General Secretary and CEO Financial Update 

Hello Canadian Soccer Community, 

We need to establish a better financial engine for soccer in Canada so our sport can benefit from upcoming opportunities. 

This starts with Canada Soccer. As Canadian soccer’s non-profit National Sports Organization (NSO), Canada Soccer must be financially healthy to make investments in our sport at all levels during this critical time. 

I have done an initial analysis of our financial situation and wanted to share some information and preliminary thoughts with you. 

Canada Soccer’s budget for FY24 shows a $4M operating deficit on total expenses of $30M. 

For context, the US Soccer Federation reported a $40M deficit on $188M of total expenses for FY23, is forecasting a $3M surplus on $184M of total expenses in FY24, and is planning for a $9.6M surplus on $201M in spending (USD) in FY25. Football Australia reported a $669,000 surplus on $112M in expenses (AUD) in FY23. 

Canada Soccer is also part of a broader NSO ecosystem in Canada that is working through financial challenges. 

While it is common for non-profit sports organizations to operate at surpluses or deficits depending on annual circumstances, the current level of Canada Soccer’s operating deficit is not sustainable and cannot continue in the future. 

The decision-making process for our FY24 budget considered the availability of cash reserves, projections of future costs and revenues, and the harm that would be done to our programs by increasing the already-significant cost reductions that Canada Soccer has been forced to make. While the budgeting process for FY24 predated my arrival, I generally agree with the analysis that was performed and I can assure stakeholders that there is a plan in place – which I will look to strengthen – for the organization to maintain an adequate level of cash reserves. 

Thinking ahead my initial assessment is that Canada Soccer must grow annual revenues by between $10M and $12M to robustly fund its programs and serve its stakeholders – from grassroots up to the national teams. 

I am currently developing a specific point of view on how we will do this. The solution will involve some combination of enhanced commercial activity and professionalized fundraising. It will also depend on stronger stakeholder alignment. I will elaborate on specific details as I refine my perspective and continue working with stakeholders. 

I am also engaged in a collaborative discussion with the Member Council about an adjustment to member fees. On March 13 – the day before my official start date – I presented two concepts that, if accepted, would increase rates that have not changed since 2017. 

The first concept is based on Consumer Price Index (CPI). Canada Soccer has forgone $5.84M in revenue since 2017 because the Player Levy has not been adjusted for CPI. We are discussing a true-up of the Player Levy for CPI along with a proportional adjustment of Membership Affiliation Fees. 

The second concept is an incremental investment that would direct additional funding specifically towards the launch of Project 8 and in support of our youth national teams. These are timely and strategically important investments. Project 8 ensures an equitable competitive pathway into professional football. And additional support for our youth national teams is important in light of FIFA’s recently announced expansions of international youth competitions. 

I wish to emphasize that proposed adjustments to member fees are only a small part of the overall revenue growth solution. The majority of Canada Soccer’s effort to increase revenue will involve incremental commercial and philanthropic activity. 

In the coming weeks, I will also be engaging other stakeholders – including Canadian Soccer Business and national team players – in the development of a forward-looking plan to strengthen the broader commercial and philanthropic foundations of our sport. Alignment of key stakeholders on several fronts is necessary to build higher levels of confidence with commercial and philanthropic partners so we can generate more value for all. This is an urgent task on which we must all work together toward a future where domestic football in Canada is properly supported on a solid and sustainable financial basis. 

Thanks for your support of Canadian soccer, and I look forward to sharing additional details as we move forward. 

Best, 

-Kevin