Safa rakes in R40.7m
Danny Jordaan upbeat at yesterday’s AGM, but warns it will become tougher to find sponsors
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