The sport of swimming is changing. There have been several efforts at reform in the past. But this time there is different feel about the effort. This time the people involved are heavy weights – from British journalist Craig Lord to outstanding UK swimmer Adam Peaty, to USA Olympic Champion Simone Manuel and Russian billionaire Konstantin Grigorishin. These are not people to be taken lightly. They know what’s good for swimming and are up to their eyes-balls in getting it done. If you are interested in reading more about what’s going on, Craig Lord has written an excellent summary. Here is the link.
If Swimming New Zealand (SNZ) had half a brain, but of course it doesn’t, they would join the Grigorishin army. In fact swimming in New Zealand has the opportunity to transform itself from a swimming backwater to leading the world. You see the key reform proposed by Grigorishin is professionalism, a world where 50% of the sports income is paid to the swimmers. SNZ could do that now. New Zealand could lead the swimming world.
Don’t be stupid I hear Steve Johns and Gary Francis exclaim. Their reaction is why they should not be involved. So here is how it could be done.
Set out in the table below in Column One is the 2018 SNZ profit and loss account. That is what SNZ is doing now. This is the activity that produced one bronze medal at the Commonwealth Games, nothing at the Pan Pacific Games and a $5,300 bill for every swimmer selected to swim in the World SC Championships. This is a profit and loss account that does not work. Column Two shows the changes that could reform swimming in New Zealand. Column Three shows what a reformed 2020 profit and loss account could look like. The text below the table will describe the changes that would cause the reform.
Item | Amount $000 – 1 | Amount $000 – 2 | Amount $000 – 3 |
Income | 2018 Current | Changes | 2020 Budget |
Grants and Donations | 1,962 | 0 | 1,962 |
Swimming Activities | 1,192 | 0 | 1,192 |
Total Income | 3,154 | 0 | 3,154 |
Expenditure | |||
Administration | 524 | -250 | 274 |
Audit | 13 | 0 | 13 |
Marketing | 3 | 97 | 100 |
Depreciation | 40 | 0 | 40 |
Events | 556 | 244 | 800 |
Education | 643 | -643 | 0 |
Governance | 23 | 0 | 23 |
High Performance Coach Support | 225 | -225 | 0 |
High Performance Teams | 559 | -309 | 250 |
High Performance Programs | 299 | -299 | 0 |
Legal | 3 | 17 | 20 |
Loss on Sale Fixed Assets | 18 | 0 | 18 |
Motor Vehicles | 22 | -10 | 12 |
Pegs | 91 | 0 | 91 |
Rent | 72 | 0 | 72 |
Rewards | 4 | -4 | 0 |
Prize Money | 0 | 1,382 | 1,382 |
Total Expenditure | 3095 | 0 | 3,095 |
Profit (Loss) | 59 | 0 | 59 |
Income
We have assumed there will be no change in income. An income of $3,154,000 combined with the new policy of spending 50% on prize money, paid directly to swimmers, means the aim is to spend $1,577,000 on prize money.
Administration
The cost of administration should drop by $250,000. This would be achieved by dismissing Gary Francis and Steve Johns. The nature of the business is changing and these two are not needed. Currently SNZ is directly involved in a range of swimming activities from learn-to-swim to elite competitive swimming. That is not the organisation’s job. Those functions are the responsibility of clubs and professional coaches. SNZ spends a fortune on telling professional coaches and teachers how they should be doing their job. The fact is that every coach and swim teacher in New Zealand has forgotten more about swimming than Francis or Johns ever knew. The two SNZ staff members are not needed. They are not part of the new organisation’s role. They should go.
Audit
We have assumed there will be no change in the audit fee.
Marketing
The cost of marketing is expected to increase by $97,000. This reflects the change in the primary function of SNZ. The purpose of the organisation should not be to meddle about in functions other people do better, like learn-to-swim and competitive coaching, but should be to promote the popularity of the sport. This should be done by using the two big events controlled by SNZ – the Open LC Championships and the Open SC Championships. These need to be turned into Wimbledon style events. To do that money needs to be spent on marketing.
Depreciation
We have assumed there will be no change in the cost of depreciation
Events
This cost is projected to increase by $244,000 to $800,000. This reflects two factors. First, the cost of running the Age Group Championships, the Division Two Championships, the Open Water Championships and the Secondary School’s Championships will not change. Those events should continue on as they do now. The additional money is needed to upgrade the LC and SC Open Championships. They are currently pretty dull. They certainly do not compare with the hype I have seen in the USA. The upgrade will require more money.
Education
It has always been the ultimate irony that one of the Moller Report’s key recommendations was for SNZ to get out of this learn-to-swim function. For some unknown reason the Board has stubbornly refused to comply. Their decision is ridiculous. Dozens of learn-to-swim organisations are better equipped to perform this function. The Waterhole or Coast or Millennium Swim Schools could and would train swim teachers better in a heartbeat. The business should be sold or given away. This cost of $643,000 would no longer be incurred.
Governance
This is the cost of the SNZ Board and is not expected to change.
High Performance Coach Support Â
Just as there is no need or purpose for SNZ to be involved in learn-to-swim, SNZ should have no involvement in high performance coaching. SNZ has spent many millions on elite coaching and has achieved nothing. The whole thing should be dropped and left to club coaches who are much better equipped to handle the role. Let me think – Hollywood or Francis, Winter or Johns, Benson or Cotterill – not hard is it? The saving is expected to be $225,000.
High performance Teams
The current cost of $559,000 is expected to reduce by $309,000 to $250,000. This reflects the change in SNZ’s responsibilities. In the past SNZ has run a traditional amateur sport where teams are sent to key events. SNZ has not always done that well. The current World SC Championship is a classic example. The move towards professionalism will change all that. Well-paid professional athletes pay to get themselves to major events. Federer pays his own way to Wimbledon. The same principle should work here. Well-paid swimmers can pay their own travel costs. Junior teams will, of course, not change which is why the schedule shows a cost of $250,000.
High Performance Programs   Â
This cost will also be eliminated as SNZ gets out of any involvement in high performance swimming. The saving will be $299,000.
Legal
Professional sport tends to bring its share of problems. For this reason the cost of legal fees has been increased by $17,000 to $20,000.
Loss on Sale of Fixed Assets
We have assumed there will be no change in the loss on the sale of fixed assets.
Motor Vehicles
The cost of motor vehicles is expected to reduce by $10,000 to $12,000. The reduction in senior staff and the sale of the education activity will reduce the need for motor cars.
Pegs
We have assumed there will be no change in the cost of the Pegs program.
Rent
We have assumed there will be no change in the cost of renting office accommodation.
Rewards
This program will be eliminated and replaced by direct payment to swimmers. The saving will be $4,000.
Prize Money
This is where the big change will occur. SNZ should spend $1,382,000 on prize money. It should be spent over two competitions – the LC Open Championships and the SC Open Championships.
The amount should be distributed as follows:
Events at both Championships should be divided into categories as shown in the table below.
Category | Events Included |
Free Sprint Men | 50, 100, 200 free |
Free Sprint Women | 50, 100, 200 free |
Free Distance Men | 400, 800, 1500 free |
Free Distance Women | 400, 800, 1500 free |
Back Men | 50, 100, 200 back |
Back Women | 50, 100, 200 back |
Brst Men | 50, 100, 200 brst |
Brst Women | 50, 100, 200 brst |
Fly Men | 50, 100, 200 fly |
Fly Women | 50, 100, 200 fly |
IM Men | 100 (SC Only) 200, 400 IM |
IM Women | 100 (SC Only) 200, 400 IM |
Points will then be allocated to the top eight finalists in each event. The table below shows the allocation of points for each event.
Place | Points |
1 | 12 |
2 | 9 |
3 | 7 |
4 | 5 |
5 | 4 |
6 | 3 |
7 | 2 |
8 | 1 |
At the conclusion of the meet the top eight points winners in each category will be awarded prize money as shown in the table below. The total cost of prize money for each of the twelve categories will be $43,000. Â
Place | Event Amount |
1 | 12,000 |
2 | 9,000 |
3 | 7,000 |
4 | 5,000 |
5 | 4,000 |
6 | 3,000 |
7 | 2,000 |
8 | 1,000 |
Total | 43,000 |
The total cost of all categories for the meet will be $516,000 as shown in the table below.
Category | Category Amount |
Free Sprint Men | 43,000 |
Free Sprint Women | 43,000 |
Free Distance Men | 43,000 |
Free Distance Women | 43,000 |
Back Men | 43,000 |
Back Women | 43,000 |
Brst Men | 43,000 |
Brst Women | 43,000 |
Fly Men | 43,000 |
Fly Women | 43,000 |
IM Men | 43,000 |
IM Women | 43,000 |
Total Prize Money | 516,000 |
The prize money allocated for each meet will be $516,000. The total annual cost will be as shown in the table below.
Annual Prize Money | Annual Amount |
Long Course Nationals | 516,000 |
Short Course Nationals | 516,000 |
Insurance | 350,000 |
Total Annual Prize Money | 1,382,000 |
The amount of $350,000 shown as the annual amount paid for insurance is the estimated cost of insuring additional payments for records set at either meet. The prize offered will be $100,000 for an open able body New Zealand record and $500,000 for an able body world record. The New Zealand open record prize is only available to New Zealand swimmers. Swimmers from anywhere in the world should be able to win the category and world record prize money. The cost of insuring this risk has been estimated as shown in the table below.
Insurance | Annual Amount |
New Zealand Open Record | 100,000 |
World Record | 250,000 |
Total Insurance | 350,000 |
So there it is – a plan to increase the profile and popularity of swimming. With this money on offer little old New Zealand would attract swimmers from all over the world. Imagine Peaty, Campbell, Manuel, Ledecky, Lochte and Sjöströmn all gathered at the New Zealand Championships. TV would be falling over itself to film the event. Sponsors would be beating down the Antares Place door. And best of all, young New Zealanders would see the reality of their dreams. I guarantee in two years swimming membership would double. Imagine NZ Champions, Hunter and Godwin, earning a good living doing what they enjoy. Breaking a New Zealand Open Record plus a category win in the LC and SC Championships would give a swimmer an annual income of $124,000 – not as much as it should be but a good place to start.
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