Southern Orcas' NRL bid faces scrutiny over managing director's past

A New Zealand consortium bidding for an NRL expansion franchise, the Southern Orcas, faces scrutiny after reports emerged detailing the managing director's past financial difficulties and business failures. The Orcas are campaigning for a spot in the competition by 2029.

Andrew Chalmers, the managing director, was previously in charge of a string of forestry companies that collapsed with over $25 million in debt a decade ago key figure behind a New Zealand consortium bidding. The Southern Orcas' bid leadership, which includes former New Zealand coach Graham Lowe, is pursuing former All Blacks coach Scott Robertson to lead their team if successful.

Chalmers' business history under the microscope

Chalmers managed a forestry business through various New Zealand-registered companies. Five of these experienced significant financial trouble starting in 2015, owing lenders $23 million and leaving unsecured creditors with millions in losses. Chalmers stated his forestry group was a $120 million operation that suffered due to an industry-wide downturn in 2014 and substantial global falls in forestry prices, necessitating a major restructuring. He claimed all external lenders were repaid from asset sales, and all staff entitlements and tax liabilities were settled, with most staff retaining employment post-restructure.

Beyond his forestry ventures, Chalmers also held part-ownership of the Bradford Bulls rugby league club. His tenure, between 2017 and 2019, coincided with mounting debts, though he sold his stake in the club. He noted the increased debt during his ownership was budgeted and funded by shareholder loans, similar to other English teams, and that the club was in a precarious financial state prior to his involvement, having gone into liquidation four times before. Without his intervention, he stated, the club faced permanent closure.

Past rugby league leadership roles

Chalmers also served as chairman of the New Zealand Rugby League (NZRL) from 2006 to 2007, a period in which the organization reported a loss of $NZ1.7 million. He was also a director of the Rugby League International Federation during this time. He contended that the NZRL's operating results during his board tenure from 2002 to 2008 generally aligned with budget. He attributed the losses during his chairmanship in part to the board writing down legacy pub and gaming assets acquired before his term.

NRL Expansion Landscape

The NRL is expected to add a third team in three years following the Perth Bears and the PNG Chiefs in 2027 and 2028, respectively, making the 2029 expansion a significant opportunity for bids like the Orcas. This expansion aligns with broader trends in international rugby news and professional sports leagues to grow their footprint and audience. The Orcas are specifically lobbying for an expansion franchise on New Zealand’s South Island, a region that regularly hosts NRL fixtures such as the upcoming New Zealand Warriors versus North Queensland Cowboys match in Christchurch.