By David Owen

October 13 - AIBA, the international boxing association, spent nearly SFr4 million (£2.6 million/$4.1 million) more than it earned in the period between January 2007 and June 2010, according to financial statements circulated ahead of next month's AIBA Congress.

The SFr3.82 million (£2.51 million/$3.97 million) deficit took a big chunk out of the body's Unrestricted Funds, which plunged from SFr5.98 million (£3.93 million/$6.22 million) to SFr2.16 million (£1.42 million/$2.25 million) over the three-and-a-half years.

More than half of the deficit is explained by a SFr2.1 million (£1.3 million/$2.2 million) provision to cover a potential contribution to World Series of Boxing, the new global competition scheduled to get under way next month.

AIBA said that the provision was due to a loan to WSB and that this would be covered by franchise fees and the proceeds from other rights.

The external auditor report, signed by Pierre Henri Pingeon and Sandrine Wagnière of KPMG, put AIBA's "total exposure" to WSB at SFr3.4 million (£2.2 million/$3.5 million).

The report went on: "AIBA has recorded a provision of SFr2.1 million (£1.3 million/$2.2 million) in order to cover a potential contribution of AIBA required by the shareholders' agreement.

"The management of AIBA does not consider recording an additional provision, because the current results of WSB are in line with the business plan which forecasts a profitable result for the first season 2010/2011."

The year 2009 - including the first WSB-related revenues - was the only 12-month period in which AIBA's revenues, at SFr6.16 million (£4.04 million/$6.36 million), exceeded expenses.

The new competition is scheduled to get under way on November 19, with matches over the first weekend involving 12 teams based in Astana, Baku, Beijing, Delhi, Istanbul, Los Angeles, Memphis, Mexico City, Miami, Milan, Moscow and Paris.

An exhibition match between Astana and Istanbul is planned for the eve of the Congress on October 31 in Almaty.

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