VISION 2022 PRESENTATION ON SOUTH AFRICAN FOOTBALL Dr

VISION 2022 PRESENTATION ON SOUTH AFRICAN FOOTBALL Dr Danny Jordaan President

What Is SAFA? The largest membership structure in South Africa Approx 3 million active football players Over 10, 000 Clubs and 40, 000 teams Football played in thousands of schools 341 Local Football Associations 52 Regions 9 Provinces 9 national teams SAFA head office

SA Football In Brief SAFA field offices Nationally: 52 National Teams: 9 (3 Female & 6 Male) PSL League: 16 Clubs Premier League NFD League: 16 Clubs - 1 st Division SSD league: 144 Teams - 2 nd Division SAB Regional league: 610 Clubs - 3 RD Division Women’s Provincial League: 144 Teams - Provinces Women’s Regional League: 624 Teams - Regions Associate members: 11

“More Than Football” “Largest and most likely to succeed youth development programme in the country” – Bobby Godsell Direct impact on 2 million young people currently playing football. Creation of a cadre of 100 000 life skills educators (coaches). Significant and measurable impact on community safety, gender, health, education and development. Significant enterprise development possibilities. Skills transfer Job creation

New Structures 2011/2 LEGACY TRUST • • • R 450 Million JUNIOR LEAGUES UNDER 13 UNDER 15 UNDER 17 UNDER 19 UNDER 23 COACHES, REFEREES, ADMINISTRATORS INFRASTRUCTURE TRUST BUILD GRASSROOTS FACILITIES 28 COMPLETED 52 REGIONS DEV. AGENCY MINIMUM TARGET: R 100 Million

Talent Id Program U 13, U 15 Regional, Provincial and National Tournaments to create Talent Pyramid SAFA accessed funds from FIFA Legacy Trust to establish U 13 and U 15 Leagues in each of the 341 Local Football Associations. In 2013, 290 operating for boys, and 90 for girls. Plans to extend to all LFAs in 2014. From October each year, each LFA selects a best team to participate in a Regional Tournament. 52 Regional Tournaments throughout the country, for U 13 and U 15, boys and girls. Average of 900 kids per tournament, or total of 45, 000 From this, 52 Regional teams selected to participate in 9 Provincial tournaments 9 Provincial Teams then to play in National tournaments

Outcome – Talent Pyramid 30 best for national squad 200 next best to represent 9 Provincial teams and 1 SA Schools team 1040 next best that represent the 52 Regional SAFA Teams (all these to be tested and assessed) 6, 800 next best that represent the 341 Local Football Associations Pyramid for each age cohort U 13, U 15 boys and girls.

New Structures 2011 LEGACY TRUST • • • CREATE JUNIOR LEAGUES UNDER -13 UNDER -15 UNDER-17 UNDER-19 UNDER-23 • COACHES, REFEREES, • ADMINISTRATORS INFRASTRUCTURE TRUST BUILD GRASSROOTS FACILITIES 28 COMPLETED 52 REGIONS

SAFA Structures 2013 - 2016 2013 NEC 2016 NEC PRESIDENT 3 x VICE PRESIDENTS 10 x NATIONAL LIST 18 x PROVIN. LIST 1 x VP (NSL) 3 x NEC (NSL) 4 x WOMEN (CO –OPT) TOTAL 42 PRESIDENT 2 x VICE PRESIDENTS 1 x WOMAN VP 10 x NATIONAL LIST 1 x VP (NSL) 3 x NSL

Provincial Structures 2013 TO 2014 2015 TO 2016 • IDENTIFY PROV. HQs • BUILD INFRASTRUCTURE • UNDER 13, 15 , 17 , 20, 23 COMPETITIONS ORGANIZED AT PROVINCIAL LEVEL • APPOINT PEOs • (PROV. EXECUTIVE OFFICERS) • APPOINT PROV. COACHES • BUDGET R 500, 000 • ASSIST IN SOURCING ADDITIONAL FUNDING AMEND CONSTITUTION TO CREATE PROVINCIAL STRUCTURES TRANSFER ALL COMPETITIONS AT PROVINCIAL LEVEL TO PROVINCES ADJUST NATIONAL OFFICE AND NATIONAL BUDGETS ACCORDINGLY

National Structures NEC 2016 AND BEYOND 18 MEMBERS BY 2016 CREATE A COUNCIL OF PROVINCES 20 MEMBERS (PRESIDENT , CEO+18 MEMBERS) CREATE COUNCIL OF ASSOCIATE MEMBERS ALIGN ALL FUNCTIONS ACCORDINGLY • NEC FOCUSES ON NATIONAL TEAMS AND INTERNATIONAL MATTERS • DEVELOPMENT DRIVEN BY PROVINCIAL STRUCTURES • FOCUS ON ROLE OF GOVERNING BODY • STRENGHTEN TRUSTS AND AGENCY. • COMMERCIAL

Provinces Limpopo

Strategic Objectives – International Engagement • Improve the standard of host nation/region’s play • Improve organisational capacity • Improve administrative capacity • Economic impact • Socio-political benefits • Historical legacy

International Program 2013/14 15 November – Swaziland vs. Bafana 19 November – Bafana vs. Spain 11 Jan 1 Feb 2014 - CHAN in South Africa 5 Mar 2014 - Bafana vs. Fifa Top 10 Country Sep Nov 2014 – AFCON 2015 Morocco Qualifiers Sep Oct 2014 – Bafana vs. Fifa Top 10 Country Nov 2014 – Nelson Mandela Challenge

FIFA CAF COSAFA CAN 2013 SOUTH AFRICA FIFA

To become an International football powerhouse Three-dimensional but integrated approach – total vision – We must believe it is possible and in the best interest of South African football – commitment – Build partnerships – Follow through with our objectives and consistently review our international position • SAFA currently has bids in for the following events: – U 20 FIFA World Cup 2019 – FIFA Congress 2016/17

The 2010 FIFA World Cup™ COUNTRIES HOSTING DEVELOPING COUNTRIES/ BRICS BRAZIL 2014 FIFA WORLD CUP 2016 OLYMPICS RUSSIA 2018 FIFA WORLD CUP QATAR 2022 FIFA WORLD CUP 2018 PYEONGCHANG WINTER OLYMPICS SOUTH KOREA

Distribution of FIFA World Cup Teams 3. 5 –[35 members 13 – [53 Members] 4, 5 – [46 members] 5 – [54 Members] 5. 5 – [10 Member] 0. 5 –[11 members]

SAFA Financial Update • FINANCIAL YEAR – 30 June 2013

Highlights of the 30 June 2013 Financial Report • Mr Gronie Hluyo - Chief Financial Officer

2013 Income Statement (R million) 500 374 400 Revenue 247 300 429 324 296 208 200 100 0 2008 2009 500 398 400 Expenses 2010 300 251 271 2008 2009 2011 2012 370 380 2013 254 200 100 0 2010 100 Loss/ Surplus 2011 2012 2013 59 50 25 0 -50 -100 2008 -4 2009 2010 -24 2011 2012 2013 -56 -46

Reserves - (R million) 120 98 100 80 63 60 40 42 39 38 20 0 2008 -20 2009 2010 2011 2012 2013 -4

Expense Comparison (R million) 145 2012 2013 137 123 64 58 34 23 16 15 14 5 National team costs Competion and leagues cost Football development costs Governance costs 0 Events related costs Administration and Operating costs

Balance Sheet ASSETS (R million) 2013 2012 Fixed assets 77 100 Netcare Investment 19 32 Bafana Trade Mark 5 Assets held for resale 5 17 Receivables 26 55 Net Bank and cash 18 -1 Deferred tax - 3 Tax prepaid - 4 TOTAL 150 215 Long term loans 8 5 Payables 80 145 Short term loans 24 2 Income in advance 42 21 154 173 -4 42 LIABILITIES TOTAL RESERVES

SAFA TURNAROUND STRATEGY FINANCIAL YEAR 2014

2013/2014 Budgets • Annual budget expenses must be balanced to SECURED revenue • A zero budget approach shall be used for most expenses • Unfunded activities shall not be approved • Review all the elements of our cost-drivers and – Remove wastages – Strive for efficiencies

Budget 2013/14 Financial Year Additional Funding Expected Required INCOME Committed Legacy Fund applications Funding to be obtained EXPENDITURE Committed Funding depended Surplus Total 187 84 32 52 271 187 32 52 165 84 249 165 84 22 - 22

FY 14 Budget Income Statement ZAR m 12 months Budget 2013 /14 Budget 2012 /13 Actual 2012/13 ZAR Variance vs Budget % Variance vs Budget ZAR Variance vs Actual % Variance vs Actual Revenue Secured - Sponsorships - Other Probable - Sponsorships - Other Total Revenue 219, 024, 53 224, 690, 00 6 0 208, 130, 426 147, 816, 23 179, 700, 00 4 0 165, 945, 601 71, 208, 30 44, 990, 00 2 0 42, 184, 825 5, 665, 464 31, 883, 766 26, 218, 30 2 52, 000, 00 48, 400, 00 3, 600, 00 0 0 972, 200 0 50, 00 38, 000, 00 12, 000, 00 0 0 972, 200 0 2, 000, 00 10, 400, 00 0 0 - 8, 400, 000 271, 024, 536 273, 090, 000 209, 102, 626 -2, 065, 464 -3% 10, 894, 110 5% -22% -18, 129, 367 -11% 37% 29, 023, 478 69% 0% 51, 027, 800 5249% 0% 49, 027, 800 5043% 0% 2, 000 -1% 61, 921, 910 0% 30% Expenditure Football Corporate Services Football Business Sub-total Football Governance Other Operating Expenses - Overheads - Salary costs Total Expenditure Profit / (Loss) before tax 127, 812, 44 8 - - 26, 988, 97 4 - - 16, 009, 89 4 - - 170, 811, 31 174, 300, 40 3, 489, 08 5 2 138, 552, 905 7 2% -32, 258, 410 -23% 5, 374, 42 11, 026, 07 5, 651, 64 9 7 14, 129, 249 8 51% 8, 754, 820 62% 72, 940, 41 85, 657, 23 12, 716, 82 5 5 99, 445, 824 0 15% 39, 222, 230 39% 32, 140, 41 37, 555, 62 5, 415, 21 5 9 49, 904, 540 4 14% 17, 764, 125 36% 40, 800, 00 48, 101, 60 7, 301, 60 0 6 49, 541, 283 6 15% 8, 741, 283 18% 249, 126, 159 270, 983, 715 252, 127, 978 21, 857, 555 8% 15, 718, 640 6% 21, 898, 377 2, 106, 285 -43, 025, 353 24, 004, 662 1140% 64, 923, 729 -151%

2013 /14 Budget - Expected (R million)

Revenue - (R 271 million)

Expenses - (R 249 million)

CASHFLOW IS Cash Flow Total Revenue Secured Other Probable Sponsorships Other 219 148 71 - - - 52 50 2 - - - 219 148 71 0 52 50 2 FY 2013 Debtors Current cash available - - 24 18 Total Revenue 271 42 313

CASHFLOW (continued) IS Cash Flow Total Expenditure Divisions 249 - 249 FY 2013 Creditors - 31 31 FY 2013 FIFA Legacy Trust Loan FY 2013 Accruals - - 5 45 249 81 330 Surplus / (Shortfall) 22 -39 -17 Non cash items (depreciation) 18 - 18 Deferred revenue – FIFA Legacy Trust 0 40 17 -56 17 -16 Possible additional revenue - 26 26 Surplus / (Shortfall) 40 -30 10

Current Assets • • • Legacy Trust Sponsorship & Broadcast Revenue SAFA House – Property value Property in Raphael Buses & Cars Shares in Net. Care R 450 m R 250 m R 70 m R 4, 5 m R 15 m R 20 m • Total Assets in excess of R 800 million

Sponsorship Strategy • Revenue is largely secured from the following main sources: 1. Broadcast Rights 2. Sponsorship Rights 3. Other Stadium Revenues (Branding , Ticketing & Hospitality) 4. Licensing & Merchandising • The change in SAFA’s Broadcast landscape marks the most significant opportunity to generate new revenue streams going forward.

Sponsorship Rights Review • SAFA has undergone a process to revalue and repackage all its Commercial Rights (i. e. : Current & unsold inventory): – A summary rights schedule to identify (and keep track of) all sold and unsold inventory and the delivery thereof, • The Standardisation of all sponsorship rights packages to be offered in the market • A centralised sponsorship rights clearance house, to manage delivery to all sales partners, keep track of available inventory, protect exclusivity and analyse all future contracts prior to sign-off. • Ring-fencing of all broadcast rights, inclusive of all agreements with opposing team federations. • Formation of an internal strategic commercial team

SAFA Sponsorship Opportunities • New proposals to replace Absa • A revised Year long Nelson Mandela Challenge Package • New SAFA Suppliers Agreements x 2 • SAFA 2 nd Division Naming rights Partner • A second Premier Women’s Partner (Banyana + Regional League). • SAFA Referees (Inclusive of all PSL games) • Supa 10 Women’s Semi- Professional League • SAFA National Teams (U 23 Men's, U 20 & U 17 Men's & Women's) • U 17, U 15, U 13 Boys & Girls Youth Leagues & Championship • Overall co-ordination with SAFA Development Agency in securing direct program funding, CSI and Sponsorship. • Beach Football & Futsal (National Team and League)

SAFA. net § SAFA has embarked on a roll-out of one of the largest ICT implementations in South Africa § Software and third level support from DFBMedien (wholly owned by the DFB – German Football Association) § SAFA. net will connect in one central data-base and football administration system all SAFA structure. § Football. safa. net will further allow SAFA and its partners, to commercialise this data and create new / innovative revenue streams by providing: q A commercialised and monetised Website, q Content generation and dissemination of this data, q 38 Connectivity to all Regions and LFA’s for centralised ordering of various products & services – discounted partners benefits, incentives and the subsequent roll-out of potentially the largest loyalty program in SA.

BAFANA

EVALUATION DETAILS • • • Event: Analysis: Event Date: Channels: Format: Data Source: • Objectives: Bafana Live Soccer Matches Audience Analysis 2008 -2013 SABC 1, Super. Sport 3, Super. Sport 4 Live Television Coverage Telmar (Target – All Adults 15+) For SABC DSTVi (Target – All Adults 15+) For Super. Sport Provide A Detailed Audience Analysis Of All Bafana Live Soccer Matches From 2008 Till Date

Bafana Average Audience YOY SABC

BAFANA ALL GAMES 2013 [All Adults 15+]

TOP SUPERSPORT AUDIENCES – 2012 ALL SPORTS DAY FROM STATION PLAN TITLE PLAN SHARE # OF VIEWERS Sun Sat Wed Thu Wed Sat Tue Sun Sat Sun Tue 2047 1531 2015 1926 2046 2016 1931 2045 1930 2130 1532 1500 1800 SUP 3 SUP 4 SUP 4 SUP 3 SUP 4 UEFA Euro 2012 Final Spain vs. Italy Absa PSL Kaizer Chiefs vs. Orlando Pirates Absa PSL Kaizer Chiefs vs. Mamelodi Sundowns London 2012 Olympics Athletics International Soccer Portugal vs. Spain Nedbank Cup Kaizer Chiefs vs. Free State Stars MTN 8 Pirates vs Ssunited (Semi Leg 2) Absa PSL Kaizer Chiefs vs. Bloemfontein Celtic UEFA Champions League Final Bayern Munich vs. Chelsea Absa PSL Kaizer Chiefs vs. Moroka Swallows AFCON 2012 Final Zambia vs. Ivory Coast Absa PSL Orlando Pirates vs. Kaizer Chiefs MTN 8 Kaizer Chiefs vs. Mamelodi Sundowns Absa PSL Super. Sport United vs. Orlando Pirates 39. 4 34. 8 33. 4 30 39. 8 28. 2 25. 4 23 38. 5 21. 6 44. 3 32. 3 29. 1 22 1, 429, 268 1, 341, 830 1, 286, 712 1, 283, 276 1, 256, 904 1, 185, 510 1, 175, 520 1, 175, 258 1, 165, 500 1, 154, 548 1, 148, 984 1, 144, 332 1, 126, 540 1, 109, 556 Sat Sat 1800 2045 1702 SUP 4 SUP 3 SUP 1 Nedbank Cup Orlando Pirates vs. Free State Stars UEFA Euro 2012 Spain vs. France (QF) International Rugby SA vs. England Test 1 23. 5 27. 2 21. 8 1, 101, 226 1, 066, 464 999, 810 • Without Exclusivity, Bafana averaged over 1, 5 m viewers on Super. Sport alone during the 2013 AFCON – Highest audiences to date. SABC numbers also went up!

SAFA TV - WEEKLY MAGAZINE SHOW ON SABC 1 DATE STATION TIME 2013/08/03 SABC 1 13: 29 2013/08/10 SABC 1 2013/08/17 TOTAL AR TOTAL ADULT AUDIENCE % SHARE SAFA TV 2 612, 180 13. 4 13: 29 SAFA TV 2. 4 734, 616 15. 6 SABC 1 12: 31 SAFA TV 4. 1 1, 254, 969 22. 1 2013/08/24 SABC 1 13: 29 SAFA TV 2. 8 857, 052 16. 5 2013/08/31 SABC 1 13: 31 SAFA TV 1. 8 550, 962 11. 8 2013/09/07 SABC 1 13: 29 SAFA TV 1. 9 581, 571 11. 4 2013/09/14 SABC 1 13: 31 SAFA TV 3 918, 270 16. 7 2013/09/21 SABC 1 13: 29 SAFA TV 2. 8 857, 052 14. 7 2013/09/28 SABC 1 13: 30 SAFA TV 2. 7 826, 443 16. 2 AVERAGE YTD 2013 GAMES 799, 235

YEAR ON YEAR COMPARISON Castle Absa Puma Sasol SA Breweries Tsogo Sun Jan-Aug 2012 R 23, 377, 266 R 19, 535, 922 R 64, 290, 010 R 13, 495, 003 R 4, 849, 082 R 4, 732, 070 Jan-Aug 2013 R 49, 903, 787 R 35, 223, 979 R 115, 126, 840 R 14, 193, 737 R 4, 135, 869 R 7, 989, 848 % Change 113. 5 80. 3 79. 1 5. 2 -14. 7 68. 8

TOP 30 AWARENESS COMPARISONS - TEAMS