NZR Merges Otago Union and Highlanders Club

New Zealand Rugby announced on Thursday that it will consolidate the Otago union and the Highlanders club into a single operational entity. The move is designed to address a forecast annual loss of $20 million. The decision forces the two organizations back into a shared management structure after a period of separation.

The Highlanders were established as a Super Rugby franchise with the Otago union serving as the operator for the first 14 years of the team's existence. The union currently oversees community rugby and the National Provincial Championship squad. The Highlanders operate as a mostly privately owned club. The new consolidation plan requires unions and clubs in the five major cities to merge their operations.

Steve Lancaster, chief executive of New Zealand Rugby, stated that the organization aims to transform how Super Rugby Pacific engages fans and attracts investors. Lancaster said the body is open to discussing player movement, a competition-wide salary cap, and centralizing commercial assets. He noted that the changes are intended to drive better financial outcomes alongside community and high performance goals.

New Zealand Rugby and Rugby Australia will work with club owners and players' associations to implement these structural changes. The NPC will remain a 14-team provincial competition to maintain regional connections and player development pathways. The nine regional unions, including Southland, will maintain stronger relationships with their respective Super Rugby clubs under strengthened pathway protections.

The implementation of these changes is expected to begin in 2028. Specific details regarding the consolidation remain to be determined. Potential job reductions are anticipated as the organization seeks cost savings. The plan seeks to preserve the integrity of both the Super Rugby and NPC competitions while restructuring the management of the major city teams.