According to Kimmo Nurminen, the challenges with the sponsors and the future investments ate the result of the joint-stock company of the Floorball Association to the ground zero. Increased broadcast production costs produced the lion’s share of the losses.
SSBL Salibandy Oy made significant losses in 2022. The limited liability company recorded from last year Operating loss of 269,000 euros.
The limited company is responsible for the sales and marketing of the Finnish Volleyball Federation. Its activities include, for example, the administration of the F-League, the highest league level for men in floorball.
The company has been operating at a loss for four years straight. In total, 405,000 euros have come into the jacket. CEO of SSBL Salibandy Oy Kimmo Nurminen opened the company’s loss-making development to Urheilu.
– There is nothing dramatic about this, and there is no need to worry about it. It was known that the years 2021 and 2022 will be challenging in terms of generating results. The result of the financial year is what is reported, it does not include any hidden costs, Nurminen says.
The joint-stock company’s total turnover was 801,000 euros last year. It increased by 150,000 euros from 2021. Although more money came in than the previous year, the company’s operating loss almost quintupled from 58,000 euros to 269,000 euros.
Floorball influencer Toni Lötjönen wondered about it in the message service X.
In the result, the share of materials and services has increased proportionally the most, from 154,000 euros to 342,000 euros.
– They are very largely increased broadcast production costs, Nurminen explains.
Sponsorship difficulties continue
CEO Nurminen finds three reasons for the weak result. The biggest of them is the revision of the division of labor between the Volleyball Association and the limited company in 2020, as a result of which the company’s ability to make a profit decreased significantly.
Another significant reason is the unexpected challenges brought by the corona virus in the sponsor market. The clubs received corona subsidies from OKM, but the joint stock company of the association was not covered by corona subsidies. The Ski Federation, which is struggling with financial difficulties, has also had sponsorship problems.
– The cooperative partnerships have survived. The sponsor market has been relatively challenging compared to previous years, Nurminen admits.
According to Nurminen, investing in the future at the expense of making a profit also partly explains the negative result.
F-liiga was only launched three years ago in connection with the brand renewal. The previous name Salibandyliiga was used from the 1994–1995 season.
– It is still a fresh brand. Whenever new things are started, it requires initial investments.
According to the CEO, the challenging economic figures will not affect the starting or following seasons. In the future, F-liiga aims to increase its commercial value in cooperation with clubs. Audience numbers were growing in the spring, and even more effort is being put into broadcasts.
– When the public becomes interested, then the partners also want to be part of the growth story. It may very well be possible that the profit development will be corrected and turn positive already during the current year, says Nurminen.