fhsaa – the business myths & truth
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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 - PowerPoint PPT PresentationTRANSCRIPT
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Linda D. RobertsonAssociate Executive Director for
BusinessSeptember 2014
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The Business of FHSAA – Myths & Truth
Myth #1FHSAA was created byFlorida Law
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The Business of FHSAA – Myths & TruthTruth1920 - Opened as a Private Corporation –
operating out of UF’s Peabody HallOrganized and formed by coaches seeking fair
play
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The Business of FHSAA – Myths & TruthTruth1952 – Designated a Non-Profit Private
CorporationGoverned by its Public & Private School
MEMBERS
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The Business of FHSAA – Myths & Truth
Truth
Nothing in Florida Statues for first 76 years
1997 - Legislation in Florida StatutesNamed 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
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The Business of FHSAA – Myths & Truth
Myth #2Perceived as relying on Public Funds (taxes)
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The Business of FHSAA – Myths & Truth
TruthZERO state funding or direct tax dollars
$0
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The Business of FHSAA – Myths & TruthTruth7% INDIRECTLY from Public funds (Public
Schools)$163,800 Dues; $126,540 Fines; $108,102 Fees
(2013-14 FY)
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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
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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
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The Business of FHSAA – Myths & Truth
TruthPublic 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
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The Business of FHSAA – Myths & Truth
Myth #3:Perceived as relying on Penalties/Fines for
funding source
= $
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The Business of FHSAA – Myths & TruthTruthLess than 3% of resources are Fines (2013-14 FY)
($126,540 Public & $23,460 Private Schools)
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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
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Where Money Comes From$5,297,426
2013-14 FY
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Where Money Goes - $5,032,501
2013-14 FY
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The Business of the FHSAA – Myths & TruthYou 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 Administration11% of expense is Compliance and EligibilityFHSAA gets ZERO from the StateFHSAA is a Non-Profit Private Corporation
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Did You Know?90+ years ago……FHSAA
Members determinedState Championships should
be organized & the PRIMARY
Source of funding for the FHSAA
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Did You Know?The First State Championships were
in 1922-Boys Basketball-Baseball-Tennis
32 State Championships in 2013-14
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Did You Know?State Championship Series = 40% of Total
Resources
$2.1 Million out of $5.3 Million Budget
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Did You Know?
FHSAA Members through representatives -
determineBy-Law & Policy on
School’s Share of State Playoffs
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Did You Know?Regular Season belongs to
Schools
FHSAA does not regulate ticket prices or share gate revenue
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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 sports85% for 7 sports75% for football
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Did You Know?FHSAA State Series Generates
Millions for High School’s Athletic Programs
Estimated $7.9 Million in 2012-13for Schools Athletic Programs
(Gate receipts, concessions, parking, and team payouts for Finals)
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Did You Know?FHSAA State Championships:277 Finals Events Hosted by FHSAA each
Year
$1.2 Million per year – for FHSAAFunds used to pay:
Participating teamsOfficialsTrophiesOther event costs
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Did You Know?
$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
In 2014-15 - FHSAA will redirect $983,000 more PER YEAR to schools compared to 2009
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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 keepTotal Annual Increased
resources to High School Athletics since 2009 =
$1,583,000
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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”
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501c(3) Annual Resources Then and Now
Florida High School Athletic Association
State Series Events
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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
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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 AssemblyFHSAA Board of Directors
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FHSAA PurposeFrom Articles of Incorporation approving FHSAA
as State of Florida not for profit corporationTo 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
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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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