National Soccer League

(Trading as the Premier Soccer League)

ANNUAL FINANCIAL STATEMENTS

31 July 2011

37 ANNUAL REPORT 2011

National Soccer League
(Trading as the Premier Soccer League)

ANNUAL FINANCIAL STATEMENTS

for the year ended 31 July 2011

CONTENTS PAGE

Composition of the Executive Committee 40

Financial Managers Report 41 -42

Statement of the Executive Committee’s responsibility 43

Independent auditor’s report 44 - 45

Report of the Executive Committee 46 - 47

Statement of comprehensive income 48

Statement of financial position 49

Statement of changes in equity 50

Statement of cash flows 51

Notes to the annual financial statements 52 - 68

Supplementary information

Detailed statement of comprehensive income 69 - 74

Members of the Executive Committee responsibility for financial statements

The members of the Executive Committee are responsible for the maintenance of adequate accounting records and
the preparation and integrity of the annual financial statements and related information. The auditors are responsible
for reporting on the fair presentation of the annual financial statements. The annual financial statements have been
prepared in accordance with International Financial Reporting Standards.

The members of the Executive Committee are also responsible for the league’s systems of internal financial control.
These are designed to provide reasonable, but not absolute, assurance as to the reliability of the financial statements
and to adequately safeguard, verify and maintain accountability for the league assets, and to prevent and detect
misstatement and loss. Nothing has come to the attention of the members of the Executive Committee’s to indicate
that any material breakdown in the functioning of these controls, procedures and systems has occurred during the year
under review.

The annual financial statements have been prepared on the going concern basis since the members of the Executive
Committee believe that the league has adequate resources in place to continue in operation for the foreseeable future.

39 ANNUAL REPORT 2011

NATIONAL SOCCER LEAGUE
COMPOSITION OF THE EXECUTIVE COMMITTEE
for the year ended 31 July 2011

Chairman
Dr I Khoza

Chief Executive Officer

Mr K Siem (contract concluded 31 May 2011)
Mr Z Majavu (appointed 1 August 2011; resigned 18 October 2011)
Mr C Mokanyane (appointed Acting Chief Executive Officer 18 October 2011)

Members
Mr K Motaung
Ms M Madlala
Mr S Matthews
Mr G Allie
Mr J Comitis
Mr M Mokoena
Dr P Sokhela

In terms of paragraph 9.1 of the League’s constitution, all of the above members will hold office until the next general
meeting to be held in November 2012.

ANNUAL REPORT 2011

40
NATIONAL SOCCER LEAGUE
FINANCIAL MANAGERS REPORT
31 July 2011

FINANCIAL RESULTS
Total Revenue
Rm

581.1
546.1
518.6
490.9
223.8

Composition of Total Revenue

Rm
285
285
285
285
72.2

239.2
213.1
191.1
162.6
119.9

Distributions to Clubs
Rm
65.55
65.65
60.79

65

301.76
267.2
257.6

257.6
31.7
96

41 ANNUAL REPORT 2011

NATIONAL SOCCER LEAGUE
FINANCIAL MANAGERS REPORT (continued)
31 July 2011

During the year under review revenue increased from R532.3 million in the 2010 year to R560.3 million this year.

The Telkom Charity Cup competition has been concluded and the League received an amount of R15 million as per
the contract. The increase in other sponsorships was based on CPI except for the broadcast revenue which remains
constant for the duration of their contract.

Other income increased by R7.1 million, mainly due to increased revenue from tournament gate takings.

The League recorded a profit of R3.65 million after tax (2010 - a profit of R1.4 million) for the 2011 financial year. Direct
costs related to soccer increased by R48.5 million from R417 to R465.5 million.

Included in these direct costs are the increase in grants of R34.6 million, gate taking costs which increased due to the
use of world cup stadia and the increase in the distribution of gate money to clubs due to increased attendance at cup
matches.

Monthly grants paid to clubs remained constant. Distributions to clubs comprising of grants, prize money, share of
gate revenue, participation fee, and the reimbursement of sponsor tickets totalled R408.8 million (2010: R355.5 million)

Administration costs of R64.5 million, excluding costs for corporatisation included in legal expenses and consulting
fees, have increased in line with CPI (2010: R54.7 million excluding finders’ fee of R 19.2 million).

The cost of running the league, including all administrative operations and marketing expenditure, represents 14.7%
(2010: 13.7%) of turnover.

As regards to SAFA an amount of R7 million was again paid for development expenditure (2010: R7 million).

The cash flow position of the league is positive and satisfactory, but it must be bourne in mind that the income from the
granting of the broadcasting rights to Supersport International is fixed and is not linked to CPI.

The above has been achieved through the implementation and monitoring of the business’s risk management,
accounting and internal control systems approved by the League’s Executive. The principal features of the system of
internal controls include:
• Budgetary control over income and expenditure
• Regular reviews of financial management information
• Identification and management of key business and inherent risks
It is my pleasure to present to you the audited Financial Statements of the League for the period ending 31 July 2011.

Prof. R. Schloss
Chief Operations Officer

ANNUAL REPORT 2011

42
NATIONAL SOCCER LEAGUE
STATEMENT OF THE EXECUTIVE COMMITTEE’S RESPONSIBILITY
for the year ended 31 July 2011

The members of the Executive Committee are responsible for the preparation, integrity and fair presentation of the
annual financial statements of the National Soccer League.

The members of the Executive Committee are required by the League’s constitution to maintain adequate accounting
records and to prepare annual financial statements for each financial year, which fairly present the state of affairs of
the League at the end of the financial year, the results of its operations and cash flows for the year. In preparing the
accompanying annual financial statements, International Financial Reporting Standards have been followed.

The annual financial statements incorporate full and responsible disclosure. The Executive Committee has reviewed
the League’s budget and cash flow forecast for the year ending 31 July 2012. On the basis of this review and in light of
the current financial position and sponsorship facilities, the Executive Committee is satisfied that the National Soccer
League is a going concern and has therefore continued to adopt the going concern basis in preparing the annual financial
statements.

The League’s external auditors, Deloitte & Touche, have audited the annual financial statements and their report
appears on pages 44 and 45. The annual financial statements and detailed statement of comprehensive income for the
year ended 31 July 2011 as set out on pages 46 to 74 have been approved by the members of the Executive Committee
on 20 October 2011 and are signed on its behalf by:

ACTING CHIEF EXECUTIVE OFFICER

CHAIRMAN OF FINANCE COMMITTEE

43 ANNUAL REPORT 2011

Independent auditor’s report to the members of the National Soccer League

We have audited the annual financial statements of National Soccer League, which comprise the statement of financial
position as at 31 July 2011, and the statement of comprehensive income, statement of changes in equity and statement of
cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information,
and the members of the Executive Committee report, as set out on pages 46 to 68.

Executive Committee Responsibility for the Financial Statements

The League Executive Committee members are responsible for the preparation and fair presentation of these financial
statements in accordance with International Financial Reporting Standards, and for such internal control as the members
determine is necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in
accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating
the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

ANNUAL REPORT 2011

44
Independent auditor’s report to the members of the National Soccer League (continued)

Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position of National Soccer
League as at 31 July 2011, and its financial performance and its cash flows for the year then ended in accordance with
International Financial Reporting Standards.

Other matters

Without qualifying our opinion we draw attention to the fact that the supplementary information set out on pages 69 to
74 does not form part of the annual financial statements and is presented as additional information. We have not audited
this schedule and accordingly, we do not express an opinion thereon.

Deloitte & Touche

Registered Auditor

Per Haroon Loonat

Partner
20 October 2011

45 ANNUAL REPORT 2011

NATIONAL SOCCER LEAGUE
REPORT OF THE EXECUTIVE COMMITTEE
for the year ended 31 July 2011

Nature of business

The primary objective of the National Soccer League is to promote, organise, control and administer professional and
semi-professional soccer in South Africa. The National Soccer League aims to utilise its funds for investments and for
such other purposes as shall be in the interest of the League and the affiliated clubs, and the objectives for which the
National Soccer League has been established.

Financial review

The League has recorded a net profit of R3.7 million (2010: R1.4 million) for the year ended 31 July 2011. The founding
guidelines and principles, upon which the League was established, have always been for the development and support
of professional soccer in South Africa. The League increased grants to Clubs in the current year from R267.2 million
to R301.8 million (11.46% increase). The Clubs have a reciprocal responsibility to continue to enhance the brand of the
League and to be mindful of their obligations to the soccer fraternity.

The League’s revenue, which is mainly from sponsorships, has increased from R532.3 million to R560.3 million. The
Telkom Charity Cup competition has been concluded and the League received an amount of R15 million as per the
contract.

Direct costs related to soccer have increased from R417 million to R465.5 million primarily due to the payment of the
additional grant to clubs and the increase in competition gate expenses which can be attributed to the use the new world
cup stadiums.

Amounts due and payable to members of the Executive Committee are disclosed in note 21 to the financial statements.

As a further indication of the support and responsibility of the League to the broader soccer community, the Executive
Committee have approved an amount of R7 million (2010: R7 million) to the South African Football Association (SAFA)
for development expenditure.

Property, plant and equipment

Details of the property, plant and equipment are contained in note 10 to the annual financial statements. Property, plant
and equipment amounting to R7.85 million (2010: R7.56 million) was purchased during the current year. The significant
additions related to the acquisition of the new team registration system (Green 4) which was acquired during the current
year.

Going concern
We believe there will be sufficient funds generated from sponsorships to enable the League to continue as a going
concern.

The current sponsorship contracts were concluded just less than 5 years ago and are now due for renewal. The broadcast
negotiations with SuperSport have been successfully concluded for an additional 5 years by the Executive Committee.

In addition, the Executive Committee is in the process of renewal of sponsorships for the League. We are confident that
these negotiations will be successful.

ANNUAL REPORT 2011

46
NATIONAL SOCCER LEAGUE
REPORT OF THE EXECUTIVE COMMITTEE (continued)
for the year ended 31 July 2011

Finance Committee

The Committee members are appointed by the Executive Committee.

The Committee met eight times during the year to discuss accounting, auditing, internal control and other financially
related matters. It provides an independent forum through which the independent auditors report to the Executive
Committee.

Internal controls

The members of the Executive Committee are responsible for maintaining adequate accounting records and for taking
reasonable steps to safeguard the assets of the League to prevent and detect fraud and other irregularities. To enable
the members to meet these responsibilities, management sets standards and implements systems of internal control
aimed at reducing the risk of error or loss in a cost-effective manner. The members are not aware of any material
breakdown in internal controls during the year under review

Subsequent events

No events of significant nature have occurred between the accounting date and the date of this report.

Auditors

The League’s auditors are Deloitte & Touche.

47 ANNUAL REPORT 2011

NATIONAL SOCCER LEAGUE
STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 July 2011

Notes 31/07/2011 31/07/2010

R R

Revenue 3 560 258 669 532 255 809

Other income 4 20 871 317 13 814 476

Total revenue 581 129 986 546 070 285

Administration costs (64 475 698) (73 907 965)

Competition expenditure (163 783 105) (149 831 920)

Grants (301 760 000) (267 200 000)

FIFA tickets costs - (8 054 533)

Development expenditure (8 149 372) (8 620 042)

Staff costs (22 140 726) (19 101 022)

Marketing and advertising costs (21 055 160) (19 128 295)

(Loss) profit from operations 6 (234 075) 226 508

Interest paid 7 (474 884) (5 655 711)

Interest received 8 6 619 747 8 248 140

Profit before taxation 5 910 788 2 818 937

Taxation expense 9 (2 257 104) (1 381 461)

Total comprehensive income for the year 3 653 684 1 437 476

ANNUAL REPORT 2011

48
NATIONAL SOCCER LEAGUE
STATEMENT OF FINANCIAL POSITION
at 31 July 2011

Notes 31/07/2011 31/07/2010

R R

Assets

Non-current assets
Property, plant and equipment 10 32 490 705 26 248 043
Deferred taxation 11 6 297 736 8 589 877

Total non-current assets 38 788 441 34 837 920

Current assets
Trade and other receivables 12 24 095 703 24 855 113
Balances due by teams 5 394 173 891 348
Cash and cash equivalents 14 951 125 20 075 258
Taxation asset 1 475 983 1 440 945

Total current assets 45 916 984 47 262 664

Total assets 84 705 425 82 100 584

Equity and liabilities

Reserves
Team guarantees 257 393 257 393
Insurance reserve fund 7 985 000 7 985 000
Accumulated profit 6 982 979 3 329 295

Total reserves 15 225 372 11 571 688

Non-current liabilities
Long-term liabilities 13 4 072 600 5 244 150

Total non-current liabilities 4 072 600 5 244 150

Current liabilities
Trade and other payables 14 28 613 405 57 536 648
Balances due to teams 32 947 515 1 847 832
Provisions 15 2 666 073 3 087 674
Current portion of long-term liabilities 13 1 180 460 2 812 592

Total current liabilities 65 407 453 65 284 746

Total equity and liabilities 84 705 425 82 100 584

49 ANNUAL REPORT 2011

NATIONAL SOCCER LEAGUE
STATEMENT OF CHANGES IN EQUITY
for the year ended 31 July 2011

Team Insurance Accumulated

guarantees reserve fund profit Total
R R R R

Balance at 31 July 2009 257 393 6 500 000 3 376 819 10 134 212

Transfer to insurance reserve fund - 1 500 000 (1 500 000) -

Transfer out of insurance reserve fund - (15 000) 15 000 -

Total comprehensive income for the year - - 1 437 476 1 437 476

Balance at 31 July 2010 257 393 7 985 000 3 329 295 11 571 688

Total comprehensive income for the year - - 3 653 684 3 653 684

Balance at 31 July 2011 257 393 7 985 000 6 982 979 15 225 372

ANNUAL REPORT 2011

50
NATIONAL SOCCER LEAGUE
STATEMENT OF CASH FLOWS
for the year ended 31 July 2011

Notes 31/07/2011 31/07/2010

R R

Operating activities:
Cash used in operating activities 16 (611 038) (23 149 563)
Interest paid 7 (474 884) (5 655 711)
Taxation paid 17 - (9 078 927)
Interest received 8 6 619 747 8 248 140

Net cash from (used in) operating activities 5 533 825 (29 636 061)

Investing activities:
Additions to property, plant and equipment to maintain operations 18 (7 854 275) (7 564 520)

Net cash used in investing activities (7 854 275) (7 564 520)

Financing activities:
(Decrease) increase in long-term liabilities (2 803 682) 1 092 707
Decrease in instalment sale liabilities - (93 876)

Net cash (used in) from financing activities (2 803 682) 998 831

Net decrease in cash and cash equivalents (5 124 133) (36 201 750)

Cash and cash equivalents at beginning of the year 20 075 258 56 277 008

Cash and cash equivalents at end of the year 19 14 951 125 20 075 258

51 ANNUAL REPORT 2011

NATIONAL SOCCER LEAGUE
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 July 2011

1. Presentation of annual financial statements

These financial statements are presented in South African Rand since that is the currency in which the majority
of the League’s transactions are denominated.

1.1 Standards and Interpretations in issue not yet adopted

At the date of authorisation of these financial statements, other than the standards and interpretations adopted,
the following new and revised standards and interpretations applicable to the league were in issue but not yet
effective:

• IFRS 9 Financial Instruments - Classification and Measurement

• IAS 1 Presentation of Financial Statements
• IAS 39 Financial Instruments: Recognition and Measurement

The Executive Committee anticipates that all the above interpretations will be adopted in the League’s financial
statements for the future financial periods as they become effective. The adoption of these standards and
interpretations will have no material impact on the financial statements of the League in the period of initial
application.

2. Summary of significant accounting policies

Statement of compliance

The financial statements have been prepared in accordance with International Financial Reporting Standards and
in the manner required by the League’s constitution.

Property, plant and equipment

Land is stated at historical cost and is not depreciated. Other property, plant and equipment are stated at
historical cost less accumulated depreciation and any accumulated impairment losses. Depreciation is calculated
on historical cost using the straight line basis to reduce carrying amount to the estimated residual value of the
asset, over its useful life. The following annual depreciation rates apply:

Buildings 5%
Motor vehicles 20%
Office equipment 15%
Office furniture 10%
Computer equipment and software 20% - 33,3%

The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the
sales proceeds and the carrying amount of the asset and is recognised in income.

Assets held under instalment sale agreements are depreciated over their expected useful lives on the same basis
as owned assets or, where shorter, the terms of the relevant leases.

ANNUAL REPORT 2011

52
NATIONAL SOCCER LEAGUE
NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended 31 July 2011

2. Summary of significant accounting policies (continued)

Impairment

At each reporting date, the League reviews the carrying values of its tangible assets to determine whether there
is an indication that those assets may be impaired. If such an indication exists, the recoverable amount of the
asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to
estimate the recoverable amount for an individual asset, the recoverable amount is determined for the cash-
generating unit to which it belongs.

If the recoverable amount of the asset (or cash-generating unit) is estimated to be less than its carrying amount,
the carrying amount of the asset (cash generating unit) is reduced to its recoverable amount. Impairment losses
are recognised as an expense immediately, unless the relevant asset is carried at a revalued amount under
another Standard, in which case the impairment loss is treated as a revaluation decrease under the Standard.

Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit)
is increased to the revised estimate of its recoverable amount, so that the increased carrying amount does not
exceed the carrying amount that would have been determined had no impairment loss been recognised for
the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised as income
immediately, unless the relevant asset (or cash-generating unit) is carried at a revalued amount under another
Standard, in which case the loss is treated as a revaluation increase under that other Standard.

Provisions

Provisions are recognised when the League has a present obligation as a result of a past event and it is probable
that this will result in an outflow of economic benefits that can be reliably estimated.

Provisions are measured at the Executive Committee’s best estimate of the expense required to settle the
obligation at reporting date.

Revenue recognition

Revenue comprises sponsorship revenue from various sponsors and the sale of broadcasting rights. Revenue
which is received in terms of contracts is recognised on an accrual basis. Contracts that are tournament-specific
or relate directly to the League season are recognised over the duration of the specific tournament or League
season as appropriate.

All other income is accounted for on an accrual basis. This includes gate revenue, income from members,
advertising board income and other miscellaneous income.

Interest income is accrued on a time basis, by reference to the principle outstanding and at the interest rate
applicable.

53 ANNUAL REPORT 2011

NATIONAL SOCCER LEAGUE
NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended 31 July 2011

2. Summary of significant accounting policies (continued)

Leasing

Instalment sale agreements are classified as finance leases due to the fact that the terms of the agreement
transfer substantially all the risks and rewards of ownership to the League. All other leases are classified as
operating leases.

Assets held under finance leases are recognised as assets of the League at their fair value at the date of
acquisition. The corresponding liability to the lessor is included in the statement of financial position as a finance
lease obligation. Finance costs, which represent the difference between the total leasing commitments and the
fair value of the assets acquired, are charged to the statement of comprehensive income over the term of the
relevant lease so as to produce a constant periodic rate of interest on the remaining balance of the obligations
for each accounting period.

Rentals payable under operating leases are charged to income on a straight-line basis over the term of the
relevant lease.

Retirement benefit costs

The retirement benefit plan is governed by the Pension Fund Act, 1956. Contributions paid to fund obligations for
the payment of retirement benefits are charged against income in the year of payment.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the entity’s accounting policies, which are described above, the Executive Committee
members are required to make judgements, estimates and assumptions about the carrying amounts of assets
and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are
based on historical experience and other factors that are considered to be relevant. Actual results may differ from
these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate is revised if the revision affects only that period or in the period
of the revision and future period if the revision affects both current and future periods.

Key sources of estimation uncertainty

The following are the key assumptions concerning the future, and other key sources of estimation uncertainty
at the statement of financial position date, that have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next financial year.

Useful lives of property, plant and equipment

As described above, the League reviews the estimated useful lives of property, plant and equipment at the end
of each annual reporting period

ANNUAL REPORT 2011

54
NATIONAL SOCCER LEAGUE
NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended 31 July 2011

2. Summary of significant accounting policies (continued)

Critical accounting judgements and key sources of estimation uncertainty (continued)

Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported
in the statement of comprehensive income because it excludes items of income or expense that are taxable or
deductible in other years and it excludes items that are never taxable or deductible. The League’s liability for
current tax is calculated using rates that have been enacted or substantively enacted by the reporting date.

Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable profit, and are accounted
for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable
temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits
will be available against which deductible temporary differences can be utilised. Such assets and liabilities are
not recognised if the temporary difference arises from goodwill or from the initial recognition (other than in a
business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor
the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is
no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or
the asset realised. Deferred tax is charged or credited to the profit or loss, except when it relates to items charged
or credited directly to equity, in which case the deferred tax is also dealt with in equity.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets
against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the
League intends to settle its current tax assets and liabilities on a net basis

Financial instruments

Financial assets and financial liabilities are recognised on the League’s balance sheet when the League has
become party to contractual provisions of the instrument.

Measurement

Financial instruments are initially measured at cost, which includes transaction costs. Subsequent to initial
recognition, these instruments are measured as set out below.

55 ANNUAL REPORT 2011

NATIONAL SOCCER LEAGUE
NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended 31 July 2011

2. Summary of significant accounting policies (continued)

F
inancial instruments (continued)

Trade and other receivables (including balances due by the teams)

Trade and other receivables are measured at initial recognition at fair value, and are subsequently measured
at amortised cost using the effective interest rate method. Appropriate allowances for estimated irrecoverable
amounts are recognised in profit or loss when there is objective evidence that the asset is impaired. The allowance
recognised is measured as the difference between the asset’s carrying amount and the present value of estimated
future cash flows discounted at the effective interest rates computed at initial recognition.

Bank borrowings

Long-term liabilities in the form of mortgage bonds and instalment sale liabilities are initially measured at fair
value, and are subsequently measured at amortised cost, using the effective interest rate method. Any difference
between the proceeds (net of transaction costs) and the settlement or redemption of borrowings is recognised
over the term of the borrowings in accordance with the League’s accounting policy on borrowing costs.

Trade and other payables (including balances due to the teams)

Trade and other payables are initially measured at fair value, and are subsequently measured at amortised cost,
using the effective interest rate method.

Cash and cash equivalents

For the purpose of the statement of cash flow, cash and cash equivalents comprise cash on hand and deposits
held on call with banks net of bank overdraft, all of which are available for use by the League unless otherwise
stated.

ANNUAL REPORT 2011

56
NATIONAL SOCCER LEAGUE
NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended 31 July 2011

31/07/2011 31/07/2010
R R
3. Revenue

Sponsorship income 239 152 943 213 061 895

Broadcasting rights 285 000 000 285 000 000
Supplier contributions 36 105 726 34 193 914
560 258 669 532 255 809

4. Other income

Commissions – Super Six 1 930 010 2 712 104

Share of revenue from tournament gate takings 17 746 482 8 998 355
Other income 1 194 825 2 104 017
20 871 317 13 814 476

5. Non-cash sponsorship

Avis
- Income 924 480 923 400
- Expense (924 480) (923 400)
- -
Adidas
- Income 1 379 442 2 222 819
- Expense (1 379 442) (2 222 819)
- -
Southern Sun
- Income 195 052 212 999
- Expense (195 052) (212 999)
- -
South African Breweries
- Income - 34 330
- Expense - (34 330)
- -
Coca-Cola
- Income 31 567 25 182
- Expense (31 567) (25 182)
- -
Net non-cash sponsorship - -

57 ANNUAL REPORT 2011

NATIONAL SOCCER LEAGUE
NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended 31 July 2011

31/07/2011 31/07/2010
R R

6. (Loss) profit from operations

This is arrived at after taking the following items into account:

Auditor’s remuneration:
- Audit fees 1 264 000 1 150 000
- Other fees 58 000 -
1 322 000 1 150 000

Bad debts 555 842 -

Consulting fees 3 040 312 1 888 802

Commission 22 342 588 21 141 798

Depreciation:
- Buildings 19 929 19 929
- Motor vehicles 180 811 287 167
- Office equipment 210 700 135 325
- Office furniture 166 367 158 279
- Computer equipment and software 1 033 806 447 764

1 611 613 1 048 464

Executive Committee and all other sub-committees:

- Executive Committee and all other sub-committees remuneration 1 021 060 970 000
- Honoraria – current year 2 673 831 2 673 831

3 694 891 3 643 831

Finders fee’s

Finders fee’s relating to the broadcasting rights with

SuperSport International:

- Other finder’s fee expenses - 18 200 000

- Diversity Management (Pty) Ltd - 1 000 000

- 19 200 000

Legal fees:
- Deductible fees 1 593 642 1 921 533
- Non-deductible fees 558 798 554 665
- Corporatisation fees 2 074 436 -

4 226 876 2 476 198

Operating lease charges
- Equipment rental 1 234 537 1 371 877

58
NATIONAL SOCCER LEAGUE
NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended 31 July 2011

31/07/2011 31/07/2010
R R

7. Interest paid

Other 50 708 -
Instalment sale 1 844 14 827
Bond finance 422 332 674 729
Finders’ fee - 4 966 155

474 884 5 655 711

8. Interest received

Staff loans 2 772 10 009

Bank 6 396 598 7 925 926
Teams 220 377 312 205

6 619 747 8 248 140

9. Taxation

South African Normal Taxation 35 037 -

Current taxation - current year - -
- prior year over provision 35 037 -

Deferred taxation - current year (2 666 163) (1 381 461)

- prior year under provision 374 022 -

Taxation expense (2 257 104) (1 381 461)

The taxation charge for the year is reconciled to the profit before taxation
per the income statement as follows:

Profit before taxation 5 910 788 2 818 937

Taxation at the domestic income tax rate of 28% (1 655 021) (789 302)
Taxation effect of permanent differences (775 046) (592 159)
Taxation effect due to prior year under provision of deferred taxation 374 022 -
Taxation effect due to prior year (under) over provision 35 037 -
Taxation effect of utilisation of assessed loss (236 096) -
(2 257 104) (1 381 461)

The tax loss available for set-off against future taxable income amounts
to R19.8 million.

59 ANNUAL REPORT 2011

NATIONAL SOCCER LEAGUE
NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended 31 July 2011

10. Property, plant and equipment

Computer
Land and Motor Office Office equipment &
buildings vehicles equipment furniture software Total
R R R R R R
2011
Cost
At 1 August 2010 21 265 079 1 452 149 2 644 012 1 934 370 4 454 722 31 750 332
Additions 4 674 - 687 752 20 750 7 141 099 7 854 275

At 31 July 2011 21 269 753 1 452 149 3 331 764 1 955 120 11 595 821 39 604 607

Accumulated
depreciation
At 1 August 2010 29 173 1 147 242 1 437 773 983 647 1 904 454 5 502 289
Depreciation 19 929 180 811 210 700 166 367 1 033 806 1 611 613

At 31 July 2011 49 102 1 328 053 1 648 473 1 150 014 2 938 260 7 113 902

Carrying value
At 1 August 2010 21 235 906 304 907 1 206 239 950 723 2 550 268 26 248 043

At 31 July 2011 21 220 651 124 096 1 683 291 805 106 8 657 561 32 490 705

Land and buildings consists of:

Property location Purchase date R’ million

Erf 502 of Portion 7, Morningside October 2005 1, 755

Erf 215 and Erf 216, Parktown February 2006 10, 370
Erf 1 of Portion 1 Vandia Grove June 2007 4, 210
Erf 309 Parktown February 2010 4,900

In the opinion of the Executive Committee, the market values of these properties are in excess of their book value.
Included in land and buildings is an amount of R21 269 753 (2010: R21 265 079) relating to property which is not
depreciated. As detailed in note 13 to the financial statements, the carrying value of motor vehicles includes
amounts of Rnil (2010: R304 907) in respect of assets held under instalment sale agreements. The carrying
value of land and buildings includes amounts of R21 220 651 (2010: R21 235 906) in respect of assets held under
mortgage bonds.

ANNUAL REPORT 2011

60
NATIONAL SOCCER LEAGUE
NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended 31 July 2011

10. Property, plant and equipment (continued)

Computer
Land and Motor Office Office equipment &
buildings vehicles equipment furniture software Total
R R R R R R
2010
Cost
At 1 August 2009 16 365 079 1 452 149 1 574 651 1 764 308 3 029 625 24 185 812
Additions 4 900 000 - 1 069 361 170 062 1 425 097 7 564 520

At 31 July 2010 21 265 079 1 452 149 2 644 012 1 934 370 4 454 722 31 750 332

Accumulated
depreciation
At 1 August 2009 9 244 860 075 1 302 448 825 368 1 456 690 4 453 825
Depreciation 19 929 287 167 135 325 158 279 447 764 1 048 464

At 31 July 2010 29 173 1 147 242 1 437 773 983 647 1 904 454 5 502 289

Carrying value
At 1 August 2009 16 355 835 592 074 272 203 938 940 1 572 935 19 731 987

At 31 July 2010 21 235 906 304 907 1 206 239 950 723 2 550 268 26 248 043

Land and buildings consists of:

Property location Purchase date R’ million

Erf 502 of Portion 7, Morningside October 2005 1, 755

Erf 215 and Erf 216, Parktown February 2006 10, 370
Erf 1 of Portion 1 Vandia Grove June 2007 4, 210
Erf 309 Parktown February 2010 4,900

In the opinion of the Executive Committee, the market values of these properties are in excess of their book
value. Included in land and buildings is an amount of R21 265 079 relating to property which is not depreciated.
As detailed in note 13 to the financial statements, the carrying value of motor vehicles includes amounts of
R304 907 (2009: R592 072) in respect of assets held under instalment sale agreements. The carrying value of
land and buildings includes amounts of R21 235 906 (2009: R16 355 835) in respect of assets held under mortgage
bonds.

61 ANNUAL REPORT 2011

NATIONAL SOCCER LEAGUE
NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended 31 July 2011

31/07/2011 31/07/2010
R R

11. Deferred taxation

Opening balance 8 589 877 9 971 338

Prior year adjustment to deferred taxation from assessed loss 374 022 -
Tax charge to the statement of comprehensive for the year (2 666 163) (1 381 461)

Closing balance 6 297 736 8 589 877

Deferred taxation asset is due to:

- Estimated tax loss from income received in advance in prior year 19 825 840 27 590 459
- Provisions 2 666 073 3 087 673

22 491 913 30 678 132

Deferred taxation at 28% 6 297 736 8 589 877

12. Trade and other receivables

Trade receivables

Vodacom - 1 279 080

Phumelela Gaming and Leisure 2 200 211 200 692
South African Post Office 300 000 933 660

2 500 211 2 413 432

Provision for doubtful debts - -

2 500 211 2 413 432

Other receivables

Deposits
- Water and electricity 54 000 54 000
Staff loans 47 909 55 240
South African Revenue Service (“SARS”) 1 596 071 1 596 071
Value Added Taxation 19 253 386 17 709 703
FIFA World Cup tickets 585 550 2 760 780
Other 58 576 265 887

21 595 492 22 441 681

24 095 703 24 855 113

ANNUAL REPORT 2011

62
NATIONAL SOCCER LEAGUE
NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended 31 July 2011

12. Trade and other receivables (continued)

The average credit period on trade receivables at year end is 12 days. No interest is charged on outstanding trade
receivables. Management considers all trade receivables to be recoverable hence no provision for bad debts is
considered necessary.

Before accepting any new sponsorship, the league performs valuations on the potential sponsors to assess the
potential sponsor’s credit quality and defines credit limits by customer.

Included in the League’s trade and other receivable balance are debtors with a carrying amount of R2 500 211
(2010: R2 212 740) which are past due at the reporting date for which the entity has not provided for as there has
not been a significant change in credit quality and the amounts are still considered recoverable. The entity does
not hold any collateral over these balances.

Ageing of past due but not impaired

Up to six Six months to More than
months one year one year Total
R R R R
2011
Trade receivables 2 200 211 - 300 000 2 500 211

2010
Trade receivables - - 2 212 740 2 212 740

Movement in the allowance for doubtful debts

- There was no movement in the allowance for doubtful debts in current year or the 2010 period.

Ageing of impaired receivables

- There were no receivables impaired in the current year or the 2010 period.

Trade receivables that are past due are individually assessed. Sponsors with no history of default and from whom
the full amounts are expected to be recovered are not provided for. The individually impaired receivables relate to
sponsors that are experiencing unexpected economic difficulties.

Management considers that the carrying amount of trade and other receivables approximates their fair value.

63 ANNUAL REPORT 2011

NATIONAL SOCCER LEAGUE
NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended 31 July 2011

31/07/2011 31/07/2010
R R
13. Long-term liabilities

Instalment sale agreements - 93 948

Less: current portion of long-term liabilities - (93 948)

- -
As detailed in note 10 to the financial statements, the instalment sale
agreements are secured by motor vehicles with a net book value of
Rnil (2010: R304 907).

Mortgage bonds 5 253 060 7 962 794

Less: current portion of long-term liabilities (1 180 460) (2 718 644)

4 072 600 5 244 150

4 072 600 5 244 150

The mortgage bonds are secured by land and buildings, as detailed in note
10, with a net book value of R21 269 753 (2010: R21 235 906).

The mortgage bonds are repayable in monthly instalments ranging between

R25 396 and R76 788 per month with the last repayment date of 31 August
2020. Interest is charged at the bank prime overdraft rate plus 0,5 percent
per annum.

Management considers that the carrying amount of long-term liabilities

approximates their fair value.

Reconciliation of future payments:

Instalment sale agreements

Within one Two to Over five
year five years years Total

R R R R

Minimum lease payments - - - -

Finance costs - - - -

Present value - - - -

Mortgage bonds
Parktown 1 180 460 3 730 984 341 616 5 253 060

1 180 460 3 730 984 341 616 5 253 060

ANNUAL REPORT 2011

64
NATIONAL SOCCER LEAGUE
NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended 31 July 2011

31/07/2011 31/07/2010
R R
14. Trade and other payables

Accruals 2 889 184 2 655 283

American Express 1 678 955 -
CAF participation fees 2 000 000 2 000 000
Commissions 2 827 936 2 827 936
Diners Club 512 043 3 036 466
FIFA World Cup tickets - 1 889 812
Finder’s fee 7 578 255 9 537 600
Legal fees 39 542 239 791
Pay-as-you-earn (PAYE) 1 082 683 7 137 473
South African Football Association (SAFA) 7 980 000 9 125 700
Sundry creditors 675 407 2 637 720
Trade creditors 1 349 400 16 448 867

28 613 405 57 536 648

Management considers that the carrying amount of trade and other

payables approximates their fair value.

15. Provisions

Provisions 2 666 073 3 087 674

Provisions
Provision for Provision for
bonuses leave pay Total
R R R

At 1 August 2010 1 496 077 1 591 597 3 087 674

Current year charge to the statement of
comprehensive income 487 914 90 486 578 400
Payments during the year (989 016) (10 985) (1 000 001)

At 31 July 2011 994 975 1 671 098 2 666 073

Provision for bonuses:

The provision for bonuses represents the bonus payments that have accrued to employees.

Leave pay:
The provision relates to employees’ leave entitlement at year end and is calculated using total cost to company.
Provisions are measured at the Executive Committees’ best estimate of the expenditure required to settle the
obligation at the reporting date, and are discounted to present value where the effect is material.

65 ANNUAL REPORT 2011

NATIONAL SOCCER LEAGUE
NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended 31 July 2011

31/07/2011 31/07/2010
R R

16. Cash used in operating activities

(Loss) profit from operations (234 075) 226 508

Adjustments for:
Depreciation 1 611 613 1 048 485
(Decrease) increase in provisions (421 601) 1 725 750

Operating profit before working capital changes 955 937 3 000 743
Adjustments for working capital changes:
Decrease (increase) in trade and other receivables 759 410 (9 693 715)
Increase in balances due by teams (4 502 825) (309 553)
(Decrease) increase in trade and other payables (28 923 243) 16 255 130
Increase in balances due to teams 31 099 683 1 847 832
Decrease in income received in advance - (34 250 000)

(1 566 975) (26 150 306)

Cash used in operating activities (611 038) (23 149 563)

17. Taxation paid

Amounts (overpaid) unpaid at beginning of the year (1 440 944) 7 637 983
Amounts credited to the income statement (excluding deferred taxation) (35 037) -
Amounts overpaid at end of the year 1 475 981 1 440 944

- 9 078 927

18. Additions to property, plant and equipment to maintain operations

Total additions to property, plant and equipment (note 10) 7 854 275 7 564 520

19. Cash and cash equivalents

Bank balances and cash 14 951 125 20 075 258

Bank balances and cash compromise cash held by the League and short term deposits with an original
maturity of three months or less. The carrying amounts of these assets approximate their fair value.

20. Post retirement benefits

The provident fund has been registered in terms of the Pension Funds Act No. 24 of 1956. The fund is a defined
contribution plan. The National Soccer League makes monthly contributions to the scheme at a rate of 6% of
members’ monthly salaries as defined in the rules of the scheme. The amount due to the provident fund as at
31 July 2011 is R110 807 (2010: Rnil). The contributions for the year amounted to R910 660 (2010: R462 223).

ANNUAL REPORT 2011

66
NATIONAL SOCCER LEAGUE
NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended 31 July 2011

31/07/2011 31/07/2010
R R

21. Related party transaction

The following related party transaction occurred during the current year:
Commissions on sponsorships:
- Dr I Khoza - 1 432 200
Finder’s fees:
- Dr I Khoza - 16 500 000
- Mr G Allie - 1 700 000
- 18 200 000

- Remuneration 1 021 060 970 000

- Honoraria 2 673 831 2 673 831

Related party transactions are defined as transactions with Board of

Governors, members of the Executive Committee and all other
sub-committees, and entities over which they have significant influence or
control.

22. Employee information

Number of employees 34 33

23. Contingent liability

A claim has been lodged against the NSL by Black Leopards.
The Executive Committee has referred the matter to arbitration.

24. Financial instruments

Exposure to interest rate and credit risk arises in the normal course of the League’s business.

Interest rate risk

The League manages liquidity risk through the compilation and monitoring of cash flow forecasts, as well as
ensuring that adequate borrowing facilities and resources are maintained within the League.

Interest rate sensitivity analysis

The sensitivity analysis below has been determined based on the exposure to interest rates for deposits and the
overdraft facility. A 50 basis point increase or decrease in interest rates is used as this was the movement noted
in interest rates during the financial period.

If interest rates had been 50 basis points higher / lower and all other variables were held constant, the entity’s:

Profit for the year ended 31 July 2011 would have decreased / increased by R177 918 (2010: R238 896).

The League only deposits cash surpluses with major banks of high quality credit standing.

67 ANNUAL REPORT 2011

NATIONAL SOCCER LEAGUE
NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended 31 July 2011

24. Financial instruments (continued)

Credit risk management

Credit risk relates to the potential exposure on trade receivables. Credit exposure in respect of trade receivables
is controlled by a review of outstanding accounts receivable by management. At 31 July 2011, the League did
not consider there to be any significant concentration of credit risk which had not been adequately provided for.

Liquidity risk management

The League manages liquidity risk by reviewing the bank and cash balances on a regular basis.

Fair values
The carrying values of the financial instruments reflected in the balance sheet are substantially equal to the fair
values of these items.

Capital risk management

The League manages its capital to ensure that it will be able to continue as a going concern. The capital
structure of the League consists of debt, cash and cash equivalents and team guarantees.

There were no changes in the League’s objective, or policies and processes for managing capital from the
previous financial year. The League is not subject to externally imposed capital requirements.

Fair value of financial instruments

At 31 July 2011 the carrying amounts of cash and cash equivalents, trade and other receivables, including
balances due by the teams and trade and other payables, balances due to teams, and provisions approximate
their fair values due to the short-term maturities of these assets and liabilities. The maturity analysis of the
non-current financial liabilities, which comprises of the instalment sale liabilities and long-term liabilities has
been included in note 13. The net fair value of the league’s financial assets and liabilities are stated below:

31/07/2011 31/07/2010
R R
Categories of financial instruments
Financial assets

Loans and receivables (including cash and cash equivalents) 44 441 001 45 821 719
Cash and cash equivalents 14 951 125 20 075 258
Trade and other receivables 24 095 703 24 855 113
Balances due by teams 5 394 173 891 348

Financial liabilities

Amortised Cost 67 119 133 64 903 712

Trade and other payables 28 613 405 57 536 648
Long-term liabilities 4 072 600 5 244 150
Current portion of non-current liabilities (1 180 460) (2 812 592)
Balances due to the teams 32 947 515 1 847 832
Provisions 2 666 073 3 087 674

ANNUAL REPORT 2011

68
NATIONAL SOCCER LEAGUE
DETAILED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 July 2011

31/07/2011 31/07/2010
R R
Revenue
Broadcasting rights
SuperSport International 285 000 000 285 000 000

ABSA 88 358 817 83 831 895

Sponsorships - Cup Competitions

Telkom Charity 30 750 000 15 000 000
MTN8 28 194 500 26 750 000
Telkom Knockout 36 881 568 34 992 000
Nebank Cup 54 968 058 52 488 000
150 794 126 129 230 000

Total sponsorship revenue 239 152 943 213 061 895

Supplier cash contributions

Coca-Cola 8 261 073 7 837 830
SA Breweries 12 792 231 12 034 084
Vodacom 15 052 422 14 322 000
36 105 726 34 193 914

Total revenue 560 258 669 532 255 809

69 ANNUAL REPORT 2011

NATIONAL SOCCER LEAGUE
DETAILED STATEMENT OF COMPREHENSIVE INCOME (continued)
for the year ended 31 July 2011

31/07/2011 31/07/2010
R R

Other income
Share of revenue from competition gate takings
MTN8 5 896 797 1 583 364
Telkom Knockout 7 996 252 3 473 310
Nedbank Cup 3 853 433 3 941 681
17 746 482 8 998 355

Income from members

Appeal fee 39 781 13 158
Arbitration fee - DRC 75 434 51 031
DC Costs Recovered 180 139 482 728
Fines 540 158 875 018

835 512 1 421 935

Other income
Commissions - Super Six 1 930 010 2 712 104
Other income 359 313 682 082
2 289 323 3 394 186

Total other income 20 871 317 13 814 476

ANNUAL REPORT 2011

70
NATIONAL SOCCER LEAGUE
DETAILED STATEMENT OF COMPREHENSIVE INCOME (continued)
for the year ended 31 July 2011

31/07/2011 31/07/2010
R R
Administration costs
Affiliates fees - South African Football Association 1 005 000 1 005 000
Arbitrators’ fees - 88 500
Auditor’s remuneration 1 322 000 1 150 000
Bad debts 555 842 -
Bank charges 185 716 179 256
Bursary 100 302 110 398
Cleaning expenses 167 880 169 349
Commissions - sponsorships 22 342 588 21 141 798
- Telkom Knockout 5 188 157 3 499 200
- Telkom Charity 1 575 000 1 500 000
- Nedbank Cup 5 496 806 5 248 600
- ABSA Premiership 5 983 952 5 583 190
- MTN 2 819 450 2 675 000
- SAB 1 279 223 1 203 408
- Vodacom - 1 432 200
Computer maintenance 496 367 587 889
Consulting fees 3 040 312 1 888 802
Courier and postage 210 437 261 940
Depreciation 1 611 613 1 048 484
Disciplinary committee - fee 520 000 615 000
DRC members fees 1 811 900 1 175 600
Donations 111 400 45 000
Entertainment 584 879 370 740
Equipment rental 1 234 537 1 371 877
Executive committee remuneration 1 021 060 970 000
Finder’s fee - 19 200 000
Fair value (gain) loss - (233 091)
Honoraria 2 721 831 2 697 831
- Executive Committee 2 673 831 2 673 831
- Ex gratia payments 48 000 24 000
Insurance 7 785 467 7 092 075
Legal fees 4 226 876 2 476 198
Long outstanding cheques reversed - (1 085 213)
Meeting expenses 393 018 381 863
Motor vehicle expenses 783 234 694 654
Office and general expenses 285 875 119 848
Rates and taxes 457 847 222 707
Rent, water and electricity 548 882 510 848
Repairs and maintenance 1 117 829 385 381
Security expenses 549 262 361 476
Seekers administration fee 1 429 371 1 430 681
Skills development levy 254 215 355 754
Stationery and printing 887 264 750 843
Subscriptions - newspaper and magazines 38 138 30 383

Carried forward 57 800 942 67 571 851

71 ANNUAL REPORT 2011

NATIONAL SOCCER LEAGUE
DETAILED STATEMENT OF COMPREHENSIVE INCOME (continued)
for the year ended 31 July 2011

31/07/2011 31/07/2010
R R

Brought forward 57 800 942 67 571 851

Telephones, cell phones and fax 1 939 222 1 442 005

- Office 1 032 542 836 869
- Cellular phone - PSL 792 323 558 132
- Cellular phone – Marketing and Media 71 035 47 004
- Cellular phone – Security 10 000 -
- Cellular phone – Football 15 622 -
- Video conferencing 17 700 -

Travel and accommodation 4 735 534 4 894 109

- Board of Governors 1 156 698 1 262 860
- Executive committee 1 243 730 542 647
- NSL staff - local travel 696 695 896 104
- NSL other - international travel 1 036 194 1 458 013
- NSL other - CEO travel 602 217 734 485

64 475 698 73 907 965

ANNUAL REPORT 2011

72
NATIONAL SOCCER LEAGUE
DETAILED STATEMENT OF COMPREHENSIVE INCOME (continued)
for the year ended 31 July 2011

31/07/2011 31/07/2010
R R
Competition expenditure
Commissioners’ fees 1 412 900 1 440 875
Referees’ - basic fees 1 993 850 1 291 780
Referees - match fees 4 505 320 4 897 475
Security expenses - allowances 476 600 349 419
Security fees - referees 489 500 508 500
Kit allowances 1 058 894 1 463 708
Other competition costs 2 700 003 1 429 237
Tournament activation costs - MTN8 Cup 712 150 57 350
Tournament activation costs - Telkom Knockout Cup 652 216 94 255
Tournament activation costs - Premiership 86 673 -
Tournament activation costs - National First Division 66 302 -
Tournament activation costs - Telkom Charity 534 935 -
Tournament activation costs - Nedbank Cup 361 337 -
Participation SAFA teams - Nedbank Cup 1 000 000 1 437 500
CAF Participation 2 000 000 3 000 000
Graphics 5 500 000 6 050 000
Board placements 7 232 129 6 888 386
Reimbursement - Sponsor tickets 3 640 000 3 245 680
Referee and player awards 533 368 490 000
Electronic substitution boards - 625 250
Gate takings expenses 21 760 954 11 441 230

- Premiership 678 423 3 450

- Telkom Charity 1 630 421 312 990
- MTN8 5 740 847 1 946 928
- Nedbank Cup 5 983 257 3 965 133
- NFD - Playoffs 12 079 291 499
- Telkom Knockout Cup 7 715 927 4 921 230

Prize Money 79 150 000 79 250 000

- Premiership 29 500 000 29 500 000

- 1st Division 1 000 000 1 000 000
- Telkom Charity 1 550 000 1 550 000
- MTN8 8 000 000 8 000 000
- Nedbank Cup 15 300 000 15 400 000
- Telkom Knockout 10 200 000 10 200 000
- Team participation fee - MTN8 5 600 000 5 600 000
- Team participation fee - Telkom Knockout Cup 4 000 000 4 000 000
- Team participation fee - Nedbank Cup 4 000 000 4 000 000

Carried forward 135 867 131 123 960 645

73 ANNUAL REPORT 2011

NATIONAL SOCCER LEAGUE
DETAILED STATEMENT OF COMPREHENSIVE INCOME (continued)
for the year ended 31 July 2011

31/07/2011 31/07/2010
R R
Brought forward 135 867 131 123 960 645

Travel and accommodation 27 915 974 25 871 275

- Commissioners’ expenses 2 386 074 1 646 904

- Referees 6 884 778 6 429 014
- Security 2 588 092 2 069 481
- Match co-ordinators 1 089 803 725 908
- PSL officials 381 357 -
- Teams 14 585 870 14 999 968

163 783 105 149 831 920

Grants

Grants to premier league teams - Monthly 197 760 000 192 000 000
- Bonus 56 000 000 40 000 000
Grants to 1st division teams - Monthly 38 400 000 28 800 000
- Bonus 9 600 000 6 400 000

301 760 000 267 200 000

Development expenditure

SAFA - Development 7 000 000 7 000 000

Security development - Workshop 61 950 15 303
Referees’ development - Workshop 87 422 161 289
Grants - SAFPU 1 000 000 1 000 000
Manuals, club licensing and work shops - 307 943
Technical upliftment skills development - 135 507

8 149 372 8 620 042

Staff costs

Salary and related costs 22 140 726 17 937 149

Settlement award - A. Ncobo - 1 163 873

22 140 726 19 101 022

Marketing and advertising costs

Advertising and promotion 632 949 936 304

Corporate clothing and promotional handouts 574 650 534 550
Communications and media 928 199 460 225
Marketing management 15 040 080 14 481 000
Photographer 264 800 167 760
Promotional expenditure - 58 573
PSL Dinner 1 182 766 991 121
PSL Dinner – Graphics and Awards 500 000 500 000
Soccer X 3 188 22 584
Statistics 316 500 -
Stats and media track 616 945 645 134
Travel and accommodation 995 083 328 944
Website - 2 100

21 055 160 19 128 295

ANNUAL REPORT 2011
74