I have taken this decision as a consequence of the Covid-19 health and financial crisis confronting all sectors of Australian society and from which the AOC is not immune.

Those fees for calendar year 2020 were to total $594,500 but the new fees are now calculated at $475,600 pa. The services provided are outlined in the AOC Annual Report each year.

The 2019 Annual Report will be released on 17 April, 2020 ahead of the AOC Annual General Meeting on 9 May. The AOC and Australian Olympic Foundation (Foundation) 2019 Annual Reports, Financial Statements and Independent Auditor’s Reports will be provided to members and placed on the AOC website by 17 April, being 21 days prior to the AOC AGM on Saturday 9 May 2020.

The AGM is being conducted online. These Annual Reports and Financial Statements record strong performances. In the case of the AOC, a surplus from operating activities of $ 5,437 million before a settlement of that amount on the AOF leaving a Nil balance.

Net assets of the Foundation increased from $150,879 million at 31 December, 2018 to $171,415 million at 31 December, 2019 with underlying cash holdings across the portfolio at 15.6 %.

However, indications are that the impact of the Covid-19 inspired financial crisis will see the Foundation return to its 31 December 2018 asset base in the short term, if not already, and in receipt of significantly reduced returns as companies underperform and suspend dividends.

This asset base is relevant to the AOC’s financial planning as the quarterly distributions it receives from the Foundation will be calculated for the four years 2021-2024 at 4% of the Foundation’s net asset base at the commencement of that period.

As happened around the 2008 GFC, under the terms of the Deed of Trust establishing the Foundation, it can revert to capital in any year in which income is insufficient.

Following the postponement of the Tokyo 2020 Games by one year, the AOC has informed sponsors and partners that their rights will extend by one year, that is, to 31 December 2021.

While most of our worldwide TOP sponsors are signed for the Paris 2024 Olympiad, that is not the case with all our national sponsors. The majority of the AOC’s expenditure on its Tokyo 2020 Team will defer by one year and athletes who received direct Medal Incentive Funding in 2020, based on their 2019 performances, will be eligible for the same funding in 2021 based on their same 2019 performances.

We will continue to fund preparations for our 2022 Beijing Olympic Winter Team, including the Olympic Winter Institute of Australia, Youth Olympic Games and other teams and continue our NF and alumni support programs. This is a snap overview of the challenges the AOC faces.

While we are in a comparatively strong financial position for a not-for-profit sports organisation and can maintain our independence and financial independence through all of this, these are nevertheless uncertain times and from which the AOC and Foundation are not immune.