Linda D. Robertson Associate Executive Director for Business September 2013.

Linda D. RobertsonAssociate Executive Director for

BusinessSeptember 2013

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


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)

2004 – Legislative study recommended raising fines for eligibility violations

2012 – HB 1403 changed eligibility rules on transfers


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


TruthZERO state funding or direct tax dollars

$0

The Business of FHSAA – Myths & TruthTruth7% INDIRECTLY from Public funds (Public

Schools)$168,100 Dues; $121,300 Fines; $58,700 Fees

(2012-13 FY)


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


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


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


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

funding source

= $

The Business of FHSAA – Myths & TruthTruthLess than 3% of resources are Fines (2012-13 FY)

($121,300 Public & $53,700 Private Schools)

The Business of the FHSAA – Myths & Truth

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

Where Money Comes From$5,164,000

2012-13 FY

Where Money Goes - $5,018,000

2012-13 FY

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: 92% of expense is Event Management, Officials, Training & Publications, and General Administration8% 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 2013-14

Did You Know?State Championship Series = 41% of Total

Resources

$2.1 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?Regular Season belongs to

Schools

FHSAA does not regulate ticket prices or share gate revenue

Did You Know?3,100+ State Series Post Season Events

were Hosted by Schools

Schools Share of Gate Receipts for District & Region:

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

Did You Know?FHSAA State Series Generates

Millions for High School’s Athletic Programs

Estimated $7.9 Million in 2012-13for Schools Athletic Programs

(Gate receipts, concessions, parking, and team payouts for Finals)

Did You Know?FHSAA State Championships:277 Finals Events Hosted by FHSAA each

Year

$1.1 Million per year – for FHSAAFunds used to pay:

Participating teamsOfficialsTrophiesOther event costs

Did You Know?Over the past 3 years, FHSAA has

redirected funds to schools through Policy Change

A Few Examples:Football Classics pay FHSAA $54,000 Less Membership Dues are $208,000 LessFHSAA share of District & Region is $50,000

LessFines at 10 year low, $175,000 in 2012-13 (was

$551,000 in 2007-08)

Did You Know?Over the past 3 years, FHSAA has expanded

the number of Classes and improved State Championship Venues to the benefit of Schools

A Few Examples:Team Payouts were $393,800 in 2012-13

($131,000 higher than 3 years ago)Team sports increased from 6 to 8 Classes –

now award 8 State Titles for each team sport -providing “championship” experience to more

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

How Policy is Changed

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

FHSAA PurposeFrom Articles of Incorporation approving FHSAA

as State of Florida not for profit corporationTo promote, direct and control all interscholastic athletics of schools of which

its members are principals, To establish, maintain and enforce such rules as may be necessary to provide

that all such activities shall be part of and contribute towards the entire educational programs of the high schools of the State of Florida,

To cooperate closely with the State Department of Education in the development of that program,

To safeguard the physical, mental and moral welfare of the students of Florida high schools and protect them from exploitation,

Through its members,…to improve opportunities for all Florida high school students, and protect their interests,

To advance the professional and welfare status of its members.

Must annually report to the Secretary of State of the State of Florida

Bottom Line

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

member schools FHSAA is a private, non-profit

corporation generating funds primarily from events and corporate partnerships

Linda D. Robertson Associate Executive Director for Business September 2013.

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