– We have already cut so much that we feel it is dramatic. Cuts beyond what has already been done are perceived as irresponsible and unfair based on how much the show jumping has generated value creation for our organisation, says Clas Brede Bråthen to news. The sports manager for the jumpers is still faced with potentially new rounds of cuts this winter. On 25 October, the board of the Ski Association decided that the branches must present measures for how they can cut costs, if they do not receive the necessary income. This particularly applies to branches with more than ten percent uncertain income. This applies, among other things, to jumps, which according to an overview from 14 October had 13 million in uncertain market income – equivalent to 40 per cent of a proposed jump budget of 32.3 million. The cut plans will be presented at a board meeting at the end of November. REACTS: Sports manager Clas Brede Bråthen wants change. Photo: Geir Olsen / NTB – Having uncertain income in the Norwegian Ski Association is not unusual. Sponsorship contracts are collected continuously throughout the year. But having a high proportion of uncertain income in some branches is something we have to take very seriously these days, said General Secretary Arne Baumann in an interview with news last week. There he also said that they must look at the cost side and the activity side if they are not able to cover the uncertain income of the association. He does not want to comment on Bråthen’s view that cuts for jumps will be perceived as “irresponsible and unfair”. – That discussion belongs in the Ski Board in connection with the budget processing, says Baumann. The ski board’s decision “For those of the branches with uncertain income over 10%, plans must be drawn up for measures on the cost side until the next board meeting on 29 November to maintain the budgeted result in the branch. The measures are drawn up by the sports manager, and presented by the branch committee leader. The measures must contain a plan for how the branches are to reduce costs to approximate the uncertain income that remains, as well as a deadline for the measures, the expected effect and who is responsible for carrying out the measures”. “For branches with uncertain income of less than 10%, it will be submitted to the next board meeting on 29 November which measures should be taken if there is still uncertain income on 1 May 2024”. Claims hope is at the “existence minimum” In total, the overview from October shows that there are 27 million in uncertain market income for the various branches. In addition to jumping, cross-country skiing is also over ten percent. The overview from October shows that they have 9.9 million in uncertain market income, a share of eleven percent. The very purpose of the action plan is for the branches to be able to reach the budget target, if the uncertain income does not materialise. If the branches thus do not receive the millions they have in uncertain income, the decision indicates that they must cut accordingly. Bråthen believes that cuts for the jumpers will mean that they cannot fulfill their vision. – The decision from October will almost force you to make cuts if you do not receive increased income. Is it possible for you to implement as large cuts as possible? – We are at an absolute bare minimum if we are to be able to live up to our vision “We Will Be the World’s Most Important Jumping Nation”, asserts Bråthen, and continues: – If the sport of jumping has to change its vision, mission and goals, this is a more demanding process than we have time for to implement in the short period we now have before us. A forecast from October that news has seen shows that jumps are heading for a deficit of 11.8 million in 2023. What is central to Bråthen is that jumps meanwhile generates a large profit on the events side – a profit that exceeds the deficit in the jumps accounts. UNCERTAIN INCOME: The overview from October shows large uncertain incomes for the various branches in the work on the budget for 2024. Photo: Norges Skiforbund – It won’t be on my watch – When it says that you have to come up with these cut plans, it is then appropriate to drop World Cup weekends or send smaller troops? – It is not relevant to close down the show jumping. It won’t be on my watch, says Bråthen. – Must one then defy the Ski Board’s request that it be cut? – I have actually said what I have to say. I am not going to close down the sport of show jumping in Norway, replies the sports director. Baumann will not comment on whether Hopp has the opportunity to defy the decision on cut plans. Two-thirds of the Skiing Association’s equity lost since 2007 In 2007, the Skiing Association had an equity of NOK 167 million. It has shrunk drastically over the past 16 years due to a series of large deficits: 2008 – deficit of 31.8 million 2009 – deficit of 32.3 million 2010 – deficit of 11.3 million 2014 – deficit of 10.9 million 2017 – loss of 14.6 million 2019 – loss of 13.8 million – First I would say that it would have been very nice to be here in 2007 and have such a large equity capital. What I can say, and put it into perspective, is that the equity is used for activity, says general secretary Arne Baumann. – When we think about the situation Ski-Norway is in now, as a world-leading winter sports nation, I think you will find much of the answer to what the money has been used for. At the end of 2022, equity was down to NOK 63.3 million. The current forecast indicates equity at the end of the year of 52.7 million. It is under last year’s decision to the Skiting on equity. At the time, they adopted the following: “The Skiing Parliament assumes that current equity in the Norwegian Ski Association should be between NOK 55 and 65 million”. In cross-country skiing, it is Espen Bjervig who has the sporting responsibility, and is thus responsible for drawing up plans for any cuts. – Are you now working on drawing up a plan for possible cuts? What could the possible cuts be? – Now we are focusing on income, Bjervig replies in a message to news. – But surely you must draw up a plan in addition, in case you do not receive that income? – We have to, but as I write, our focus is now on securing income. While it is the sports managers who are responsible for preparing the plans, it is the branch committee leaders who must present the possible measures to the Ski Board. Jumping committee leader Stine Korsen has not yet responded to news regarding the statements to Bråthen, but wrote the following earlier this week: – The budget is a little further ahead in time, and work has not started. Steering towards a large deficit in 2023 – aiming for a large profit in 2024 The Ski Association informed the circles about the financial situation last week. news has seen the documents from the briefings. The preliminary annual accounts as of 30 September show a preliminary deficit of 17.7 million in 2023, a deviation from the budget of 16 million. At the same time, the Ski Association has taken action this autumn. The forecasts from October show an assumed operating deficit for the whole of 2023 of 10.6 million, an improvement of 2.2 million from the forecast from September. In 2024, there is a clear goal of turning a profit, to ensure better liquidity. On 19 September, the Ski Board decided to impose a performance requirement on the Ski Association in the budget work of ten million for 2024 “to ensure liquidity”. – The ten million is a target for the budget work, which has been set for us in the administration and the branches, on what we should deliver in 2024 in order to have a good financial backbone. Then we also have to build up a liquidity buffer again, so that we have something to meet if we fall into tough times again, says Arne Baumann. Supposed to have asked for advance payments news is also informed that the management of the Ski Association informed the circles about the association’s finances last week. Ski president Tove Moe Dyrhaug and financial manager Mats Nysæter are said to have given notice that work is being done to push invoices and to get advances on payments. This is to ensure solvency in the future. – Among other things, we have mentioned it as a measure, yes, to work with the economic situation, says Baumann to news. GENERAL SECRETARY: Arne Baumann took over as general secretary of the Norwegian Ski Association in August. Photo: Cornelius Poppe / NTB – Not sustainable Last week it emerged in VG that Bråthen had written an internal memo, in which he proposed, among other things, to financially detach the jumping branch from the Ski Association. The sports manager has for a long time reacted to the fact that the event income for jumping is not included as part of the branch’s budget. – The main challenge for the NSF is described well in the Hildrum committee’s report from 2019, and can be summed up as the association’s finances are not sustainable. We believe a lack of openness and transparency around value creation is one of the main reasons for that, says the sports manager. – The Skiing Parliament and the Ski Board decide how the association is organized and managed financially, replies general secretary Baumann.
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– Perceived as irresponsible – news Sport – Sports news, results and broadcasting schedule
