Promoters have “not been declaring the correct amounts” due to Boxing SA (BSA) from sponsorships and TV rights, says Ntambi Ravele, the organisation’s chairperson.
Ravele disclosed that the BSA’s revenue had been affected as a result of promoters underdeclaring their earnings from TV rights and sponsorships, of which 10% was due to the BSA.
She also disclosed that the BSA needed a total budget of R46 million to be able to fully deliver on its mandate.
This comes in a week during which it emerged that the BSA’s grant from the department of sport and recreation had only increased from R7.6 million in the 2014/15 financial year to R10.4 million in this financial year. Ravele said the budget was insufficient.
According to Ravele, promoters had in the past been “robbing” the BSA of funds generated through TV rights and sponsorships. As a result, the organisation was strengthening its funds-collection strategy.
“One of the things we have put in place is a system to make sure we collect money that is supposed to come to the BSA. That is why we have become more involved in the TV issue,” she said.
“We have found that there were people who were not declaring the correct amounts [on the money made from TV rights by promoters]. All contracts that are signed between promoters and the SABC are now monitored by the BSA to make sure that we get the 10% fee that is due to us.”
Ravele said a similar modus operandi was used by promoters when it came to money generated through sponsorships.
“We are also monitoring sponsorships. Again, we found that promoters weren’t declaring all sponsorships that they were getting. We had to work on a strategy that would ensure that we are able to collect money that is supposed to come to the BSA.”
She added that the R10.4 million was merely a quarter of what the BSA needed.
“We need about R46 million every year to be able to deliver on our mandate, so clearly we are running under budget,” said Ravele.
The BSA chairperson also said the aim was to appoint a new CEO before the end of the year.