The FINANCIAL — “Receiving benefit from sport in Georgia is still a long term process for businesses, but this direction needs investments,” Michael Jikia, General Director of Vellagio, one of the leading advertising companies in Georgia, told The FINANCIAL. The company pledged to invest GEL 7.6 million in fulfilling sports complex projects. All are being built and reconstructed according to international standards.
“In Georgia businessmen have started investing money in sports not just due to patriotic motivation as was the case before but now with financial aspirations too,” Nodar Akhalkatsi, President of the Georgian Football Federation says.
With an investment of over 1.8m GEL Company Vellagio, which is a member of Wissol Group, one of the biggest business groups in Georgia, constructed a new multifunction sports complex in the village of Dighomi, the suburb of Tbilisi. The venture is part of Tbilisi Sports Infrastructure Rehabilitation Project. The complex has several halls for different types of wrestling capable to host high-profile competitions both at the regional and international level. The company plans to open three new stadiums as well covered with artificial turf. The areas of the three stadiums are 100X68, 40X20 and 70X35 meters respectively.
“The pitches that were installed are fifth generation turf certificated by UEFA. These pitches are used in Champions’ League and UEFA Cup competitions. The renovations include a modern style open cycling track with administrative building and training hall, rugby sports complex and football school Avaza, one of the oldest football schools, and which has been rebuilt according to UEFA standards,” Jikia says.
The rehabilitation of sports complexes was the first stage of their plan. The second will be actually producing professional sportsmen. “The development of the country’s sports infrastructure will begin reaping the benefits in one to two years. And a new era of business interest in sports will soon develop,” Jikia says.
Nodar Akhalkatsi, President of the Georgian Football Federation considers the work of the company Vellagio as social investment. Akhalkatsi does not complain about businessmen’s low interest in football. But he does think that the greatest achievement will be attracting not only Maecenas but also businessmen. “In the case of Georgian football, the main financial supporters are the company Madneuli, our general sponsor, Natakhtari and others. There are many companies already actively sponsoring different kinds of sports from junior groups to our very own National Team,” he says.
“We have serious plans regarding sports and in six months to a year we’ll be making an important statement on this. Much attention is being paid to the success of our sportsmen and this benefits our company to. Financial success in sports will encourage us not only to maintain current achievements but to start new projects as well,” Jikia notes.
GFF has started to overview different themes in order to increase the attractiveness of Georgian football in the eyes of businessmen. “We are trying to interpret some legislative packages. An important case would be interpretation in view of taxes. I think that there are some resources that can be used in terms of the law. I can’t yet say concretely if it will be profitable for businessmen to put money in to sports though,” Akhalkaci admits.
In terms of taxes and the business sector, financing sport has some advantages in Georgia. Jikia thinks that because of additional privileges in the tax paying system for businessmen, financing sport will increase their motivation.
“Privileges in the tax paying system are more important for businesses during a recession. The Government should encourage businesses to start financing sport not just with patriotic motivation but with financial aspirations too. Organizations which were previously financially supporting sport were acting due to patriotic interests,” Jikia, Vellagio, notes.
The President of GFF thinks that in the case of investing money in Georgian football, a lot will depend on the circumstances of investments and the principles of work. Currently investing money in sport in Georgia is less than profitable.
“The total refreshment of the entire sports environment of our country will be directly connected with the raise of the whole economical atmosphere. The product already exists and now it’s a matter of increasing purchasing capacity. In Europe the main source of income is the sum received from the sale of tickets. In England the average price of a football match ticket is GBP 60 and the average number of viewers – 50,000. In our case our football team falls short of such revenue by a long way,” Akhalkaci declares.
Akhalkaci believes that if the sphere starts optimally receiving and utilizing its current resources then sport will become profitable in Georgia too.
“According to our success in world competitions and the Olympic medals we hold, we can safely say that Georgians are most successful in contact sports, wrestling and rugby. As for football, this is the number one sport worldwide and it’s another matter entirely how successful our sportsmen are in this particular game. Georgians have always had the ambition to achieve great things in all leading directions and that’s why we won’t spare any finances or efforts in this direction either. We do realize though that to reach such ambitious goals will take time and the right plans. However we are sure to succeed in time,” Jikia, Vellagio, notes.
GFF is currently negotiating with English consulting company FMMI, focused on football marketing and industry. “Our goal is finding an economical model of Georgian football and making it a profitable business. The mentioned project will be ready by September of this year,” Akhalkatsi notes.
“The expectation of serious benefit from sport is yet unrealistic. But this sphere is worthy of the investment and we do seriously plan to find profit. Sports needs financial support from different sources as well as other directions which are currently still in the stages of development,” he added.
Vellagio is the owner company of the above mentioned four sports complexes.
Jikia believes that in more than 50% of cases the success of sportsmen is determined by their working environment and circumstances. The rest depends on coaches, the support of the sportsman’s family and friends, and of course their actual physical ability and skill. By improving the infrastructure of the sports sphere and increasing investments in it, there is sure to be a large boom in the success of ours sportsmen soon!
Written By Madona Gasanova
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