The state promised to double the money collected by the Olympic Fund up to 20 million euros. In almost five years, the fund has accumulated just over a million. Now the state threw a lifeline to the project.
The long-term financial situation of the Finnish Olympic Committee looked excellent when the Olympic Fund established by the committee in 2018 got the Parliament and the Government to commit to a unique project in the spring of 2019.
The state committed to double the donation funds collected by the Olympic Fund itself up to 20 million euros, and the last day of 2023 was agreed upon as the duration of the project.
However, the fish was already gutted before it was even brought ashore. When there were 68 days left to this time limit on Tuesday, the Olympic Fund had managed to receive approximately 1.14 million euros in donations after almost half a decade of searching.
The goal set by the political system in 2019 was therefore almost 19 million euros unbelievably exhausted.
Originally, it was dreamed that by the end of this year, there would already be 40 million euros in fund capital, which would generate up to 2–3 million euros in investment income per year to help Finnish top athletes. It would have been very significant sums in Finland’s conditions.
“Failed”
– It was not successful at all. The exercise did not finish as planned at all, the chairman of the Finnish Sports Support Foundation, which administers the Olympic Fund, also a speaker at the Olympic Committee Jan Vapaavuori grant.
The fund’s assets are in a securities portfolio, the investments of which are managed by Aktia bank.
According to the original agreement between the Olympic Fund and the Government Council, the state would contribute four million euros to the fund at a time, according to how much the fund itself has collected from donors. So the state has not needed to dig up the image even once during the existence of the fund.
Overtime came
Two weeks ago, the Ministry of Education and Culture announced that the miserably unsuccessful Olympic Fund gets an extension from society until the end of 2027.
At the same time, the state received more from the fund. It now promised to invest two million euros in the fund for every pot of the same size collected by the fund.
In this way, the Olympic Fund would have just under 800,000 euros to reach the first state handout. According to the agreement between the fund and the state, the state would pay its shares in cash or shares.
So far, the Olympic Fund has been able to support Finnish sports with very moderate amounts, which have been accumulated from the investment returns of donations. The capital has not been touched.
Vapaavuori opens up the landscape visible from the rear view mirror now that more than half a decade has passed since the fund’s original strategy work.
– Fund rules tuned initially too high-end sports oriented. It has become quite clear. Top sport is still a very attractive product in the so-called paid partnership or sponsorship market, but when it comes to a fund that collects free donations, the situation is different.
A new guideline and regulations are currently being created for the fund, which will strongly shift its focus towards, for example, supporting exercise and sports for children, young people and special groups. The Olympic Committee is also the highest umbrella organization for this activity in Finland. According to the off year, the work on the rule changes is still in progress.
– Of course, the beginnings of the fund then appeared to be hampered by the corona pandemic and, while it was still in progress, also the Russian attack on Ukraine. Both of them certainly had a negative impact.
Another foundation succeeds
The Olympic Fund can be compared to the Läpimurtosäätiö, which started operating last year, which, as its name suggests, distributes support to athletes who are just on the threshold of a breakthrough.
The initial capital of three million was donated by someone who became wealthy in the investment industry Tuomas Lang with his family. of the major owner of St1 Nordic Mikko Koskimienen the share donation was also worth millions. Läpimurtosäätiö’s assets are currently around 7.5 million euros.
Vapaavuori emphasizes that he considers this kind of activity to be exclusively positive and to be encouraged.
– Successful fundraising for Finnish athletes and clubs is just a great thing. However, it is the case that a non-profit association and an umbrella organization like the Olympic Committee could not really collect funding in such a profiled manner. Therefore, comparing the Olympic Fund directly with these other funds is not quite so one-sided.