Affiliation Fee Review August – November 2013

Background The affiliation fees were last fully reviewed in 2008. Ground levy introduced in 2012 ($20 per senior player, per annum for 3 years) The Capital Football Board ask the fees be fully reviewed with the following principles Fair Transparent Robust

Background cont. The 2008 review found that seniors were subsidising juniors at unreasonable levels and recommended closing the gap. Review of ground charges in 2011, staggered approach to applying increased artificial turf costs, increase for seniors ($20) and older juniors ($5-10) was to be applied in 2014 (total approx. $85k) Major changes in CF operating expenditure since 2008 include: WoF – increase in coaching staff, partially offset by funding Wairarapa natural turf costs ($20k) Kapiti natural turf costs ($4.4k) Artificial turfs ($190k) Expenditure increase from 2013 to 2014 is approx. $80k

Working Group Consisted of : Matt Snaddon (Staff) Jess Fraser (Board) Craig Deadman (Petone) Mike Greene (Waterside Karori) Matt Wilson (Victoria University) Gary Oosterbaan (Island Bay United) Catherine Chander (Kapiti Coast United) Anthony Mumby (Wellington United) Independent Reviewer – David Meiklejohn

Issue Estimated shortfall of $140k in 2014 needs to be funded. $60k savings from personnel (1 FTE), $80k balance from affiliation fees (4% of total expenditure). Clubs have told us their senior teams can’t absorb any more increases We need a sustainable model/principles to guide us when setting affiliation fees in future years

Costs and process Process: Summarised costs to be covered in 2014: Used the activity based costing model developed in 2007 to understand true cost of delivering to each player group. Working group discussed and recommended principles of how costs should be allocated

Results of review As found in 2008 review, Seniors are subsiding the Juniors, albeit to a lesser extent than in 2008 Wellington based seniors are currently paying 150% of their true costs (240% in 2008) Juniors are still paying significantly less than true cost – average 50% (37% in 2008) Increased ground costs (new in 2013) mean Wairarapa seniors are currently only paying 29% of their true costs and Horo-Kapiti 67%.

Results cont. Excludes NZF Levies

Options Option Description Impact A No change to fees $85k shortfall in funding. Need to remove 1.5 FTEs or other expense. B As per 2013 AGM, increase artificial fee by $20 per player $20k surplus. Full burden on seniors. C Based on full true cost Transition difficult. No subsidisation for juniors D Moving towards a proportion of true cost over time No change to members with surplus. Members in deficit pay 70% of the true costs in 2014

Recommendation Option “D” – move towards true cost over time Artificial turf levy ($20 per player) not applied No change to Federation Seniors, Under 17s, First Kicks Juniors (Fun Football, Mini Football & Youth Football) are charged 70% of the full cost of their membership in 2014 Kapiti Seniors increase to 100% of their true cost Wairarapa Seniors increase to 70% of their true cost in 2014 (100% from 2015?) Overall Capital Football expenditure increase capped at CPI each year Any grade paying already 100% or more of true cost will have no fee increases until all grades (except First Kicks) are paying at least 85% Rounding – fee per team rounded to the nearest +/- $5 *agreed by Affiliation Fee Working Group at 10th October meeting

Option “E” (combination of options B &D) Board Decision Option “E” (combination of options B &D) Artificial turf levy ($10 per senior player) No change to Federation Seniors, Under 17s, First Kicks (excluding turf levy) Juniors (Fun Football, Mini Football & Youth Football) are charged 60% of the full cost of their membership in 2014 Kapiti Seniors increase to 100% of their true cost Wairarapa Seniors increase to 70% of their true cost in 2014 (100% from 2015?) Overall Capital Football expenditure increase capped at CPI each year Any grade paying already 100% or more of true cost will have no fee increases until all grades (except First Kicks) are paying at least 85% Rounding – fee per team rounded to the nearest +/- $5

Fees 2014

Impact per player New fees for 2014 to include (per player): Increase between $7 and $14 for all juniors Increase of $38 for Wairarapa seniors Increase of $14 for Horo-Kapiti seniors Increase of $10 for Wellington seniors Detail: Excludes NZF Levies and GST

Other discussion points Should affiliation subsidise other programmes i.e. Whole of Football Programme, National Women’s League. Do we want a surplus? Where are our key risks, and how should they be mitigated – recommend a ground usage policy to guide in negotiations with councils etc Wairarapa ground charges – explore other options. Clubs pay their own ground charges?

Summary $790k required from affiliation fees Juniors will be paying 60% of their true costs (up from 50%) Juniors will then slowly move towards 85% of their true costs Third and final instalment of the artificial ground levy $10 per player ($20 was previously agreed by clubs) Kapiti increase $15 per player, Wairarapa increase $29 per player No increase to senior fees for 2015 onwards, until Juniors reach 85%, then CPI