7 Feb 2011

Rowing New Zealand staves off bankuptcy

4:33 pm on 7 February 2011

A bank loan of almost two million dollars has saved Rowing New Zealand from bankruptcy.

Last year's world rowing champs on Lake Karapiro ran at a $2.3 million loss, after spectator numbers failed to reach those forecast.

Organisers anticipated 20 thousand spectators would turn up on the finals weekend but only ten thousand did.

The chief executive of Rowing New Zealand, Simon Peterson, says the Government underwrote the event for $500 thousand and a bank loan has covered the remaining one point eight million dollars, that was owed to creditors.

A SPARC review is now being carried out as to why the event lost so much money and Peterson hopes following that SPARC and the Hamilton City council and the Waipa District council will also help out.

Peterson says the event added $15 million to the Hamilton regional economy and he hopes local councils will recognise that however he its says it will take Rowing New Zealand years pay back any financial help it receives.

He says the country's top rowers won't be affected by the loss, with the four million dollars SPARC's allocated the sport in the lead up to next year's London Olympics unaffected.