Call it the confusing case of the mystery million.

The cash-strapped Otago Rugby Football Union says it received
$6 million for the sale of Carisbrook in 2009, and a
university academic confirms the sale is listed as $6 million
in the union’s books.

But the Dunedin City Council, which bought the ground, and
two former Otago union officials maintain the figure was $7
million.

The union is battling financial problems, with Jeremy Curragh
appointed as change manager, and the New Zealand Rugby Union
lending it money to keep operations going.

The Otago union has racked up losses of nearly $4 million
over the past five years and is due to post another sizeable
loss later this month.

The union, which blamed losses over the past few years
largely on having to operate Carisbrook, entered negotiations
in 2008 with the city council to buy Carisbrook.

After months of negotiation, the union and council agreed on
a sale in August 2009.

City council finance and resources general manager Athol
Stephens confirmed the council paid $7 million for
Carisbrook.

The council bought Carisbrook, the adjacent car park and a
block of rental housing in Burns St, across from the ground.

Mr Stephens said the rugby union owed the council $2 million
from a loan and that was repaid as part of the settlement.

He said the remaining money from the union was to repay loans
with the Bank of New Zealand.

That left the union with a $1.2 million overdraft, which Mr
Stephens said the union thought would not be an
insurmountable problem.

But in the union’s annual report of 2009, the union states it
sold Carisbrook to the council for $6 million.

The $1 million difference between what the council says, and
what the union writes in its annual report, is not explained.

And, so far, no-one contacted has shed any light on why the
$6 million figure appears.

Ron Palenski, who was the chairman of the Otago union at the
time, declined to comment when contacted. Former union chief
executive Richard Reid also declined to comment.

Neville Frost, formerly the union’s business manager,
confirmed the sale price was $7 million. He said it was
clearly $7 million, and did not know why $6 million was
listed.

Former board member Ross Laidlaw also said the sale was for
$7 million.

University of Otago professor of accounting David Lont
confirmed, after looking at the union’s annual report, the
sale of Carisbrook was listed as a $6 million transaction.

If indeed $7 million was the the sale price, it was not
recognised in the initial accounts or subsequent accounts, he
said.

He said if there was a difference of $1 million then the
accounts should show what purpose it was used for as it was a
material amount of money.

There is no listing or detail about the $1 million.

Wayne Graham, who replaced Mr Palenski as union chairman,
said he was not involved in the sale but as far as he was
aware the sale was for $7 million and the debt of the union
at the time was $8.2 million.

Auditors Ernst and Young declined to comment when contacted.