1st FINA World Aquatic ConventionPunta del Este (UY), 27th-29th september 2010

SECURING YOUR INCOMEBy PAOLO BARELLI

FINA HONORARY SECRETARYITALIAN SWIMMING FEDERATION PRESIDENT

My presentation will be based both upon the experiences that I have accumulated through my 26 years at the helm of the Italian Swimming Federation (F.I.N.), first as vice-president and then as president, and on my professional knowledge and skills, to promote a project of international interest.

Let me point out that F.I.N. is a complex and much articulated organization, managing all five FINA disciplines, as well as a relevant Masters movement, Swimming Schools, Life Saving and Rescue and many other promotional activities.

Directly or indirectly F.I.N. extends its influence over a Community of more than 5 million people - a share of about 10% of the entire population of Italy - providing guidelines, orientation and support for the organization of countless Events, Development Programmes and Activities.

THE ITALIAN SWIMMING FEDERATIONEXPERIENCE

F.I.N. NUMBERS

5.700.000 aquatic activities participants1.477 affiliated clubs529 swimming schools approved by F.I.N.104.704 athletes1.433.747 swimming school swimmers24.527 coaches9.245 officials3.042 judges and referees73.000 lifesavers

These graphics show the budget and numbers of the Italian Swimming Federation,from 2001 to 2009.

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Participants

F.I.N. has also been very active in the organization of several international events, the most important of which were the FINA World Championshipsstaged in Rome both in 1994 and 2009. F.I.N. will also play a significant role in the Rome’s bid for the 2020 Olympic Games.

STRATEGIC MODEL

1. INVESTMENTS AND PROTECTION OF ASSETS

It’s necessary to set up an effective and ambitious Long Term Planning.

The Italian Swimming Federation’s experience shows that:

• The safest source for finances comes from membership fees that Clubs, Swimming Schools, Coaches and Instructors have to pay for their affiliation.

• Entry fees for participants to aquatic events is a safe income.

• Revenues by TV rights for broadcasting the major events, by sponsors and partners are getting more and more important in our sports.

COSTS REDUCTION AND SPENDING CUTS AREAS IMPORTANT

TO A SOUND BUDGET POLICY AS INCREMENTING INCOMES.

• Revenues from Government Authorities or N.O.C. are allocated annually to Sport federations, with a preference for the Olympic sports and, among them, for those that are more successful. The budget of F.I.N. is approximately 20% of N.O.C.s revenues.

• Funding, in term of cash, and contributions, in term of services, from Government(Central, Regional, Provincial or Local) must also be sought tenaciously and convincingly.

• Others sources of revenues could come from betting or national lottery associated with Sports Events.

TO SECURE A SATISFACTORY BUDGET THE KEY WORD IS SINERGY

• The best investment is in HUMAN RESOURCES.

• The Investing in LOGISTICS is equally important.

• The Investing in COMMUNICATIONS is vital for the success of each operation. A sound, comprehensive and effective communication system will help maximizing efforts in every area.

• MEDIA COMMUNICATIONS is also of paramount importance.

• It 's always very important to encourage the athletes, coaches and staff with special benefits.

2. LONG TERM PLANNING BASED UPON SOUND BUDGETING AND FORECASTING

• Keep in mind that only the revenues coming from affiliates - and perhaps those accruing from N.O.C.s or Government authorities -, are 100% safe, while incomes from Sponsors and Partners are more risky. As you can see the budget of the Italian Swimming Federation is formed near 70% of our own revenues.

• To keep up with the capacity to attract funding from outside it is necessary to constantly enhance and revamp the federation’sidentity.

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F.I.N. Budget: 40.000.000 €

• To achieve such a Planning it is very important “to be assisted by experts in this area”. It goes without saying that in times of global economic downturns it is necessary to be extremely prudential in plannings and forecasts. Mistakes in this area will be reflected, heavily, in the running of business.

3. VALUE OF PARTNERSHIPS AND RELATIONSHIPS

• To get a less meagre share of revenues from the Sport Sponsorship Marketit’s necessary to struggle and beat the competition of other sports and other events.

• Chances to succeed will be better off if you manage to set up a dedicated Sponsorship Department, which must definitely have a significant place within the Organizational Chart.

• Another Department should take care of EXTERNAL RELATIONSHIPS and of the RELATIONSHIPS WITH PUBLIC INSTITUTIONS AND THE GOVERNMENT (at all levels).

4. GOVERNMENTAL SUPPORT/NOC ASSISTANCE

The Italian Swimming Federation experience teaches us that to win the supportof Governments, the other Public Institutions and N.O.C.s, it is necessary to:

a) run Programmes;b) develop winning Athletes and Teams;c) educate Elite Athletes to a public role;d) establish well advertised, massive, “Learn-to-Swim” or “Learn-to play-Water

Polo”, or “Come to Diving (or Synchro)” programmes;e) support and develop the Masters movement;f) Ensure the necessary assistance to the public institutions that deal with

safeguarding human life in water environments. To teach lifesaving will implement water safety education.

The combination of these factors will strongly enhance the public image andincrease numbers.

An enhanced Public Image and Big Numbers will strongly support the quest for better and bigger Funding: the amount of these two factors equate to BIG MONEY.

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F.I.N. FUND RAISE

In Italy, F.I.N. has catalyzed under his umbrella over 5 million “swimmers”, a conspicuous share of our population (around 10%). This fact has always represented for the Italian Swimming Federation the starting point of any action voted to enlarge the number of practitioners and to increase the potential revenues through the development of local and international initiatives like the big events, such as the World Championships - Rome 2009.

The edition 2009 of the World Championships was recognized by the President Julio Cesar Maglione the best in the swimming history.

• The World Championships came out from two goals similarly felt: the return to Rome, after the 1994 edition, of the world swimming elite and the promotion and creation of a network of facilities that would constitute a legacy for citizens, companies and national teams after the event. We are very proud to say that all goals have been achieved and that we have left an heritage of about 25 venues, between public and private pools, to the advantage of the entire national movement.

• This success is due to structural, organizational, mediatic and sportive factors, to the support of national and local policy and to the high investments to establish a budget of around 52 million euros.

• With a budget of 40 million euros, 67,5% of which deriving from its own revenues, for the Italian Swimming Federation the World Championships have been an organizational masterpiece, compared to the expenditure required, and a project that showed how the big event could produce alternative budget items.

These data show how some items that cannot be classified as money in a financial plan must nevertheless be considered as very important assets. Thecohesion among the different kind of partners - social, sporting and economic - is the ultimate added value which goes to the benefit of the entire society.

I wish Good Luck to you as well!

GLOBAL BROADCASTS:3.509 HOURS – 510 MILLION VIEWERSSPORT MAGAZINE: 61 HOURS – 395 MILLION VIEWERSNEWS COVERAGE: 60 HOURS – 2.684 MILLION VIEWERSTOP 5 COUNTRIES: CHINA – 1.093 MILLION VIEWERS

ITALY – 609 MILLION VIEWERSJAPAN – 601 MILION VIEWERSGERMANY – 275 MILLION VIEWERSFRANCE – 207 MILLION VIEWERS

17 DAYS OF COMPETITIONS183 COUNTRIES2.590 ATHLETES1.400 OFFICIALS1.500 JOURNALISTS2.500 VOLOUNTEERS200.000 SPECTATORS ON THE STAGE

2009 WORLD SWIMMING CHAMPIONSHIPS

G.D.P. INCOME

ITALY: + 0.2 %LAZIUM: + 1.5 %PROV. OF ROME: + 2.0 %CITY OF ROME: + 2.2 %