SAFA confirm hefty financial loss at 25-year anniversary celebrations
The South African Football Association (SAFA) have admitted to a loss of R40 million for the financial year ending June 2016. The news was announced at SAFA’s 25-year anniversary celebrations, which formed part of their Annual Congress, at Emperors Palace in the Johannesburg area on Saturday.
The deficit has been attributed mainly to the costs SAFA have incurred on the various national teams, including the SA Under-23’s and the Women’s national team’s trips to the Olympic Games in Brazil, as well the training camps leading up to that event.
Other expenses included Bafana Bafana’s failed African Cup of Nations qualifying campaign, as well as the participation in the COSAFA Cup in Namibia. “This pressure on revenue, when combined with the cost of
supporting successful national teams without sponsors and funding development in line with our commitment, has meant that we have this year reported a loss position in our finances of some R40 million,” SAFA President Dr Danny Jordaan admitted.
“It is incumbent on all of us, and in particular, our administration, to ensure that we do not have a repeat of this in
the coming year. “On the positive side, our strategy to build a football property
profile to reduce expenditure and generate additional revenue is
delivering results. SAFA House (R70 million) and the National Technical Centre (R100 million) provide a solid base for a secure financial future.
“The Legacy Trust has a cash deposit of R290 million. The total base is, therefore, solid but we need to increase our commercial revenue to over R3OO million,” Jordaan added. SAFA’s sponsors include South African Breweries, South African Airways, Sasol, Burger King, the Motsepe Foundation and Nike. The South African footballing governing body are also involved in a dispute with Bafana Bafana head coach Ephraim ‘Shakes’ Mashaba, who was suspended on November 13 this year after bringing the organisation into disrepute when he publicly accused his employers of not adequately backing him in the World Cup qualifiers.
Mashaba has apparently offered to resign but on condition of a
payout – which could cost SAFA a few more million. But they are hoping to dismiss the coach without any compensation should he found guilty of misconduct at an upcoming hearing