The Fiji Rugby Union has reported a financial loss of $1.354 million for the financial year 2022, compared to a profit of $269,554 in 2021.
This has been highlighted by the Acting CEO Sale Sorovaki in the FRU’s 2022 Annual Report.
Sorovaki says 2022 posed huge financial challenges for FRU.
He says while our borders had opened and business started to recover, their sponsors levels did not return to pre-COVID-19 levels and several of their teams did not have major sponsors although they tried their level best to find alternative sponsorship.
He further says their revenue increased to $21.356 million in 2022 compared $12.941 million in 2021, however, their expenses increased from $12.671 million in 2021 to $22.711 million in 2022 resulting in their financial position.
Sorovaki highlighted the absence of sponsors for their U-20 Program cost them $400,000, losses in domestic competition due to reduced sponsorship of $500,000 and under collection from the budgeted income by $4.6 million also contributed to their financial performance.
Sorovaki also says the financial performance was further impacted by the booking of all outstanding expenses from 2019 to 2022 that were not booked for payments.
He adds these have now been included rightfully, so that the debt could be recorded for and payment plans implemented as they look to improve their income.
Sorovaki highlighted that during the year, three finance personnel had to be let go because of breach of financial policies.
He says their new Finance Manager started from mid-October last year and since then new staff have been recruited, and the finance department is undergoing restructuring.
