1. PORTFOLIO COMMITTEE ON SPORT AND RECREATION Financial Presentation 23 May 2017
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2. INTRODUCTION
Our Audited Group Annual Financial Statements cover the period 1 July 2015 to 30 June 2016.
The Group includes the following entities:
SAFA – “the Association”
Africa Cup of Nations 2013 Local Organising Committee South Africa NPC
The South African Football Association Development Agency
SA Infrastructure Development Foundation

3. 2016 Income Statement (R million)
Revenue
Expenses
Loss/ Surplus
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4. Reserves - (R million)

5. Expense Comparison (R million)

6. Development costs Comparison to prior year (R million)

7. Other administrative costs

8. Balance Sheet (R million)
SOUTH AFRICAN FOOTBALL ASSOCIATION
BALANCE SHEET AS AT 30 JUNE 2016
(ZAR MILLION)
Assets
191
Liabilities and reserves
Current assets 60
Current Liabilities
183
Non-current assets
131
Non Current Liabilities 2
Reserves 6

9. FINANCIAL RECOVERY STRATEGY – YEAR ENDING JUNE 2017
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FINANCIAL RECOVERY STRATEGY – YEAR ENDING JUNE 2017
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Second level
Third level
Fourth level
Fifth level
2018/11/14

10. 1. NEW SPONSORSHIP AGENCY
We appointed Grinsport (Pty) Ltd to raise sponsorships for us.
Grinsport (Pty) Ltd has got a huge amount of experience in sports sponsorships.
We have a significant amount of unsold inventory which include Under 23, Under 20 Women and Under 17 Boys and Girls and Referees.
We also have a number of products / competitions that are under sponsored and Grinsport (Pty) Ltd will look for co-sponsors to fill up the gap.
Grinsport (Pty) Ltd guarantees a minimum of R10m within the first 365 days.
2018/11/14

11. 2. LICENSING AND MERCHANDISING PROGRAMME
FIFA approved our seed funding, US $300,000 (R4.2 million) for our Licensing and Merchandising Programme.
The various commercial opportunities related to introducing a merchandise range are quite wide, and is reflected in the below elements, though not limited hereto :
National Team Jersey
National Team Tracksuits
Various casual wear clothing (golf shirts, t shirts, caps etc)
Various formal wear clothing accessories (ties, ladies scarves etc)
Various supporter accessories (scarves etc)
Various accessories (cups, pens, key rings, balls etc)
2018/11/14

12. 2. LICENSING AND MERCHANDISING PROGRAMME
We will use three traditional distribution channels:
our own stores (SAFA House / Fun Valley / Regional Members / Match Venues)
independent fashion houses
department stores / sports stores
Profitability Projections
Year 1 – Break-even (FIFA funding will cover development costs)
Year 2 – R1 million
Year 3 – R4.1 million
Thereafter growth continues as our programme gets more established
2018/11/14

13. 3. SAFA DIGITAL
We have established SAFA Digital which will be responsible for the digitisation of our members’ data and commercial exploitation of this members’ database.
The commercial opportunities associated with SAFA Digital are as follows:
Telco partnership that will benefit both SAFA and it’s members (Regions)
Advertising served on both the Registration and Competition systems, as well as associated apps
Big data marketing, that is partnering with an agency to direct market to our members
2018/11/14

14. Membership registration fees
3. SAFA DIGITAL
Presenting sponsors for apps, competition website, talent identification
Membership registration fees
SAFA Digital is expected to be profitable from year 2. Thereafter it will be achieving exponential profit growths
2018/11/14

15. 4. FIFA FORWARD PROGRAMME
FIFA announced a much improved financial support programme for its members.
Each member (federation) will be eligible for a total amount of US $1.25 million (R17.5 million) per annum.
US $0.5 million (R7 million) of these funds should be used to cover member association’s operational costs.
The balance, US $0.75 million (R10.5 million) should be utilised towards projects. These projects may be related to Strategic areas, Organisational areas, Sporting areas and Football infrastructure.
2018/11/14

16. 5. IMPROVED CAF TV RIGHTS
In July 2016, CAF advised us that due to its improved commercial arrangements, its members associations will now receive bigger shares of the CAF TV rights.
Member Associations are now guaranteed share of TV revenue by participating in any of the CAF competitions.
2018/11/14

17. Round Stages - US$ 120,000 (R1.68 million)
5. IMPROVED CAF TV RIGHTS
For an example, the available prizes / rewards for our participation in the 2018 FIFA World Cup Qualifiers are:
Round Stages - US$ 120,000 (R1.68 million)
Market Maturity - US$0.84 million (R11.8 million)
Group Matches
Position 4 - US$0.2 million (R2.8 million)
Position 3 - US$0.3 million (R4.2 million)
Position 2 - US$0.5 million (R7 million)
Position 1 - US$1 million (R14 million)
2018/11/14

18. 6. NATIONAL TECHNICAL CENTRE (inc. Fun Valley)
The Fun Valley business is a profitable one which contributes a minimum R3.5 million profit per year to the SAFA Group.
The use of Fun Valley by our teams for accommodation and also for our courses is achieving significant cost savings.
More cost savings will be achieved as the development and upgrade of the National Technical Centre takes place. The savings will include accommodation, training fields and venue hire, etc. The minimum annual savings will be R5 million.
There is also potential of getting other funders to support the development of the football mother body’s National Technical Centre.
2018/11/14

19. 6. NATIONAL TECHNICAL CENTRE (inc. Fun Valley)
The developments at our National Technical Centre will also strengthen our Balance Sheet by increasing both our Asset Base and our Reserves
The current projects are:
Construction of a boundary wall and guard house (funded by the 2010 FIFA World Cup Legacy Trust)
Construction of an artificial football pitch (funded by FIFA)
Finalisation of Tender process for construction of 2 natural grass football pitches (funded by the 2010 FIFA World Cup Legacy Trust)
2018/11/14

20. 6. NATIONAL TECHNICAL CENTRE (inc. Fun Valley)
The current projects are:
We have applied for funding from the Gauteng Provincial Government for the construction of a 2nd artificial football pitch
2018/11/14

21. 7. 2016/17 BUDGETS AND COST MANAGEMENT
Our 2016/17 budget reflects an accounting surplus of R1.2m and a net cash inflows of R16.8m
Cost management is a continuous process with the Association. We constantly check for opportunities to save costs and maximise on efficiencies.
2018/11/14

22. 8. 30 JUNE 2017 FINANCIAL PROJECTIONS
We are almost a month away from our financial year-end – 30 June 2017
We are projecting a break-even position or a small surplus when we report on the financial year-ending 30 June 2017
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23. THANK YOU
2018/11/14