Ladies and gentlemen, research took a little break but we are back. Today we look into the newly released financials of the South African Football Association (@SAFA_Net) for the year ended 30 June 2019. The standout number, a massive R75 Million rand loss!

Thread!

#SAFA
As usual, I will re post my disclaimer. I am not an auditor, accountant or statistician nor am I a sports journalist. I am merely a concerned football fan who likes to read up on the financial side of sport and this is all publicly available information. 

Let us begin
I begin with former Chairman, Mr Thamsanqa Gay Mokoena. It's clear from his remarks that SAFA expected a difficult year primarily due to loss of sponsorship revenue from the SABC. What shocked me is that sponsorship revenue from the SABC accounted for up to 35% of income.

#SAFA
More detail around financial performance can be found in the remarks of Mr Gronie Hluyo, the Chief Financial Officer. The SABC revenue constituted about 35% of income and for the '19/20 season they expect only 50% of the SABC revenue. That equates to roughly R47 million

#SAFA
I looked at the SABC’s financials for 2019 and found that they too had a difficult year, reporting a net loss of R482.4 million for 2019! However, this net loss is a 35% improvement on the restated loss in 2017/18 and should theoretically be able to honor their agreement

#SAFA
It cannot be stressed enough just how important a healthy and functional SABC is to the fortunes of @SAFA_net

With @thegaryrathbone now leading Sports Operations at the SABC, the hope is we will see the SABC broadcast rights payments begin to rise again.
Next i looked at the revenue breakdown.

Broadcast rights: N/A
Host Cities Income: R5,040,053 -> R3,148,368🔻37%
Sponsorships: R148,376,935 -> R189,035,618 🔺27%
Technical Centre Visitors: R6,579,810 -> R5,893,277 🔻10%

Net revenue R304,113,297 -> R237,375,893 🔻21%

#SAFA
According to statements from Gronie Hluyo and my own calculation, that missing SABC broadcast fee should be in the region of R47 million as I said earlier. On a positive note, sponsorships continue to grow while expenses have decreased encouragingly.

#SAFA
In addition, CAF and FIFA grants to Member Associations increased. The CAF
grant increased from $100 000 to $200 000 p.a. whilst the FIFA grant rose from $1,25m to $1,50m p.a

FIFA also announced a Covid relief grant of $1.5 million with $500k specifically for women's football
Talking about grants, the elephant in the room is always the 2010 FIFA World Cup Legacy Trust.

SAFA draws down from this trust through interest bearing grants with the likes of @Mumble_D and @gaymokoena calling for independent inquiries into the management of these funds
According to the financials, the Trust had an available balance of R115 million. The original investment was R450,762,816 and interest gained on the original investment was R153 million.

Here is the breakdown for how it has been spent.
A large portion of the allocation to SAFA was to build the National Technical Centre or Fun Valley for R82.5 million while regions, development through education and legacy bags (training kit bundles including nets, balls, cones etc) cost another R72 odd million.

#SAFA
I have tried to track where that money went exactly which has proved very difficult.

Age group teams though have done well and women's football has exploded culminating in a World Cup qualification.

Does that mean Vision 2022 will be achieved? I doubt it

Onto other expenses
Here is the operating expenses breakdown:

National Team: R84,797,659 -> R119,490,758 🔺41%
Football Development: R41,171,295 -> R21,943,902 🔻47%
Other Administration: R141,272,730 -> R114,180,470 🔻19%

#SAFA
When I reviewed the 2018 financials, I found the Other Administration Costs number seriously worrying and I am glad to see that number is decreasing along with the cost containment objectives.

You can find my 2018 financials thread here:

#SAFA
For those curious to know, the administration costs number consists of the following.

Employee costs are by far the highest contributor. A curious thing is that the NEC members DO NOT get paid a set salary so they don't form part of that employee cost number.

#SAFA
Since the NEC members are non standard employees, they receive what is called an Honoraria fee. An honorarium is a token payment made to bestow recognition to an individual for services they perform, for which payment is not required.

Essentially volunteering.

#SAFA
From what i can gather, a Remuneration Committee proposes what the NEC as the governing body of SAFA can be paid. Congress, led by the NEC then decides on the remuneration.

Essentially, the NEC decides what they get paid.

#SAFA
Further to this, there are vehicle loans not only to current but also former NEC members as well. These loans are supposedly paid back through the honoria payments that the NEC members receive.

My question is, how do you recoup a loan from a former NEC member? Very odd

#SAFA
In summary.

#SAFA needs the SABC to fix themselves ASAP
Expenses are coming down nicely
Legacy trust funds are almost finished but other sources of income like grant funds and sponsorships are rising
Internal ructions need to stop
Covid adjusted numbers will be brutal

Cheers

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with Nqobile Ndlovu

Nqobile Ndlovu Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @TurkishNabs

21 Sep
The debate has been raging about the #PSL promotion and relegation playoffs and I must admit that I too have been in the “scrap it” camp. The arguments for and against were compelling so I decided to take a deeper look.

This is what I found

Thread 👇🏽
As usual, I referred to the official PSL reading material as a start, in this instance, The NSL Handbook.

The play-off rules are quite simple. The PSL team in 15th plays against 2nd and 3rd in the NFD in a mini tournament and the team which finishes top gets promoted.
In the most recent playoff, @BlackLeopardsFC easily won three matches in a row and have a goal difference of +5 ahead of their last match against TTM today.

But what does history tell us about the playoff and does it always favor the #PSL side?
Read 10 tweets
18 Sep
Ladies and gentlemen, i've got a series beginning today called #KnowYourOwner

I wondered how many people know about the people behind their club. The money, passion, scandal and more. So every Friday, i'll drop a thread.

I begin with @TTM_Original

Thread 👇

#PSL #TTM
As usual, I will re post my disclaimer. I'm not an auditor, accountant nor am I a sports journalist. I am merely a football fan who likes to read up on the financial side of sport and this is all publicly available information.

Let us begin

#KnowYourOwner
#TTM is owned by a consortium called the Black Gold Family Trust. There are said to be four members but the figurehead of the trust is one Masala Lawrence Mulaudzi, a native of Tshakhuma village in Limpopo hence the name, Tshakhuma Tsha Madzivhandila.

#KnowYourOwner #TTM
Read 18 tweets
30 Jun
Ladies and gentlemen, I’m back with another thread, this time on coaching in the #PSL.

In this thread I will focus on SA coaches in the local game, average coaching age compared to Europe and give you some other interesting stats along the way

THREAD
As a start, I looked at how many South Africans have coached the big three #PSL teams. What I found was worrying.

I began by looking into #KaizerChiefs and it shocked me that Chiefs has only had ONE South African head coach since 1994 (@komphelasteve 2015-2018) 😳😰
In fact, @ErnstMiddendorp, the current Chiefs coach, first appeared on the local scene in 2005 to coach Kaizer Chiefs and has coached SIX different #PSL clubs thus far.

This is his second stint at Chiefs along with spells at Martitzburg, Chippa, Bloem Celtic, FS Stars & Arrows
Read 14 tweets
8 Jun
Afternoon ladies and gentlemen. There's been lots of talk about #PSL club status selling and the exchange of licenses but there isn't that much known about the practice.

So I went digging and found some info on licensing and sale of league status in the #AbsaPrem
As usual, I will repost my disclaimer. I am not an auditor, accountant or statistician nor am I a sports journalist. I am merely a concerned football fan who likes to read up on the financial side of sport and this is all publicly available information. Let us begin
I started off by going through the 2019 National Soccer League (#PSL) handbook. This book is basically the constitution of the league. If you want to go through it yourself, click here: images.supersport.com/content/NSL-Ha…
Read 20 tweets
22 May
So I've been looking into the financials of both the #AbsaPrem and @SAFA_net and it's basically impossible for the PSL to survive without finishing the league while SAFA needs a bailout of some kind to have any chance of survival

Thread!
Before I dive in, some upfront info. I am not an auditor, accountant or statistician nor am I a financial journalist. I am merely a concerned football fan who likes to read up on the financial side of sport. PS, getting data in this country is like pulling hens teeth. Let's go.
To begin with, there are three main income streams for sports leagues and federations. These are broadcasting rights, commercial income (sponsorship & advertising) plus match day revenue (tickets & hospitality). There are also sometimes grants.. Onto the #AbsaPrem then..
Read 11 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!