“Negative capital around 300,000 euros”

Negative capital around 300000 euros

In the years 2008 and 2009, the Finnish Skiing Federation lived through an era of fragmentation, when a number of independent actors emerged within the federation in a short period of time.

The cross-country skiing circles organized themselves into the Maastohiihto ry, and ski jumping and combined swore by the name of the Finnjumping ry. Although the sports associations were independent units and were responsible for their own finances, they were part of the Ski Federation, competing under it and participating in its decision-making.

However, Finnjumping ry and Maastohiihto ry closed their operations in 2013 and 2014 as financially unprofitable units and merged back into the Ski Federation.

One species family has been an exception. Founded in 2008 by alpine skiing and freestyle people, Ski Sport Finland ry has continued on its own path until these days – and may continue to do so.

However, the chairmen of Ski Sport Finland and the Ski Federation tell Urheilu that there is currently an investigation into a possible merger, which would create a more impressive snow sports community than before.

– We have asked both Ski Sport Finland’s club meeting and the Ski Federation’s federal council for permission for preliminary preparatory work, the end result of which, if deemed good, could be a possible merger. This month, the matter will be furthered with operational teams, the chairman of Ski Sport Finland ry Antti Kärävä tells.

– Sports organizations must be thought of in a streamlined manner and structures must always be thought of so that they function as cost-effectively as possible and serve the main thing, i.e. exercise and sports, President of the Skiing Association Markku Haapasalmi comp.

Negative capital 300,000 euros

According to the Associations Act, two associations cannot merge. So, if the Ski Federation and Ski Sport Finland were to find a common ground, the latter would follow the path of the Maastohiihto ry and the Finnjumping ry, ending their day.

The aforementioned returns to the past have not been painless. For example, Finnjumping ry had managed to accumulate its own negative capital of no less than 700,000 euros in four years.

The amount was converted into an internal debt when ski jumping and combined returned to the Ski Association. In this way, sport communities were required to take care of the negative capital caused by their own sport group.

Previously, the Ski Federation had already had to lend money to Finnjumping ry, which the Finnjumping board members had to personally guarantee. Maastohiihto ry also returned to Hihitoliitto when it was in the red by two hundred thousand euros.

According to the chairman of Ski Sport Finland ry, Antti Kärävä, SSF has no debt in the ry or in the limited company it owns, Ski Sport Management oy. Kärävä says that SSF still has negative capital.

– There are no debts in either. We have about 300,000 euros of negative capital on the association’s side from previous years. It has been systematically covered in the last fiscal years. This work is still ongoing.

– The financial situation is not the primary reason to consider a possible merger, even though obtaining partner income has been quite tight both during the corona virus and the war. We are going to be strict, but the matter is completely under control, says Kärävä.

In any case, the ski association’s balance sheet would not be as good as it was ten years ago in the case of Finnjumping ry. The skiing association still has a negative capital from its own back of around 1.5 million euros from the 2017 World Championships in Lahti.

A show already before May?

Kärävä and Haapasalmi emphasize that although the alpine and freestyle sides have been represented on the Ski Federation’s board all along, it is in the interest of both parties to have a strong unified voice in the direction of the International Ski Federation FIS, municipalities, cities, the Ministry of Education and Culture, the Olympic Committee as well as snow sports clubs and sports venues.

– The goal is to get the investigation done in such a way that it can be presented to the federal council during this spring, says Haapasalmi.

Both the Fiihtoliito and Ski Sport Finland’s fiscal year ends in May.

The final decision on a possible merger will be made by the Federation Council of the Ski Association and the Ski Sport Finland club meeting.

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