The SA Football Association (Safa) will report a R74 million loss at its annual general meeting on Sunday.
According the federation’s acting chief executive Gay Mokoena, the deficit was a result of the loss of the SABC broadcasting rights.
“As you would expect, we had some issues in the previous financial year about our broadcasting rights with the SABC. Unfortunately, we are going to report a loss of about R74 million to our members,” Mokoena told the media at Safa House, Nasrec in Johannesburg on Thursday.
“You’ll recall that we use to have a revenue stream of about R110 million from the broadcasting rights. And in the past 18 months or so, we actually din’t have that income. So that has affected our financial performance very negatively.”
In 2017, Safa reported a R23.1 million profit after a R45 million deficit in the 2014/15 financial year.
Mokoena said, in the wake of the latest deficit, Safa has come up with “a lot of initiatives to look at how do we do financial recovery”.
he said this included having a “flexible” broadcast agreement with the SABC.
“One of the innovative things we have done with the SABC is that the income we’ll be getting will be reviewed every year as the economic situation improves for them as well as for us.
“For a start‚ because we are all in a difficult period, we have a R50-million sponsorship. But it’s not all cash. It’s what you call value in kind’,” said Mokoena, who is also Safa’s chairperson of the finance committee.
He, however, said all was not doom and gloom for the football governing body.
“When you make a loss in a business environment you have to make sure you recover in way.
So we have a couple of contracts that we have renewed.”
Mokoena, who replaced Russell Paul as Safa’s caretaker accounting officer last month, listed among others positives:
. Sponsorship renewal with SA Breweries for Bafana Bafana for the next four years;
. Safa was on the verge of signing a new kit sponsorship and “this could happen in 30 days of so”;
Safa has signed agreement for an additional sponsor for Banyana Banyana; and
. Safa is likely to announce at the AGM on Sunday that the federation has entered into a three-year contract with “one of the metros” to host the annual Nelson Mandela Challenge and;
That Safa has also renewed sponsorship with energy drink brand, Energade.
Meanwhile, Mokoena said Safa also reduced the overheads by R80 million.
“And this we did not by retrenching staff but restrategising and repackaging the services that we do for business. For example, the companies that used to provide us with security, with cleaning and with garden service ... we have insourced and significantly reduced costs.
“We have had staff who retired and we have not replaced them.”