BOXING SOUTH AFRICA STRATEGIC BUSINESS PLAN

EXECUTIVE SUMMARY


INTRODUCTION AND ESTABLISHMENT OF BSA 3
2. CORPORATE IDENTITY, LOGO AND COLOURS 3
TRANSFORMATION IS A KEY STRATEGIC 4
OBJECTIVE
4. VISION AND MISSION 6
5. STAKEHOLDER ANALYSIS 8
6. STRUCTURE OF BSA 10
7. DEVELOPMENT AND TRAINING 13
PROJECT PLAN 16
PROJECTED BUDGET 17
10. FINANCIAL PLAN 19
11. GUIDELINES FOR CODE OF CONDUCT 22
12. BOXING BENEVOLENT FUND 22
INVESTMENT, INSURANCE, PENSION AND 23
MEDICAL AID FUNDS
14. AMATEUR BOXING 23
15. WOMENS' BOXING 23
RELATIONSHIP WITH AFRICAN AND 23
INTERNATIONAL BOXING FEDERATIONS


EXECUTIVE SUMMARY
The enactment of the Boxing Act, 11of 2001, and the subsequent establishment of Boxing South Africa in May this year has predictably raised the hopes and expectations of the boxing fraternity across the country. The turbulence within boxing over the past few years which warranted direct intervention by the Minister has indeed cast a long shadow over the sport.

Faced with this mammoth challenge, BSA has put together this strategic business plan in response to three fundamental questions:
What do we want to do?
Where do we want to go?
How do we get there?

The key outputs of the business plan are:
To demonstrate a clear break from the way in which boxing was administered in the past
To set the basis for boxing to become a leading sport in the country and to distinguish itself from other codes of sport
To highlight the transformation agenda of boxing
To demonstrate the sustainability of the BSA Plan which addresses the increase in personal benefits to boxers and other stakeholders and the establishment of a Foundation and Boxing Academy
To provide a clear structural plan of how the organisation will be managed
To explore the funding of BSA
To define BSA's advisory and facilitating role in amateur boxing, womens' boxing and its participation in continental and international boxing affairs

Mindful of the fact that development is a process, the Commissioners have staged the development programmes of BSA over three years in a measured and manageable way which will give all role players an opportunity to benefit from the training programmes. The reach of the programmes will be extended through long distance learning.

The business plan sets out the primary and ancillary products of BSA and moots the establishment of a Foundation, all of which will be utilised to raise sponsorship and funding for the programmes of the organisation. The rationale is that BSA will make every effort to become self-funding so that its reliance on government grants is
minimised.

At any point in the future, the success or failure of BSA will be determined by two questions - where are we now? and where have we come from?
In other words, how does the progress made by BSA compare with the past administration of the sport.

The primary output of this business plan is that BSA is the vehicle for transformation and the delivery of a safe and stable boxing environment.
1. INTRODUCTION AND ESTABLISHMENT OF BSA

The sport of boxing has had a turbulent past which was compounded by challenges both at a conceptual and structural level. At the conceptual level, there was no clear direction for boxing as a result of which the image of the sport was waning. At a structural level, fights were scheduled at short notice, there was a lack of consultation in the sport and, in some cases, boxers were being asked to sign blank contracts.

The period between 1998 and 2000 was so turbulent that the Minister of Sport had to intervene directly and use his department to provide managerial support to the sport.

The report of the Boxing Transformation Team sets out a range of challenges in boxing, inter alia, the absence of an appropriate legislative framework, lack of transparency, hostile relationship between boxers and promoters, exploitative environment and culture, deficient structure, inadequate protection for stakeholders, insufficient benefits for boxers, the absence of dispute resolution mechanisms and conflicts of interest arising from stakeholders dealing directly with each other.

In short, the legislative, structural and regulatory framework, and the culture, management and strategic direction of boxing were lacking.

The establishment of Boxing South Africa is the culmination of several processes-

an Act of Parliament (Boxing Act, 11 of 2001) that deals exclusively with boxing;
and provides for the establishment of Boxing South Africa;
far reaching powers to BSA to cater for the interest of stakeholders adequately;
the appointment of commissioners with specialised skills and expertise to deal with particular portfolios.
A beefed up administration led by a chief executive officer

This strategic business plan is intended to answer three fundamental questions:

What do we want to do?
Where do we want to go to?
How do we get there?


2. CORPORATE IDENTITY AND LOGO

BSA is in the process of developing its corporate identity, logo and corporate colours which will, after finalisation, be registered with the authorities and feature in the BSA offices and apparel of officials.

Details will be made available during the CEO's provincial roadshow next month.

3. TRANSFORMATION IS A KEY STRATEGIC
OBJECTIVE


Transformation constitutes the underpinning of the BSA strategic business plan. This business plan positions BSA as the vehicle for transformation and the delivery of a stable and safe boxing environment. Boxing will be transformed by focusing on the five areas discussed below.


COMPARATIVE BENCHMARK


Deepen Black interest
Boxing is representative in that a sufficient number of boxers are from previously disadvantaged groups. However, a key objective of BSA is to deepen Black interest. In this regard training and development programmes for promoters, ring officials and boxers from previously disadvantaged groups will be developed in conjunction with credible education institutions. In the case of promoters, BSA will assist in accessing capital and providing legal and financial advice. The objective is to cultivate world class Black promoters. In the case of ring officials, the emphasis will be on achieving a high level of professionalism. With regard to boxers, a culture of boxer orientation and retention will be created to ensure that boxers remain in the sport after retirement either as promoters, trainers or managers.

Remove the element of exploitation and entrenching financial equitability
One of the current challenges is the inequitable financial benefit to stakeholders especially boxers. It is not uncommon to hear of cases where boxers are destitute after retirement. There are three initiatives that BSA intends to implement to prevent this situation from recurring:
examine the contractual agreements between boxers and promoters to ensure that boxers are receiving an equitable reward;
assist boxers with financial and legal advice during contracting;
assist boxers with structuring long term financial investments and insurance programmes.

To eliminate the opportunity for exploitative practices, BSA will introduce a system of minimum pay for boxers as part of their contractual arrangements.

Create an inclusive, non-conflictual and regulated environment
The Act and the Regulations are designed to ensure that boxing is conducted in a safe and professionally controlled environment. A key output is to balance the interest of stakeholders so that they remain interested in and committed to the sport.

A non-conflictual environment will be cultivated with the following two strategies:
building harmonious relations between the National and Provincial commissions to ensure seamless delivery of boxing;
employing mechanisms to ensure the speedy resolution of disputes

4. Increase the personal benefits of stakeholders
Related to exploitation is the concern that the organisation of boxing did not cater for the welfare of several stakeholders, especially boxers.

BSA will establish a medical aid scheme that will be extended to all stakeholders directly involved with the sport such as boxers, trainers, managers, promoters, seconds, referees and judges.

In addition, legal and financial advice on longer term benefits such as personal insurance, pension schemes, retirement annuity schemes and investments will be investigated and made available to boxers and other stakeholders.

Develop a medical research database and information bank

Medical research database
The mission of BSA is directed towards, inter alia, creating a professional image of
the organisation and increasing the benefits for stakeholders. It is envisaged that
research will be commissioned to develop an information base of medical
issues associated with boxing. This database will be made available to all
stakeholders. Once BSA has set up its web site it could be made available as a
service to other boxing federations on the continent.

BSA information bank
A related task is the establishment of an information and statistical bank that would
document both local and overseas tournaments and other data related to
boxing. The information bank will capture data relating, intern alai, to the historical
background of boxing in SA, boxers' profiles, rankings, title fights and individual
statistical reports.


These five key differentials constitute an all-encompassing approach that is
designed to benefit all stakeholders and professionalise the sport. A further notable
value of this strategic approach is that not only will it distinguish BSA from the past
administration of boxing but it will also distinguish and enhance the prestige of
boxing from other codes of sport.

These strategic objectives have been taken on board in the vision and mission of
BSA with the single intention that BSA will make a difference to the sport of
boxing.


4. VISION AND MISSION

The vision of BSA is to make boxing the leading sport and brand in the country and to position BSA as a world class commission

The mission of BSA is to ensure that the business of boxing is conducted in a safe, entertaining and professional manner.

Our strategic intent is to prioritise the development and transformation of boxing in the amateur and women boxing areas and to establish relationships with African and international boxing federations.

The illustration below sets out in concrete tangible terms the objectives of the mission of BSA and also the stakeholders, tools and issues that will be addressed to achieve these objectives.


STAKEHOLDER

INTEREST

BSA ROLE

SPECTATORS
T.V VIEWERS
RADIO LISTENERS

  • ENTERTAINMENT AND FAIRNESS
  • DISSEMINATE INFORMATION
    ENSURE PROFESSIONALLY MANAGED TOURNAMENTS

BOXERS

  • CAREER DEVELOPMENT AND FINANCIAL SECURITY
  • PROVIDE OPPURTUNITY
    PROVIDE ADVICE
    PROVIDE REGULATED AND SAFE ENVIRONMENT

TRAINERS
MANAGERS
SECONDS
RING OFFICIALS
TIME KEEPERS

  • QUALITATIVE DEVELOPMENT AND FINANCIAL SECURITY
  • PROVIDE TRAINING AND DEVELOPMENT
  • PROMOTERS
  • PROFIT
    GROWTH OF THE SPORT
    NETWORKING
  • PROVIDE SERVICES AND TRAINING
    ASSIST WITH ACCESS TO CAPITAL
    CAPACITY BUILDING
  • BROADCASTERS
    • COMMERCIAL VIABILITY

    ENSURE PROFESSIONAL TOURNAMENT MANAGEMENT

    • SPONSORS
    • MAXIMISE BRANDING AND CORPORATE IMAGE
    • ENSURE PROFESSIONAL TOURNAMENT MANAGEMENT AND MAXIMUM MEDIA COVERAGE
  • MEDIA
    • ACCURATE COVERAGE
      CONVENIENCE
      HOSPITALITY
    • TIMEOUS INFORMATION
      FACILITATION
  • GOVERNMENT
    • DELIVER SPORT
    • DISCHARGE STATUTORY DUTIES
  • WOMEN AND AMATEUR BOXING ASSOCIATIONS
    • CAREER DEVELOPMENT AND FINANCIAL SECURITY
    • FACILITATION
      CREATE OPPORTUNITIES
  • RETIRED BOXERS
    • FINANCIAL SUPPORT AND RECOGNITION
    • MAINTAIN BENEVOLENT FUND
  • INTERNATIONAL BOXING FEDERATIONS
    • MAINTAIN RELATIONS
    • LIAISON AND FACILITATION
  • FOREIGN DONORS
    • ALTRUISTIC
    • ACCESS FUNDS

    The three main objectives that BSA will seek to achieve with regard to stakeholders are:

    To ensure that the approach is inclusive and that as many as possible are taken into account;

    That BSA entrenches a symbiotic relationship amongst its stakeholders which mutually benefits each other and BSA itself. For example, increasing television viewership is in the interest of the broadcaster, the boxers and promoter concerned and BSA itself.

    That the interest of stakeholders is managed effectively.
    Perhaps the greatest challenge will be to balance the commercialisation of corporate interests against the tolerance level of viewers and spectators for advertising in sport, the interest of government and the interests of the boxers themselves. Managing this quadrangular relationship will probably be the secret of BSA's success.
    CA


    TEGORIES OF STAKEHOLDERS

    CORPORATE PASSIVE ACTIVE GOVERNMENT

    CORPORATE PASSIVE ACTIVE
    Broadcasters Viewers Boxers
    Sponsors Spectators Promoters
    Foreign donors Radio Listeners Trainers
    Media Managers
    Womens' Boxing Ring Officials
    Amateur Boxing Judges
    Retired Boxers
    International Federations

    6. STRUCTURE OF BSA

    OPERATIONAL SERVICES SHARED SERVICES


    PROVINCIAL OFFICES

    GAUTENG

    E-CAPE

    W-CAPE

    N-CAPE

    N-WEST

    KZN

    LIMPOPO

    MPUMALANGA

    FREE STATE

    PROVINCIAL CHIEF EXECUTIVE OFFICERS

    PROVINCIAL SECRETARIES


    The optimal structure of BSA should include managers, specialist/technical/professional and support staff. Current budgetary and financial constraints are a drawback. With the growth of boxing and maturation of BSA one can anticipate an increase in staff complement to include such portfolios as a manager of boxing operations, a dedicated manager for marketing and communications, international affairs co-ordinator and an in-house medical specialist.

    The proposed BSA organisational design seeks to achieve the following key objectives:

    operational excellence -synergistic co-ordination of all boxing activities;
    proper operational and resource management;
    on-time and cost effective service delivery across South Africa and internationally;
    foster good relations among all stakeholders in the boxing fraternity


    The principles upon which this organisational design is based include: -

    seamless flow of activities and functions
    eradication of duplication of effort
    organisational harmony
    functional synergy
    free flow of information and no silo effect
    cost effective organisational design
    flatter organisational design with fewer levels and broader bands

    The National Commissioners have been assigned the following portfolios by virtue of their specialised knowledge and expertise:

    Mthobi Tyamzashe Financial Affairs
    Ms Thembi Magwaca Development and Transformation
    Dr Peter Ngatane Medical Affairs
    Stan Christodolu Ratings and Sanctions
    Jake Matlala Public Relations and Marketing
    Archie Jonas International Affairs
    Siphatho Handi Legal Affairs

    Since the commissioners are part time and acting in a honorary capacity, full time staff will be employed to support the Commissioners in the discharge of their specialised duties. As a cost saving and commercially viable measure, the portfolios have been clustered and four managers will be employed to serve all seven Commissioners under the direction of the Chief Executive Officer.

    7. DEVELOPMENT AND TRAINING

    Development and training form an integral part of the transformation agenda of BSA and is one of the most significant factors to measure whether the establishment of BSA will make a difference to the advancement of boxing in the country.

    The category of stakeholders include promoters, match makers, managers, trainers, judges, ring officials, timekeepers and boxers.

    The development programmes will be comprised of theoretical and practical training. The course content will be developed by an accredited institution and the administration of the course will be managed by BSA together with the same institution or suitably qualified professionals.

    Where appropriate, life skills development, financial management, issues pertaining to AIDS and safety, and effective communication will be incorporated into development programmes.


    7.1. PROMOTERS

    Due to a policy of race-based exclusions in the past, there is an urgent need for transformation and redress in the promotions field and to develop more promoters with proven track records. At present, promoters are not graded although they are at different levels of development. Local promoters can be classified into three groups as set out below.


    A GRADE (largely White - limited in number)
    even balance between technical and business skills
    have access to financial resources
    have sophisticated financial management skills
    largely financially independent
    have infrastructure and network to stage world class tournaments
    able to meet promoter obligations and contribute financially to the sport
    require minimum services from BSA such as networking with political role players, interface with Revenue Services and Customs office.


    B GRADE (mixed - probably up to half a dozen in number)
    more technical than business skills
    limited dependence on subsidies
    limited access to financial resources
    average financial management skills
    capable of staging national and perhaps inter-continental championship fights
    limited infrastructural support
    require services and training from BSA in defined areas such as financial management, basic legal and life skills training.


    C GRADE (largely Black and constitutes the rest of the pool)
    poor to non-existent business and financial management skills
    no infrastructural support
    totally dependent on subsidies
    no access to financial resources
    above average technical skills
    capable of staging nursery tournaments
    tend to interchange roles as matchmakers and managers
    require services, training, subsidies and access to capital in order to improve their business competence.


    In line with its goal of projecting a professional image and accelerating development. BSA proposes that development programmes be developed and offered to B and C Grade promoters. The end objective is to expand the number of top end promoters and make it more representative and enhance the skills level of B and C Grade promoters.

    The programme will be attached to a credible educational institution and should be about 12 months in duration with both theoretical and practical components and will be conducted through long distance learning.


    7.2. RING OFFICIALS, MATCHMAKERS, REFEREES, JUDGES, MANAGERS AND
    TIMEKEEPERS
    BSA will explore the opportunity of offering appropriate development programmes for these stakeholders in conjunction with a credible institution through long distance learning. With regard to managers and matchmakers, financial and business training is expected to be a major part of the course. In the case of referees, judges and trainers, development courses will be structured in line with international standards and managed by a BSA Boxing Academy.


    7.3. INVESTMENT IN BOXER EXCELLENCE
    One platform of the BSA vision and mission is to produce world class champions. This is expected by both the boxing fraternity and the government .

    Similar to the boxing investment policy of the SABC, BSA will invest in individual boxers that have the potential to be world champions by linking them with recognised boxing academies and managing their progress. .
    7.4. BSA BOXING ACADEMY
    The BSA Boxing Academy will assume responsibility for all training and development programmes in conjunction with accredited institutions to accredit licencees. Although BSA is charged with the responsibility for professional boxing, it will maintain links with amateur and womens' boxing to facilitate development and assist with the crossover of boxers from amateur to professional ranks.

    In addition to maintaining the Boxer Excellence programme, the academy will also be involved with nursery tournaments.


    7.5. BOXING FOUNDATION
    In furtherance of its developmental role, BSA will establish a Boxing Foundation.
    With the concurrence of the Minister for Sport, a Board of Trustees will be
    elected to establish the Foundation. Administration of the Foundation will be
    vested in the Chief Executive Officer of BSA.

    The Foundation will fund programmes pertaining to training, development, transformation and activities associated with the Boxing Academy.


    7.6. BSA WEB SITE
    BSA is currently establishing its web site that will be accessible to the boxing fraternity, both locally and internationally. A significant benefit of the web site is that it could be of educational value to amateur boxers and it could also develop into an inter-active channel of communication among stakeholders.


















    8. PROJECT PLAN


































    9. PROJECTED BUDGET

    NATIONAL OFFICE

    SALARIES AND CONTRIBUTIONS - PACKAGE
    Administrative salaries (including deductions) R 2 000,000,00
    Non-administrative salaries (honoraria) R 150 000,00
    Medical aid
    Pension fund premium
    UIF
    Workmens'Compensation
    Skills Development Levy
    Provision for bonuses

    R2 150 000,00


    OPERATIONAL EXPENSES
    Rent/water/electricity/parking R300 000,00
    Telephone/fax R 72 000,00.
    Internet and E Mail (web, domain and subscription) R 17 000,00
    Cell phone allowances R 6 000,00
    Cell phone insurance R 4 000,00
    Magazine an publications Subscriptions R 1 500,00
    Printing and stationery R 60 000,00
    Postage R 1 000,00
    Air travel - domestic R100 000,00
    Air travel -international R100 000,00
    Accommodation costs - domestic R 60 000,00
    Accommodation costs - international R 60 000,00
    Car hire expenses R 50 000,00
    Lease rentals -switchboard, copier, computer R 60 000,00
    Catering/refreshments R 50 000,00
    Sundry expenses R 24 000,00
    R965 500,00

    EXCEPTIONAL EXPENSES
    Annual Boxing Convention R200 000,00
    Boxing Awards R100 000,00
    Legal fees R150 000,00
    Consulting fees R150 000,00
    R600 000,00

    PROVISION FOR CAPITAL EXPENDITURE R2 000 000,00
    Transformation, Development and Training Programmes
    Boxing Academy
    11 PROVINCIAL OFFICES (SEE NOTE)

    SALARIES AND CONTRIBUTIONS
    Administrative salaries (including deductions) R1 254 000,00
    Non-administrative salaries (honoraria included above)
    Medical aid
    Pension fund premium
    UIF
    Provision for bonuses

    OPERATIONAL EXPENSES
    Rent/water/electricity/parking R 132 000,00
    Telephone/fax R 396 000,00
    Internet and E mail R 20 000,00
    Stationery R 54 000,00
    Postage R 24 000,00
    Travel allowance R 264 000,00
    Catering/refreshments R 40 000,00
    Sundry expenses R 40 000,00
    R2 224 000,00


    TOTAL R7 939 500,00





    NOTES TO PROJECTED BUDGET

    An amount of R150 000,00 has been set aside in the national budget for the annual payment of honoraria to National and Provincial Commission members. The specific amount to be paid to members will be determined by the National Commission in conjunction with the Department of Sport and Recreation

    Development and training is a key aspect of the business plan. It is assumed that the associated costs will be raised from sponsors. The funds so raised will be administered by the BSA Foundation. By virtue of the importance of development, an amount of R2m has been provided for and it is anticipated that the entire amount will be raised from sponsors.

    Each province will have an office. In the case of the Eastern Cape, three offices are contemplated (East London, Port Elizabeth and Umtata) by virtue of the size of the Province and the popularity of the sport. Hence, the budget has been structured to cater for 11 offices.

    10. FINANCIAL PLAN

    10.1. SOURCES OF FUNDING

    The sources of funding include:

    10.1. 1. GOVERNMENT GRANTS
    10.1.2. ROYALTIES FROM BROADCASTERS AND MULTI-MEDIA RIGHTS
    10.1.3. LICENCING FEES
    10.1.4. SANCTIONING FEES
    10.1.5. BSA FOUNDATION
    10.1.6. SPONSORSHIP OF PRIMARY PRODUCTS
    10.1.7. ADVERTISING REVENUE FROM ANCILLARY PRODUCTS
    10.1.8. BSA AWARDS
    10.1.9. FOREIGN DONORS
    10.1.10. NATIONAL LOTTERY


    10.1.1. GOVERNMENT GRANTS
    As a newly established statutory body, there is no precedent for
    government funding. However, this business plan and budget will be
    presented to the Department for Sport and Recreation with the proviso that
    BSA will make every effort to become self-funding so that its reliance on
    government grants is minimised.


    10.1.2. ROYALTIES FROM BROADCASTERS AND MULTI-MEDIA RIGHTS
    Both these commercial income streams are invaluable to the long term
    sustainability of BSA. As BSA will be a key player in negotiations with
    broadcasters, every effort will be made to maximise the benefits emanating
    from these rights, especially multi-media rights which extend beyond
    tournaments.


    LICENCING FEES
    As part of the drive to become self-sufficient, raise standards, project a
    professional image, increase benefits to stakeholders and implement
    training and development programmes, the licencing fees will be structured
    by the National Commission in terms of a formula that takes cognisance of
    the projected budget and the achievement of these objectives.

    SANCTIONING FEES
    Sanctioning fees will be formulated by the National commission in terms of
    the Regulations under the Act. The preferred formula is either a percentage
    of the gross income of a tournament or payment of a fixed amount,
    whichever is the lesser.
    BSA FOUNDATION
    Funds raised by the Foundation will be devoted to training, development and transformation programmes of BSA as provided for in the budget.


    SPONSORSHIP OF PRIMARY PRODUCTS
    The primary products of BSA include:

    Non-title fights
    Comprised of bouts that are not for title defences by opponents. However,
    the winning opponent in such a bout gains a grading opportunity. These
    bouts are normally staged in a tournament where a title fight is the
    headliner.

    Title fights
    Such bouts are based on contests that are for Provincial, National,
    International or World titles and a great deal is at stake for the boxers
    involved. These fights generate enormous excitement and are very high on
    spectator and listening value for advertising purposes.

    Amateur Boxing
    This is the engine room of boxing. Although the SA National Amateur
    Boxing Organisation is entrusted with the administration of amateur boxing,
    BSA will assist in raising funds for amateur boxing and facilitate
    development of the sport and provision of or upgrading existing facilities.

    Womens' Boxing
    Boxing is still to be widened in this area because it is fairly new. BSA wil
    perform an advisory role and assist with the provision or upgrading of
    facilities.

    All the above products have extensive advertising opportunities for corporate South
    Africa and BSA will make every endeavour to markets them.


    ADVERTISING REVENUE FROM ANCILLARY PRODUCTS
    The ancillary products of BSA include the BSA National Belt, water supply,
    time keeping, computers, officials' gear and medical aid kits

    Acquisition of the naming rights to the BSA National Belt provides an
    excellent opportunity for branding by corporates. In addition, it is an award
    of a high quality, esteem and prestige for a boxer to have and defend. The
    Old Buck Belt was fiercely contested over a number of years. BSA is
    currently negotiating with two sponsors for the sale of the naming rights to
    the Belt.
    Companies dealing with water supply are to be engaged and given the opportunity to advertise during tournaments. Potential parties include Valpre and Rand Water.

    Over the years watch manufacturing companies have been associated with sports such as athletics and boxing and televised tournaments could be an ideal opportunity for a sponsor such as Seiko to be associated with BSA.

    A great deal of information has to be captured during tournaments and there is an opportunity for a computer company such as Mecer to provide BSA with computers in return for incidental advertising during televised tournaments.

    Revenue will also be maximised from advertising medical aid kits and branding opportunities on the gear worn by officials.


    10.1.8. BSA AWARDS

    As part of its brand building, BSA will institute annual awards for recognised
    achievements in boxing. Negotiations are currently underway with interested
    parties to sponsor the event.


    10.1. 9. FOREIGN DONORS
    BSA will approach foreign donors to fund development programmes.


    10.1.10. NATIONAL LOTTERY
    BSA will approach the National Lotteries Board to make an allocation to boxing.



    FUNDING OF MANDATES


    SALARIES AND OPERATIONAL EPENSES

    The salaries and operational expenses of the National Office and the 11 Provincial offices R5 339 500,00 comprised as follows:


    Salaries and Contributions - Head Office R2 150 000,00
    Operational Expenses - Head Office R 965 500,00
    Total expenses -Provincial Offices R2 224 000,00
    R5 339 500,00


    The following revenue streams will be applied towards salaries and operational expenses:

    royalties from broadcasters
    licencing fees
    sanctioning fees
    Proceeds from National Lottery

    As stated elsewhere in this business plan, the licencing fees will be formulated in a manner which funds the salaries and operational expenses of BSA without unduly compromising applicants from previously advantaged groups. Grants from government will be applied for to top up any shortfall.


    TRANSFORMATION AND DEVELOPMENT PROGRAMMES

    One of the key performance areas of the CEO is fundraising. An amount of
    R2 000 000,00 has been set aside for transformation, development and training programmes including the establishment of a Boxing Academy.

    In the first year the focus of training and development will be on B and C Grade promoters, ring officials and boxers.

    Grants raised by the BSA Foundation and from foreign donors and advertising revenue from primary and ancillary products will be devoted to development. The programmes will be implemented as and when funds are secured. BSA is currently negotiating a grant of R1m.


    EXCEPTIONAL EXPENSES

    Consideration will be given to linking the Annual Boxing Convention and the BSA Awards in order to minimise costs. The CEO will assume responsibility for the procurement of these funds and initiatives are already underway with two sponsors.

    Provision has been made for legal fees in the amount of R150 000,00 and it is anticipated that lawyers will be engaged to assist with dispute resolution procedures, appeals and arbitration. An appropriate fee structure that will be applied to all protests, disputes, appeals and arbitration procedures will be devised to cover the costs attendant upon these proceedings.

    Provision has also been made for consultant fees in the amount of R150 000,00. It is anticipated that consultants will be engaged for special projects of BSA and that such projects will only be implemented once funding has been secured.


    CODE OF CONDUCT

    In addition to the rules and regulations governing boxing, it is recommended that stakeholders develop a code of conduct around the following nodes to govern their interaction with each other:

    Abide by the spirit and letter of the Act and Regulations
    Uphold the principle of fairness at all times
    Be Impartial in decision-making
    Maintain confidentiality on matters not public
    Maintain and uphold the reputation of BSA and the boxing fraternity at all times
    Mutual respect
    Conscionable conduct
    Resolve disputes within the rules of BSA
    Uphold a value system with the qualities of professionalism, excellence, integrity, equal opportunity, honour, passion and credibility



    INVESTMENT, INSURANCE, PENSION AND
    MEDICAL AID FUNDS


    Provision has been made in the Regulations for BSA, either on its own or in conjunction with a third party, to establish one or more funds for the purposes of providing investment, insurance and/or medical aid benefits for registered boxers in the Republic.

    BSA will ensure that promoters and agents of boxers give serious consideration to the implementation of this regulation and that it is given substance in the contractual and employment agreements entered into by and between role players.

    BSA also intends making these benefits available to other stakeholders directly associated with the sport such as seconds, timekeepers, trainers, judges and referees.

    Preference will be given to service providers who are prepared to enter into partnership arrangements with BSA and sponsor some of its development programmes.






    13. BOXING BENEVOLENT FUND

    The Boxing Benevolent Fund will be maintained with boxers contributing a percentage of their purse to the Fund. The Fund will be linked to the pension scheme being contemplated by BSA to maximise the benefit to boxers. BSA will explore the concept of linking defined benefits to contributions made to the Fund so that the principle of equity and the expectation of retired boxers or their families are catered for.



    14. WOMENS' BOXING

    Women's Boxing is at a developmental stage. BSA will play an advisory role and assist with development and transformation.



    15. AMATEUR BOXING

    BSA will forge strong links with the South African National Amateur Boxing Organisation (SANABO), the organisation tasked with the administration of amateur boxing. Where feasible, BSA will encourage the promotion of nursery and pro-am tournaments and furnish advice to SANABO when requested.



    16. RELATIONSHIP WITH AFRICAN AND
    INTERNATIONAL BOXING FEDERATIONS

    BSA is mindful that African boxing federations are looking to it for guidance and support. In this regard BSA will play an advisory role as it is limited by the Boxing Act to South Africa.

    With regard to international federations, BSA will maintain sound relations and use the opportunity to further its own goal of becoming a world class organisation.