SAFA Presentation Parliamentary Portfolio Committee
on Sport and Recreation
30 APRIL 2013
Documents in the Pack
• Consolidated Presentation which contains the following
•
•
•
•
•
•
•
Governance Framework
Transformation
Technical Master Plan
Legacy of the 2010 FIFA World Cup
Match Fixing
Financial Statements
Report on sale / purchase of cars and buses
• 2011-12 Annual Report with Financial Statements
• Executive Summary of FIFA Report into Match Fixing
• Dossier on alleged corruption and maladministration in SAFA
• SAFA’s Response to the dossier
Introduction
• SAFA President’s Introductory Remarks
• Delegation
1. SAFA President: Mr Kirsten Nematandani
2. SAFA Vice President: Chief Mwelo Nonkonyana
3. Mr Mandla Mazibuko: Vice-President
4. SAFA Vice President; Dr Danny Jordaan
5. Mr Elvis Shishana: NEC Member
6. Mr Morris Tshabalala NEC Member
7. Mr Gerald Don: NEC Member
8. Mr Poobalan Govindasamy: NEC Member
9. Mr Dennis Mumble: SAFA CEO
10.Adv Norman Arendse
11. Dr Robin Petersen: CEO of SAFA Development
Agency
President’s Remarks
• There is no crisis in SAFA
• Developments of the past few months are unfortunate
• Documents by nameless and faceless persons led us to this stage
• We have been subjected to trial by the media
• -Match-fixing
•
-We still support the independent judicial commission of enquiry
• -The Legacy Trust
-This is FIFA’s money
-FIFA has reiterated that their money has been accounted for
SAFA’s GOVERNANCE STRUCTURE
SAFA
The SAFA Mission Statement
The South African Football Association, as the governing body of
football in South Africa, is committed to:
► Promoting and facilitating the development of football through
sustainable infrastructural and training initiatives;
► Engaging in pro-active dialogue with the government to
generate a partnership in recognition of football as a national
asset;
► Creating an image of being a stable, progressive and
innovative institution;
► Creating a mutually beneficial relationship with the corporate
world;
► Contributing to Africa’s ascendancy in world football through
the hosting of major events in Africa, while aspiring and
striving to become a leading football playing nation.
Governance Structure
SAFA GENERAL COUNCIL
52 Regions
(311 Local Football Associations)
SAFA NATIONAL
EXECUTIVE
COMMITTEE
8 COMMITTEE
CLUSTERS
(consisting of 23
Standing Committees)
SAFA-FIFA
LEGACY TRUST
R471m in the bank
SAFA
INFRASTRUCTURE
FOUNDATION
R18m in the bank
SAFA
SECRETARIAT
SAFA ASSETS
-SAFA House = R70m
-Cars & Buses = R73m
--Raphael House = R4.5m
Hyde Park = R7.5m
-Netcare Shares = R10m
SAFA
DEVELOPMENT
AGENCY
Governance – Structure of the NEC
STRUCTURE - SAFA NATIONAL EXECUTIVE COMMITTEE
President
1
Vice-Presidents
4 (including the VP from the NSL)
Provincial Representatives
18 (2 per province)
National Representatives
10
Honorary Life President
1
Honorary President
1
Honorary NEC Member
1
NSL Representatives
4 (incl. 1 VP)
Chief Executive Officer
1 (non-voting)
Financial Update
Historical Financial Position (2001 – 2012)
YEAR
PROFIT/LOSS
RETAINED EARNINGS
2001
(R7,527,203)
(R25,467,387)
2002
R12,928,361
(R12,539,026)
2003
(R38,945,247)
(R51,484,273)
2004
(R22,337,895)
(R73,822,168)
2005
(R24,789,376)
(R98,611,544)
2006
R87,497,172
(R11,114,372)
2007
R53,481,907
R42,367,535
2008
(R3,632,285)
R38,735,250
2009
R25,166,167
R63,901,867
2010
(R24,398,197)
R39,503,670
2011
R59,262,294
R98,765,964
2012
(R56,471,977)
R42,293,987
Snapshot of Finances

POSITION Loss of R56.4m reported for 2011-2012 financial year:
Impairment of assets
(scanners, buses)
Accounting provision for ‘loss’ in AFCON 2013
Depreciation of unproductive assets
(Hyundai buses, Hyde Park House, Raphael)
Total depreciation




R16m
=
=
R6m
R7m
=
R24m
Expenditure decreased by R3m despite an increase of R12m
accruing from additional depreciation increased and insurance costs
of the assets
Investment in football:


=
National team expenditure rose by R15m (full program for all teams)
Expenditure on competitions, leagues and football development rose from R79m
to R92m
Governance expenditure increased by only 10%
Plan to close the liquidity gap on the next slide
Snapshot of Finances (continued)

POSITION Loss of R56.4m reported for 2011-2012 financial year:

Non-recurring items
Impairment of assets
(scanners, buses)
Accounting provision for ‘loss’ in AFCON 2013
Depreciation of unproductive assets
(Hyundai buses, Hyde Park House, Raphael)

Operating loss
=
R29m
=R16m
=R6m
=R7m
=
R27.4m
Closing the Liquidity Gap
Liquidity Gap
R92,9m
Recovery Plan
1.
Appointment of Financial Platform (Ernst & Young)
2.
Sold 22 Buses
3.
Sold 40% of Netcare shares
-Further 20% awaiting decision
4.
Sold Hyde Park; Raphael on the market
5.
SARS refund obtained
R3,5m
R17m
R10m
R6m
R7.5m
R7m
6.
Renegotiated HPC debt
7.
AGM Approved a financial Budget for first time
(3 years, interest at prime 8.5%)
R8m
(previously done by NEC)
8.
9.
10.
11.
Limited progress with restructuring organogram
Regional grants paid to March 2013
Suppliers largely under control
Stricter cost control measures in place
R21m
Closing the Liquidity Gap
Recovery Plan (continued)
1.
2.
3.
4.
5.
6.
7.
8.
9.
Sponsorship for SAFA 2nd Division nearly concluded
Additional sponsorship for U13 and U15 boys and girls leagues
Sponsorship with telecommunications partner concluded
SuperSport broadcast contract concluded
Negotiations with vehicle sponsor taking place today (30 Apr ‘13)
Negotiations with potential sponsor for professional women’s league
commenced in Apr ‘13
Banyana Banyana sponsorship negotiations concluded
Secured grant from 2010 FIFA Legacy trust
R20m
Received VIK from Tsogo Sun
R2m
Cars & Buses
1996 - SAFA Referees program sponsored by Toyota (sponsorship ended in 1997)
1997 - 10 VW Kombis, 1 Audi A4 and 1 Audi A6
1998 - 25 Mercedes Benz Sprinter buses, 25 Neons vehicles
2005 - 6 Fiat vehicles sold after sponsorship ended
2006 - Sold the 1998 Mercedes Benz Sprinter buses
2009 - Mercedes Benz contract renewed and 10 cars added to SAFA fleet
2009 - Purchased 2 S-Class Mercedes Benz vehicles for VIP transport
2011 - 53 Mercedes Benz Sprinter buses
2011 - 53 Hyundai sedans from FIFA
2011 - 35 buses from a FIFA World Cup partner
2011 - 26 Mercedes Benz C180/C200 cars for Provincial representatives and those who service
SAFA Regions
2012 - Mercedes Benz sponsorship ends and fleet returned
TOTALS
• 239 vehicles over 15 years
• 131 Mercedes Benz vehicles
• 2 Toyotas
• 88 Hyundais
• 6 Fiats
• 12 Volkswagens
-10 Kombis given to poorest Regions in 2001
-25 Mercedes Benz Sprinter buses sold in 2006 due to high maintenance costs
-25 Neon vehicles sold as a result of the high cost of maintenance in 2001
-22 of the 45-seater buses sold as they were non-productive (in 2012)
Role of the PEC
SAFA’s Provincial Representatives
Comparison with Cricket/Rugby
Year end date
Revenue
SAFA
Cricket SA
SA Rugby
June 2012
April 2012
Dec 2012
R' Million
R' Million
R' Million
312
430
689
27
277
307
202
55
272
83
98
110
54
27
59
105
55
80
514,286
490,909
737,500
2,971,429
7,818,182
8,612,500
10
2
4
36
19
12
277,778
89,474
358,333
8,666,667
22,631,579
57,416,667
161
31
22
Motor vehicles/Busses
80
22
-
Leasehold improvements
61
7
Broadcast
Sponsorship
Other
Salary cost (Rugby incl players)
Number of employees (excl players)
Average salary per employee p.a.
Revenue per employee
Non exec director fees and allowances
Number of non exec directors
Average annual fees per non Exec p.a.
Revenue per Non exec
Fixed assets (at cost)
Land and Buildings
8
Computer equipment
8
Furniture
4
-
6
42
533
68
Reserves
-
7
-
2
9
Transformation in SA Football
Transformation of South African football is a process of
assessment, implementation, re-evaluation and re-invention.
Transformation, in its broadest context, must be tackled on
several fronts and is being implemented accordingly:
1.
Racial
6.
National
Priorities
2.
Economic
3. Sport
Performance
5.
Admin
4.
Governance
Aims & Objectives of SAFA – Article 2 - SAFA Constitution
SAFA shall have no other objectives save for objectives provided for below and the funds be employed
exclusively in the promotion of such objectives and provided further that SAFA’s activities shall be
limited to the Republic of South Africa. SAFA shall have the following aims and objectives:
2.1
to carry on the public benefit activity of administering, developing, co-ordinating and promoting
the game of football in which the participants take part in accordance with the principles as laid
down in the statutes of FIFA.
2.2
to improve the game of football constantly and promote, regulate and control it throughout the
territory of South Africa in accordance with the principles of fair play and its unifying, educational,
cultural and humanitarian values, particularly through youth and development programmes;
2.3
to organise competitions in Association Football in all its forms, by defining precisely, as required,
the areas of authority delegated to the various Members and Leagues of which it is composed;
2.4
2.5
to draw up regulations and provisions and to ensure their enforcement;
to protect the interests of its Members;
2.6
to respect and prevent any infringement of the statutes, regulations, directives and decisions of
SAFA, COSAFA, CAF and FIFA as well as the Laws of the Game and to ensure that these are
also respected by its Members;
2.7
to prevent all methods or practices which might jeopardise the integrity of matches or
competitions or give rise to abuse of Association Football;
2.8
to control and supervise all football matches of all forms played throughout the territory of South
Africa;
Aims & Objectives of SAFA – Article 2 - SAFA Constitution
2.9
to manage international sporting relations connected with Association Football in
all its forms;
2.10 to host competitions at both National and international levels;
2.11 to settle disputes arising between members or bodies or persons connected
directly or indirectly with football within the jurisdiction of SAFA;
2.12 to raise and administer the funds of SAFA in such a manner as SAFA may deem
advisable and in particular by means of subscriptions, donations and
sponsorships;
2.13 to acquire and develop playing facilities including the construction of stadia;
2.14 to distribute monies to its members for the protection, promotion and
advancement of amateur football;
2.15 to affiliate to FIFA, CAF, COSAFA and SASCOC;
2.15 to do all such things as may be incidental or conducive to the attainment of the
objective or any one of them;
THE TRANSFORMATION OF
SOUTH AFRICAN FOOTBALL
SAFA
MODERN FOOTBALL’S
NEW REALITY
The river used to flow freely and
everyone
could
draw
water
downstream ........ until someone built
a dam upstream and caused the river
to run dry downstream.
 A strong national centre is therefore needed to acquire
resources using economies of scale to negotiate
sponsorships and to provide proper levels of support for
development
Racial
Transformation
1. Racial and Gender Transformation
Objectives




To strengthen participation by all racial groups in the country
To increase female participation in the sport
More coaching courses for school teachers and SGBs
Introduce Grassroots football in communities
Challenges





Accessibility to school sports thru Phys Ed
in the curriculum
Lack of infrastructure
Inadequately trained human resources
Parental involvement
Cultural challenges in rural areas
2. Economic Transformation
Objectives






To diversify income sources for football
Ownership and/or control of facilities
Football Pools
Capacity-building in our Regions
Broadcasting revenue base needs to increase drastically
Exploit hidden value embedded in the sport (merchandising, business
potential)
Challenges



Mindset of Corporate South Africa is racially
based
Lack of an entrepreneurial culture in football
Negative public image of the sport
3. Sport Performance
Objectives







Establish grassroots football programmes to increase the fun element
in the sport
Establishment of provincial, regional, local high performance centers
Improvement of the National School of Excellence at Elandsfontein
Become the center of Elite Football Development for the African
continent
Become No. 1 in Africa at all age group levels
Qualify for FIFA and continental competitions at all levels
Increase the coaching culture at all levels
Challenges



Transfer of land for School of Excellence to be
accelerated
Acquisition of Esselen Park as the National
Center of Excellence for football
Increased engagement with government at Provincial and local levels
4. Governance
Objectives




Become the model of good governance amongst sporting codes in
the country
Establish a strong regulatory environment to manage relations
among the sport’s participants
Build a culture of ethical behaviour that permeates all the way to the
grassroots structures
Use the 2010 FWC dividend to develop the game in the country
Challenges


Lack of respect for basic governance principles
Not enough resources to widen the educational programme on good
governance
5. Administrative
Objectives





Build the most professional team to administer the sport
Use the 2010 FWC experience to strengthen the administration of the
sport
Rebuild the culture of voluntarism in our football
Establish a strong SAFA Academy to train coaches, referees,
administrators and other professionals who service the sport
Build culture of service and commitment among all staff throughout
the country
Challenges



Lack of financial resources
Entitlement
Low skills base
6. National Priorities
Objectives

Compliance With the National Sports Plan
Challenges

Resources
THE LEGACY OF THE 2010
FIFA WORLD CUP
SAFA
The 2010 FIFA World Cup Legacy Trust
BOARD
OF
TRUSTEES
2010 Legacy Fund

There are 3 forms of 2010 FIFA World
Cup Legacy
 direct
payments from FIFA to SAFA
 transfers of surplus funds from LOC to SAFA
 2010 FIFA World Cup Legacy Trust
distributions to qualifying recipients
Direct payments from FIFA to SAFA

“USD 20 million was provided to SAFA in the
build-up to the 2010 FIFA World Cup event
for preparations and for construction of SAFA
House.”

“The first project financed by FIFA was the
purchase of 35 buses and a fleet of 53 cars
which were handed over to SAFA for
transport of their regional teams.”
Transfer of surplus funds from LOC to SAFA

“FIFA has also been consulted in respect
of all grants made to SAFA by the LOC up
to the current day. These matters have all
been performed in compliance with the
governance structures of the LOC.”
FIFA letter dated 27 February 2013

Asset disposal strategy approved by the
Board of Directors on 1 December 2009
2010 FIFA World Cup Legacy Trust

“FIFA appointed Ernst & Young to
perform financial control functions within
the FIFA Legacy Trust and in particular to
monitor that donations are appropriately
authorised under the FIFA Legacy Trust’s
governance structure.”
Background




President Zuma and FIFA President Blatter announced
establishment of Trust in Dec 2010
Inaugural meeting of Board held on 18 April 2012 after
approval & registration of Trust Deed and basic set up of
the administration
FIFA transferred R450m to the Trust
Board expressed wish that funding should be primarily
used to improve all facets of South African football
World Cup Profit Distribution

Guaranteed Profit
USD100m

SAFA House
USD10m

Bafana preparation
USD10m

Cars and buses
USD10m

SAFA Development Programs
USD5m

Total
USD35m
Transferred to 2010 FWC Legacy Trust  USD65m
Funds in the 2010 FIFA WC Legacy Trust

The USD65m (R450,8m) was invested as
follows:



ABSA
INVESTEC
NEDBANK
R90m
R190m
R170m
The above investments have yielded interest of
R31,848,614 by 28 February 2013
Procedures


Call for applications : End of May 2012
Application process opened : 1 June 2012
closed : 30 September 2012

All applications registered and placed on database

Screened for compliance

Preliminary assessments made by staff

Evaluation panel considered the applications
Evaluation Panel

Dr Molefi Oliphant (SAFA)

Prof Lesole Gadinabokao (SAFA)

Dr Rendani Mulaudzi (University of Pretoria)

Mr Chris Fortuin (University of Johannesburg)

Mr Hubert Tiger (FIFA Representative)
APPLICATIONS RECEIVED
Applications
Category
Number
Non-Football
Specific
Development through Football projects
74
Bursaries
27
Humanitarian
48
Funding below R10 000
3438
Funding for projects above R10 000
314
Schools
446
TOTAL # OF APPLICATIONS
4,347
Football Specific
ALLOCATIONS MADE
Summary of Allocations
Number of
Recipients
Category
Amount
24
Bursaries to individuals serving football
R0.5
33
Development through football
R6.5m
916
Football Development
R49m
973
TOTAL AMOUNT
R56 m
Some of the Recipients
SAFA: R17.05m
For the delivery of Under-13 and Under-15
Leagues for Boys and Girls in 311 Local
Football Associations and 52 Regions
Some of the Recipients
SAFA WOMEN’S
FOOTBALL: R8.7 m

R5.7m for the delivery of the SAFA Women’s Regional
League

R3.0m for the Long Term Women’s Development
Programme
Some of the Recipients
SAFA REGIONS:
R7.950m

R150 000 to each of the 53 SAFA Region for Office
Equipment, Training of Coaches, referees and
Administrators and a grant for administration
Some of the Recipients
SAFA LOCAL FOOTBALL
ASSOCIATIONS: R6.22m

R10 000 to each of 311 SAFA LFAs for
Office Equipment

R10 000 Grant for Administration
Some of the Recipients
WITS UNIVERSITY:
R317 000

For the training of Emergency Medical Personnel to do
duty at football matches
Some of the Recipients
20 CENTRES FOR 2010
R4 200 000



R210 000 to 20 Centres for Education and Health
programmes as part Community/Youth Development that
use football as the vehicle for development
5 Centres are in South Africa
15 Centres are in the rest of Africa
20 Centres for 2010
Some of the Recipients
800 LEGACY BAGS:
R6.0m
SAFA Regions, LFAs, Clubs and schools to receive bags
containing KIT, BAGS and training equipment to the
value of R7,500 each.
Some of the Recipients

SA Indoor Football Association:
R2.350 m

Beach Football
R750 000

Students Football
R100 000

Bursaries
R500 000
The Next Steps

We are refining the application process based on the
learnings of the first process

The next window for applications will open in July 2013 for
the year 2014