The South African Rugby Football Union (Sarfu) have taken care of their cents and, in turn, their rands have taken good care of them, according to their annual report.
The union's books reflect a profit of R7,96-million, which is down on the R12,343-million made in 1999. Sarfu have, however, not been shy to put their hands in their pockets during 2000, said Ivor Bloom, Sarfu's general manager of finance.
The Springbok was a hungry animal in 2000, with the national team and everything relating to them, eating up R40,943-million, just under R10-million more than 1999's total of R30,95-million.
"You have to remember that our financial year runs from October 1, 1999 to September 30, 2000 and the 1999 World Cup in Wales fell into that time frame," said Bloom.
Resolving former Bok coach Nick Mallett's contract "Our additional expenditure included the 'Bring it Home' World Cup awareness campaign that we ran - that cost in the region of R6-million. There was extra travel and accommodation with relation to the Boks, and they had an extensive pre-World Cup training camp (in Plettenberg Bay)."
There was also the little matter of resolving former Bok coach Nick Mallett's contract when he was given a gentle push towards unemployment after last year's Tri-Nations. Mallett and Sarfu's chief executive officer, Rian Oberholzer, came to an agreement on Mallett's terms of departure and the former Springbok coach was seen smiling after that meeting. One presumes that he was offered more than the price of a Test ticket to go quietly.
The long-term deal secured in late 1995 by the then Sarfu president, Louis Luyt, with Rupert Murdoch's Newscorp for the rights to broadcast matches continues to reap benefits, thanks to the rand's continuing troubles on the world market and the strength of the US dollar. Gross proceeds from the sale of those rights increased to R118,209-million (R107,009-million in 1999).
Sarfu's selling of the rights to branding on the Springbok jersey to Castle Lager, a renewed deal with Nike and Vodacom becoming sponsor of the Super 12 and the Tri-Nations pushed income from sponsorships up by R17-million to R74,048-million. It all adds up to a handsome gross income of R215,091-million.
As quickly as money comes into Sarfu coffers, so does it goes out again, said Bloom. Remittances to the provinces, development, domestic rugby competitions, the Boks, tours by other South African national teams (the under-21s, under-19s, etc) whittle away at the whole.
'Our cash flow is good' "Our cash flow is good. We are a very liquid organisation, but it flows in and then flows almost straight back out. We are happy with the level of profit and intend keeping it were it is - in the R8-million region," said Bloom.
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