Financial Management Insights from the 11th EBL NBO Officers' Seminar

11th EBL NBO Officers' Seminar in Pre- and Current COVID Times Larnaca 2022 FINANCIAL MANAGEMENT In the Polish Bridge Union Beata Madej, General Manager 1

Contents Presentation Plan: Present structure of the Polish Bridge Union (PBU) Financial management in PBU Diversified sources of PBU s revenues PBU s sources of funding What has the COVID pandemic changed Conclusions 2 11th EBL NBO Officers' Seminar / Larnaca 2022 / Beata Madej

Present Structure of the Polish Bridge Union (PBU) PBU s Management Board 9 Persons PBU s Office 4 Persons Regional Bridge Unions 16 Unions Bridge Clubs 181 Clubs Bridge Teams 202 Teams Competitors (Official Members) 5 197 Persons (Women - 883 / Men - 4 314) Status as of 30.11.2021 3 11th EBL NBO Officers' Seminar / Larnaca 2022 / Beata Madej

Financial Management in PBU Principles of Financial Management in PBU: Budgetary discipline. Annual accurate budgeting of revenues and expenses based on conservative estimates. Systematic monthly monitoring of revenues and expenditures Diversification of revenues No credit/loan obligations 4 11th EBL NBO Officers' Seminar / Larnaca 2022 / Beata Madej

Financial Management in PBU Costs Shares of Individual Cost Groups in Total Costs in 2018-2021 (in %) 60% 50% 40% 30% 20% 10% 0% Administration Tournaments Marketing and Media 60+ Program Youth Intellectual Sports Center 2018 2019 2020 2021 11th EBL NBO Officers' Seminar / Larnaca 2022 / Beata Madej 5

Diversified Sources of PBUs Revenues PBU s revenues are divided into 9 main items. Item 1 2 3 4 5 6 7 8 9 Description Ministry of Sport and Tourism Ministry of Family and Social Policy Private sponsors Membership fees Entry fees Leagues Entry fees On-site tournaments Entry fees On-line tournaments Intellectual Sports Center Other revenues 6 11th EBL NBO Officers' Seminar / Larnaca 2022 / Beata Madej

PBUs Sources of Funding Public Sponsorship PBU receives part of its funding for statutory activities from state subsidies. The Ministry of Sport and Tourism provides financial support for the development of the Competition Sports and the Youth Sports Development Programs. In 2018-2020, we also received grants from the Ministry of Family and Social Policy for the program Bridge 60+. The shares of public sponsorship in PBU s total revenues in 2018-2021 are presented below. PUBLIC SPONSORSHIP 2021 update 2021_11_30 2018 2019 2020 Percentage share in yearly income 34.5% 34.3% 30.3% 31.2% 7 11th EBL NBO Officers' Seminar / Larnaca 2022 / Beata Madej

PBUs Sources of Funding Private Sponsorship We are cooperating with organizations, companies and private persons who support our activities in the form of sponsorship. Most often we use these funds to organize bridge competitions and support the national teams. The shares of private sponsorship in PBU s total revenues in 2018-2021 are presented below. PRIVATE SPONSORSHIP 2021 update 2021_11_30 2018 2019 2020 Percentage share in yearly income 12.2% 12.0% 13.0% 15.2% 8 11th EBL NBO Officers' Seminar / Larnaca 2022 / Beata Madej

PBUs Sources of Funding Membership Fees Membership fees are collected from players, clubs and teams. Each of the Regional Bridge Unions collects these fees from members in their respective areas and transfers their parts to PBU. Number of PBU s Members in 2018-2021 6 613 6 549 7 000 6 001 6 000 5 197 5 000 4 000 3 000 2 000 1 000 - 2018 2019 2020 2021 MEMBERSHIP FEES 2021 update 2021_11_30 2018 2019 2020 Percentage share in yearly income 18.8% 16.9% 10.4% 14.8% 9 11th EBL NBO Officers' Seminar / Larnaca 2022 / Beata Madej

PBUs Sources of Funding Leagues Leagues Organization The organization of the Bridge Leagues provides a steady annual income for PBU. In 2021, it accounted for 14% of total PBU s revenues. The Premier League, I and II League games are organized by PBU. The III and IV Leagues are organized by the Regional Bridge Unions. BRIDGE LEAGUES IN POLAND* Number of Teams Registration Fees Income Premier League 16 1 111 17 778 I League 32 778 24 889 II League 64 556 35 556 78 222 *data as for the 2021/2022 season. Fees and Income recalcultated into Euros 10 11th EBL NBO Officers' Seminar / Larnaca 2022 / Beata Madej

What Has the COVID Pandemic Changed 11 11th EBL NBO Officers' Seminar / Larnaca 2022 / Beata Madej

What Has the COVID Pandemic Changed The COVID pandemic situation has been a challenge for the Polish Bridge Union as much as for all the players in the market. Restrictions on organizational activities and social concerns have affected our normal operations. A number of areas of our business had to be adapted to the new realities. One of the examples is the transfer of the organization of bridge tournaments to the Internet. This is reflected in the increased share of entry fees to on-line tournaments in PBU s 2021 revenues vs. entry fees to on-site tournaments. When organizing on-site tournaments, it was necessary to build additional sanitary protection limiting participants contact (plexiglass screens on the tables) as well as to provide social distance and disinfection. 12 11th EBL NBO Officers' Seminar / Larnaca 2022 / Beata Madej

Impact of COVID on Different Sources of Funding How the Revenue Streams Have Changed (2018 vs. 2021, in %) 35% 30% 25% 20% 15% 10% 5% 0% Ministry of Sport and Tourism Ministry of Family and Social Policy Private Sponsors Membership fees Entry fees - leagues On-site tournaments On-line tournaments Intellectual Sports Center Other revenues 2018 2021 11th EBL NBO Officers' Seminar / Larnaca 2022 / Beata Madej 13

COVID and the Organization of On-line Tournaments Example of One of the On-line Tournaments on BBO BridgeNET Number of BridgeNET Players in 2018-2021 Number of BridgeNET Tournaments in 2018-2021 70 000 700 594 58 125 60 000 600 515 510 50 000 500 462 40 948 38 532 40 000 400 30 000 300 23 412 200 20 000 100 10 000 0 - 2018 2019 2020 2021 2018 2019 2020 2021 14 11th EBL NBO Officers' Seminar / Larnaca 2022 / Beata Madej

Conclusions 15 11th EBL NBO Officers' Seminar / Larnaca 2022 / Beata Madej

Conclusions The situation of the Polish Bridge Union has changed during the pandemic similarly as in the case of other sports. Organizational challenges and sanitary restrictions forced a number of changes. Thanks to a strict budget discipline, adaptation of activities to new realities, diversification of income sources (mainly shift from on-site to on-line tournaments), and the lack of liabilities related to bank loans, our financial situation is relatively good and allows for further activities to promote the development of bridge in Poland. We have increased the share of membership fees dedicated to Regional Unions to help them survive in these difficult times and to continue their operations. PBU has imposed very strict sanitary restrictions for on-site tournaments. We require all participants to be vaccinated or to present a valid PCR or anti-gene test before the tournament. Despite some criticism, this measure has been accepted by the majority of participants. We still face the problem of a lower number of members and we want to dedicate resources to encourage new or former members to join us. 16 11th EBL NBO Officers' Seminar / Larnaca 2022 / Beata Madej

THANK YOU Beata Madej madej@pzbs.pl 17