NZF reinvests record surplus

New Zealand Football Chairman Frank van Hattum says the organisation’s record $7.7 million surplus has already been reinvested in keeping the sport in good health.

May 4, 2011

AUCKLAND –New Zealand Football Chairman Frank van Hattum says the organisation’s record $7.7 million surplus has  already been reinvested in keeping the sport in good health.

The surplus for 2010, confirmed at the sports annual congress in Auckland today, represents the third consecutive year NZF has been in the black after four consecutive deficits from 2004 to 2007.

Prize money from the FIFA World Cup in South Africa accounts for the lion share of that figure, but prudent financial management in the past three years and increased commercial revenue has seen the surplus net of prize money rise to $756,000, the largest in at least 10 years.

van Hattum said the onus was now on NZF to invest wisely and navigate its way prudently through the years ahead without looking to  large FIFA payouts.
“Last year was a high-tide mark in terms of income but it equips us to take advantage of the opportunity our increased profile and the current goodwill towards the game offers us.”

“For the game’s sake, it’s an opportunity that we cannot afford to miss, and we don’t plan to.”

The Whole of Football Plan, NZF’s development blueprint based on  world’s best practice,  is  in the first year of a six-year rollout.  van Hattum said the plan had  been thoroughly resourced and planned with certainty as a result of the current financial position.

“It’s also a key sign, and there are many, that we are not doomed to repeat the mistakes of 1982 and lose the opportunity the game had,” said van Hattum.

“Through some very hard work, we’re in a stable and sustainable position now and together with our federations we are implementing a strategy to move the game forward.”

During 2010, New Zealand Football established the independently-governed New Zealand Football Foundation with $4 million seed funding to support grassroots initiatives and attract new funds to the sport.

It also re-established reserves for international activity – to the tune of $2.5 million – so national and age-group teams could  gain the international exposure they needed to qualify for and be competitive in FIFA events  without relying on a potential four yearly ‘World Cup windfall’ or impacting on grassroots development.

The repayment of a $ 1.5 million loan, taken out when New Zealand Football faced a net working capital shortage of over $2 million in 2007, had been completed a year ahead of schedule.

The sport’s annual congress also confirmed a new seven member board with Bill Moran reappointed for  a four year term. Former co-opted board member and current CEO of Canoe Racing New Zealand Paula Kearns was appointed as a full member on a three year term, and Auckland-based business director and consultant Martin Fenwick has been appointed on a one year term.

Kearns and Fenwick replace Andrew Titter, who resigned due to work commitments in Australia, and Peter O’Hara who stepped down to take on a project manager role inside NZF.

The board’s terms rotate over a four-year cycle and the terms of the new members reflect the time that remained in the terms of the board members who resigned.

In addition, one of the four elected board positions had reached the end of its term, but chairman Frank van Hattum was re-elected unopposed.

Meanwhile changes to the New Zealand Football Foundation board were made with Mark Stewart stepping down as chairman due to increased work commitments as a result of the Christchurch earthquake.

Stewart will remain as a trustee and succeeded as chairman by newly-appointed trustee Andrew Clements. Carmel Fisher has resigned due to work commitments and will be replaced as a trustee by Mike Norris. 

The foundation is now fully operational and over $100,000 to date been pledged for the future development of grassroots football in New Zealand.

view the full annual report

Additional Information

Four year financial snapshot

New Zealand Football Board
Frank van Hattum – Chair
Mark Aspden
Fred De Jong
Martin Fenwick
Dougal McGowan
Shelley McMeeken (co-opted)
Paula Kearns
Bill Moran

New Zealand Football Foundation Board of Trustees
Andrew Clements – Chair
Nick Davidson
Eion Edgar
Frank van Hattum
Mark Stewart
Mike Norris

New NZF board members
Martin Fenwick
An experienced leader and consultant in the fields of business change and governance, Fenwick is the current deputy chairman of the Northern Football Federation and is the chairman and a trustee of Goodland Community Trust. He is also the chairman or partner of three independent limited companies, and was part of the executive team at BP Scotland that first established governance principles and approaches in the management of their strategic oil and chemicals assets.

Paula Kearns
Kearns has previous ties with New Zealand Football as the organisation’s interim Chief Executive in 2008 and then as a co-opted board member from 2008 to 2010. She is currently CEO at Canoe Racing New Zealand. Kearns is also a trustee of the ASB Community Trust and chair of its audit, finance and risk committee.  A chartered accountant, Kearns ran a successful business consultancy firm for a number of years prior to moving into the sport industry.
New NZF Foundation board members

Andrew Clements
Andrew Clements is an investor and professional director.  He is currently chairman of Orion Health, New Zealand Assets Management and Amadeus Asset Administration.  He is a director of a number of NZX listed and private companies including Ryman Healthcare, the New Zealand Refining Company and Revera.  Clements is also a shareholder and director of two other private investment companies, and is a trustee of private and public trusts, including the Graeme Dingle Foundation (an endowment fund for the Foundation for Youth) and the Mt Wellington Stadium Charitable Trust.

Mike Norris
Canterbury-raised Mike Norris has an extensive background in sports marketing, most notably as founder of Sportsworld Travel in the UK. His company has been involved in an official capacity (ticketing, tours, travel, accommodation and/or hospitality) with the last eight FIFA World Cups and the last five Rugby World Cups. Through Sportsworld, Norris has also been involved with ticketing and tours for national Olympic committees of UK, Australia, New Zealand and others, Wimbledon tennis championships, Commonwealth Games, European Championships, and Six Nations rugby tournaments.