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Governing Bodies

CORONAVIRUS OUTBREAK: OLYMPICS HAVE A $1.2 BILLION RESERVE FUND FOR CANCELLED GAMES

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As the International Olympic Committee looks ahead to the Summer Games with trepidation, it does have something that could cushion the blow in case of cancellation: a US$897 million (S$1.2 billion) reserve fund to help finance global sports.

It’s an improbable scenario, but one drawing more consideration at the coronavirus continues to spread around the world. A number of global sporting events and Olympic qualifiers have been cancelled,  and many are now wondering how the outbreak might effect the 2020 Summer Games in Tokyo, scheduled to start at the end of July.

The fund was established as a backstop for international sports federations that rely on the IOC to balance their budgets, said Mr Dick Pound, the organisation’s longest-serving member. That’s not soccer or basketball, but smaller sports like judo, volleyball and water polo.

Part of the IOC’s broader risk management strategy, the fund was established in 2001 with US$105 million. It had grown to US$422 million by 2008.

“It’s a significant number, and would keep all the balls in the air if we actually missed a games,” Mr Pound said in an interview.

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CASES SURGE

Coronavirus cases have surged to more than 80,000 worldwide, with new hot spots in Italy, South Korea and Iran in addition to the epicentre in China.

The World Health Organisation has held off on declaring a global pandemic, but stock prices have plunged and bond yields have soared as investors worry about a further spread.

For now, the Olympic movement is moving forward with its plans for Tokyo. The US Olympic & Paralympic Committee has suggested a limit on all non-essential travel to China, Hong Kong and Singapore, but has informed its teams to continue training and preparing as planned.

On Tuesday, the committee sent an updated e-mail to its teams advising them on the latest virus fallout, including event cancellations in both Italy and Iran and strict travel

We don’t yet know the full impact of the new developments on Team USA athletes and staff,” the committee said in the memo.

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Japanese politicians have also said there are no plans to move or cancel the games.

“The preparations for the Olympic Games Tokyo 2020 continue as planned,” the IOC said in a statement.

“Countermeasures against infectious diseases constitute an important part of Tokyo 2020’s plans to host a safe and secure games.”

The committee said it has full confidence that the authorities, “in particular in Japan and China, will take all the necessary measures to address the situation.”

The IOC made US$5.7 billion in its last four-year Olympic cycle, which included the 2016 Summer Games in Rio de Janeiro and the 2018 Winter Games in PyeongChang, South Korea.

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Of that total, 73 per cent came from broadcast rights and 18 per cent from top-level sponsors.

That money goes in part toward mounting the Olympic Games, and in part to national and international governing bodies to help fund athletes around the world.

For the Summer Games in Rio, for example, the IOC distributed US$540 million to international federations and another US$540 million to national Olympic committees.

The reserve fund is just part of the IOC’s risk management stores. The organisation also has US$647 million in assets set aside from TV money, in case it needs to refund parts of those contracts; US$261 million to cover deficits in its main sponsorship programme; and US$447 million to help cover distribution to national Olympic bodies.

Mr Pound, who has been an IOC member since 1978 but isn’t involved in day-to-day management, said the organisation isn’t in any immediate rush to make a decision on the games.

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He said late May, two months out from the opening ceremony, will likely be the point at which the entire Olympic movement needs to know if the games will be cancelled or postponed.

“This is the most dangerous threat to the Olympics other than a state of actual war,” Mr Pound said. “This is the new war scenario.”

Kunle Solaja is the author of landmark books on sports and journalism as well as being a multiple award-winning journalist and editor of long standing. He is easily Nigeria’s foremost soccer diarist and Africa's most capped FIFA World Cup journalist, having attended all FIFA World Cup finals from Italia ’90 to Qatar 2022. He was honoured at the Qatar 2022 World Cup by FIFA and AIPS.

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Governing Bodies

CAF set to break even after ‘toxic’ past

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President Patrice Motsepe (left) has been vital to turning around the Confederation of African Football's financial fortunes, says secretary general Veron Mosengo-Omba (right)

The Confederation of African Football will be debt free next year as a result of improved governance since Patrice Motsepe became president of a “toxic” body in 2021, says its secretary general Veron Mosengo-Omba.

Installed as deputy just days after the South African billionaire was appointed president, Mosengo-Omba says Caf’s level of debt when the pair took over was about $40m (£31m).

He says this figure has more than halved since, with the tally set to drop even further when Caf’s financial accounts are presented later this year.

“I think we will present a [deficit] figure to the Caf congress of less than $12m (£9.3m),” Mosengo-Omba told BBC Sport Africa.

“For the next fiscal year, [the debt] will be zero.”

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The Caf financial year runs from the start of July to the end of June, with accounts traditionally presented to congress in October, meaning the organisation could be debt-free in just under 12 months’ time.

Mosengo-Omba, who hails from DR Congo but who also holds Swiss nationality, says that credit for the turnaround must go to his 62-year-old boss.

“Motsepe and his executive coming in was, for me, a gift for African football,” said the lawyer, who worked as Fifa’s chief member associations officer before joining Cairo-based Caf.

“In 2021, Caf was a toxic company – nobody trusted Caf. When Motsepe came, he put the principle of good governance and integrity in all levels of the organisation.

“This brings confidence to our partners.”

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One of Africa’s richest men, with a fortune estimated at $3.1bn, external (£2.4b) by Forbes, Motsepe replaced the previous administration led by Madagascar’s Ahmad.

Elected president in 2017 when he dethroned long-standing Caf president Issa Hayatou, Ahmad’s tenure was blighted by scandal, with the Malagasy – who denies wrongdoing – banned for two years by Fifa for breaking its ethics codes, including ‘misappropriation of funds’.

The Hayatou administration maintains that it left over $100m (£77.4m) in reserves when it departed, with the funds declining vastly under Ahmad, whose regime increased salaries, cut Caf’s biggest-ever broadcast deal before then suffering some Covid-enforced losses.

Under Motsepe meanwhile, the number of sponsors of Caf’s flagship Africa Cup of Nations (Afcon) competition has risen from 10 for the 2021 finals in Cameroon to 17 for the 2023 edition, which was played in January this year.

It also gained a global television audience of 1.1 billion, with double that tally – 2.2 billion – accessing the tournament’s digital content.

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“In Cameroon we generated about $4-5 million (£3-4m) profit. In Ivory Coast the profit was more than $75 million (£58m). This shows we are [going] in a good direction and for Morocco, the next edition, I think [the profit] will be increased by 50%,” said Mosengo-Omba.

Most of this increase is coming from sponsors and television rights, with the secretary general also declaring himself “very happy” that Caf generated $14m (£10.8m) after taking ticketing and hospitality in-house for the first time.

Despite recent comments by Afcon-winning Ivory Coast coach Emerse Fae, Mosengo-Omba dispelled suggestions that the tournament could become a four-yearly affair by reiterating the fact that the governing body’s greatest income comes every two years from the finals, which next kick off in December 2025.

“The periodicity of Afcon is not on the table,” he said. “We need the money from Afcon every two years to run football in Africa.”

Mosengo-Omba also sought to strongly defend Caf’s approach to dealing with allegations of corruption against some of its senior administrators, insisting it is “not protecting crooks”.

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Malian federation president Mamatou Toure is currently on trial for embezzling public funds in the West African country, while counterpart Wadie Jary is facing corruption charges in Tunisia.

Both men, who have denied the charges after their detentions last year, remain both in prison and members of Caf’s executive committee.

Pressed on why neither has been suspended, Mosengo-Omba said the organisation could only take action once court cases are settled in their respective countries.

“We suspend [people] provisionally if we are investigating the case ourselves,” he added.

“We respect the sovereignty of each country. When we have the verdict of the court, we’ll take a decision. Nobody is above the law in Caf – no-one.”

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In May, Toure – a member of the Fifa council – reportedly dialled into a Fifa meeting from his prison cell in the Malian capital Bamako.

“If Messrs Toure and Jary committed crime according to the respective regulations of each country, take them to court,” the Swiss-Congolese said.

“How can Caf intervene in the situation?”

-BBC

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Governing Bodies

Tinubu backs Amaju’s FIFA Council re-election bid

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Former Nigeria Football Federation (NFF) president, Amaju Pinnick has secured the backing of Nigeria’s President,  Bola Tinubu in his bid to get another term in office as one of Africa’s representatives in FIFA Council.

The 37-member FIFA  Council is the main decision making body of the organisation in the intervals of FIFA Congress. 

Pinnick is the third Nigerian to ever sit in the FIFA Council after Oyo Orok Oyo (1980-1988) and Dr. Amos Adamu (2006-2010).

Pinnick was elected into the council on 12 March 2021. He is bidding for re-election in 2025 when the current term lapses.

According to a media release from the State House and signed by Chief Ajuri Ngelale, the Special Adviser to the President on Media & Publicity,

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President Bola Tinubu expresses strong support for Nigeria’s bid for re-election into the FIFA Council

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Governing Bodies

Save Our Soccer, African Sports Journalists plead with Motsepe

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BY KUNLE SOLAJA.

An SOS has been sent by the International Sports Press – Africa (AIPS -Africa) to the President of Confederation of African Football (CAF), Dr. Patrice Motsepe to save the soul of African soccer.

 The sports writers’ body has written an open letter to Motsepe on the need to do more to save African football.

The letter, written Monday in Dakar, is premised on the recurring scheduling problems that “have made CAF a victim of collateral damage from the “war” between UEFA and FIFA.”

Continuing in the letter signed by AIPS-Africa President, Abdoulaye Thiam, the sports writers’ body noted that UEFA contributed to overloading of the international calendar with the creation of the Nations League, which is played on FIFA dates

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Owing to the congested international calendar, football competitions in Africa have been major victims.

AIPS wrote: …”the stuttering and uncertainties surrounding the programming of the African Cup of Nations (AFCON) leave many wondering about the future of our continent’s most prestigious competition, which is struggling to find a place in the international calendar.

“Added to this, the external influences and the overload of the international calendar, modelled on the European interests, increases the scepticism surrounding the survival of CAF’s most lucrative and economically viable tournament.

“As a result, therefore, it is rare, if not impossible, for an African team to find a European team to spar with, except when they share the same group in a World Cup draw every four years.     

“As for FIFA, in addition to the Arab World Cup, it has also created the Club World Cup. Worse still, it decided to stage the latter competition from June 15 to July 13, 2025, a period initially chosen by Morocco to host the AFCON 2025. In fact, Cairo’s dependence on Zurich enabled FIFA’s latest competition to happily shake up the 67-year-old African Cup of Nations.”

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Also affected by the global football calendar are the scheduling of the Women’s Africa Cup of Nations and African Women’s Champions League.

The journalists recalled that the changing of AFCON tournaments from the even-ending years to the odd  was to avert situations of clashing with World Cup years and to avert exhaustion on players.

The situation is such that scheduling of tournaments in Africa is now determined by compromise reached with UEFA and FIFA.

AIPS averred that “it is important to deconstruct the image of Africa as a prominent stakeholder in the global game with huge voice of 54 member associations and votes being presented as an electoral cattle-tank, to be adequately given their fair share during debates and dialogues with FIFA, by offering constructive solutions with a view to accelerating a reform of the international calendar.

“It is therefore expected from CAF leaders to ensure respect for African Football which is full of great administrators and players alike…Mr. President (Motsepe), you claim to be a disciple of Nelson Mandela and a well respectable man. A man of principles. So do kindly refuse and remain our inspiration than anything else.”  

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