Finance Among Key Topics Discussed at FEI Board Meeting

The first day of the FEI Board Meeting saw the unanimous approval of the 2019 accounts and a surplus to be reallocated across various funds and projects; details will be provided online at the beginning of July.

Chief Financial Officer Claude Praz presented the revised budget 2020, with cost-saving measures put in place to date and future plans to counteract the loss in revenues caused by the COVID-19 pandemic and the subsequent disruption to the equestrian sport calendar worldwide:

A loss of CHF 8,229,000 is predicted for 2020, reflecting an estimated reduction in total revenues of CHF 26,620,000, which did not include the IOC contribution normally distributed in an Olympic year.
A negative performance to date on the portfolio also was included in the forecast loss for 2020. However, the loss in revenues was offset by a rigorous reduction in total expenses of CHF 20,753,000, including temporary unemployment measures for the FEI staff as well as the postponement or cancellation of all non-essential projects.
The CFO emphasized that the overall loss did not threaten the short/medium term existence of the FEI, which would continue to seek cost-saving measures to ensure minimal draw on the reserves. He assured the Board that the FEI is proactively monitoring the situation and will make adjustments when and where necessary to safeguard the sport and the financial well-being of the organization.

Cost-Reducing Measures

Secretary General Sabrina Ibáñez presented the FEI’s cost-saving measures to date as well as contingency plans for the future. She commended FEI HQ staff for their rigorous review of their budgets and reductions in expenditure, including postponement and/or cancellation of all non-essential projects, resulting in savings of CHF 6,500,000. The following staffing/working from home measures were also credited:

Since 15 April 2020, 60% of FEI staff have been on temporary partial unemployment subsidised by the Swiss Government, resulting in an estimated CHF 1.5 million saving by the end of the year as well as safeguarding jobs in the long-term. It is planned to deepen the partial unemployment measures in July and until the sporting Calendar begins to pick up. The Swiss Government subsidy is confirmed until October, with the possibility of a further six-month renewal under discussion.
The FEI has put a freeze on recruitment for all open positions, with the exception of the two Director-level appointments for Jumping and Endurance, although the recruitment process has been slowed due to the inability to conduct in-person interviews. Manuel Bandeira de Mello will stay on as FEI Endurance Director until a replacement has been found; Deborah Riplinger will be promoted to Interim Director as of 1 July and postpone her retirement until June 2021 to allow for a smooth handover to the new Director once appointed.
Prioritising working from home and web based meetings over travel have provided significant cost reductions.
All senior management have volunteered to take a salary cut until the end of 2020. On behalf of the FEI Board, Vice President Mark Samuel commended the FEI HQ and Directors for this generous show of solidarity, saying it demonstrated the passion and dedication of the HQ staff to support the organization through this crisis.