1st FINA World Aquatic Convention Punta del Este (UY), 27th-29th september 2010
SECURING YOUR INCOME By PAOLO BARELLI FINA HONORARY SECRETARY ITALIAN SWIMMING FEDERATION PRESIDENT
THE ITALIAN SWIMMING FEDERATION EXPERIENCE My presentation will be based both upon the experiences that I have accumulated through my 26 years at the helm of the Italian Swimming Federation (F.I.N.), first as vice-president and then as president, and on my professional knowledge and skills, to promote a project of international interest.
Let me point out that F.I.N. is a complex and much articulated organization, managing all five FINA disciplines, as well as a relevant Masters movement, Swimming Schools, Life Saving and Rescue and many other promotional activities.
Directly or indirectly F.I.N. extends its influence over a Community of more than 5 million people - a share of about 10% of the entire population of Italy - providing guidelines, orientation and support for the organization of countless Events, Development Programmes and Activities.
These graphics show the budget and numbers of the Italian Swimming Federation, from 2001 to 2009. STRATEGIC MODEL
F.I.N. NUMBERS 5.700.000 aquatic activities participants 1.477 affiliated clubs 529 swimming schools approved by F.I.N. 104.704 athletes 1.433.747 swimming school swimmers 24.527 coaches 9.245 officials 3.042 judges and referees 73.000 lifesavers Participants
6000000 5000000 4000000 3000000 2000000 1000000 0 1986
1996
2000
2004
2006
2007
2008
F.I.N. has also been very active in the organization of several international events, the most important of which were the FINA World Championships staged in Rome both in 1994 and 2009. F.I.N. will also play a significant role in the Rome’s bid for the 2020 Olympic Games.
1. INVESTMENTS AND PROTECTION OF ASSETS
It’s necessary to set up an effective and ambitious Long Term Planning.
The Italian Swimming Federation’s experience shows that:
• The safest source for finances comes from membership fees that Clubs, Swimming Schools, Coaches and Instructors have to pay for their affiliation.
• Entry fees for participants to aquatic events is a safe income.
• Revenues by TV rights for broadcasting the major events, by sponsors and partners are getting more and more important in our sports.
• Revenues from Government Authorities or N.O.C. are allocated annually to Sport federations, with a preference for the Olympic sports and, among them, for those that are more successful. The budget of F.I.N. is approximately 20% of N.O.C.s revenues.
• Funding, in term of cash, and contributions, in term of services, from Government (Central, Regional, Provincial or Local) must also be sought tenaciously and convincingly.
• Others sources of revenues could come from betting or national lottery associated with Sports Events.
COSTS REDUCTION AND SPENDING CUTS ARE AS IMPORTANT TO A SOUND BUDGET POLICY AS INCREMENTING INCOMES.
TO SECURE A SATISFACTORY BUDGET THE KEY WORD IS SINERGY
• The best investment is in HUMAN RESOURCES.
• The Investing in LOGISTICS is equally important.
• The Investing in COMMUNICATIONS is vital for the success of each operation. A sound, comprehensive and effective communication system will help maximizing efforts in every area.
• MEDIA COMMUNICATIONS is also of paramount importance.
• It 's always very important to encourage the athletes, coaches and staff with special benefits.
2. LONG TERM PLANNING BASED UPON SOUND BUDGETING AND FORECASTING • To achieve such a Planning it is very important “to be assisted by experts in this area”. It goes without saying that in times of global economic downturns it is necessary to be extremely prudential in plannings and forecasts. Mistakes in this area will be reflected, heavily, in the running of business. • Keep in mind that only the revenues coming from affiliates - and perhaps those accruing from N.O.C.s or Government authorities -, are 100% safe, while incomes from Sponsors and Partners are more risky. As you can see the budget of the Italian Swimming Federation is formed near 70% of our own revenues.
F.I.N. Budget: 40.000.000 €
8% 25%
67% Own management
• To keep up with the capacity to attract funding from outside it is necessary to constantly enhance and revamp the federation’s identity.
N.O.C. fundings Sponsors
3. VALUE OF PARTNERSHIPS AND RELATIONSHIPS • To get a less meagre share of revenues from the Sport Sponsorship Market it’s necessary to struggle and beat the competition of other sports and other events.
• Chances to succeed will be better off if you manage to set up a dedicated Sponsorship Department, which must definitely have a significant place within the Organizational Chart.
• Another Department should take care of EXTERNAL RELATIONSHIPS and of the RELATIONSHIPS WITH PUBLIC INSTITUTIONS AND THE GOVERNMENT (at all levels).
4. GOVERNMENTAL SUPPORT/NOC ASSISTANCE
The Italian Swimming Federation experience teaches us that to win the support of Governments, the other Public Institutions and N.O.C.s, it is necessary to: a) b) c) d)
run Programmes; develop winning Athletes and Teams; educate Elite Athletes to a public role; establish well advertised, massive, “Learn-to-Swim” or “Learn-to play-Water Polo”, or “Come to Diving (or Synchro)” programmes; e) support and develop the Masters movement; f) Ensure the necessary assistance to the public institutions that deal with safeguarding human life in water environments. To teach lifesaving will implement water safety education. The combination of these factors will strongly enhance the public image and increase numbers.
An enhanced Public Image and Big Numbers will strongly support the quest for better and bigger Funding: the amount of these two factors equate to BIG MONEY.
F.I.N. FUND RAISE 40 35
Own managment
30
N.O.C.
25 Sponsor
20 15 10
€/MILLION
5 0 2001
2004
2007
2009
In Italy, F.I.N. has catalyzed under his umbrella over 5 million “swimmers”, a conspicuous share of our population (around 10%). This fact has always represented for the Italian Swimming Federation the starting point of any action voted to enlarge the number of practitioners and to increase the potential revenues through the development of local and international initiatives like the big events, such as the World Championships - Rome 2009.
The edition 2009 of the World Championships was recognized by the President Julio Cesar Maglione the best in the swimming history.
• The World Championships came out from two goals similarly felt: the return to Rome, after the 1994 edition, of the world swimming elite and the promotion and creation of a network of facilities that would constitute a legacy for citizens, companies and national teams after the event. We are very proud to say that all goals have been achieved and that we have left an heritage of about 25 venues, between public and private pools, to the advantage of the entire national movement. • This success is due to structural, organizational, mediatic and sportive factors, to the support of national and local policy and to the high investments to establish a budget of around 52 million euros. • With a budget of 40 million euros, 67,5% of which deriving from its own revenues, for the Italian Swimming Federation the World Championships have been an organizational masterpiece, compared to the expenditure required, and a project that showed how the big event could produce alternative budget items.
2009 WORLD SWIMMING CHAMPIONSHIPS 17 DAYS OF COMPETITIONS 183 COUNTRIES 2.590 ATHLETES 1.400 OFFICIALS 1.500 JOURNALISTS 2.500 VOLOUNTEERS 200.000 SPECTATORS ON THE STAGE
GLOBAL BROADCASTS: 3.509 HOURS – 510 MILLION VIEWERS SPORT MAGAZINE: 61 HOURS – 395 MILLION VIEWERS NEWS COVERAGE: 60 HOURS – 2.684 MILLION VIEWERS TOP 5 COUNTRIES: CHINA – 1.093 MILLION VIEWERS ITALY – 609 MILLION VIEWERS JAPAN – 601 MILION VIEWERS GERMANY – 275 MILLION VIEWERS FRANCE – 207 MILLION VIEWERS
G.D.P. INCOME ITALY: LAZIUM: PROV. OF ROME: CITY OF ROME:
+ 0.2 % + 1.5 % + 2.0 % + 2.2 %
These data show how some items that cannot be classified as money in a financial plan must nevertheless be considered as very important assets. The cohesion among the different kind of partners - social, sporting and economic - is the ultimate added value which goes to the benefit of the entire society. I wish Good Luck to you as well!