good hard look at all aspects of the franchise and Copeland was optimistic they could thing turns around.
They have already managed to attract more than $60,000 in new sponsorship for the 2012 campaign, which she said was pleasing. The Southern Institute of Technology is back after a year away as a brand sponsor on the dress and southern companies, CC Collections clothing, Craigs Design and Print, John Jones Steel, Absolute Health and Fitness and Allied Concrete, have all jumped on board for the first time.
"We've got a plan. We're broken, but not terminal. We've cut our costs to make sure we're living within our means," Copeland said.
"Everywhere we can, we're cutting costs ... Everyone is chipping in and helping and doing whatever they can."
New Zealand franchises the Central Pulse, Canterbury Tactix and Waikato-Bay of Plenty Magic have all gone to Netball NZ for financial help since the inception of the ANZ Championship.
Netball New Zealand chief executive Raelene Castle said the Steel franchise had a sound financial history and was hopeful their problems were just a one-off.
"At the end of the day, it's about putting good business practices in place and making sure Steel and Netball New Zealand continue to work closely together and do all we can to make sure they're in a break-even position."
