Is Cycling South Africa (CSA) Bankrupt? No, but…
Cycling South Africa (CSA) admits to tough times and institutes cost-cutting measures.
Cycling South Africa (CSA) admits to tough times and institutes cost-cutting measures. – by Jonathan Ancer
Concerns are growing among cyclists that Cycling South Africa (CSA) – the sport’s governing body – is in financial difficulty and is months overdue in handing over insurance premiums for its members.
Adding fuel to concerns that the organisation is cash-strapped, was a recent announcement by CSA president William Newman that “due to the current economic climate and limited funding”, CSA will no longer fund travel for national team riders to international events. The announcement sparked fears that South Africa’s time in competing in international events may be up and the organisation is bankrupt.
Is CSA Bankrupt?
Mike Bradley, CSA’s general manager, told Bicycling SA played down concerns over the financial status of CSA and said that what led to the riders’ self-funding decision was the fact that it no longer had funding from the National Lotteries Commission in its annual budget.
“In 2011 we applied – and received – R24-million funding from the Lotto, which we stretched out until 2016. The annual R4.3-million was designed for specific circumstances, like developing high performance athletes and funding riders to go to international events.”
That funding has come to an end and Bradley said that while CSA was waiting to find out if its current application to the Lotto was successful, the organisation had a big responsibility in terms of transformation in cycling and a host of other commitments.
“We have a lot of ideas and plans and if our other programmes come through then we will look at funding athletes’ travel again. We are not in the game of financing risks and sending riders to Europe but we will fund our strategic objectives, such as sending riders to the World Champs and to Commonwealth Games and Olympic Games qualifiers,” he said.
Newman said riders should look to other local, regional and provincial sports departments for funding.
Newman, who said cyclists remain the organistation’s “number-one priority” added that the CSA’s financial situation was by no means unique and many other national federations were in a similar situation.
What About CSA’s Other Revenue Streams?
Bradley conceded that it was also struggling with some of CSA’s other revenue streams – like collecting levies and day licence fees from events and that its members’ renewals were down.
“The events must realise if they don’t hand over these fees we won’t be able to create heroes,” he said, adding that reasons for members not renewing their licences were due to the economy, people simply forgetting and some riders opting to take day licences instead of an annual membership.
“The number of members not renewing their licences is significant but we have a rolling membership – so if 7000 members don’t renew we have 5000 new members.”
He said CSA had instituted cost-cutting measures, such as reducing admin costs, saving between R200 000 and R300 000 a year.
Bradley admitted that CSA was behind with insurance payments but said there were plans to catch up and “it would be brought up to speed soon”. However, it is believed that Road Cover, who underwrites the insurance from CSA, is still honouring claims.
He said CSA was working to attract funding into the organisation and was putting plans in place to attract sponsors and advertisers on its various platforms.