Funding Change

Is the sporting landscape already on the verge of change? Many believe that the ways of the past are going to have to change dramatically in the next couple of years if amateur or recreational sporting bodies are to survive.

In October 2013 Cycling WA, the State’s competitive cycling administrative body was forced to wind up when it was revealed it had lost $53,408 in the past financial year, taking its total accrued deficit to $79,395. At the time WestCycle chief executive Clint Shaw said Cycling WA had been operating with an unsustainable business model. The sport created a new governing body called Cyclesport, and its members will now be taking a far closer interest in the day to day running of their sport.

News that Mandurah City Football club was left with a debt of around $7,000 after hosting Perth Glory v Melbourne Heart in a pre-season friendly has apparently led to meetings with Government officials; as the aim of the game was to promote football in the Mandurah region. Apparently Perth Glory and Melbourne Heart, – two privately run clubs, – have walked away with the Government’s money (Royalties for Regions) and left a local community club struggling to cover costs imposed on them for security staff, public toilets and the like. It is believed questions are being raised as to how the game’s administrators could allow a regional club like Mandurah to be left having to bear the costs on an event that was supposed to benefit them and their local community.

News that another state sporting body is teetering on the brink of bankruptcy and is likely to be facing a full audit is not good news for sport in Western Australia, as this sport is one of many other sporting organisations also doing it tough.

Many are saying that the Department of Sport and Recreation (DSR) needs to have a far more hands on approach with the sports that it hands money to. That it needs to make these bodies accountable for the money given and how it is spent. However does the DSR currently have the man power to do this? In fact is this really their role?

According to their website “the Department of Sport and Recreation is the lead agency responsible for the implementation of government policy and initiatives in sport and recreation.” So maybe the Government and Sports Minister need to implement a policy where it is the department’s responsibility to monitor the use of monies given to the various sports in order for the DSR to fulfil its role, which is to “contribute to the healthy lifestyle of Western Australians by increasing physical activity in the community through sport and recreation.” Surely this statement means funding promotion and events that see more people participating.

What is happening according to many insiders in sporting organisations across the state, is funds that are being received from the DSR are not being spent on promoting the various sports and increasing participation, but on paying staff salaries. The word is that most sports are struggling to find sponsorship in the current economic climate. The cost of living has risen, and therefore so too have staff salary expectations. Some staff and members of various sporting bodies have stated confidentially that the salaries being paid to some organisations Chief Executives are unrealistic, and need to be trimmed back to more realistic levels.

There is no doubt that many of the sporting bodies in the State are doing it tough, the question is should the DSR or the Office of the Minister of Sport be paying closer attention to the ways in which these bodies spend tax payers money in order to ensure that it is indeed spent on increasing physical activity in the community in those sports that receive funding? Should they be carrying out quarterly audits? Or should those at the top of the various sports, the Board members and the CEO’s be held more accountable? They are after all the custodians of these sports and it is their responsibility to ensure that funding received is spent in the appropriate and intended areas. Should they therefore not be the ones policing the expenditure and reporting back to the DSR?

One thing is certain, if as indicated, another sporting body does go the way of Cycling WA, and has to be wound up, reconstituted, and re-financed, alarm bells should definitely be ringing. Change must happen in the way this money is allocated and spent, before more associations go the same way. At the same time the DSR needs to assist the various sports in finding ways to attract more sponsorship. Sadly some of the restrictions placed on Healthway related sponsorship is in fact detrimental in terms of finding supporting sponsorship; what is also frustrating some sports are the restrictions are not uniform across all sports, especially in terms of alcohol service.

In the today’s world sponsors want to see a return on their investment and sadly with very little media coverage given to sport below the full time professional competitions few sponsors can see any value in supporting the lower tier competitions. That is why these organisations are doing it tough.

Rest assured change needs to happen and it needs to happen quickly, whether it does will depend on whether the Minister’s advisors having their finger on the pulse. If they don’t that pulse may well stop for one sport before they realise it.

 

 

Funding Change
Tagged on:

3 thoughts on “Funding Change

  • May 23, 2014 at 7:51 pm
    Permalink

    Fat Chance of the DSR Listening to anyone , They do not care how organisations (mis)use the funds or are interested in overpaid execs and underemployed Staff..
    Football West is a Glaring example ! – Demanding $20 Million to support a dying organisation that has probably enough persons Playing the sport but VERY FEW Paying to Watch the game..

    I agree with most of Stephen’s comments ….

  • May 21, 2014 at 12:15 pm
    Permalink

    Healthway and it’s interstate equivalents must really hate MacDonald’s national sponsorship of Little Athletics, Swimming Queensland, Basketball Victoria’s junior programs and the SANFL under their marketing banner of Macca’s® in the Community – Leading Active Lifestyles

  • May 21, 2014 at 12:09 pm
    Permalink

    I don’t suppose that you can tell us which sport is in trouble?

    There are no surprises here. As you say sponsorship is hard to come by, Healthway very restrictive, and costs of staff and rent on the rise. My view is if the CEO’s want the big salaries and that is anything higher than $100k, as seriously no state competition should be paying more, then they must go out there and generate new income for the sport. Presumably that is why they have the role, because they have contacts at the top end of town.

    As for who is responsible, it should be the board and the CEOs. The DSR should definitely look at their accounts every three months when they are giving $200k and more of tax payers money.

    If my memory serves me correctly Cycling employed a CEO from another sport, a sport where the same guy had hardly set the world on fire. That board is to blame for the appointment and the subsequent result. The same applies in all codes. Board members should be held accountable. It is a duty and a privilege and not all about freebies as some boards believe. I would also suggest that more suitable people are appointed to the board than many sports currently have had. That too will help. Maybe DSR should monitor that too.

Leave a Reply

Your email address will not be published. Required fields are marked *