"Off the record" is what sabbs say to you just before they bitch to you about another sabb, officer, or staff member.

Strictly speaking, you should never publicly attribute anything said 'off the record'.

In reality, it's used for the aforementioned purpose of bitching, and is said simply as a device to absolve oneself of any blame for resulting fallout: "What? Me bitch to Live!/Felix/randompersoninthebar about you? Never!"