AIBA spending exceeds income 14/10/2010 |
|
| |
| |
AIBA, the international boxing association, spent almost £2.6m more than it earned in the period between January 2007 and June 2010, according to financial statements circulated ahead of next month's AIBA Congress.
The £2.51m deficit took a big chunk out of the body's unrestricted funds, which plunged from £3.93m to £1.42m over the three-and-a-half years.
More than half of the deficit is explained by a £1.3m provision to cover a potential contribution to World Series of Boxing (WSB), the new global competition scheduled to get underway next month.
AIBA said that the provision was due to a loan to WSB and that this would be covered by franchise fees and the proceeds from other rights, reports Inside the Games.
The external auditor report, signed by Pierre Henri Pingeon and Sandrine Wagnière of KPMG, put AIBA's "total exposure" to WSB at £2.2m.
The report went on: "AIBA has recorded a provision of £1.3m in order to cover a potential contribution of AIBA required by the shareholders' agreement.
"The management of AIBA does not consider recording an additional provision, because the current results of WSB are in line with the business plan which forecasts a profitable result for the first season 2010/2011."
The year 2009 – including the first WSB-related revenues – was the only 12-month period in which AIBA's revenues, at £4.04m, exceeded expenses.
|
| Back |
| |
| |
|
|
 |
Advertisement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
