Champions through the lens of a CFO
”Champions do not become champions when they win the event, but in the hours, weeks, months, and years they spend preparing for it. The victorious performance itself is merely the demonstration of their championship character” – Alan Armstrong.
The role of the CFO requires one to be well-versed in all aspects of financial management, ranging from simple accounting to broad investment and financial operations, to protect the company’s revenues and profits to achieve full financial control and sustainable growth. In my role as CFO of Lions Cricket, I have had first-hand experience with how the typical CFO role evolves to support a sports team on its journey to greatness and to be champions.
On 28 October 2023, the South African national rugby team achieved the impossible: back-to-back Rugby World Cup wins and the first team ever to win four Rugby World Cups. Reflecting on the journey that the Springboks traversed to victory, it is clear that without their hard work and dedication to their goals, this win would have not been possible.
Here is my take on the nuances of five key CFO functions in my industry:
- Revenue growth − Less than three years ago the world was still grappling with the COVID-19 pandemic, which for sports stadia meant no fans at games, resulting in no gate revenue, concessions revenue or appetite from sponsors to invest in the game. To maintain the momentum, innovative funding strategies were implemented by looking at new revenue streams and commercialising the team through digital mechanisms to stay connected with the loyal fan base allowed us to maintain our much-needed revenue momentum.
- Cost management − When times are tough, the tough get going, and limited income necessitated some tough decisions, but never at the detriment of the vision and delivery of results both on and off the field. Innovating and adjusting our strategic plans allowed us to restructure our procurement strategies and maximise the potential of trade exchange agreements reducing the pressure on our budgets. At Lions Cricket I took a magnifying glass to everything including cricket balls, practice net upgrades and hydration partners for the teams.
- Capital investment − Capital investment decisions for the short, medium, and long term play a key role in sports. In traditional businesses a ’Return on Investment’ is the direct measurable, whereas in the sports spheres ‘Return on Influence/Impact’ is the biggest measurable, whether it be an impact on the sportsperson, the stadium or the loyal fans and communities we serve.
- Cashflow management − ‘Cash is king’ as they say, and it is no different in the sporting world, as cash flow plays an important role in the financial stability of a sports business. Considering the seasonality of a sporting season, it allows us to anticipate when money needs to be paid out and when it is likely to come in.
- Sustainability strategies − Living in a VUCA (Volatile, Uncertain, Complex and Ambiguous) world, flexibility and adaptability play a key role in ensuring the sustainability of any organisation, and even more so in a result-driven sports industry. Regarding Alan Armstrong’s quote: the character of a true champion is defined by how they make decisions, refining strategies in real time and showing adaptability and strength of decision-making to deliver.
As a CFO, the impact of the work we do is not always obvious. In my experience, when we deeply connect our personal purpose with the vision of the businesses we serve, and in my case the hopes and dreams of a nation, then both true impact and job fulfilment are possible. Individually 1 + 1 = 2, but as a collective and unified team 1 + 1 = ∞, and we can be greater than the sum of our parts.
‘Sport has the power to change the world. It has the power to inspire, it has the power to unite people in a way that little else does. It speaks to youth in a language they understand. Sport can create hope, where once there was only despair’ – Nelson Mandela.
