USA Cycling last week laid off or furloughed more than 30% of its 70-person work forceUSA CYCLING
Forty three of the 50 USOPC NGBs that took part in a survey said that they are projected to experience combined "losses of more than" $121M in revenue between February and June, according to the AP. Not including the USTA, the NGBs "have a combined annual revenue of about" $685M. Half the NGBs are "little more than mom-and-pop operations, working with small staffs and on revenue of not more than" $5M per year. The postponement of the Tokyo Games "forces the federation to make up for a shortfall nearing" $200M "without the NBC payout that comes in Olympic years." The USOPC "broke with recent practice by not taking out insurance against the possible loss, instead deciding to self-insure." Some of the shortfall is "expected to come from an endowment fund created out of a surplus" from the '84 Los Angeles Games. The USOPC said that the "losses across sports could range" from $600-800M. U.S. Biathlon Association President & CEO and USOPC NGB Council Chair Max Cobb said, "I haven't heard anyone say their NGB itself was going to go out of business." Meanwhile, the AP noted USA Swimming gets the "lion's share of their funding from membership dues, which are taking a hit as facilities around the nation close at the orders of state and local governments." USA Swimming President & CEO Tim Hinchey said, "We, as an NGB, will feel it next fall when memberships start rolling in. That shortfall could have a profound effect" (AP, 3/27).
A CLOSER LOOK: In Colorado Springs, Briggeman & Shefte noted sweeping personnel cuts made by USA Cycling "appear to be the outlier" as Colorado Springs-based sports NGBs "adjust to new financial realities while, so far, keeping staff members employed." USA Weightlifting CEO Phil Andrew is "taking a voluntary pay cut." Others are "leaning on membership dues that make up a bigger slice of their revenue than events." USA Basketball, Swimming, Triathlon, Weightlifting and Wrestling were among the organizations who said that they "don't plan to reduce staff." Briggeman & Shefte "reached out to 19 NGBs based in the city, and all ten who responded said they had not laid off staff or intended to do so." It is "unclear how much help" the USOPC may provide, as its request for $200M in relief as part of the $2T congressional stimulus packaged was denied (Colorado Springs GAZETTE, 3/29).
