FHSAA – The Business Myths & Truth

Linda D. RobertsonAssociate Executive Director for

Business

The Business of FHSAA – Myths & Truth

Myth #1FHSAA was created byFlorida Law

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

The Business of FHSAA – Myths & TruthTruth1952 – Designated a Non-Profit Private

CorporationGoverned by its Public & Private School

MEMBERS

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)

2012 – HB 1403 changed eligibility rules on transfers

2013 – HB 1279 failed to pass – would have terminated FHSAA as public school governing organization

The Business of FHSAA – Myths & Truth

Myth #2Perceived as relying on Public Funds (taxes)

The Business of FHSAA – Myths & Truth

TruthZERO state funding or direct tax dollars

$0

The Business of FHSAA – Myths & Truth

Truth7% INDIRECTLY from Public funds

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

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

The Business of FHSAA – Myths & Truth

Truth

Public Schools rely heavily on Activity Funds from ticket sales, fund raisers and donations to fund Athletics

Most Public Schools use NON-PUBLIC funds to pay FHSAA dues & fines

The Business of FHSAA – Myths & Truth

Myth #3:Perceived as relying on Penalties/Fines for

funding source

= $

The Business of FHSAA – Myths & Truth

TruthLess than 6% of resources are Fines

The Business of the FHSAA – Myths & Truth

Truth:

You can Define the Purpose of a Business by where it gets its money and how it spends its money

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

Myth #4: FHSAA is primarily regulatory in nature, a quasi-state agency

Where Money Comes From$5,200,000

Where Money Goes - $5,300,000

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: 91% of expense is Event Management, Officials, Training & Publications9% of expense is Compliance and EligibilityFHSAA gets ZERO from the StateFHSAA is a Non-Profit Private Corporation

Did You Know?90+ years ago……FHSAA

Members determinedState Championships should

be organized & the PRIMARY

Source of funding for the FHSAA

Did You Know?The First State Championships were

in 1922-Boys Basketball-Baseball-Tennis

32 State Championships in 2012-13

Did You Know?State Championship Series = 45% of Total

Resources

$2.25 Million out of $5.2 Million Budget

Did You Know?

FHSAA Members through representatives -

determineBy-Law & Policy on

School’s Share of State Playoffs

Did You Know?3,100+ State Series Events were Hosted by

Schools

Schools Share Gate Receipts for District & Region:

100% of gate for 24 sports85% of gate for 7 sports75% of gate for football

Did You Know?FHSAA State Series Generates

Millions for High School’s Athletic Programs

Raised $7.5 Million in 2012-13 – for Schools

(Gate receipts, concessions, parking)

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

Did You Know?Over the past 2 years, FHSAA has

redirected significant funds to schoolsA Few Examples:Football Classics pay FHSAA $54,000 Less Membership Dues are $215,000 LessFHSAA share of District & Region is $20,000

Less

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”

What’s Next?3 yr Plan – Fee Adjustments

1. Eliminate FHSAA share of gate for State Series Dist/Region for Individual Sports – was 15% (CC, SW, TRK, WR) – NOW Zero Shared 2013-14

2. Eliminate/Reduce Tournament Sanction Fees

3. Eliminate/Reduce FHSAA membership and Legal fees

Myth #5:The only way to change FHSAA rules is by Statute

The Truth

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

What IFHB1279 Had Passed?

1. Governance of the FHSAA would have been removed from its Member’s control

2. Eligibility Rules severely changed 3. Executive Director and Board would be

replaced4. Restrictions on funding the Organization

determined by Legislature – designed to financially strangle the Corporation in 4 years

5. FHSAA terminated in 4 years as Public School governing organization

Bottom Line

FHSAA was formed 93 yrs ago by schools FHSAA By-Laws & Policy are written by

member schools

YOU ARE THE FHSAA!