South Africa: SAFA Reports $5Mil Loss After SABC Broadcasting Rights Issue
The South African Football Association (SAFA) has reported a $5 million loss at its annual general meeting on Sunday.
According to the football federation’s acting CEO Gay Mokoena, the deficit is a result of its loss of the SABC broadcasting rights.
Mokoena recalled that before its recent issues with the SABC, SAFA used to have a revenue stream of approximately $7.5 million from the broadcasting rights. He noted that over the past 18 months or so, SAFA didn’t have that income, and this affected the association’s financial performance negatively.
In 2017, SAFA had reported a $1.5 million profit after a $3 million deficit in the 2014/15 financial year.
Mokoena said that in the wake of the latest loss, SAFA has come up with various initiatives to assist with its financial recovery.
He said that this included securing a “flexible” broadcast contract with the SABC.
Mokoena revealed that one of the innovative things SAFA had done with the SABC is to agree on reviewing the cost of the broadcast rights every year as the economic situation hopefully improves for the national broadcaster and for SAFA as well.
SAFA also announced that because it is going through a difficult period, it had received a $3.4 million sponsorship; however, the federation also added that things were looking up in that it had also recently renewed a few contracts.
Credit: This article originated from www.city-press.news24.com