- World Sailing payout from Tokyo 2020 expected to be around £11.85 million
- 2020 World Sailing deficit of £864,000 is a considerable improvement on 2019 figure
In the recently published World Sailing (UK) Ltd Audited Accounts for 2020, World Sailing indicated that the successful delivery of the Tokyo 2020 Games in August 2021 had alleviated the critical financial risks associated with the cancellation of the Games.
In addition, having made reasonable inquiries, the directors are of the opinion that the projected Olympic distribution from Tokyo 2020 will not be lower than the distribution from Rio 2016.
The Rio payment was just under £11.85 million ($16.1m/€13.9m) and this ammount has been assumed for the 2020 accounts.
While there remains a risk that global border restrictions may continue into 2022 for some countries, with resulting cancellations or rescheduled events, the directors consider the associated financial risks to be low.
The accounts also show that World Sailing was granted an interest-free loan of $3.1 million (£2.3m/€2.7m) from the International Olympic Committee (IOC). This is repayable over 5 years to the end of 31 December 2025.
David Graham, appointed chief executive in May 2020, said at that time that the Federation would have gone into liquidation without financial support from the IOC, following the coronavirus-enforced postponement of the Tokyo 2020 Olympic Games.
World Sailing also has an existing overdraft facility, secured by investment funds held by the WS Investment Trust (IOM), running to the end of December 2021 and it is assumed that if required, it could be extended accordingly.
World Sailing under David Graham appear to have successfully controlled the difficult financial situation during the Covid pandemic, with annual operating costs dropping by £3 million.
The latest accounts indicate a 2020 deficit of £864,000 ($1.2m/€1m) a considerable improvement on the 2019 figure (£2.5 million) and on the £1.2 million loss that Graham warned to expect.
Negotiating an exit from the lease on World Sailing’s London offices, which was cited as a top priority, has not been possible and World Sailing remains locked into the £379,000 yearly lease payments.
For those wondering when (if) the WS website is ever going to improve . . . it is in hand at a cost of £65,887 so far and expected to go live later in 2021.
The WS Virtual 2021 Annual Conference will take place starting Friday 22 October under current President Quanhai Li. The conference will finish with the AGM on Saturday 30 October.