USRowing Financial Situation

[rowing]

USRowing has published some limited data on its financial situation...like many organizations they are experiencing significant headwinds.

2019 Form 990: https://usrowing.org/documents/2020/8/2 ... df?id=2360
2019 Audited Financial Statement: https://usrowing.org/documents/2020/8/2 ... df?id=2361

Even before COVID-19, USRowing was in serious financial trouble.

From their own documents, USRowing had a loss of over $700k in 2019, on a budget of $11-12mm. They ended 2019 with approximately $273k cash on hand after accepting an emergency loan of $300k in December to stay solvent.

In 2019, top paid employees:
Brian Klausner, CFO (who oversaw this debacle, and was demoted to finance specialist): $135k
Susan Smith, interim CEO: $133k
Tom Tehraar, women's chief coach: $274 + $14k benefits package
Laurel Korholz, women's assistant coach: $173k + $5k benefits package
Mike Teti, men's chief coach: $266k + $16k benefits package
Mark Nowak, head physio: $144k
Matt Imes, director of Performance: $136k
Patrick McNeery, fired CEO: $211k
Kris Korzeniowski, who left (laid off? terminated? in 2019): $111k

With Teti and Tehrarra both making roughly $100k more than comparable 2016 cycle pay, and seemingly having autonomy over their programs, it is difficult to justify how Imes received $136k to be in Illinois(? Indiana? Nowhere near athletes or staff...)

McNeery and Klausner received approximately $700k over two years and change that McNeery was at the helm while the organization had a net negative cashflow of almost $1mm. Pretty stunning.

While a new CEO has been chosen, it is not clear what their pay will be, although a look at the financials of their previous positions shows them making in the mid $100k range. Likely they will make in the $180-220k range at USRowing.

It appears last years JR National Worlds was a financial disaster, as previously reported; losing thousands.

Obviously, all of this is before COVID-19. USRowing has taken out PPP loans as well as EIDL (economic impact disaster loan) to stay afloat and significantly cut staff.

Based on their own data, regattas and conferences bring in roughly $2-2.5mm per year. They don't break out these expenses, so it is impossible to tell just how hard that will hit their bottom line this year. One has to imagine the $3+mm membership revenue is down as well, as many only register/renew right before participating in regattas, of which there are none this year.

$300+k in sponsorship revenue must also be fragile. Of note, last year they budgeted a 100% increase in sponsorship revenue. They obviously did not meet that, and it draws some scrutiny over whether the board is properly overseeing the budgeting process.

Some individuals are rightfully gone which may help the situation, but clearly there is no culture of financial health, and the board has failed in its oversight role (again - see high performance, athlete, treatment, Safesport, etc)

This is daunting for rowing in the United States. Can USRowing still field a competitive national team, host national regattas and events, and grow the sport? The sport is under attack in the collegiate ranks and USRowing is stuck in financial retreat.

Perhaps it is time for a bankruptcy-like consolidation where a "new" USRowing oversees the national team and high performance/USOPC liaison; a private regatta organization made up of specialists who organize and operate major successful regattas such as HOCR, Hooch, SDCC, HereNow, RegattaCentral, independently operate regattas, perhaps under a USRowing blessing or designation, and the NRF takes over advocacy for the sport and its growth, along with the thousands of highly successful clubs across the country that do a fine job themselves and often receive little to no value from USRowing.

[fullmetal]

USRowing is in the middle of a financial dumpster fire right now, no doubt about it.

...along with the thousands of highly successful clubs across the country that do a fine job themselves and often receive little to no value from USRowing.

USRowing sets the standard how rowing is conducted across the United States as well as supports the referee staff that oversees the rules at all these regattas. Furthermore, USRowing organizational insurance covers a lot of clubs who would otherwise be paying substantially higher premiums for the wide variety of events against which USRowing offers insurance. USRowing also oversees SafeSport compliance for coaches, administrators, and officials in the sport, and as much as people like to joke about such things, I believe such training and reporting responsibilities are important to prevent abuse and criminal behavior that would otherwise be hidden by various clubs and layers of power.

While you're right in that USRowing does bear responsibility for many functions, I'm not sure I see how an organizational split would result in more fiscal responsibility. If anything, now you have three bodies with their leadership to account for, many positions which will require identical knowledge of the sport, etc. I think you might find that the NT programs would suddenly be underfunded once an org split happens, and then you'll see the coaches leave for college jobs or retire...and the NT would become a shell of what it once was (is there any Olympic sport in the US that works with the structure you've proposed?).

Personally, I think starting the USRowing budget from scratch with accountability would be a better start. I've definitely heard of USRowing spending money on things that they should not have had to spend money on...maybe we need more board members who are willing to hold the leadership accountable to purpose and results. Board members focused on fiscal accountability would be a great start as well. I dunno, I'm never in the room where it happens.

[Faster-n-faster]

USRowing has published some limited data on its financial situation...like many organizations they are experiencing significant headwinds.

2019 Form 990: https://usrowing.org/documents/2020/8/2 ... df?id=2360
2019 Audited Financial Statement: https://usrowing.org/documents/2020/8/2 ... df?id=2361

Even before COVID-19, USRowing was in serious financial trouble.

From their own documents, USRowing had a loss of over $700k in 2019, on a budget of $11-12mm. They ended 2019 with approximately $273k cash on hand after accepting an emergency loan of $300k in December to stay solvent.

In 2019, top paid employees:
Brian Klausner, CFO (who oversaw this debacle, and was demoted to finance specialist): $135k
Susan Smith, interim CEO: $133k
Tom Tehraar, women's chief coach: $274 + $14k benefits package
Laurel Korholz, women's assistant coach: $173k + $5k benefits package
Mike Teti, men's chief coach: $266k + $16k benefits package
Mark Nowak, head physio: $144k
Matt Imes, director of Performance: $136k
Patrick McNeery, fired CEO: $211k
Kris Korzeniowski, who left (laid off? terminated? in 2019): $111k

With Teti and Tehrarra both making roughly $100k more than comparable 2016 cycle pay, and seemingly having autonomy over their programs, it is difficult to justify how Imes received $136k to be in Illinois(? Indiana? Nowhere near athletes or staff...)

McNeery and Klausner received approximately $700k over two years and change that McNeery was at the helm while the organization had a net negative cashflow of almost $1mm. Pretty stunning.

While a new CEO has been chosen, it is not clear what their pay will be, although a look at the financials of their previous positions shows them making in the mid $100k range. Likely they will make in the $180-220k range at USRowing.

It appears last years JR National Worlds was a financial disaster, as previously reported; losing thousands.

Obviously, all of this is before COVID-19. USRowing has taken out PPP loans as well as EIDL (economic impact disaster loan) to stay afloat and significantly cut staff.

Based on their own data, regattas and conferences bring in roughly $2-2.5mm per year. They don't break out these expenses, so it is impossible to tell just how hard that will hit their bottom line this year. One has to imagine the $3+mm membership revenue is down as well, as many only register/renew right before participating in regattas, of which there are none this year.

$300+k in sponsorship revenue must also be fragile. Of note, last year they budgeted a 100% increase in sponsorship revenue. They obviously did not meet that, and it draws some scrutiny over whether the board is properly overseeing the budgeting process.

Some individuals are rightfully gone which may help the situation, but clearly there is no culture of financial health, and the board has failed in its oversight role (again - see high performance, athlete, treatment, Safesport, etc)

This is daunting for rowing in the United States. Can USRowing still field a competitive national team, host national regattas and events, and grow the sport? The sport is under attack in the collegiate ranks and USRowing is stuck in financial retreat.

Perhaps it is time for a bankruptcy-like consolidation where a "new" USRowing oversees the national team and high performance/USOPC liaison; a private regatta organization made up of specialists who organize and operate major successful regattas such as HOCR, Hooch, SDCC, HereNow, RegattaCentral, independently operate regattas, perhaps under a USRowing blessing or designation, and the NRF takes over advocacy for the sport and its growth, along with the thousands of highly successful clubs across the country that do a fine job themselves and often receive little to no value from USRowing.

This is a good assessment and poses some good possibilities. There was some staff cuts over the last year which should help a bit - there were a few too many people on payroll who contributed little to the firm. I would like to see one of the highest salaries go towards someone who can get the organization more attention/PR/Sponsorships. Hire an expert and pay them a lot.

The sport is in trouble and will slip further towards irrelevance if it can’t attract viewers and interest. It doesn’t help that it’s governing body is broke and rudderless though.