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:
shall be used for the following ends:
(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:
|
| 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. |
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4 Comments
Pat will NOT love You for that. GCP sets up races in places teams are not interested to go to – with their money. What is next: Tour of North Korea? We know from the past he does not care about international rules, say South Africa.Regards,Dr. KO of innercitymobility.blogspot.com
@wjfkollig You’re gonna have to explain that one to me, as it would seem you have simply read what you want to read without actually paying attention to the words themselves. How does pointing out that the funding of GCP is not illegitimate upset the UCI?
“The UCI siphoned off another €136,000 to fund GCP, its race promotion arm meaning that it has taken a total of €758,000 out of the UCI Pro Tour Reserve Fund in three straight years” Excerpt taken from:http://inrng.com/2012/09/uci-financial-accounts-2011/The money comes from the licence fee, that is what I consider money from the teams and is spend to save the GCP, which is heavily involved in the Tour of China, which I meant with places teams or actually the riders are not to hot about it.http://inrng.com/2011/04/the-ucis-new-private-business/ So if the Reserve fund would not compensate the annual loss, the GCP would have been dead by the end of each year. The last sentence refers to Pat riding in South Afrika under a wrong name during the years of apartheid. So that is strictly related to the person of Mc Quaid – not to the UCI.Regards,Dr. KO
@wjfkollig That the money comes from UCI ProTour licence fees paid by teams and race organisers has never been is dispute. Licence – and other similar – fees are a prime source of revenue for the UCI. Much that the UCI does is funded by such fees. So however the UCI were to fund GCP – through the books or off the books via the PT Reserve Fund – is going to come from licence fees. Far from robbing from teams opening up China clears a path to a lot of potential team sponsorship income. And if you could tell how me, without recourse to hallucinogenic drugs, this is an any way related to McQuaid racing in SA in the ‘seventies, I really would be grateful. But try dealing the original question I asked you: How does pointing out that the funding of GCP is not illegitimate upset the UCI?