Cyclismas » ProTourReserve Fund http://www.cyclismas.com/biscuits a fresh take on cycling news and commentary Tue, 10 Feb 2015 18:25:23 +0000 en-US hourly 1 https://wordpress.org/?v=4.2.38 Copyright © Cyclismas 2014 lesli@cyclismas.com (Cyclismas) lesli@cyclismas.com (Cyclismas) http://www.cyclismas.com/biscuits/wp-content/plugins/podpress/images/powered_by_podpress.jpg Cyclismas http://www.cyclismas.com/biscuits 144 144 a fresh take on cycling news and commentary Cyclismas Cyclismas lesli@cyclismas.com no no The UCI ProTour Reserve Fund http://www.cyclismas.com/biscuits/the-uci-protour-reserve-fund/ http://www.cyclismas.com/biscuits/the-uci-protour-reserve-fund/#comments Mon, 24 Sep 2012 18:08:01 +0000 http://www.cyclismas.com/?p=10500 As a helpful service to all amateur accountants out there, the following has been extracted from the 2011 UCI Financial Statements. This is a modified version of the UCI ProTour Reserve Fund as detailed in the notes to the 2011 UCI Financial Statements. The layout changes made are for the purpose of clarity. The figures given have been rounded to the nearest thousand.

 

NB: The UCI ProTour Reserve Fund and the UCI  ProTour operating statement detailed in the notes to the UCI Financial Statements relate to two entirely separate things and should not be confused one with the other. The UCI ProTour operating statement details the total income and expenditure relating to the ProTour (now WorldTour), not the ProTour Reserve Fund. 

 

UCI ProTour Reserve Fund Income & Expenditure Statement for the year ended December 31
2011 2010 2009
EUR EUR EUR EUR
Operating Income
Organiser Licences (see note 1 below) 92,000 92,000 166,000
Team Licences (see note 1 below) 433,000 450,000 651,000
525,000 542,000 817,000
Operating Expenses
Licence Commission (51,000) (48,000) (55,000)
Fund Management (42,000) (87,000) (118,000)
(93,000) (135,000) (173,000)
Operating Surplus 432,000 407,000 644,000
Recurring Disbursements
AIGCP/AIOCC/CPA (see note 2 below) (248,000) (237,000) (240,000)
Surplus for the year before Non-Recurring Disbursements 184,000 170,000 404,000
Non-Recurring Disbursements
GP Ouest France-Plouay 0 (30,000) 0
Participation in Juniors Conference (73,000)  0 0
Global Cycling Promotion (GCP) (136,000) (445,000) (177,000)
(209,000) (475,000) (177,000)
Surplus/(Defecit) for the year after Non-Recurring Disbursements (25,000) (305,000) 227,000
Note 1: A UCI ProTour team licence costs €25,000 per annum and there are 18 ProTour teams. For the cost of organiser licences see Licenced to Thrill (Table 1).Note 2: Circa CHF 300,000
UCI ProTour Reserve Fund Balance Sheet as at December 31
2011 2010 2009
EUR EUR EUR
Opening Reserve Fund Balance 2,100,000 2,848,000  2,621,000
ForEx Adjustment (see note 3 below)  0 (443,000)  0
Restated Opening Reserve Fund Balance 2,100,000 2,405,000 2,621,000
Surplus/(Deficit) for the year (25,000) (305,000) 227,000
Closing Reserve Fund Balance 2,075,000 2,100,000 2,848,000
EUR-CHF Exchange rate as at December 31 0.82 1.25 1.48
Closing Balance rested in CHF 2,518,843 2,625,000 4,223,869
ForEx Adjustment (CHF) (see note 3 below) 629,399 428,549 (335,368)
Closing Reserve Fund Balance as per the UCI Balance Sheet (CHF) 3,148,242 3,053,549 3,888,501
Note 3: The UCI’s financial statements are denominated in Swiss Francs (CHF). The Reserve Fund’s operating currency is Euros (EUR). If I were you I really wouldn’t spend too much time trying to figure this out, not without a packet of Neurofen to hand and a psychiatrist on speed dial.

 

The amounts disbursed from the ProTour Reserve Fund to GCP being the topic du jour, chaque qour, some comment on them is necessary. Between 2009 and 2011 a total of €758,000 has been disbursed to GCP. Nowhere in UCI’s Financial Statements is this described as a loan. There is no provision within the relevant regulations requiring that funds disubursed from the ProTour Reserve Fund be repaid to the ProTour Reserve Fund.

Why and how the ProTour Reserve Fund can legitimately be used to fund GCP is best explained by reference to the UCI Cycling Regulations, Part 2 Road Races, Chapter XV UCI WorldTour, clauses 2.15.243 through 2.15.253 (pages 129-130). To save you the time and effort of seeking this out for yourself, the relevant sections are set out below (as taken from version 01.07.11 of the Regulations):

 

UCI WorldTour reserve and solidarity fund
2.15.243 The sums below:

  • the licence fee
  • the fee for the transfer of the UCI WorldTour licence
  • any other amounts and fines to be paid into the reserve and solidarity fund under the present chapter

shall be used for the following ends:

  • the operating expenses of the licence commission
  • an annual contribution of CHF 300,000 in favour of two professional partner associations of the UCI WorldTour, namely the AIGCP and the CPA, as well as the organisers in possession of a UCI WorldTour licence with the aim of enabling them to cover part of their administrative expenses
  • the management expenses of the reserve and solidarity funds
  • the reserve fund
  • the solidarity fund.

(text modified on 22.01.07).
2.15.244 When the reserve fund reaches a sum equivalent to CHF 9,000,000, the surplus shall be paid into a fund for solidarity and for the development of cycling.
Reserve fund
2.15.245 The reserve fund will be used for the following objectives:

  • to support a UCI ProTeam or the organiser of a UCI WorldTour event in the event of temporary difficulty;
  • to carry out any projects to strengthen or develop general interest objectives to the benefit of all the UCI WorldTour partners;
  • the interest on the reserve fund shall be paid to the UCI’s sporting activities department.
Solidarity fund
2.15.246 The solidarity fund will be used for development projects in relation to cycling: cycling for all, developing countries, social sector, youth etc.
2.15.247 The interest on the fund shall be added to the capital.
Use of the fund capital
2.15.248 Projects may be introduced as from 2007.(text modified on 1.01.07).
2.15.249 Any UCI WorldTour partners (UCI, ProTeam, organiser) may submit a project to the UCI WorldTour council.
2.15.250 Should the Professional Cycling Council accept the principle of the project, it will appoint a study commission to report back to it. The study commission may include or consult specialists depending on the type of the project.The final decision shall be taken by the council.
2.15.251 The costs of studying the proposal will be paid from the capital of the fund in question.
Fund management
2.15.252 The administrative and financial management of the funds will be provided by the UCI finance department.
2.15.253 The financial director of the UCI shall draw up an annual report on the use of the sums mentioned in article 2.15.243 and on the fund management. The report will be submitted to the Professional Cycling Council for approval.

 

This special feature has been brought to you with the assistance of a lot of Nurofen.

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