I had a look at the latest annual accounts for Whangarei RC. To be honest (and without going into depth), I don't really believe things are bad at Whangarei. The net assets are shown as $1,740,321 as at 31 July 2011. The bank overdraft is $12,038. Most businesses need access to overdrafts to manage their day-to-day activities That's makes good business sense. The amount of overdraft seems trivial compared to the net value of the club.
Also the loan/mortgage you talk about is not what I call great - $ 71,724. It's due for repayment this year. I can't see any reason for the club not been able to repay it, given their capital base. There is not other long-term debt shown. Just the usual liabilities, such as trade creditors, that a well-functioning business would have. The level of this debt appears comparable to previous years. And details of debt levels can't be hidden.
This club appears in better financial shape than many other clubs.