USA Triathlon says it’s got more than enough money in the bank for now, and is looking to spend, spend, spend.
In what leaders are calling a major strategic shift, the national governing body will aim for a zero-profit budget over the course of the current Olympic cycle ending in 2020, dedicating all operating surpluses to grants and development programs throughout the triathlon industry.
That comes after an era in which operating returns were largely banked and invested. The organization’s net assets have grown from $7.6 million in 2012 to $13.9 million in 2017.
“I think we were very successful financially,” said Barry Siff, USA Triathlon board president. “We made some wonderful investments — we bought our building, which was a great investment, a really great financial move. But I think over those years, we focused on being a successful business financially, and what we realized as a board was, we weren’t reinvesting in the important things and that is our people.”
We focused on being a successful business ... and what we realized as a board was, we weren’t reinvesting in the important things and that is our people.
Barry Siff
USA Triathlon board president
USA Triathlon membership has been steady or declining since a peak in 2012. In that no-growth environment, CEO Rocky Harris said, the best use of USA Triathlon’s money is elsewhere.
“We decided it was best to put every dollar back into the sport to create some stimulus, of sorts, or at the very least to invest in some basic things that help the entire industry,” Harris said.
To start, the group has pledged the full $1.9 million surplus generated in 2017 (on $17.4 million in revenue) to programs that include Time to Tri, a collaboration with Ironman to encourage beginners; an anti-doping awareness campaign; sexual assault prevention programs; online tools to help local race directors more efficiently operate their events; data upgrades; and grants to club and scholastic programs.
In one example, USAT recently gave Hampton University a $225,000 grant to launch a women’s triathlon program.
USA Triathlon also is cutting the cost of certain services it provides to members, such as dropping the price of the annual race director symposium by 50 percent to $199.
The board signed off on the plan in January, but the shift has its roots in a May 2017 strategic plan overhaul. Former CEO Rob Urbach stepped down around then, and Harris was hired three months later.
Many sports governing bodies in the Olympic movement struggle with how to use their assets. Most are challenged to finance the vast range of activities and services they’re expected to provide, so the appeal of a robust bank account is strong. But spending to grow the sport is required as a condition of their federal nonprofit tax status.
