CHF 1.3m
The beach volleyball tournament has become an important event for the region in the last twenty years, said mayor Toni von Grünigen. Since 2017, the municipality of Saanen has paid an annual contribution of CHF 200,000 to the tournament within the framework of contributions to major events in the Saanen municipality. Due to the precarious financial situation, the organisers of the tournament had asked the municipality for financial support, said von Grünigen. Due to the importance of the tournament for the region the local council responded to this request.

The municipal council commissioned the consultancy Transliq AG to carry out a restructuring report, which revealed a dept of CHF 1.4m. The report further showed that additional loans would not be effective, explained von Grünigen, clarifying the proposed solution. In order to prevent people and companies who supported the tournament over recent years from losing any money, the recapitalisation should only be financed through municipal funds. The municipal contribution would thus amount to CHF 1.3m.

With an interest-free loan of CHF 1m, a binding payment agreement for CHF 300,000, as well as supporting measures, Sport Events Gstaad GmbH should be restored to a healthy position soon.

Supporting measures
The restructuring contributions are linked to various conditions. The term of the loan is five years. Each year, CHF 200,000 will be waived. “If the tournament doesn’t go ahead over the next five years, the balance will be repaid.”

In addition, the promised funds may only be used to repay credits and loans. A new financial committee will take care of the finances of the company and Transliq AG will submit a report on the company’s financial position every six months to the local council. “This restructuring contribution means that debts are reduced with no effect on the income statement,” said von Grünigen.

Annual municipal contributions shall continue as before. Thanks to the reduction of the company’s contribution to the prize money and other measures, the tournament should be able to run in the future without making a loss, von Grünigen states.

Amendment by the SVP
Emil Trachsel and Matthias Brunner tabled an amendment on behalf of the SVP. Instead of using a finance committee, Sport Events Gstaad GmbH should extend its management to three or more people. At least half of the members of the management should not be shareholders in Sport Events Gstaad GmbH or have a close connection to the company. All members of the management will have the right to be the joint authorising signatories.

The SVP fully backs the contribution to enable the tournament to continue. They find it important that tournament director Ruedi Kunz continues in this position. However, “we feel it would be good if he gets support on financial matters,” said Trachsel. The application had been discussed in advance with Ruedi Kunz, who supported this, emphasised Brunner.

So far, the management has only comprised one managing director as the sole signatory. The event has grown massively over the past twenty years. However, its structure hasn’t been changed and this must now be addressed. When dealing with a budget of more than CHF 2.5m, it is undisputed and self-evident to talk about collective signatures, Brunner continued. If this proposal is agreed, structures like those of an AG could be put in place.

Unanimous approval
With 225 votes in favour and 47 against, the SVP’s application was approved without discussion. At the final vote, the restructuring payment of CHF 1.3m was unanimously approved.

Based on AvS/Anita Moser
Translated by Justine Hewson