Røa Football Elite Statement:
(Oslo, April 29) As a consequence, a considerable gap between costs and revenues have the newly established board of Røa Football Elite (RFE) decided to implement wage cuts for RFEs employees with effect from 1June.
- Our job is to run the club in a prudent manner, and the most reasonable we can do in the current situation is to make cost savings wherever possible.Unfortunately, this also implies the necessary wage cuts, "said managing director of RFE, Per Iversen.
For the RFE to achieve a 0-result in 2011, the Board has established a framework of wage payments to players, which means that they will be paid an annual salary equal to 55% of the original salary. The coaches are given an annual salary equivalent to 85% of the original salary.
- We need to think economically fair play and take the consequences of declining revenues. In addition, there are unforeseen costs associated with the transition to becoming a allianselag, says managing director Per Iversen.
Iversen was appointed to the post of general manager of the newly created alliance Røa Football Elite, a separate legal entity organized under Røa IL, in January 2011, and together with the newly established board of directors worked hard to professionalize the operation.
- We have made cuts where we have been able to, and the last thing we want is to implement wage cuts. The alternative to not cutting costs may be bankrupt later in the season, and it is not an option for the club, "says Iversen.
RFE've had good dialogue with the Norwegian Football Association throughout the process, and has also informed the employees.
- We think the situation is very regrettable, but there is no desire for us to keep this secret.Our job is to ensure prudent financial management, and this is of course also NFF concerned, "he says.
Earmark funds for employees
Although the RFE is experiencing declining revenues, so it does not mean that the club has given up, quite the contrary.
- Our job is to run Røa based on sound business principles and economic well-founded values.The steps we're doing now is absolutely necessary, but in parallel as we work purposefully to provide revenue to the club, "said Iverson and specifies that it is the employees who will be rewarded if the club get into the original budgeted revenues:
- If we succeed in providing income beyond that level we are now thinking out of, these funds are entirely earmarked for the employees, "he concludes.
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