This was revealed last night by board chairman Kerry Dellaca under questioning at the annual meeting of Canterbury Cricket which lost $243,338 -- by far the largest loss in the Association's 121-year history.
Former treasurer Trevor Thornton, concerned about the magnitude of the deficit -- the association's third in five years -- asked how the bills were being paid.
``Technically the association is insolvent.''
Dellaca said arrangements had been made by securing an overdraft facility with Westpac Trust and getting NZC grants brought forward to stay afloat until sponsorship funds due later this season came in.
Thornton, who was disturbed at how the association's reserves had been eaten away, said the actual season loss was about $300,000, given that a $51,000 profit had been budgeted for.
``How will this difference be made up in the coming season?,'' he asked.
Dellaca said contributions to player payments by NZC which start this summer, an administration grant to major associations of $50,000 from NZC, plus a review of the Lancaster Park rental will provide considerable relief. It is expected the rental will now be percentage based rather than being fixed as in the past and substantially lower than the $230,000 (before GST) paid last season.
Executive director Tony Murdoch said there had been some freeing up in the marketing area which would allow for two additional sponsors on parts of players clothing.
Canterbury Cricket has forecast for a budget surplus of $52,000 next season but Thornton queried how this would be achieved given the amount of fixed costs.
``My concern is that the costs are of a fixed nature but the revenue is not certain.''
A likely decrease in rentals of about $80,000 was ``inadequate in my view'' to base a turnaround upon, Thornton said.
``Our reserves are dwindling but the costs are running at the same level.''
Dellaca reassured delegates that when the magnitude of the deficit was discovered steps were taken ensuring it would not be repeated.
He said they included a more appealing first 11 club sponsors package after too ambitious targets were set, for which promised support did not materialise. A review of staffing structures is taking place.
Dellaca said while Canterbury had the highest player payments structure in New Zealand he did not believe they were exorbitant.
Meanwhile, Anne Urlwin and Maurice Ryan were returned as board directors while Arthur Pitcher was voted back on and was joined by David Shackleton.
Chris Herbert remains on, with Dellaca and Arthur Graves unavailable. The unsuccessful nominees were Rodger McHarg and Mike Satterthwaite.
Life membership was accorded to out-going president Clarrie Anderson while successful Canterbury women's coach Greg Hills and Country identity Peter Johnston received honorary cricket membership.