A row is raging between Boxing SA and Eastern Cape Boxing Promoters Association (ECBPA) over the money owed by the promoters that could lead to the region being refused the right to hold tournaments.
The two bodies are embroiled in a R2.8-million dispute that BSA says the promoters owe due to unpaid levies since 2004.
This when BSA passed a regulation that required promoters to cede 5% of their sponsored tournaments and 10% if the shows secure broadcast rights.
Some promoters from other provinces have been adhering to the regulation while those from the Eastern Cape are objecting to its interpretation. They are arguing that the BSA should be entitled to the percentage of the nett and not the gross amount.
ECBPA admitted that it did not agree with the interpretation of the regulation as promoters were not revenue generators for BSA.
“The primary task is to ensure that there is boxing activism and key to that being realised is all boxing promoters who are developing boxing and businessman and women as well in the space,” the association argued.
“There is a fundamental administrative and unconstitutional flaw in BSA interpretation of the regulation.
“The Act and regulation talks about a promoter submitting a reconciliation of events after the fight but BSA wants promoters to cede 5% and 10% of the sponsorship amount without taking into account promoters expenses on purses, flights, logistics, sanctions and other related logistics.”
When BSA sent out letters to some promoters last September demanding acknowledgement and arrangements to repay their respective debt some sought the intervention of the parliament’s sports portfolio committee which invited the regulatory body to a meeting for an explanation.
BSA chief executive Tsholofelo Lejaka confirmed that the body appeared before the committee to explain the matter.
“After hearing our own explanation the committee respected our decision and encouraged us to engage with the promoters,” he said.
However, no solution has been found as yet despite the two parties holding numerous meetings that even involved their legal teams.
ECBPA are steadfast in its conviction that the regulation should be applied after all the costs of the tournament have been settled.
“Imagine when a promoter gets R100000 sponsorship and his purses are 150000. Other costs are R100000 so he has to take his own money to bridge the gap but still has to pay BSA 5%,” the association said.
The association denied that other promoters in other provinces have no problem with the regulation, emphasising that the perception was drawn from the fact that they have no organised structure like the Eastern Cape.
“It's not true that it's only Eastern Cape promoters who have an issue,” they said.
“It is just that we are organised and are more present on these issues but we as ECBPA have been talking to different promoters of other provinces and are still talking even today with them and we are still on the same page.”
The provincial association is hoping to share its interpretation of the regulation with other promoters from other provinces during the scheduled meeting with BSA in Johannesburg this Friday.
The R2.8-million has now been flagged by the auditor-general as boxing in the country is governed by the South African Boxing Act.
Lejaka said among others, the AG cited the flawed revenue collection of the body as one of its shortfalls to tighten up its expenditure.
Asked how long will BSA tolerate the ECBPA objection, Lejaka replied: “We have been patient with the association for a while now because we do not want to be seen as bullying it. But there comes a time when we will have to stamp our authority.”
Lejaka admitted that the saga could force BSA to take drastic steps to recover the money.
“This is part of compliance issue that licensees must adhere to and we know what we should do when they fail to do so,” he said.
While Lejaka refused to give a list of promoters owing the money, it is understood that one of them owes a whopping R1.5-million.
BSA implores promoters pay up – or else
The two bodies are embroiled in a R2.8-million dispute that BSA says the promoters owe due to unpaid levies since 2004.
This when BSA passed a regulation that required promoters to cede 5% of their sponsored tournaments and 10% if the shows secure broadcast rights.
Some promoters from other provinces have been adhering to the regulation while those from the Eastern Cape are objecting to its interpretation. They are arguing that the BSA should be entitled to the percentage of the nett and not the gross amount.
ECBPA admitted that it did not agree with the interpretation of the regulation as promoters were not revenue generators for BSA.
“The primary task is to ensure that there is boxing activism and key to that being realised is all boxing promoters who are developing boxing and businessman and women as well in the space,” the association argued.
“There is a fundamental administrative and unconstitutional flaw in BSA interpretation of the regulation.
“The Act and regulation talks about a promoter submitting a reconciliation of events after the fight but BSA wants promoters to cede 5% and 10% of the sponsorship amount without taking into account promoters expenses on purses, flights, logistics, sanctions and other related logistics.”
When BSA sent out letters to some promoters last September demanding acknowledgement and arrangements to repay their respective debt some sought the intervention of the parliament’s sports portfolio committee which invited the regulatory body to a meeting for an explanation.
BSA chief executive Tsholofelo Lejaka confirmed that the body appeared before the committee to explain the matter.
“After hearing our own explanation the committee respected our decision and encouraged us to engage with the promoters,” he said.
However, no solution has been found as yet despite the two parties holding numerous meetings that even involved their legal teams.
ECBPA are steadfast in its conviction that the regulation should be applied after all the costs of the tournament have been settled.
“Imagine when a promoter gets R100000 sponsorship and his purses are 150000. Other costs are R100000 so he has to take his own money to bridge the gap but still has to pay BSA 5%,” the association said.
The association denied that other promoters in other provinces have no problem with the regulation, emphasising that the perception was drawn from the fact that they have no organised structure like the Eastern Cape.
“It's not true that it's only Eastern Cape promoters who have an issue,” they said.
“It is just that we are organised and are more present on these issues but we as ECBPA have been talking to different promoters of other provinces and are still talking even today with them and we are still on the same page.”
The provincial association is hoping to share its interpretation of the regulation with other promoters from other provinces during the scheduled meeting with BSA in Johannesburg this Friday.
The R2.8-million has now been flagged by the auditor-general as boxing in the country is governed by the South African Boxing Act.
Lejaka said among others, the AG cited the flawed revenue collection of the body as one of its shortfalls to tighten up its expenditure.
Asked how long will BSA tolerate the ECBPA objection, Lejaka replied: “We have been patient with the association for a while now because we do not want to be seen as bullying it. But there comes a time when we will have to stamp our authority.”
Lejaka admitted that the saga could force BSA to take drastic steps to recover the money.
“This is part of compliance issue that licensees must adhere to and we know what we should do when they fail to do so,” he said.
While Lejaka refused to give a list of promoters owing the money, it is understood that one of them owes a whopping R1.5-million.
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