Pragmatism trumps pessimism as WDSF plots path to brighter future 28/05/2020

Prior to the coronavirus pandemic, the World DanceSport Federation (WDSF) was expecting to have a solid 2020 both operationally and financially, building on from a successful 2019. Now, unfortunately, all bets are off.

These days it’s all hands on deck as the WDSF Presidium implements drastic measures to ensure the Federation survives the lean months exacerbated by the absence of revenue from events cancelled by the outbreak.

And yet as bleak as the situation currently is, the person in charge of the WDSF financial strategy during the crisis remains surprisingly upbeat about the future of the organisation.

“I believe in the future,” says WDSF 1^st Vice-President and Vice-President for Finance Tony Tilenni. “And I believe that we will be able to find a pathway for the WDSF and DanceSport to survive and prosper. What we did on 16 March by suspending all payments other than essential services – and what we still need to do – is very painful, it is extreme, but I believe that we can come out the other side stronger and more resilient.”

Cutbacks have been made across the board, including a 20% pay reduction to staff, who are working reduced hours and whose salaries are being subsidized by a Swiss unemployment initiative. In total, budget cuts of 838,000 CHF have been introduced for 2020 and Tilenni warns that they will not be the last. In fact, should DanceSport competitions not resume in September as hoped, an alternate budget has already been drafted based on competitions only beginning again in 2021.

“Thanks to the unity of the Presidium and the dedication and sacrifices of the leadership and staff, a solid plan is in place that seeks to weather the storm,” says Tilenni, who operates an award-winning tax, accounting and financial advisory firm in Perth, Australia. “We know from 2019 that the WDSF was on the right track to achieving future balanced budgets, so what we need now is an abundance of patience, prudence and optimism as we forge our future, although things will not be the same as they were, and it could take years to recover financially.”

He adds: “Nothing can be guaranteed, and no one knows how long it will take for the new normal to emerge.”

One potential lifeline may come via a joint initiative by the Swiss Government, Swiss banks and the International Olympic Committee (IOC). The scheme is designed to provide International Federations based in Switzerland, like the WDSF, access to interest-free, repayable loans that are covered equally by the IOC and the federal and cantonal authorities.

While the WDSF awaits more details on the initiative, it has already moved forward with another Swiss government relief package aimed at helping businesses and institutions cope with the impact of the pandemic. On 12 May the Presidium unanimously agreed to seek an interest-free, five-year loan to help meet operating costs during what Tilenni calls a period of “hibernation.”

“Normally as Vice-President of Finance, I would never have agreed to a loan because the WDSF did have enough capital to fall back on,” he says. “However, these are extraordinary times and we needed access to as much cash as possible to survive until we can relaunch our events. Preserving cash is key to giving an organisation the best chance of survival. Like a number of other Federations, the WDSF is very thankful to the Swiss Government and UBS, our Swiss bank, for this much-needed safety net.”

The WDSF Presidium is now placing all its energies on the eventual relaunch of competition, be it this September or sometime in 2021. Its strategy encompasses how and when the national and international calendars can resume, as well as temporary measures to support the competition circuit. The operational and financial goals of the relaunch are to ensure that the WDSF has the resources to properly recover from the start of the 2022 calendar year.

Tilenni cautions that in order for WDSF stakeholders to continue to benefit from the global governing body in the future, a concerted effort to circle the wagons must be made by all parties.

“We expect local and national competitions to recover well before the WDSF does at the international level, so National Member Bodies, adjudicators, officials and athletes need to consider how they can support the WDSF so that we can continue to support them in the future,” he says. “This support becomes even more important with the provisional approval of the IOC for Breaking to be included at the Olympic Games Paris 2024. The opportunities for DanceSport and the WDSF are huge and we expect developments in the future that will showcase all our disciplines.”

Throughout the crisis the WDSF has remained true to its vision to develop DanceSport to its fullest potential through 2030 and beyond and it will continue to do so as it works to overcome the difficulties brought about by the pandemic.

What is needed now is to maintain the focus on strictly managing the WDSF’s cash resources as far as possible, while seeking new revenue, capital and lending opportunities until the eventual relaunch of the WDSF competition system.

“We remain confident that the World Health Organization (WHO) will eventually make an announcement that the virus has reached its peak and is no longer a pandemic,” Tilenni says. “This, as well as the successful staging of the Olympic Games Tokyo 2020 next year, would be excellent signs for the world and would stimulate recovery everywhere, including for the WDSF and all of DanceSport. We need to believe in the future.”