Non-profit?
The UFA is a non-profit organisation dedicated to the promotion and support of the
game that 48 million Utanians passionately love.
So, what does "non-profit" mean?
It means that when you attend a game and pay your entry fee to the game, all
of those funds are ploughed back into the game we love.
Overall, the budget for the UFA increases over 100% to Û203 million,
with substantial increases in spending on clubs, stadiums, and promotions and
marketing of the game, while wages and expenses are kept down, with decreases in
spending in overhead expenses.
The UFA projects that Revenues will increase by a massive 243% this year,
with a guaranteed 100% from the government's Department of Culture, a projected
150% in sponsorship, Û75.5 million in new TV UFA-related revenues, and
a substantially increased take of gate receipts.
Commitment
The UFA is absolutely committed to fiscal accountability. We have all learned the
lessons of doing the opposite: lost sponsorship, lost government support, loss of
partners and clubs staying with the UFA.
Last year, the UFA lost the vote of confidence of over 1,000 clubs nationwide,
a bitter and devastating blow to the revenues and expenses of the UFA, with a
Û30 million cash loss reported for last year.
And it is not the financial losses that worry the public, the UFA or the
clubs supported by the UFA, but that the reputation of the game has been damaged.
This year, the UFA is committed to restoring the faith of clubs, fans and
supporters alike. We have instituted rigorous financial checks and ethics committees
are constantly on the watch for unethical or dishonest behaviour or policies
implemented by the UFA.
With this in mind, financial accountability is being instituted, with a
public statement of accounts being made available to all stakeholders.
Financial Overview
In keeping with financial accountability, the UFA is, for the first time, making
public its accounts. This is not because we are responsible to the general public
as a rule, but because we feel we are responsible to the people of Utania as fans
and players of the game that the UFA is managing.
You are all stakeholders in this game. The game does not belong to the UFA,
but to the people of Utania, with the UFA as safekeepers.
Auditors Pryce Waterhorse Koopers certify that these are an accurate
reflection of this year's budget, spending patterns and a reflection on previous
year's accounts.
For the full-year of 302ap, the UFA will:
- Spend Û23.3 million on salaries, payments, bonuses and other wage-related
expenses. This is a 17% increase on previous years, due to an increase in
employment, particularly part-time employment. This is a reflection of the UFA's
increased commitment to clubs, providing training, support, etc... (These do not
include club's players or staff.)
- Spend Û19 million will be allocated to grounds, clubrooms and stadiums
of non-national competition grounds, an increase of 147%, reflecting the UFA's
increased commitment to clubs, providing training, support, etc...
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Financial Overview... continued
- Spend Û54 million upgrading facilities at stadiums used by the UFA's
championship competition. This reflects a 177% increase due to the need to improve
stadiums for the clubs that have recently joined the national competition.
- Spend Û8 million on football equipment, everything from balls to
scoreboards, for clubs, schools and competitions, reflecting a 19% increase due
to the UFA's increased commitment to clubs, providing training, support, etc...
- Spend Û16 million on travel, operational and field support expenses.
This represents a 22% decrease on previous years.
- Spend Û6 million on head office operational support, including some
Û640,000 on communications, including this website, rebranding, phone
networks, etc... This 24% decrease reflects not only the UFA's commitment to
cost cutting and efficiency, but also the UFA's commitment to being easier to
access.
- Spend Û30 million on promotions and marketing, an over 250% increase on
previous years, reflecting the UFA's renewed commitment to the game that is a
passion for 48 million Utanians.
- Spend Û46.5 million on TV UFA, establishment and running costs.
In total, the UFA budget for this year is Û202.77 million, a 124% increase
on the previous year, reflecting a far stronger commitment to players, teams, clubs,
competitions and the game as a whole.
The organisation is also receiving much stronger sponsor and government
support. Revenues are:
- Û25 million in gate receipts, up from last year's Û9.8 million, a
155% increase. This will be funded by an increase in the number of games, improved
sponsorship for clubs, improved facilities, and a general improvement in the
respect for the UFA-organised sport.
- Û1.75 million in club fees, a 46% increase reflecting a slight increase
in fees, but moreso a substantial increase in clubs joining the UFA, due to
improved benefits and improved reputation.
- Sponsorship up 150% to Û38.45 million.
- Government support, from the Department of Culture, is up 100% to Û70
million, representative of the government's support for the UFA's objectives of
promoting the game at a local level, and for the National team, the Crusaders.
- TV UFA revenues, not previously recorded, are estimated to be Û58 million
in fees and Û17.5 million in broadcast advertising.
This aggregates to Û210.7 million in revenues, up 243% on last year's
Û61.4 million. This is due to a significantly improved level of trust by all
stakeholders in the UFA and its operations. We pride ourselves on this improvement,
a substantial achievement within such a short period of time.
It should also be noted that last year's crushing cash loss of Û29.3
million is, this year, turned into a Û8 million "profit", which will be used
to pay off debt.
As the UFA is NOT a profit-making venture, any excess cash funds are to be
channelled back into the budget of the following year.
NOTE; All figures above are translated to Utanian Punds of June 302, thus
they reflect REAL INCREASES only, and do not reflect inflationary increases between
301ap and 302ap, which stand at about 18%.
Signed
Richard Price,
Chief Financial Officer, UFA.
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