Safa suffer R56m loss
SPORT / 09 Nov '12, 07:37am
Cape Town - The SA Football Association (Safa) has made a loss of R56 million, despite a reasonable flow of sponsorship towards the Premier Soccer League.
Sports Minister Fikile Mbalula said although the PSL was a “special member” of Safa, it had its own governance structures and generated its own revenues. Safa had to generate its income primarily from Bafana Bafana and Banyana Banyana - and the income funded nine national teams, four leagues, three of which were separately sponsored, and all football development in the country.
Safa had to generate its income primarily from Bafana Bafana and Banyana Banyana. Photo: Duif du Toi. Credit: Gallo Images
Mbalula said the main reasons for the loss were:
* There had been difficulties in renewing Safa’s broadcast sponsorship.
* A cost base had been created during the World Cup years that needed further significant reduction.
* Tough market conditions for sponsors had also played a role.
The losses included non-recurring losses from the impairment of assets of R15.9m, additional depreciation of R7m from an increase in vehicle assets and a R6m provision for loss for the Africa Cup of Nations 2013 local organising committee.
Total losses of R27.6m had been incurred in a full programme of all national teams.
Last year, Safa failed to achieve its R340m revenue target because of a delay in renewing contracts with key sponsors Absa and SA Breweries and the signing of new broadcast deals for free-to-air and pay television.
Mbalula said Bafana Bafana’s failure to qualify for the Africa Cup of Nations this year had also hampered negotiations. “The association has received an unqualified audit from KPMG,” he said.
The PSL gives Safa an annual grant of R7m out of its television funding.
Cope MP Graham MacKenzie told Independent Newspapers on Thursday that the loss was a sign of “reckless trading”.
He said African soccer nations like Ghana had been successful with fewer resources.