USAT AAC

Hello again,
After reading the previous posting on the USAT Board Meeting
Resolution, please review the following financial analysis, which
shows that many of the arguments in the resolution are very misleading.
Thanks,
Alison

Financial Analysis of USA Triathlon's Affiliation with the USOC

The following is a review of the financial impact of USAT's
affiliation with the USOC. The data for the analysis was taken from USAT financial reports for the past four years including the value-in-kind (VIK) reports (which may not have been included in our financial reports in the earlier years of the quad as USAT did not recognize all VIK in its financial statements in 2001 and 2002). The VIK allocations from the USOC were used
between our Olympic programs as well as our Age Group/National
Office programs. This analysis looks at USAT's involvement with the
USOC and its direct impact on our financial statements, cash flows
and finally the bottom line (did it impact our Federation positively
or negatively). The analysis only looks at concrete financial
amounts that flowed through our books or would have directly
impacted them through VIK allocations to our Federation.

Although there has been a direct impact, the analysis did not
consider how much our affiliation impacted our membership growth
through the quad and therefore does not include revenues generated
from membership sales. The analysis again is based on historical
information and does not include the impact of any future
sponsorships or positive goodwill to be generated out of our
affiliation with the Olympic movement.

My overall conclusion in this analysis is that our USOC affiliation
(and NGB status) had a direct positive impact to our bottom line
over the four years of approximately $270,000 in additional net
income. During this four year period, the USOC contributed in
either cash or VIK a total of $2.5 million dollars to USA
Triathlon. This amount was determined based on the calculations and
analysis as detailed in the income statement below.

Junior and Regional Programs
The calculation of costs for the programs include expenses
associated with USAT's junior programs, race series, camps, clinics
and funding to the regions for junior activities through the RADC
programs. In determining the overall impact, these costs may need
to be deducted from the "USOC" program costs as USAT may have funded
certain of the junior programs separately. However, this analysis
includes these costs in determining the full impact as detailed
below.

Sponsorships
Specific values as directed for Olympic/Elite programs contained in
USAT sponsorships over the quad have been included in the analysis
below. Only specific sponsors as related to the Olympic program
have been included in the analysis. However, other sponsorships
during this period have clauses that would be negatively impacted by
USA Triathlon not being recognized as the National Governing Body
for triathlon. An example of this is our current contract for our
affinity credit card which could be terminated upon losing our NGB
status. This sponsorship has generated approximately $100,000 in
royalties over the past four years. This contract is not included
in the analysis below.

Conclusion
As discussed above, from a financial perspective, USAT has actually
derived positive revenue and income from it's designation as an NGB
and affiliation with the USOC. USAT has received $2.5 million of
combined dollars and VIK from the USOC over the quad which has been
a significant investment into the sport and our actual USAT dollars
spent for the programs continues to decrease.

-Bill Wengert, USA Triathlon Director of Finance

------------------------ Yahoo! Groups Sponsor --------------------~-->
Give the gift of life to a sick child.
Support St. Jude Children's Research Hospital's 'Thanks & Giving.'
http://us.click.yahoo.com/5iY7fA/6WnJAA/Y3ZIAA/k3UolB/TM
--------------------------------------------------------------------~->

Yahoo! Groups Links

<*> To visit your group on the web, go to:
http://groups.yahoo.com/group/e-litebeat/

<*> To unsubscribe from this group, send an email to:
e-litebeat-unsubscribe@yahoogroups.com

<*> Your use of Yahoo! Groups is subject to:
http://docs.yahoo.com/info/terms/

posted by andy  # 1:40 AM