Safa rakes in R40.7m

Danny Jor­daan up­beat at yes­ter­day’s AGM, but warns it will be­come tougher to find spon­sors

CityPress - - Sport - S’BU­SISO MSE­LEKU sm­se­leku@city­

Safa had a good story to tell at its an­nual gen­eral meet­ing (AGM) in Sand­ton yes­ter­day, as it re­ported a R40.7 mil­lion profit. But lo­cal foot­ball’s gov­ern­ing body will have to be more pru­dent and in­tro­duce aus­ter­ity mea­sures go­ing for­ward to main­tain its dwin­dling re­serves.

Re­port­ing that Safa had R46 mil­lion in re­serves, the chief fi­nan­cial of­fi­cer, Gronie Hluyo, warned that these had been de­clin­ing since the R98 mil­lion posted in 2011, which had been a re­sult of the wind­fall from host­ing the 2010 Fifa World Cup. He then pre­sented a tight bud­get for 2015/16. “We ap­ply a zero-based bud­get­ing method based on se­cure and not en­vis­aged in­come,” Hluyo told a huge gath­er­ing, though there were a few apolo­gies, in­clud­ing those of Kazier Chiefs’ Kaizer Mo­taung, Golden Ar­rows’ Mato Mad­lala, com­pe­ti­tions com­mit­tee chair­per­son Nomsa Mahlangu (who was in Sene­gal with the SA Un­der-23s), Pro­fes­sor Lesole Gad­in­abokao and vice-pres­i­dent Lu­cas Nh­lapo.

Fifa pres­i­den­tial can­di­date Tokyo Sexwale and newly elected Zim­babwe Foot­ball As­so­ci­a­tion pres­i­dent Dr Philip Chiyangwa were the only no­table dig­ni­taries yes­ter­day, un­like last year, when the gath­er­ing was graced by three for­mer pres­i­dents in Thabo Mbeki, Kgalema Mot­lanthe and FW de Klerk, as well as hu­man rights lawyer Ge­orge Bi­zos and Sports Min­is­ter Fik­ile Mbalula.

Busi­ness­man Sandile Zungu, who heads the re­mu­ner­a­tions com­mit­tee, pre­sented a rec­om­men­da­tion that each na­tional ex­ec­u­tive com­mit­tee (NEC) mem­ber re­ceive a 6% in­crease from last year’s hon­o­raria of R110 500. This mo­tion was adopted. This means Safa will shell out more than the R4.2 mil­lion it doled out to its NEC mem­bers last year.

Zungu said mem­bers had re­ceived R105 000 each in 2010, R115 000 in 2011, R110 500 in 2012 and R55 250 in 2013. Last year it was R110 500.

Beam­ing from ear to ear, pres­i­dent Danny Jor­daan told the meet­ing, which started promptly at 10am: “We are now in the sec­ond year of our fi­nan­cial turn­around plan to cre­ate the sta­ble fi­nan­cial plat­form we need.

“Fol­low­ing from the profit of R10 mil­lion we re­ported last year, we find our­selves in an even stronger po­si­tion this year.”

He then is­sued a warn­ing: “This turn­around must, how­ever, not lull us into com­pla­cency.”

Fi­nance and pro­cure­ment com­mit­tee chair­per­son Tham­sanqa Gay Mokoena said: “The as­so­ci­a­tion has im­proved its net as­set value from a neg­a­tive R4.2 mil­lion in 2013 to R51.6 mil­lion this year.”

He pointed out that, given bad eco­nomic con­di­tions, sports or­gan­i­sa­tions would no longer be able to rely en­tirely on spon­sor­ships.

“The 2015 BMi Top Spon­sor­ship Sur­vey con­firms that 89% of spon­sors be­lieve the cost of spon­sor­ships is al­ready or is be­com­ing too ex­pen­sive ... and 38% of spon­sors are plan­ning not to re­new cer­tain spon­sor­ships.”

He, how­ever, said that Safa had taken all the right steps to­wards “build­ing a R1 bil­lion or­gan­i­sa­tion.”

CEO Den­nis Mum­ble em­pha­sised the im­por­tance of look­ing at other rev­enue streams, given the de­cline in spon­sor­ships.

“While we are quite happy to re­port these pos­i­tive re­sults for the pe­riod in re­view, we face a daunt­ing task to im­pose on this po­si­tion in the next fi­nan­cial year, as the South African econ­omy con­tin­ues to face se­ri­ous chal­lenges with cor­po­rate spon­sor­ship spend con­tin­u­ing to de­cline year on year and more strin­gent con­di­tions placed on spon­sor­ship re­cip­i­ents to pro­duce bet­ter re­turns on these spon­sor­ships than the year be­fore.”

Jor­daan said that af­ter los­ing Absa and Puma as spon­sors, the ar­rival of Nike, Burger King and Pa­trice Mot­sepe, with the spon­sor­ship for the ABC Mot­sepe League, had al­le­vi­ated the bur­den.

“We have also in­creased our tele­vi­sion broad­cast rev­enues,” he said.

Jor­daan pointed out that, as Safa had spent R223 mil­lion on de­vel­op­ment, “all our ju­nior na­tional teams should have been num­ber one in their re­spec­tive age groups on the con­ti­nent by now”.

But the Un­der-17s are sec­ond, the Un­der-20s are fifth and the Un­der-23s are third or fourth, de­pend­ing on the re­sult against Sene­gal at the CAF Un­der-23 tour­na­ment yes­ter­day.


BIG WIGS From left: Safa pres­i­dent Danny Jor­daan, Bafana Bafana leg­end Phil Masinga and Fifa pres­i­den­tial can­di­date Tokyo Sexwale at the Safa AGM at the Sand­ton Con­ven­tion Cen­tre yes­ter­day

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