- Sport NZ unveils $25m package to help cash-strapped organisations
SPORTS clubs in the Eastern Bay that rely on fees and grants to keep them operating are being hard hit by the Covid-19 restrictions.
Most have been unable to charge fees over the shutdown and many that rely on grants to cover salaries and pay for gear and new equipment have been hit by the shutdown of grant applications.
The Covid-19 shutdown from March 25 has forced the closure of gaming venues across New Zealand – resulting in an unexpected halt to applications for grants. Most clubs are funded through revenue generated by gambling machines, or pokies.
Some financial relief may be available for seriously cash-strapped clubs with the announcement yesterday of a $25 million relief package. Clubs will be able to apply for a $1000 grant from 10am on Monday. Regional recreation and sports organisations can apply for up to $40,000.
However, the Sport NZ Resilience Fund may not be available to clubs that already have a few dollars in the bank.
Clubs will be eligible for funding relief if they “cannot pay bills for fixed administration costs (excluding wages) in the three months from April 1 to June 30, 2020, even after accessing reserves and receiving other support from the national body, government and others, as a result of lost income or income that is very likely to be delayed by more than six months, because of impacts of Covid-19 restrictions”, criteria for the applications state.
The Gaming Association has told clubs that it will take applications only four to six weeks after the gaming venues open for business.
There are about 30 trusts listed on the Department of Internal Affairs website that clubs can apply to for grants, but most Eastern Bay clubs apply to about five.
“You can usually only apply to a gaming trust for funding if they have gaming machines in your geographic area,” explained EBOP Gymnastics Club committee member and accountant Catherine Aldridge.
“This stop in grant funding is huge, not just for our gymnastics club, but all sports clubs and incorporated societies that rely on grant funding to function,” she said.
“This no doubt also has implications for professional sports in New Zealand, as a lot of them rely on grant funding from gaming machine trusts too.”
The gymnastics club has had to reduce its fees for competitive gymnasts by 50 percent as it is only offering training sessions via Zoom with its competitive coach Jordan Biggs.
In addition, it is not getting fees from its many recreational classes and missed out on income over the Easter holidays for its holiday programme.
Worse still, the applications it had in with various trusts to assist with coach salaries and the purchase of equipment have been put on hold.
Operations manager Anne Gould said the club’s committee had decided to pay its three staff, including a coach it employed just before the lockdown, their full wages and had received the Government’s wage subsidy – which covered about 80 percent of salaries.
“Our income will be down because of no after-school classes, daytime classes and no holiday programme,” she said.
The club also had the opportunity to purchase new equipment at reduced rates, but that has fallen through because it cannot apply for a grant.
“So the Pacific Rim gear we are now unable to afford and we just hired the new coach and now will have to cover her wages on reduced income,” Ms Gould said.
Whakatane Swimming Club committee president Rawinia Kamau said the club had had a 100 percent loss in income since level three.
“This is from no coaching fees, though a handful of us parents have continued to support the sustainability of the club, as well as no possible opportunity for extra funding through pokies.”
Ms Kamau said the club also had applications in the pipeline for a coaching salary, lane hire and equipment, but that all came to a halt.
The club pays the Whakatane District Council tens of thousands of dollars for lane hire annually. It is hoping for some relief and that it won’t be charged for lane usage over the shutdown.
Even when the country goes to level two there will be limits on swimmer numbers in the pool.
“It looks like a maximum of 14 people will be allowed in the pool – two per lane, and we need to hire the whole pool and use it as private groups.”
Only about 50 of the club’s 100 swimmers are expected to be back in the pool at level two, and the club is concerned about the viability of this.
“We want to avoid increasing coaching fees, partly because a lot of our parents have experienced a loss of income.”
However, Ms Kamau said the upside was that the club had also received the wage subsidy for its coach.
“We’ve had a hit, but we should be okay.”
EBOP Cricket Club president Colin Rampling said their plans to ask for funding were also stalled by the lockdown.
“We were incredibly lucky that the Queen Street Cricket Club and Sport Bay of Plenty helped us.’’
Mr Rampling is disappointed the funding has been frozen.
“We were hoping we would be able to get some new equipment or look at getting an EBOP cricket development person but now we will be fighting for funds.’’
Michelle Cossey, Whakatane Surf Life Saving Club media co-ordinator, said they relied heavily on grants from gaming machines.
“Our equipment is not cheap to use, maintenance and replacement being costly.
“Funding has helped purchase ski’s kneeboards, foamies for our junior surf programme and surf lifesaving equipment like tubes, oxygen and radios. We are also very reliant on funding to maintain our IRBs and motor, of which we have three each,” she said.
“We supply all equipment to the camping ground over the peak season so use of all equipment is huge.’’
’’We, like many charitable organisations in New Zealand going forward will have to look at maintaining the equipment we have and coming up with other ways to fund our ongoing costs.”