IAAF: We survived – but only just 23/11/2010 |
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International Association of Athletics Federations (IAAF) general secretary Pierre Weiss has revealed that the organisation only just survived a major financial crisis by introducing extreme cost-cutting measures and receiving a timely increase in revenues.
Earlier this year, Jean Poczobut, the IAAF honorary treasurer, admitted in a report to the ruling council at a meeting in Doha that the governing body for athletics faced bankruptcy unless it dramatically cut its costs.
An extraordinary meeting of the IAAF's council called for an "austerity budget" for the next four years.
As a result of that crucial decision – which involved major cost-cutting and the arrival of new revenue streams such as Samsung's title sponsorship of the IAAF Diamond League – the financial situation of the IAAF has been stabilised.
The IAAF reserves, in the long-term, will now remain in excess of the minimum level agreed of $50m for the next five years, while the reserves in 2015 will be higher than at the end of 2011.
Weiss told Inside the Games: "We survived. The financial difficulty which we faced has been overcome. It means we have won a good deal on marketing but also cut a lot in our activities.
"We haven't cancelled any competitions or cut prize money for athletes but we have had to look very seriously about how we were spending our money and we must continue with a strategy of strict financial control, which together with aggressive commercial and marketing activities, will ensure a bright long-term future for the IAAF.
"There have been $4m of savings in 2010 because of the cuts in expenses and an increase in income, and we now have a four-year plan that is balanced.
"We don't make money – we are just balancing our activities in terms of what revenue we have coming in."
Weiss added that the IAAF has been boosted by several new television deals, including a major agreement with Channel 4 that will see the broadcaster provide more than 50 hours of free-to-air coverage of the 2011 IAAF World Championships.
"Channel 4 is a very big deal for us," continued Weiss.
"Not so much financially but by the fact they are a major broadcaster and have made a huge commitment to helping to promote our sport.”
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