Question NW967 to the Minister of Sport, Arts and Culture

Reply:

According to the feedback received from the Department of Sport, Arts and Culture

(1) The 2019 budget alludes to the budget that was distributed together with the Heads of Terms which the first document is outlining the key aspects of Agreement between International Netball Federation now known as World Netball and Netball South Africa.

The 2019 budget and the current budget are continuously being compared to highlight how revenue and expenditure have changed from 2019 to the present. The following revisions have been offered to show the real changes to the budget. The anticipated revenues substantially increased, whilst the anticipated expenses have significantly increased.

Revenue

	Bid Budget 2018	Head of Terms 2019	Current Budget
Public Funding	47 000 000	58 000 000	101 175 000
Commercial funding	30 000 000	30 000 000	111 500 000

1. The anticipated revenue shows a pattern of growth since 2018.
2. The initial public financing secured was R47 million in 2018, but after evaluation and the sourcing of additional funds, the revenue secured climbed to R58 million in 2019.
3. The national government provided additional guaranteed contributions, bringing the total public funding revenue to almost R101 million rands.
4. Commercial funding is made up of income from ticket sales, sponsorship, broadcasting, licensing, merchandise, and lodging fees, among other sources.
5. The amount of commercial support secured remained unchanged between 2018 and 2019.
6. In contrast to 34% in 2019 and 39% in 2018, commercial funding accounts for 52% of the budget currently.

Expenditure

	Bid Budget 2018	Head of Terms 2019	Current Budget
Business Operations Costs	R6 415 600	R6 415 600	R37 755 303
Tournament Operations Costs	R36 375 100	R31 675 100	R07 853 922
Personnel Costs	R16 000 000	R16 000 000	R5 501 910
International Federation Costs	R8 780 000	R8 780 000	R27 923 460
TOTAL	R67 570 700	R62 870 700	R189 034 596

1. Since 2018, the anticipated costs have progressively risen.
2. Cost assessments during the bid preparation process, followed by the signature of the hosting agreement in 2019 up to the present, have contributed to an increase in the Tournament's preparation and delivery expenditures over the years.
3. The advent of Covid 19 also had a detrimental impact on the costs.
4. Costs for competition locations have significantly increased since 2018.
5. To ensure viability after the event, legacy costs are maintained.

(2) The set budget has not been exceeded instead the data above shows that the money allotted has increased since 2019. Both the projected spending and the anticipated revenue have increased to a greater level as a result of the previously indicated causes.