All-Star Usasf Independence

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I still believe that the opportunity cost of continuing to have it in that sardine can at WWOS is astronomical.

I have to agree with this statement. I think worlds, as an event, has the potential to create a larger demographic of cheer "fans" and increase the number of spectators that watch our sport. However, without a bigger venue this is impossible. I am attending worlds this year for the first time, and I am truly nervous about getting into venues and actually seeing the competition. Having the event in such an inadequate facility is truly a detriment to the athletes, fans, and the sport itself.
 
So, here was my list of suggested improvements from earlier. Are there ones on here that people don't agree with? Are there other improvements that could be made?
  1. No conglomerate/company/gym/person should have permanent board seats.
  2. No conglomerate/company/gym/person should have a permanent executive position.
  3. There should be free and open elections for all positions of power in an independent governing body.
  4. The financials of the organization should be absolutely public. (A 5-6 line "summary" does NOT count.)
  5. The financials of the organization should be done by an independent, outside accounting firm. (EDIT: The accounting firm should have the ability to redact limited salary information at THEIR discretion.)
  6. The votes of the Board should be public.
  7. There should be term limits for all elected/appointed officials.
  8. Nominations and appointments should be based on merit, not seniority, friendships, "loyalty", or quid pro quo.
  9. Board seats belong to the public, not to companies. (If a Cheer Athletics person resigns their seat on the board, then Cheer Athletics doesn't get to appoint the replacement. The replacement is decided by the same process that elected that seat in the first place.)
  10. There should be a much more fair and representative distribution of board seats. suggestion - 1/3 EP, 1/3 coaches-gym owners, 1/3 "other". (Industry vendors, media, judges, neutral outside party, etc.)
  11. Worlds must be moved to an adequate venue ASAP. Sub-contracting out the event deserves strong consideration.
  12. No single conglomerate should control/occupy more than 3 total seats on the board.
  13. Coach board seats should have regional representation. Nominations/Voting for those seats should be a completely open process.
  14. The USASF should control all of the intellectual property of Worlds.
  15. The USASF should not control what events athletes/gyms/judges/coaches can go to. If Worlds can't compete with other "World Championships", then make Worlds better. Don't threaten people with being banned from Worlds because your event can't compete on it's own merit.
  16. Event Producers should be allowed to host bid-giving events wherever and whenever they choose (up to the number of bids they are qualified.) Protectionism for certain events and event producers is not acceptable. If those events can't compete with other events, then they should make their event better. Don't threaten event producers with being banned from USASF to help certain EPs.
  17. Judge education/training, standardized scoring, coaches training, gym owner business training all need to be moved up the priority list.
  18. Controlling the uniforms, tumbling rule decisions outside of the NACCC/Rules Committee, PR & focus groups, and the amount hugging/excitement allowed after performances should be moved off of the priority list.
I would add:

19. USASF offices and employees should be free from Varsity (or any other private company's) control. Any non-compete clause should be allowed to expire at it's normal rate. (If you have a Varsity non-compete for 2 years after cessation of employment, your time at USASF doesn't count as time at "Varsity" time.)

20. Bills/proposals/etc that get voted on by the board are made public prior to their vote. The secrecy that pervades the process is damaging to the legitimacy of the USASF and completely unnecessary. If a board member doesn't have the strength to vote for something and stand behind it publicly, then they either shouldn't be a board member or shouldn't be voting in a way they are ashamed of. (I am willing to stand behind and defend ALL of my votes if they want to make those public.) A VERY LIMITED amount of discretion regarding financially sensitive information should be allowed for. This power should rarely be used and only allowed when signed off on by the independent accounting firm. (see #5)

21. The entire contract with Disney should be made public. Any extension of this contract should be made with the full knowledge, oversight, and approval of the board. Any side deals, kickbacks, or collusion with other Disney contracts should be made available to the entire membership of the board.

22. Any board member or full-time USASF employee should be required to disclose any and all ownership in cheer-related businesses and all cheer-related business with which they are partnered/under contract for/have potential conflict of interest with. Also, all ownership interest of their employers must be revealed. (If you are a CheerSport employee, then the exact nature of CheerSport's ownership should be public information.)

Feel free to make other suggestions.
Most of what you are proposing is exactly what is required of compliant 501(c)(3) organizations….i.e….financials public…990 Tax returns must be files and are public…board members must be free of conflict or affiliation….no member of the board is to receive monies or benefit for organization contracts…..creation of committee such as safety, competition rules, competition standards, coaches credentialing, judges education and credentialing….if there are employees, they cannot be associated or gain benefit from the workings of the organization…this is on the right track….
 
Donate money to pay off said loan.
LOAN FROM VARSITY TO USASF

1. Initial $1.7 million dollars interest free loan to USASF
2003 $1,700.000 loan
2004 $ ????? payment
2005$ ????? payment
2006$ ????? payment
2007$ ????? payment
2008$ 230,279 payment
2009 $ 391,202 payment
2010$ 287,808 payment
2011$ 150,112 payment
2012$ ?????? payment
$ 640,599 balance remaining without 5 payments
This means the unaccounted for loan payments could be as low as $129,000 per the 5 missing payment amounts…this loan appears to have been paid off and possibly then some…has anyone ever seen the original loan documents?
 
A few points:

1. I disagree with the concept that 2/3 of the seats on the board would be held by event producers and industry vendors. I would argue that at most they should have 1/3 of the seats on the board combined, and that's probably pushing it.

2. Totally agree with sub-contracting Worlds and opening it up to the highest bidder. I've been saying that for as long as I've been on the board. The USASF shouldn't be in the EP business.

3. No conglomerate should hold more than 1 seat on the board. Period.

The USASF is not in the EP business. They have a Worlds Advisory Committee, Chairperson Steve Peterson, but it was made very clear to me from a number of Disney WWOS and Youth Sports Representatives in a meeting I had with them last year that Varsity Corp is who holds the contract with them to hold Worlds. They didn't know what the USASF was until I described it to them.

While it may be possible that is because they were somehow at a level to not deal with a USASF representative, the part that struck me as odd was that they all could name Varsity as the company they were dealing with.
 
LOAN FROM VARSITY TO USASF

1. Initial $1.7 million dollars interest free loan to USASF
2003 $1,700.000 loan
2004 $ ????? payment
2005$ ????? payment
2006$ ????? payment
2007$ ????? payment
2008$ 230,279 payment
2009 $ 391,202 payment
2010$ 287,808 payment
2011$ 150,112 payment
2012$ ?????? payment
$ 640,599 balance remaining without 5 payments
This means the unaccounted for loan payments could be as low as $129,000 per the 5 missing payment amounts…this loan appears to have been paid off and possibly then some…has anyone ever seen the original loan documents?

Well seeing this is the biggest Worlds ever I would imagine it would be at least 150k. So without those 5 payments the guesstimated worst scenario is 4 more years? Where did you get those payments again?
 
Well seeing this is the biggest Worlds ever I would imagine it would be at least 150k. So without those 5 payments the guesstimated worst scenario is 4 more years? Where did you get those payments again?
USASF Financials on their website….
 
Well seeing this is the biggest Worlds ever I would imagine it would be at least 150k. So without those 5 payments the guesstimated worst scenario is 4 more years? Where did you get those payments again?
Does anyone have the financial reports from previous years? Question marks are because no information available, not because there were no payments…payment amounts unknown….for the prior years.
 
The USASF is not in the EP business. They have a Worlds Advisory Committee, Chairperson Steve Peterson, but it was made very clear to me from a number of Disney WWOS and Youth Sports Representatives in a meeting I had with them last year that Varsity Corp is who holds the contract with them to hold Worlds. They didn't know what the USASF was until I described it to them.

:jawdrop: Please elaborate. This is astonishing to me.
 
So, here was my list of suggested improvements from earlier. Are there ones on here that people don't agree with? Are there other improvements that could be made?
  1. No conglomerate/company/gym/person should have permanent board seats.
  2. No conglomerate/company/gym/person should have a permanent executive position.
  3. There should be free and open elections for all positions of power in an independent governing body.
  4. The financials of the organization should be absolutely public. (A 5-6 line "summary" does NOT count.)
  5. The financials of the organization should be done by an independent, outside accounting firm. (EDIT: The accounting firm should have the ability to redact limited salary information at THEIR discretion.)
  6. The votes of the Board should be public.
  7. There should be term limits for all elected/appointed officials.
  8. Nominations and appointments should be based on merit, not seniority, friendships, "loyalty", or quid pro quo.
  9. Board seats belong to the public, not to companies. (If a Cheer Athletics person resigns their seat on the board, then Cheer Athletics doesn't get to appoint the replacement. The replacement is decided by the same process that elected that seat in the first place.)
  10. There should be a much more fair and representative distribution of board seats. suggestion - 1/3 EP, 1/3 coaches-gym owners, 1/3 "other". (Industry vendors, media, judges, neutral outside party, etc.)
  11. Worlds must be moved to an adequate venue ASAP. Sub-contracting out the event deserves strong consideration.
  12. No single conglomerate should control/occupy more than 3 total seats on the board.
  13. Coach board seats should have regional representation. Nominations/Voting for those seats should be a completely open process.
  14. The USASF should control all of the intellectual property of Worlds.
  15. The USASF should not control what events athletes/gyms/judges/coaches can go to. If Worlds can't compete with other "World Championships", then make Worlds better. Don't threaten people with being banned from Worlds because your event can't compete on it's own merit.
  16. Event Producers should be allowed to host bid-giving events wherever and whenever they choose (up to the number of bids they are qualified.) Protectionism for certain events and event producers is not acceptable. If those events can't compete with other events, then they should make their event better. Don't threaten event producers with being banned from USASF to help certain EPs.
  17. Judge education/training, standardized scoring, coaches training, gym owner business training all need to be moved up the priority list.
  18. Controlling the uniforms, tumbling rule decisions outside of the NACCC/Rules Committee, PR & focus groups, and the amount hugging/excitement allowed after performances should be moved off of the priority list.
I would add:
19. USASF offices and employees should be free from Varsity (or any other private company's) control. Any non-compete clause should be allowed to expire at it's normal rate. (If you have a Varsity non-compete for 2 years after cessation of employment, your time at USASF doesn't count as time at "Varsity" time.)

20. Bills/proposals/etc that get voted on by the board are made public prior to their vote. The secrecy that pervades the process is damaging to the legitimacy of the USASF and completely unnecessary. If a board member doesn't have the strength to vote for something and stand behind it publicly, then they either shouldn't be a board member or shouldn't be voting in a way they are ashamed of. (I am willing to stand behind and defend ALL of my votes if they want to make those public.) A VERY LIMITED amount of discretion regarding financially sensitive information should be allowed for. This power should rarely be used and only allowed when signed off on by the independent accounting firm. (see #5)

21. The entire contract with Disney should be made public. Any extension of this contract should be made with the full knowledge, oversight, and approval of the board. Any side deals, kickbacks, or collusion with other Disney contracts should be made available to the entire membership of the board.

22. Any board member or full-time USASF employee should be required to disclose any and all ownership in cheer-related businesses and all cheer-related business with which they are partnered/under contract for/have potential conflict of interest with. Also, all ownership interest of their employers must be revealed. (If you are a CheerSport employee, then the exact nature of CheerSport's ownership should be public information.)

Feel free to make other suggestions.

What I would add to that list:
  • Move athlete registration up the priority list (so no cheating with ages / non-registered athletes, etc. is possible)
  • Only a part of the board members is elected each year to ensure continuity in their work (for example: if they are elected every 5 years, 1/5th of the seats are up for election each year, distributed evenly among the different groups represented).
 
Since I don't know the exact structures: if the USASF becomes truly independent from Varsity, would that also include an independence for the ICU or would they have to do it on their own?
 
Well seeing this is the biggest Worlds ever I would imagine it would be at least 150k. So without those 5 payments the guesstimated worst scenario is 4 more years? Where did you get those payments again?
We are assuming that everything in the "debt paydown" line are payments to Varsity debt. It has been said that the Varsity loan was interest-free, but we have not seen any documentation of that. Also, I don't recall being given a specific amount that the initial loan was for. Was it simply a lump sum payment day one? Did USASF have to go back later and borrow more? There is currently no reason to doubt the small amount of information that has been released, but it would be nice to have more to go on.

Also, it is not clear if there are other ways that Varsity has benefitted. It is possible that bundling the USASF event into it's contract with Disney allows it to profit more from its other events. In and of itself, this doesn't necessarily make it a bad deal for USASF. In fact, USASF may even benefit as well - but that should be something that is open to the USASF members. (My stance on having the event at Disney is pretty well-known, however, that doesn't automatically make the Disney contract bad.) The USASF membership just doesn't know enough to be able to judge that.

I also think that when people ask for financials, they are wanting much more detail than what has been released thus far. As an example, here are the financials for other "national governing bodies". Compare the level of detail and openness:

501 (C) (3) Organizations:
USA Tennis
USA Gymnastics
USA Volleyball
USA Field Hockey
USA Figure Skating
USA Wrestling
USA Track & Field
USA Golf
USA Rugby
USA Bowling
(..... many others, you get the idea)

501 (C) (6) Organization
USASF

It is worth noting that the only two other 501 (c) 6 sports "governing bodies" that I could locate with a medium amount of searching were ICU and USA Cheer - both of whom are headquartered in the same building as USASF. Perhaps there are others, but I couldn't find them in a quick search.
 
The NFL is a 501c6. But obviously not the governing body.


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The NFL is a 501c6. But obviously not the governing body.

Oops, I found one. The Women's Flat Track Derby Association says it's a 501(C)6 on it's Facebook page. However, it claims it is a 501(c)3 on it's main web site. Not sure which is correct. They may want to check that out - some people frown on misrepresenting your 501 C status.
 
It's actually illegal to misrepresent your tax status if I am not mistaken

ETA: I'm not a tax or legal expert so I guess that's more of an assumption/question.

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This post in the Still Not A Sport thread really saddens me:

see pg 45 and 46 Appendix B: letters from Jim Lord and Greg Webb 2002.

http://www.ncwge.org/PDF/Title_IX_Coalition_Report_Final.pdf

I've read a lot of official documents an testimony to Varsity's intentions but never solidified AACCAs involvement.

The saddest part of this whole discussion is how it stifles a true safety culture that could happen if cheer became a true sport.

There are too many risks being allowed with kids in my opinion.


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