CSA Proposed 2009 Budget - BC Soccer Web

[VPjr]

Here's an interesting nugget from BC Soccer Web:

http://www.bcsoccerweb.com/articles-november/bcsw-nov-24-csa-budget.htm

Comments?

[The Ref]

What have they done with the prior years surpluses? and where are the actual figures? If this kind of statement is what they use to operate the organization, no wonder there are problems.

[Richard]

^ Will need a balance sheet to see what the accumulated retained earnings are, if any.

I also wonder at the huge sponsorhip commissions - 25% projected for 2009 - what's going on there, who is that money going to?

I agree in that I really hope they have a more detailed operating budget than this as this is not enough to run a corner store, never mind a $13 million operation.

The CSA has not disputed the validity of this document.

[CoachRich]

^

Commissions go to IMG via the JV called Canadian Soccer Properties. Chris Collie is no longer listed at the CSA so you are directed to the below at IMG in TO -

For more information on Partnership opportunities within the Canadian Soccer Association, please contact Soccer Canada Properties at (416) 922-7909 or by email at kevin.hayashi@imgworld.com.

[Richard]

^ The CSA is paying way too much for what they are getting.

[piltdownman]

Also it looks like they lost half a million in "Donations", is that kerfoot? Why are they are making less in Merchandise. I also want to know why the expense for the Canadian Championship is $352,000, but no income can be found anywhere, unless its lumped in with "Gate Receipts".

[youllneverwalkalone]

Comments:

1. Stagging cost and gate receipts appear completely out of whack. The lack of ambition there is disgraceful. We lose every match anyway, why shouldn't Croatia, Italy, and Greece come play us here? If you can't turn a profit on that you don't know what you're doing.

2. Where is the gaffer's salary? Buried in admin or in MNT? Hopefully it's the former so we might see a replacement for DM.

3. The sponsorship revenue looks piss poor to me. Again, a total lack of ambition. Get the high profile friendlies here and you'll get more business people interested.

4. The earmark for the Canadian Championship is interesting. Hopefully some CSL or amateur involvement?

[CoachRich]

quote:Originally posted by piltdownman

Also it looks like they lost half a million in "Donations", is that kerfoot? Why are they are making less in Merchandise. I also want to know why the expense for the Canadian Championship is $352,000, but no income can be found anywhere, unless its lumped in with "Gate Receipts".

Kerfoot sponsorship/donations $ were not admin'ed by the CSA.

[CoachRich]

Nykamp lawsuit/settlement - wonder where the CSA is going to get the $ from?

[SouthAfricaOrBust]

quote:Originally posted by youllneverwalkalone

Comments:

1. Stagging cost and gate receipts appear completely out of whack. The lack of ambition there is disgraceful. We lose every match anyway, why shouldn't Croatia, Italy, and Greece come play us here? If you can't turn a profit on that you don't know what you're doing.

2. Where is the gaffer's salary? Buried in admin or in MNT? Hopefully it's the former so we might see a replacement for DM.

3. The sponsorship revenue looks piss poor to me. Again, a total lack of ambition. Get the high profile friendlies here and you'll get more business people interested.

4. The earmark for the Canadian Championship is interesting. Hopefully some CSL or amateur involvement?

Good ideas here.. hope someone is listening

[The Ref]

I have always said that there should be a forensic audit, but I get shut down here because of lack of evidence. In my view an audit may yield the evidence. But let's leave that aside since it looks like a dog chasing his own tail.

If the CSA is a Registered Charity and I am not sure if they are, as such their margin of profit (surplus) is limited and controlled. As a non-profit organization they must keep "Fund" accounting records, and I don't see any evidence of such. This 'commission' business seems to be some kind of negotiation or unsecured venture. As a non-profit does their by-laws allow them to do that kind of transactions? I would also like to see their disclosure statement of any contingent liabilities.

[Richard]

"Good idea's here.. hope someone is listening"

Don't count on it, there is a world of difference between listening and hearing.

[VPjr]

The only major issue I have with this document is that, like so many CSA financial documents of the past, the major revenue and expense categories are so vague.

I assume the purpose of this document (assuming it is genuine) is to give Provincial Associations an idea of how the CSA will allocate the new $3.5 million in revenues they stand to "earn" next year if the registration tax increase they have requested were to go through. If I were a provincial director being asked to vote on pulling that much money out of the local soccer community in order to redirect it to an organization with a less than stellar record (and which has had a pretty miserable 2.5 year run of things), I would surely want a more detailed accounting of how money has been spent in 2007 and 2008 and a more detailed and realistic accounting of 2009 expenditures.

I will say that it can be hard to be overly detailed in a budget document such as this one. I've done my fair share of annual budgets and while I'm required to be more detailed than this one, it does make one's job easier when you work with broad categories. However, if I was asking my boss for a 30% boost in budget, a generic looking budget document would not suffice.

I think the membership is owed a forensic audit, as The Ref has suggested, of the last 3 years of Financial Statements. I think with that kind of transparency, people would be far more inclined to open their wallets, assuming that no major improprieties were discovered.

[piltdownman]

Anyone have the USSF budget to use as comparison? All I can find is that its around $30m and that $1.7 million goes to coaching salaries (head coaches and assistants, for all of its men's teams, including youth teams)

[Richard]

Publication of this document prompted a couple of telephone calls from CSA pooh bars wanting to know who provided it but there has been no repudiation of the numbers presented and no reaction from the CSA despite the fact that Finance Director Vince Ursini was sent a copy for comment. Other than that they appear to be ignoring it so far. Maybe if the mainstream media picked up the story there might be more of a reaction but no guarantees. I'll wager they will use the same technique as always, just wait out the storm if any and carry on as before.

[Bill Spiers]

quote:Originally posted by Richard

^ Will need a balance sheet to see what the accumulated retained earnings are, if any.

Isn't this available on the CSA web site - at least for the last financial year ending December 31, 2007? Although they show it as "Statement of Financial Position".

If I'm reading it correctly, wouldn't the retained earnings be the $2.5 million figure?

[jpg75]

Correct me if i'm wrong, but didn't the CSA have a small debt up until a few years ago? How do they now have positive cash holdings?

[Richard]

Still no repudiation whatsoever of the purported budget from anybody at the CSA.

[VPjr]

This morning, I received the following analysis of the CSA Budget document from an acquaintance. I thought I would share it.

One Persons Point of view on CSA Planning - And Spending</u>

I took the liberty to do a Budget Analysis with the information provided.

The Analysis takes an Average of 2007 & 2008 financial figures and compares against the 2009 Budget. The idea is to see what the CSA plans to do with the increase in player dues. I have grouped categories in order to make sense of a very obscure financial plan that offers few, if any real insights into how these funds are raised and what they actually spend the money on.

My categories are broken into:

Revenue:

Expenses:

National Team

National Team Administration

Senior Men Team

Development Men

Senior Woman Team

Development Woman

CSA General Business

Administration

General Player Development

Referee & Coaching Development

Facilities

Communications & Mini Soccer

It can be argued that one line item should be moved to another;

however that argument is immaterial to the overall picture the analysis reveals. The high lights are as follows:

1. The CSA is raising Player Dues by a whopping 57% over the average

of the past 2 years BUT only delivering a 30% increase in Revenue to

the overall total.

a. Clearly this is in need of better disclosure of facts - 25%

commissions are being paid on sponsorship funding i.e. out of every $

raised the CSA is paying someone 25 cents commission to raise $1 of

funding leaving only 75 cents available for the program- Corporate

Canada pays on average 5% commission on revenue for products sold. Why is the CSA paying 5 X's that rate? And to whom?

b. On the surface, there appears to be a considerable waist at play.

Is the 57% increase is being proposed to COVER UP a LOSS in Revenue

of 15.8% due to some very poor business management that has

transpired over the past while? Upon revue of their figures, the CSA

will not reclaim $1,652,000 in reoccurring revenue or 15.8%. Why?

c. The message the CSA is projecting to the public is that they are

Cash Strapped and therefore MUST increase player dues in order to

improve on the NATIONAL TEAMS - Am I Wrong in this message?

2. Overall the CSA is planning to INCREASE the National Team Budget

(Men & Woman Combined) by %50 or $2,317,000 in 2009. However,

$1,000,000 is ear marked for NATIONAL TEAM ADMINISTRATION Expense.

Why? Also, the CSA plans to include for the 1st time a U15 National

Team. Why?

a. The National Team Budget consists of 50% of the Revenue.

b. The U15 National Team will cost $300,000 c. Less money is being

ear marked for the Senior Teams than in previous years with a

dramatic increase in monies ear marked for the U17 & U20 men's and

woman's programs.

3. When the Administration expense for General Business and National

Team Programs is combined, it represents a total of $2,795,000.00 or

20% of the Revenue.

a. What are the head counts involved in running the CSA? Clearly this

organization cannot claim any premium for people it maintains to run

the Association. Most of the organization is based on Volunteers.

What is the Cost of Admin per Head Count in the CSA? Keep in mind the

organization already pays out $6.9 Million to run the National Team

Program.

4. The CSA spends next to nothing on Coaching & Referee development -

and we have next to nothing to show for it.

5. The CSA spends next to nothing on Soccer Facilities - and we have

nothing to show for it.

6. The CSA is spending $2.5 Million on General Soccer Development

which consists of NTSC scouting, Futsol, Beach Soccer, Competitions,

National Championships, etc..... Virtually all of this money yields

NOTHING to Canadian Soccer. It represents a SPEND on travel so WHOM

can OBSERVE the events that other Soccer administrations conduct.

These line items are completely unjustifiable as they are projected

here - pure waist of money....and the CSA plans to increase this type

of expense by 50% in 2009 funded by a 57% raise in Player Dues.

7. The CSA is spending less than $1,000,000 on marketing and

communications. This number is separate from the Administration

budget. It stands alone. Less than 6% of Revenues is planned on

Marketing and Communications of Soccer in Canada.

That about sums it up - a 57% increase in Player Dues with absolutely

NO tightening of the belt and absolutely no new program direction. A

shameless example of leadership from an organization that claims to

represent the interests of the largest youth participation of any sport in our country!

Well I guess when it's ok for the leaders of GM/Ford/Chrysler to fly

in their personal jets to Washington, with no plan at all, but only

their nerve to ask congress for a $25 Billion "hand out"; it must be

ok for the Leadership of the CSA to ask our youth for a 57% increase

in player dues..... with no plan..... and just their nerve.

Read it and weep.