The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The National Sports Authority has effectively been forced to write-off $237,000 due to “non-compliance” by users of the Thomas A. Robinson stadium in paying rental fees.

The Authority’s first-ever set of financial statements, for the two years to end-June 2013, show it has had to take a ‘bad debt provision’ against almost 100 per cent of the sums owed to it.

It has had to make an “allowance” for $241,340 of the $243,291 owed to it as accounts receivables at that date. And, of the former figure, $237,000 is owed by just two parties who promoted major sporting events at the stadium.

They are the Local Organising Committee (LOC) for the 2013 Carifta track and field championships, and the promoters of the soccer match between English Premier League side, Tottenham Hotspur, and the Jamaican national team, the ‘Reggae Boyz’.

“Inclusive in the bad debt provision are amounts due from third parties for the Nassau CARIFTA event and Tottenham/Reggae Boyz event in the amounts of $137,000 and $100,000, respectively,” the notes to the Sports Authority’s financial statements read.

Management notes attached to the two-year financial statements effectively slammed both event promoters for failing to pay due fees to rent the Thomas A. Robinson stadium.

“Non-compliance of national stadium promoters in paying facility rentals resulted in large receivables,” said National Sports Authority management, again naming the two parties involved.

The sums owed by the CARIFTA LOC are especially interesting, given that its members touted the “significant profit” that was generated from the event.

Monty Braithwaite, treasurer of the CARIFTA steering committee, said back in 2013 that it was able to generate a “notable” profit of more than $235,000 despite being over budget by $110,000.

He added that the total CARIFTA cost was just over $1 million, due in large part to the National Sports Authority, which rented the stadium at a “reasonable cost” of $123,120.

This ‘reasonableness’ appears to have extended to the unpaid $137,000 in stadium rental fees foregone. If the CARIFTA LOC are made to pay this, their $235,000 profit will be cut by 58.3 per cent to below $100,000.

Indeed, based on the comments from the CARIFTA LOC members, it appears that the championships only generated a ‘profit’ because they were - as usual - subsidised/underwritten by the Bahamian taxpayer.

The National Sports Authority financials do not identify the ‘promoters’ behind the Tottenham Hotspur/Reggae Boyz soccer match, which was held to mark the Bahamas’ 40th independence anniversary.

However, it is in a somewhat weaker position to demand payment of the owed $100,000 here. This is because, out of its $497,195 in accounts payables and accrued expenses, some $241,756 was due to the game’s promoters.

This was subsequently paid after June 30, 2013, with much of the remaining payables owed to “various Tottenham event service providers”.

The National Sports Authority is still in ‘start-up’ mode, meaning that not too much can be read into its failure to turn an instant profit.

Yet the failure to collect sums due is not a good sign if the intention is for it to be a financially independent organisation, which is semi-autonomous from government.

And, in common with most public corporations/agencies, the National Sports Authority remains dependent on government subsidies to remain financially solvent.

The financials to end-June 30, 2013, show that some $3.735 million in taxpayer funds were pumped into the National Sports Authority over its first two years.

Of this sum, some $2.114 million was used to effect improvements to the new and old Thomas A. Robinson stadiums, with a smaller chunk allocated to upgrade the Kendal Isaacs gymnasium.

The remainder covered the National Sports Authority’s $1.112 million operating loss for its first two years, based on just $636,620 in revenues and $1.748 million in expenses. This left a ‘net profit’ after subsidies of $508,967.

“The Government contributed $3.735 million to the operations of the Authority, along with the maintenance and capital improvements of the Thomas A. Robinson National Stadium and the Queen Elizabeth Sports Centre and the Baillou Hills Sports Complex,” the National Sports Authority’s financial statements read.

They add that the Authority remains a going concern only “due to the continuing support of the Bahamas government”.

The management notes confirmed that it was “fully subsidised during the two-year initial launch period by the Ministry of Finance”. The received funds covered everything from payroll to “major stadium event subsidies”, plus launch costs such as a website and business plans.

Of the $2.114 million in capital works, some $1.306 million and $620,321, respectively, went on the new and old Thomas A. Robinson stadiums, with the $187,687 balance spent on the Kendal Isaacs Gym.

The capital works were needed both for CARIFTA and the Tottenham/Reggae Boyz soccer match, with the funds also financing sports equipment purchases and the payment of associated import duties.

The danger here is that the National Sports Authority goes the way of multiple other government agencies and becomes an ever-increasing financial drain on the Government - at a time when the Bahamian taxpayer can least afford it.

The National Sports Authority was created to specifically prevent this from happening, with the medium to long-term goal that it would be financially self-sustaining and no burden to the taxpayer.

Tribune Business understands from sources close to the situation that there is some frustration within National Sports Authority management that the Government has yet to ‘take the gloves off’ and allow them to run it as a business.

To-date, the Government’s position appears to be that it is more important for the sporting event and its promoter - as opposed to the National Sports Authority - to be successful. Even if this means the latter giving up stadium rental fees, plus its share of other revenue streams - ticketing, parking and concession booth rentals. This then has to be picked up by the taxpayer.

And, while the National Sports Authority was created to own, manage and maintain the Thomas A. Robinson stadium and surrounding sports facilities, the financial statements confirm the Government has transferred ownership of none of these to it.

“The Authority has not been granted ownership of the sporting facilities, and therefore these assets are not reflected in the financial statements,” the notes read.

LeRoy Archer, the National Sports Authority’s principal, initially told Tribune Business to contact him the following day when he was back in office, after this newspaper called with numerous questions on the financials.

Tribune Business called back at the time Mr Archer had requested, only to be told he was out of office. A message left on his cell phone was not returned.

When this newspaper finally reached him the following day, Mr Archer told Tribune Business Dr Danny Johnson, minister of youth, sports and culture, had to speak first before he could comment on the Authority’s financials.

After Tribune Business queried why, Mr Archer then said the financial statements had to be tabled in the House of Assembly. When this newspaper pointed out that this had been done, the former Commonwealth Brewery managing director told it to call the Minister first, then speak to him.

Dr Johnson could not be reached, and did not return a message seeking comment, before press time.