The South African Football Association (Safa) has reported a financial shortfall of R107-million in its 2022-23 financial year.
A report by auditors Sondlo Chartered Accountants said they are concerned over Safa’s sustainability, saying, “a material uncertainty exists that may cast significant doubt on the association’s ability to continue as a going concern.”
This shortfall has increased from R73-million the previous year, with a difference noted as the auditors identified the shortfall as R136,657,870, TimesLive reported.
Despite a R55.7-million property revaluation that swung the financials to show a R5-million profit, underlying financial issues remain clear.
Safa’s CFO, Gronie Hluyo, explained the R29-million difference between the NEC and auditor’s shortfall figures as income received in advance
“If we have a sponsorship contract for R12m per year and that sponsor pays us on January 1, in accounting terms you don’t recognize that because you have not earned it yet,” said Safa.
“The group made an operating loss of R50,633,854 for the year, however, there is a revaluation surplus of R55,677,857, which resulted in an overall profit of R5,044,003.”
Safa’s national executive committee admitted the need for a strategic change.
They also mentioned revenue challenges and the need to improve broadcasting revenue and sponsorship engagements to address the financial stress.
Compiled by staff writer
Pictured above: Safa house.
Image source: File
