Levy Review Summary Presentation 2014 (Incorporating feedback - - PowerPoint PPT Presentation

Levy Review Summary Presentation 2014

(Incorporating feedback received from presentations and discussions with Centres and Clubs as at 4 August 2014)

Background

• 2007 AGM -75% levy increase

due to national office financial position and agreed level of service that sport wants to see.

• 2008 transformation and

strategic review. Acceptance that we needed to change to improve and grow.

• 2010 new constitution adopted.
• 2011-2013 development of new

member management system.

Our agreed strategic priorities

Key Priorities

• Leadership
• Sustainability
• Engaging People
• Excellence in Performance
• Exciting Profile

Benefits of Member Management System

New member management system - the heart of much of what we want to do…

• We now have the capability to know who our people

are; can understand how to tailor products, programmes and services;

• Ability to talk to members and meet specific

communication needs;

• Accurate measurement of membership means we can

talk more confidently with commercial partners about

• pportunities;
• Provides the opportunity to consider a different Levy

model.

Current Levy Collection System

• Current model seen as a controversial “tax” –

declaration of numbers debated at every AGM.

• Athletics NZ sets its required level of funding.
• Centres are invoiced their share based on Registered

Members from previous registration year.

• Each Centre decides what they will charge clubs. Some

subsidise, some pass on direct ANZ cost, some add their own centre fee.

• Many interpretations of social member and if they

should be “registered” and therefore are not necessarily declared.

Levy Review Process to Date

Working Group formed:

• Representation from Club, Centre, Rules

Committee, Board, Staff;

• Workshops in December 2013 and

February 2014;

• July 2014 - Presentations to Centres and

Clubs of working group proposal and feedback sought.

Levy Review Objectives

Levy Review set out to develop a new model that would:

• Remove the collection burden from the Centres;
• Ensure that all participants are on the member

management system;

• Create an incentivised approach to registration.

Working Group Purpose was to:

• Assess the current model;
• Identify other options, review other sports models;
• Agree a preferred option;
• Subject it to scrutiny through discussions with Centres

and Clubs.

Levy Value

• What value does Athletics NZ provide? Much debated

and often asked, value perception is different for many members.

• The levy provides a financial contribution to Athletics NZ

infrastructure – admin, coach, officials, club development, programmes and products, infrastructure for rules, competitions and investment (Sport NZ, sponsors, stakeholders), the IAAF “member” in NZ, advocacy …

• A whole lot of “unseen stuff”.

Justification of value is a national, regional and club challenge…

Proposed Approach

• Clubs continue to pay an annual membership fee

(1 Apr – 31 Mar) ($115).

• For ALL club members, one broad based, low rate

membership fee paid to Athletics NZ via the clubs (and eventually through the member management system).

• A separate annual competition fee to enter National

Champs.

• Potential to add on other services or benefits as we

develop and grow products and services.

• Clubs and Centres add on their fee.

Proposed Approach

Centre and Club Fees:

• Set at their choosing;
• Based on the Centres and Clubs “value

proposition”;

• Such fee, may give a member access to centre
• r club competitions, ribbon days and the like;
• Some Centres may choose not to have a fee.

Proposed Approach

The Competition “license”:

• Acknowledges that not everyone wants to go to

nationals;

• The Competition fee provides the right to enter

all ANZ National Champs, being:

(Track & Field, Junior 3000m, Senior 3000m, Combined Events, 10000m, Long Distance Walks, Half Marathon, Marathon, Cross Country, Road Race, Road Relay, Mountain Running, 100km);

• Entry fees will still be payable;
• All competition “license” holders must also pay

any applicable centre fee.

Proposed Approach

Future Potential:

• Research shows that over 600,000 kiwis take part in
• rganised running events;
• Potential to deliver a direct membership to these people;
• Preference to push them to Clubs and Centres to get

programmes and services wherever possible;

• Could offer event entry discount opportunities for

recreational runners and walkers;

• Fees would ensure that Clubs are still the best route for

membership.

Current numbers

Let’s look at some of our numbers:

• Total current recorded “membership”:18,500;
• Consistently been around 20,000 (15+ years);
• Total number of individuals attending National

Champs: 2,500;

• Current Levy returns $500k.

(18.5k members average $27 per head)

Where does the levy go?

The $500,000 represents 10% of total revenue, 25% of total revenue with no SNZ, HPSNZ funding. All other revenue is tagged – the only discretionary spend that we have is the levy. This year’s community development expenditure budgets, excluding salaries and high performance:

$54k Club Development initiatives $61k Officials Development $90k Coach Development $82k Communications $52k Member Management & Website

Add governance, salaries, finance, general admin…

Some options…

Base Fee Member Numbers $10 $15 $17.50 $20 13000 130,000 195,000 227,500 260,000 15000 150,000 225,000 262,500 300,000 20000 200,000 300,000 350,000 400,000 25000 250,000 375,000 437,500 500,000 Competition Licenses $40 $50 $60 $70 2500 100,000 125,000 150,000 175,000

Remember…

• Low rate, broad base
• Current revenue required from the Association Levy $500k

Individual impact

• Members that don’t go to National Championship

events should pay less – more incentive to become an ANZ member and participate in Centre events.

• Members that go to Nationals should pay a similar fee

to what they are currently paying (dependant on how Centres charge ANZ and Centre levy).

• Social and younger members will now pay the

membership fee – however at a lower fee it is easier to demonstrate this value rather than current registration system figure.

Challenges and Risks

• The greatest risk shifts from Centres to the National

body.

• Proposed model reliant on full buy-in at Club level.
• Needs all members to pay the base fee.
• Reduced income to ANZ will quickly result in a drop of

service delivery. Ultimately it is salaries that would be cut, therefore reducing ANZ’s ability to deliver programmes and projects.

• Need Clubs and Centres to monitor for the benefit of all.
• Alternatively creation of some incentive programme of

returning a surplus to Centres could be considered.

Feedback Received

• Consider a reduced fee for under sevens ($5?).
• Consider a reduced fee for students ($10?).
• ANZ needs to demonstrate its value better to

Centres, Clubs and members.

• Consider not charging volunteers.
• Need clear definition of membership types.
• Consider club affiliation fee – lower vs higher.
• Consider splitting competition fee winter vs

summer or per number of events.

Feedback Received

• Club life members – who pays?
• Family discounts – multiple children.
• Would road relay numbers be impacted by

competition license?

• Reduce entry fees if introducing a competition

license.

• We don’t value ourselves enough – charge

more.

• Walkers; where do they fit?

Feedback Received

• Reduced term membership – pay as you go.
• What about Masters fees?
• Competition license for Masters who compete a

National XC and road champs?

• Is the figure of 2,500 competition licenses a true

representation of the number of individuals competing in the National Champs?

• Time frame achievable – Clubs need to set fees

for next year. Mixed feedback on required notice.

How would change be made?

• Proposal needs nationwide Club and Centre

support.

• Your feedback is required!
• Once agreement is evident, new Regulations need

to be drafted, 50 day consultation period.

• After feedback, and once Rules Committee OK,

goes to Board for approval.

• Any change implemented for 1 April 2015.
• Feedback to levy@athletics.org.nz

Next steps

• Review feedback received to date.
• Further research on the likely numbers and then

more remodelling on the membership and license figure options.

• Consider timeframes.
• Determine how we further engage with revised

modelling.

• Develop By-law amendments .

Remember you can provide feedback to - levy@athletics.org.nz

Levy Review Summary Presentation 2014

(Incorporating feedback received from presentations and discussions with Centres and Clubs as at 4 August 2014)