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FHSAA – The Business Myths & Truth

FHSAA – The Business Myths & Truth. Linda D. Robertson Associate Executive Director for Business September 2014. The Business of FHSAA – Myths & Truth. Myth # 1 FHSAA was created by Florida Law. The Business of FHSAA – Myths & Truth. Truth

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FHSAA – The Business Myths & Truth

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  1. FHSAA – The BusinessMyths & Truth Linda D. Robertson Associate Executive Director for Business September 2014

  2. The Business of FHSAA – Myths & Truth Myth #1 FHSAA was created by Florida Law

  3. The Business of FHSAA – Myths & Truth Truth • 1920 - Opened as a Private Corporation – operating out of UF’s Peabody Hall • Organized and formed by coaches seeking fair play

  4. The Business of FHSAA – Myths & Truth Truth • 1952 – Designated a Non-Profit Private Corporation • Governed by its Public & Private School MEMBERS

  5. The Business of FHSAA – Myths & Truth Truth • Nothing in Florida Statues for first 76 years • 1997 - Legislation in Florida Statutes • Named the governing organization for HS athletics for PUBLIC schools (no option) • 2004 – Legislative study recommended raising fines for eligibility violations • 2012 – HB 1403 changed eligibility rules on transfers

  6. The Business of FHSAA – Myths & Truth Myth #2 • Perceived as relying on Public Funds (taxes)

  7. The Business of FHSAA – Myths & Truth Truth • ZERO state funding or direct tax dollars $0

  8. The Business of FHSAA – Myths & Truth Truth • 7% INDIRECTLY from Public funds (Public Schools) • $163,800 Dues; $126,540 Fines; $108,102 Fees (2013-14 FY)

  9. The Business of FHSAA – Myths & Truth What Are Public Funds? “Public fund refers to the funds of every political division of a state wherein taxes are levied for public purposes.” - uslegal.om

  10. The Business of FHSAA – Myths & Truth Truth: The State of Florida funds Public Schools through the FEFP (Florida Education Finance Program) FEFP does NOT provide funding for Athletics or Extra Curricular Activities

  11. The Business of FHSAA – Myths & Truth Truth • Public Schools rely heavily on Activity Funds from ticket sales, fund raisers and donations to fund Athletics • FHSAA Policy requires member schools to only use non-public funds to pay FHSAA dues, fees and fines • Ticket sale income is not Public Funds

  12. The Business of FHSAA – Myths & Truth Myth #3: • Perceived as relying on Penalties/Fines for funding source = $

  13. The Business of FHSAA – Myths & Truth Truth • Less than 3% of resources are Fines (2013-14 FY) ($126,540 Public & $23,460 Private Schools)

  14. The Business of the FHSAA – Myths & Truth You can Define the Purpose of a Business by where it gets its money and how it spends its money

  15. Where Money Comes From$5,297,426 2013-14 FY

  16. Where Money Goes - $5,032,501 2013-14 FY

  17. The Business of the FHSAA – Myths & Truth You can Define the Purpose of a Business by where it gets its money and how it spends its money Truth: • 89% of expense is Event Management, Officials, Training & Publications, and General Administration • 11% of expense is Compliance and Eligibility • FHSAA gets ZERO from the State • FHSAA is a Non-Profit Private Corporation

  18. Did You Know? 90+ years ago……FHSAA Members determined State Championships should be organized & the PRIMARY Source of funding for the FHSAA

  19. Did You Know? The First State Championships were in 1922 -Boys Basketball -Baseball -Tennis 32 State Championships in 2013-14

  20. Did You Know? State Championship Series = 40% of Total Resources $2.1 Million out of $5.3 Million Budget

  21. Did You Know? FHSAA Members through representatives - determine By-Law & Policy on School’s Share of State Playoffs

  22. Did You Know? Regular Season belongs to Schools FHSAA does not regulate ticket prices or share gate revenue

  23. Did You Know? 3,100+ State Series Post Season Events were Hosted by Schools Schools Share of Gate Receipts for District & Region: 100% for 24 sports 85% for 7 sports 75% for football

  24. Did You Know? FHSAA State Series Generates Millions for High School’s Athletic Programs Estimated $7.9 Million in 2012-13 for Schools Athletic Programs (Gate receipts, concessions, parking, and team payouts for Finals)

  25. Did You Know? FHSAA State Championships: 277 Finals Events Hosted by FHSAA each Year $1.2 Million per year – for FHSAA Funds used to pay: Participating teams Officials Trophies Other event costs

  26. Did You Know? In 2014-15 - FHSAA will redirect $983,000 more PER YEAR to schools compared to 2009 $400,000 - Membership Dues Reduced to nominal $25 $168,000 – More being paid to Finals Teams $191,000 – Less in Fines $116,000 – Less in FB Classic Fees & elimination of Recognized Sport Participation fees $65,000 – Less in Tournament Sanction Fees $43,000 - FHSAA Share of State Series Reduced – now only collect 15% on 7 sports and 25% football

  27. 5 Yr Record In Addition to redirecting $983,000 more PER YEAR to schools from FHSAA funds: 2011-12 set $1 increase in State Series ticket price – Generating $600,000 per Year for Host Schools to keep Total Annual Increased resources to High School Athletics since 2009 = $1,583,000

  28. Financial Goal “Fund the organization with 100% ticket sales from State Finals, Sponsorships, Media contracts, and Royalties so there is No Financial Burden to our Schools”

  29. 501c(3) Annual Resources Then and Now State Series Events Florida High School Athletic Association

  30. What’s Next?3 yr Plan – Fee Adjustments Eliminate/Reduce regular season tournament sanction fees for member schools hosting events • 30% reduction for 2014-15 • Goal is to eliminate completely by 2017-18 Monitor and collect fees on third parties (non-members) hosting or sponsoring events and any nationally televised events

  31. How Policy is Changed Eligibility rules, Fees, Dues and Revenue sharing are developed in By-Law and Policy from elected representation of our MEMBER SCHOOLS • Representative Assembly • FHSAA Board of Directors

  32. FHSAA PurposeFrom Articles of Incorporation approving FHSAA as State of Florida not for profit corporation To promote, direct and control all interscholastic athletics of schools of which its members are principals, To establish, maintain and enforce such rules as may be necessary to provide that all such activities shall be part of and contribute towards the entire educational programs of the high schools of the State of Florida, To cooperate closely with the State Department of Education in the development of that program, To safeguard the physical, mental and moral welfare of the students of Florida high schools and protect them from exploitation, Through its members,…to improve opportunities for all Florida high school students, and protect their interests, To advance the professional and welfare status of its members. Must annually report to the Secretary of State of the State of Florida

  33. Bottom Line • FHSAA was formed 94 yrs ago by schools • FHSAA By-Laws & Policy are written by member schools • FHSAA is a private, non-profit corporation generating funds primarily from events and corporate partnerships

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