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NEWS 6 ADIDAS Launches Lightest Basketball Shoe 7 AMER SPORTS Q1 Sales Climb 20.5 Percent ASICS AMERICA Restructures Sales Team 8 FAMOUS FOOTWEAR'S Comps Depressed by Weather, Lack of Promotions CABELA'S First Quarter Comps Jump 8.9 Percent 9 UNDER ARMOUR'S Charged Cotton Helps Lift Q1 Profits and Revenues PUMA Q1 Revenues Climb 13 Percent, Led by North America

FEATURES 10 STATE OF PLAY Team Sports’ Governing Bodies And Sporting Goods Industry Trade Associations Open Door To Increased Cooperation 14 WHY THE 2011-2012 SCHOOL YEAR COULD BE THE TOUGHEST YET JOB CLASSIFIEDS 18 TOP JOBS OF THE WEEK

Group Publisher / Editor–in–ChiefJames Hartford

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A Weekly Web Magazine for the Sporting Goods Industry

MAY 2, 2011

Photo courtesy of

adidas adiZero Crazy Light

WEEK 1118 | SGBweekly.com 5

6 SGB WEEKLY l MAY 2, 2011

Adidas unveiled the adiZero Crazy Light, declaring it the lightest Adidas basketball shoe ever as well as the lightest basketball shoe on the market. The shoe weighs in at a slender 9.8 ounces in a men's size 10. Basketball shoes in size 10 are typically at least 14 ounces.

"It's 15 percent lighter than a comparable mid-cut and it's actually a half ounce lighter than any low-cut," Lawrence Norman, Adidas vice president of global basketball, told SGB Weekly at a launch event in mid-April in New York City. "At Adidas, we always want to make athletes better and if they're lighter, they're faster. The shoe is the lightest ever."

A culmination of two years of design, research, and testing, the adiZero Crazy Light follows a strong lightweight trend across perfor-mance footwear, especially in running. Norman said basketball play-ers can also benefit by carrying less weight.

"When you're shedding off weight, it gives you a better chance to be faster," said Norman. "We've certainly done a lot of research on this. But it's like anything else. If you lose 20 pounds, you feel lighter and faster. But it still has the support and the performance benefits of the greatest basketball shoes."

The adiZero Crazy Light made its debut on-court during the NBA Playoffs on April 16. The shoes were worn by Chicago Bulls guard and MVP candidate Derrick Rose. It hits retail worldwide at a sug-gested retail price of $130 on June 3 in four colorways, including sharp blue/white, black/red/white, grey/white/neon green and

red/white. Initial distribution in the U.S. includes Foot Locker, Finish Line, Champs, Eastbay and Dick's Sporting Goods.

Adidas said it now makes the lightest footwear in three sports, also including football (adiZero 5-Star cleat) and soccer (F50 adiZero cleat). But the adiZero Crazy Light is part of Adidas' "goal to become the lightest basketball brand," according to Norman. It follows the launch last October of the NBA Revolution 30, which was promoted as "the lightest and most advanced NBA uniforms." The uniforms are 30 percent lighter and dry twice as fast as previous NBA uniforms.

The adiZero Crazy Light launch also comes as the basketball foot-wear category and the league appear to be making a comeback.

"We saw this coming," said Norman. "In Fall/Winter, we had some success with Derrick Rose and Dwight Howard at retail. But also basketball participation rates are starting to spike up, free agency movements in the summer leading into season created some excitement, and big markets like New York and Chicago are coming back into basketball. When all that happens, that's when basketball gets really hot."

Not to be outdone, Nike in late April introduced its lightest shoe under its Lebron James series. Featuring Hyperfuse construction, the LEBRON 8 PS sheds 1.5 ounces from the regular season model (U.S. Men’s Size 9). In early April, Nike introduced the Jordan Fly Wade, its lightest Jordan shoe to date as well as the first Jordan shoe for Dwyane Wade. At 10.6 ounces, the Kobe VI is Nike's lightest basketball shoe.

ADIDAS LAUNCHES LIGHTEST BASKETBALL SHOE

NEWS

adidas adiZero Crazy Light

Emcee Bobbito Garcia, Lawrence Norman (adidas Vice President of Global basketball), Elysia Davis (adidas Sport Resercher) and Robbie Fuller (adidas Basketball Footwear Design) discuss the design, development and technology story of the lightest shoe in basketball - adiZero Crazy Light at a press event in New York City on April 14, 2011. The adiZero Crazy Light will debut on-court during the NBA Playoffs on April 16.

WEEK 1118 | SGBweekly.com 7For Breaking Trade News Every Business Day Go To SGBUPDATE.com

▲

Amer Sports Corp. reported sales rose 20.5 percent in the first quarter ended March 31, to €449.1 million ($614.0 mm). In local currencies, sales increased by 12 percent.

Earnings before interest and taxes (EBIT) reached €25.7 million ($35.0 mm), up 96.8 percent versus prior-year's levels. Amer's brands include Atomic, Wilson, Suunto, Precor, Salomon, Mavic and Arc'teryx.

“Our strong performance which started in 2010 continued in the first quarter," said Heikki Takala, president and CEO, in a statement. "The development was particularly good in Footwear, Apparel and Fitness, and geographically in EMEA and the Americas."

By segment, Winter and Outdoor sales grew 29 percent to €233.5 million ($317.5 mm) and advanced 20 percent on a currency-neutral basis. Within the category, Footwear sales grew 34 percent in local currencies and Apparel rose 28 percent due to a planned focus to grow faster in softgoods. Winter Sports Equipment sales increased 6 percent in local currencies, Cycling advanced 8 percent and Sports Instruments increased 7 percent.

In the Ball Sports segment, sales grew 9 percent to €159.0 million ($216 mm) and inched up 2 percent on a currency-neutral basis. A 9 percent gain in local currencies in Team Sports offset a 3 percent decline in Racquet Sports and a 2 percent decline in Golf.

Fitness segment revenues advanced 24 percent to €56.6 million ($80.0 million) and were ahead 14 percent currency-neutral. In local currencies, sales through its Consumer (home use) channel grew 21 percent while commercial business (clubs and institutions) sales were up by 13 percent in the period. In the North American fitness market, commercial business started to show early signs of recovery during 2010 and the market continued to improve through the first quarter of 2011.

By region, sales in the Americas advanced 18 percent to €186.4 million ($253.5 mm) and were up 9 percent in local currencies. EMEA's revenues climbed 24 percent to €214.1 million ($291.2 mm) and advanced 16 percent currency-neutral. In the Asia-Pacific region, sales jumped 21 percent to €48.6 million ($66.1 mm) with currency-neutral sales ahead 12 percent.

Asics America Corp. named two new senior national sales directors as part of a restructuring of its sales team. Mike Mitchell will handle the West and Southwest territories, including specialty retailers nation-wide; and Tracy Paoletti will serve as his counterpart for the East and Midwest regions.

The hires follow the resignation of Jim Hoff, long-time head of sales at Asics America, on April 1.

Mitchell and Paoletti were both previously employed at American Sporting Goods (ASG), Mitchell as western regional sales manager and Paoletti as a regional sales manager. Paoletti re-joined Asics in January 2011 and Mitchell will start in May 2011. Both have more than 20 years experience in the footwear business.

"Mitchell and Paoletti will take the reins of these two large territories overseeing an already strong sales force with incredible depth and mo-mentum," said Asics America President and CEO Kevin Wulff. "They each bring tremendous senior level national sales experience and a complete understanding of premium performance products. We look forward to the leadership of these two highly talented individuals as Asics America continues down the road of growth and prosperity in our business."

AMER SPORTS Q1 SALES CLIMB 20.5 PERCENT

Wulff, formerly president of Asics America, became CEO, effective April 1, following the planned resignation of Nobuo Oda.

AMONG OTHER CHANGES: • John Kraus, who has been with Asics since 2004, will add director of sales operations to his west sales manager title.

• Terry Schalow will transition to the director of specialty sales, overseeing specialty running, military and team sales. Schalow, with Asics for 24 years, serving most recently as the product marketing manager for performance running and track and field categories.

• Damian McCusker has been promoted to strategic business and sales manager for gold accounts. McCusker, with Asics since 2006, will con-tinue to manage the Asics business within specialty running; developing long term strategic plans to grow the core business of running.

• Patty Kelly, who joined Asics in 2007, will transition from apparel product manager into a new position as apparel sales manager.

ASICS AMERICA RESTRUCTURES SALES TEAM

8 SGB WEEKLY l MAY 2, 2011

IN BRIEFS

WEEK 1115 | SGBweekly.com 8

Brown Shoe Company, Inc. said Famous Footwear sales were down 8.1 percent in the nine weeks ended April 2, driven by same-store sales decrease of 7.0 percent.

Overall sales nudged up 2.1 percent to $426 million. Sales in the Wholesale division jumped 23.6 percent to $155 million while sales in the Specialty Retail division, the Naturalizer chain, decreased 1.0 percent during the period, with flat same-store sales.

In a statement, Brown Shoe said Famous' comps were hurt by challenging comparisons as same-store sales for the first nine weeks of 2010 increased by 21.9 percent. Famous eliminated three weeks of Buy-One, Get-One (BOGO) promotional events in the latest nine-weeks versus the same period a year ago. An additional two weeks of BOGO are being eliminated in April, for a total of five fewer weeks in the first quarter versus the same period last year.

Also contributing to the comp decline was colder, wetter weather

Cabela's, Inc. reported that adjusted for divestitures, first-quarter revenues increased 5.7 percent to $587 million. Retail store revenue increased 11.3 percent to $302 million; Direct revenue decreased 4.9 percent to $207 million; and Financial Services revenue increased 20.7 percent to $72 million. For the quarter, comparable store sales increased 8.9 percent.

On a reported basis, total revenue increased 4.8 percent and Direct revenue decreased 6.9 percent.

For the quarter, GAAP net income reached $17.8 million, or 25 cents a share, up from $8.1 million, or 12 cents, a year ago. First

during the first nine weeks of 2011 versus 2010. Approximately two-thirds of the company's store base are in cold and moderate mar-kets. Finally, Easter occurred three weeks later in 2011 than in 2010 and weren't included in the most-recent nine week results.

For the first quarter, Brown Shoe now expects net sales of $619 to $634 million, which includes an expectation for a same-store sales decrease at Famous Footwear in the 2.0 to 4.0 percent range. In addition, a significant portion of wholesale shipments typically occur in the last week of the quarter and may be depen-dent upon whether retail partners take receipt in the last week of April or first week of May. The company said it remains comfortable with its previously stated full year 2011 guidance range of $1.25 to $1.32 per diluted share, or $1.37 to $1.47 per diluted share on an adjusted basis. The company has not provided quarterly earnings per share guidance.

FAMOUS FOOTWEAR COMPS DEPRESSED BY WEATHER, LACK OF PROMOTIONS

quarter 2010 results include an $11.9 million after-tax charge related to a 2009 FDIC compliance examination. Adjusting 2010 results for this FDIC charge, net income for the quarter declined 11.0 percent to $17.8 million, or 25 cents a share, from $20.0 million, or 29 cents, a year ago.

Retail segment operating margins increased for the eighth consecutive quarter to a first quarter record 11.6 percent, benefiting from its integrated business model with Cabela's CLUB Visa program. Approximately half of Direct segment's revenue decline came as a result of ammunition and shooting categories returning to more normal levels following unusually high levels in the first four months of last year.

"Investments in our Retail business that we began last fall and contin-ued into the first quarter drove higher comparable store sales, increased customer satisfaction, and expanded market share," said Tommy Mill-ner, Cabela's chief executive officer, in a statement. "Exceptional results in Retail revenue and segment profitability, record performance at our Cabela's CLUB Visa program, and strong consolidated gross margin results led to further increases in one of our vitally important metrics - after-tax return on invested capital."

Consolidated gross margin increased 70 basis points to 41.8 percent in the quarter - a new first quarter record since going public in 2004. But the bottom line was impacted by several investments, highlighted by an increase in Retail Outfitters in-store shops within its stores. Investments were also made in technology infrastructure and merchandising, as well as new stores in Allen, TX; Springfield, OR; and in Canada.

"Our strategies are working," Millner said. "We feel increasingly opti-mistic about our full year 2011 prospects and expect our full year 2011 earnings per share to meet or exceed current external expectations."

CABELA'S FIRST QUARTER COMPS JUMP 8.9 PERCENT

Under Armour, Inc.’s first-quarter profits and revenues soared on strong underlying demand for its core synthetic apparel, promising launches of its first cotton and basketball footwear lines, and strong direct-to-con-sumer growth. The results prompted the company to raise its revenue and EPS guidance for the year.

Under Armour's stock still slid xx to xx last week off its recent highs on the New York Stock Exchange, however, as inventories grew 68 percent at the quarter's close partly due to a decision to stockpile cold-weather products early in order to avoid rising costs as well as the move to bring its hats and bags business in-house in January. The company also said it is continuing a decision started in the second half of last year to make incremental investments in inventory to better fill-in orders.

Earnings in the quarter vaulted 68.1 percent to $12.1 million, or 23 cents per share, exceeding Wall Street's consensus estimate of 19 cents. Revenue rose 36.3 percent to $312.7 million.

Apparel grew 33.5 percent to $230 million during the quarter, led by broad-based growth across men's, women's, and youth categories.

"Our overall training, golf, and running apparel businesses were all extremely strong in the quarter, with training accounting for almost half of the incremental revenue," said Kevin Plank, president and CEO, on a conference call with analysts.

Puma AG reported that first quarter consolidated sales reached €773.4 million ($1.06 bn), rising 9.3 percent in currency-adjusted terms and 13.2 percent in euro terms when compared to the first quarter of 2010. Footwear revenues were up 6.8 percent currency-adjusted to €417.2 million ($570 mm), Apparel sales rose 2.2 per-cent to €241.8 million ($331 mm), and Accessories posted a 42.4 percent increase to €114.4 million ($156 mm) for the quarter. The stronger growth in the Accessories product segment was driven in part by the inclusion of Cobra Golf in the numbers this year.Worldwide Puma brand sales - comprised of consolidated and license sales - rose 12.5 percent in euro terms (8.8 percent currency-adjusted) to €811.1 million ($1.11 bn) from €720.8 million ($999 mm) last year.

In regional terms, sales in EMEA grew 4.4 percent currency adjusted to €374.5 million ($512 mm), Asia/ Pacific posted a gain of 6.9 percent to €163.9 million ($321 mm) and Puma continued its excellent perfor-mance in the Americas with sales growing by 19.9 percent to €235.1 million ($224 mm).

“The first quarter performance was a strong start to 2011 with our Back on the Attack growth plan, as Puma managed to generate strong sales

Plank also noted that the company saw "great consumer acceptance" of its March launch of Charged Cotton, its first cotton line. Said Plank," We've been very pleased with the sell-through. It's actually exceeded expectations where we sold it." Overall in 2011, Under Armour expects a mid-single-digit total growth contribution from Charged Cotton off of its 2010 net revenues base.

Footwear revenues increased 20 percent to $51 million, predominant-ly driven by new basketball offerings and strong performance in slides. The Assert running shoe also delivered "solid" sell-throughs.

Accessories revenues catapulted 213 percent to $24 million, reflect-ing the move to bring its hats and bags business in-house in January.

Direct-to-consumer revenues increased 53 percent, representing 20 percent of revenues, compared to 18 percent in the prior year's period. Under Armour's CFO Brad Dickerson added that e-commerce "also re-mains robust as we continue to capture higher traffic and take deliberate steps to drive conversion."

Looking ahead, Under Armour now expects 2011 revenues in the range of $1.37 billion to $1.39 billion, representing growth of 29 percent to 31 percent over 2010, and 2011. Operating income is expected to come in the range of $149 million to $153 million, representing growth of 33 percent to 36 percent over 2010.

CHARGED COTTON HELPS LIFT UNDER ARMOUR'S Q1

growth,” said company CEO Jochen Zeitz in a statement. “We were even able to mitigate the negative impact we saw from the disastrous events in Japan last month as our Asian/Pacific region contributed with an increase in sales to the overall solid company performance."

The gross profit margin was flat at 52.4 percent. The Footwear seg-ment had a gross profit margin of 51.3 percent of sales, up from 50.9 percent of sales in Q1 2010. Apparel stood at 53.7 percent, down slightly from 53.9 percent. Accessories were at 54.0 percent, also down slightly from 55.7 percent.

Consolidated net earnings increased to €77.7 million ($106 mm) from €72.5 million ($100 mm) in 2010, an increase of 7.1 percent. Earnings per share rose from €4.81 ($6.66) to €5.17 ($7.07), and diluted earnings per share rose from €4.80 ($6.65) to €5.15 ($7.04).

Looking ahead, and taking into account the risk of higher in-put prices in the form of raw materials and wages for the second half of the year, Puma management indicated the outlook for 2011 continues to be favorable, with improvement in net earnings in the mid-single-digit range for 2011 and targeting the €3 billion mile-stone in sales.

PUMA Q1 REVENUES CLIMB 13 PERCENT, LED BY NORTH AMERICA

WEEK 1118 | SGBweekly.com 9

STATEOF PLAY

As the National Sporting Goods Association opens this year’s Annual NSGA Management Conference and Team Dealer Summit, manufacturers, retailers and dealers have expressed particular interest in Tuesday morning’s discussion about the impact on rule changes on the team sports business. For the representatives of the sporting goods industry, Tuesday’s discussion represents a pivotal opportunity for those frustrated by the communication challenges between the ruling bodies and vendors, retailers and dealers working directly with schools, the end-consumer and product. Many companies, for example, are still feeling the impact of a July 2010 ruling that initially banned the use of composite bats in college and high school competition. The ruling, which was handed down by the National Federation of High Schools (NFHS), left a multitude of perturbed dealers and retailers (and vendors) with high-margin inventory that - for the most part - is now completely obsolete for competitive play.

TEAM SPORTS’ GOVERNING BODIES AND SPORTING GOODS INDUSTRY TRADE ASSOCIATIONS OPEN DOOR TO INCREASED COOPERATION

10 SGB WEEKLY l MAY 2, 2011

By Kyle J. Conrad

Understandably, the bat conversation has been at the forefront of discussions for representatives of the sporting goods industry who are requesting more transparent communication between rule-making bodies and the sporting goods industry. The topic was one of the most intently discussed during the April 21 High School and College Rule Meeting in Indianapolis, IN, where representatives from the NCAA, NFHS and SGMA and their constituents convened to discuss potential rules changes, possible procedural adjustments, safety concerns and general observations about the amateur sports marketplace.

Tom Cove, president of SGMA, the trade association that primarily supports the manufacturer/vendor side of the sporting goods industry, said the annual meeting in Indianapolis is essential because rule changes impact everything from equipment to footwear to uniforms for both the participants and the brands and retailers/dealers associated with the sport. The meeting also allowed for company representatives to establish a dialogue with rules editors concerning how specific products will be affected by various rule changes.

“At this meeting, SGMA member companies are given an opportunity to ask questions about any potential rule change and it’s the right time to inform the governing bodies how long it will take to design, test, manufacture, and distribute the new items that must be produced to a new standard or code,” Cove said. “By consulting with the companies that manufacture these items, we can avoid potential problems by ensuring that a rules change is not implemented before the necessary adjustment can be made at the manufacturing level.”

Cove said much of the discussion in the recent meeting focused on the ongoing education and coordination between governing bodies and the SGMA to facilitate a presence of sporting goods manufacturers in the rule making process. Currently, manufacturers don’t have a presence in the rule making process, but Cove said there were productive conversations discussing the potential for manufacturer representatives to be present during “pre-meetings” before the final ruling so they can plan accordingly to tailor products that will adhere to new guidelines. “We don’t want it to seem like we’re in a position where we are making the rules,” stressed Cove. “We’re not - we’d just like to know ahead of time what (the governing bodies) are considering.”

In the past, Cove said, rule changes were made “in a vacuum,”

completely irrespective of any implications on manufacturers and dealers. Communication has improved exponentially since then, he added, but there’s still work to be done. “The bat case last year was a step backward for everyone,” said Cove. “The NFHS felt as if there was some element of the composite bat they couldn’t control and they decided to make a fairly drastic, immediate decision which is what all of us - including the NFHS - were against. We don’t want an immediate decision like that when a product is (already) in the marketplace and has to be taken off the compliant list - we hope that was an abhoration.”

According to Larry Weindruch, who is director of the Team Dealer Division of the National Sporting Goods Association and coordinator of Tuesday’s panel discussion, the rule change discussion in Tucson during the NSGA Team Dealer Summit will be about looking forward, not lamenting about past issues. “This is another step in the right direction,” Weindruch said. “The upcoming session will be a major step in the direction of continuing to have open lines of communication (with rule makers) and to inform dealers and retailers about understanding the process and how to navigate those lines of communication.”

As of now, Cove added, the industry is “pretty clear” on the technical requirements of the new bat specifications, although there are lingering questions regarding rule implementation and how the rules will change going forward. One issue that will likely arise during Tuesday’s discussion and will be covered thoroughly during June’s Baseball Rules Meeting in Indianapolis is the issue of making composite bats tamper evident to prevent “rolling” or other methods of accelerated break-in.

Weindruch noted that while the NFHS may have considered delaying or never handing down the sweeping ban on composite bats in last year’s rule’s meeting, the stipulation was that bats must be tamper-evident - something that many manufacturers were unable to implement at the time. “The NFHS has been very gracious to us by inviting us to attend meetings and letting us represent the team dealers and retailers in the discussion thus far,” said Weindruch. “Our goal (at the management conference) is to show attendees how they can be a part of the conversation - the hope is to make this an information-packed session that will enlighten and educate the people in the audience while giving them a better understanding of how the system works…”

STATEOF PLAY

Cove maintained that there will more than likely be plenty of “frustrated” sporting goods industry participants present at Tuesday’s conference, but he stressed that all parties have the same goal of improving communication lines.

Also of concern during the meetings is the education of the retailer regarding the application of sometimes-confusing rule changes. “It’s a difficult process - they make these rules and they’re hard to explain,” said Cove. “We have to educate the retailer as to why these things happen because the retailer is on the front line of communication with the consumer and we need to provide them with better information so they don’t have angry customers. The rule makers haven’t done enough to communicate to retailers how they’re supposed to tell the consumer what’s going on.”

James Hartford, president and CEO of The SportsOneSource Group and publisher of this magazine will serve as moderator for Tuesday’s discussion panel. He said taking the appropriate steps to bolster the relationship between rule makers and the sporting goods industry pays off for all parties.

“A healthy, active conversation between members of the sporting goods market and the representatives of the rule making bodies is imperative,” explained Hartford. “Confusion for sporting goods industry stakeholders means confusion for the consumer, and nobody wants that. We’ve progressed light years on the communication front over the past several years and I’m confident we can continue to make significant progress through Tuesday’s meeting and beyond.”

Hartford added that by helping keep manufacturers and retailers “clued in” about upcoming rule changes, an improved communication

protocol can contribute to faster advancements of product technology, which ultimately benefits young athletes in a myriad of ways.

“The goal,” added Weindruch, “is simply to know what the communication lines are and who to contact. Instead of just shooting off an e-mail saying ‘hey, this is a stupid rule,’ we want to communicate well-thought out opinions and be a part of the conversation.”

Another highly-discussed topic next week will be about uniform changes - specifically regarding football, basketball and soccer uniforms. Cove said changes to uniform specification represent unique challenges because many prep schools pass on old varsity uniforms to jayvee squads, which means a set of uniforms typically has a life of at least three years. When a governing body passes down a rule change, a school is forced to replace both sets of uniforms, placing a heavier financial burden on the institution or the player.

“If it’s not a safety issue, we absolutely need to build in time for the production of (the product) along with time for sell-though and use (of the product),” Cove said. “Rule change discussions aren’t always about highly-technical products like bats and football helmets, and they’re has to be a better way to gradually implement something that makes more sense for schools, institutions and the industry.”

Tuesday’s panel will include Tom Cove, SGMA; Jim Fallis, NCAA Oversight Panel and athletic director, Northern Arizona University; Marty Hickman, executive director, Illinois High School Association; Jim Tenopir, chief operating officer, National Federation of State High School Associations.

The SportsOneSource Group and TEAM Business Magazine are co-sponsors of the 2011 NSGA Team Dealer Summit. ■

Tom Cove, president of SGMA Larry Weindruch, Director Team Dealer Division, NSGA

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14 SGB WEEKLY l APRIL 11, 2011

WEEK 1115 | SGBweekly.com 15

WHY THE 2011-2012

SCHOOL YEAR COULD BE THE

TOUGHEST YET

By Charlie Lunan

16 SGB WEEKLY l MAY 2, 2011

rom his perch in Seminole, FL, Don Bates is among the hundreds of team dealers bracing for billions in cuts to state education spending across America.

In a bid to make Florida more competitive, newly-elected Republican Governor Rick Scott has proposed deep cuts in taxes and spending, including $4.8 billion in cuts to the state’s education budget.

In Bate’s home county just east of Orlando, the school district which cut about $91 million in spending over the least two years, is preparing to cut another $44 million to counter a drop in state funding. To the north in football crazy Duval County they have been talking about eliminating sports altogether. On the west coast, Pasco County just south of the Tampa-St. Petersburg metro area needs to decide whether to eliminate middle school and JV sports.

“Business was up five percent last year, but it’s a whole new year and the budgets got hit worse for next year than this year,” said Bates, owner of Allen Sports Center. “It’s always a year delayed, so the dollars they did not collect last year are this year's school tax dollars.”

That pretty much sums up the outlook for team sports for the 2011-12 school year. While the Great Recession was officially declared over as of June, 2009 and some team sports brands and dealers report sales grew in 2010, the worst could still lay ahead for many team

dealers as school districts nationwide prepare for what will be their deepest cuts yet. Governors in 21 of 44 states have proposed deep spending cuts to their fiscal 2012 K-12 education budgets, according to an analysis by the Center for Budget and Policy Priorities. If approved, those cuts would represent the fourth consecutive year of budget cuts for many districts, which have already laid off thousands of teachers and raised class sizes to cope.

In the same way a human body dumped into Arctic seas cuts off blood flow to the extremities to protect the core, school systems are steadily cutting funding for sports and other extracurricular activities to preserve their core academic mission. Housing values, meanwhile, appear headed down in 18 of the nation’s top 20 metro markets, according to the latest S&P/Case-Shiller Home Price Indices.

How this has trickled down to athletic directors’ budgets varies tremendously, but team dealers say they see a clear trend toward parents controlling more team dollars as more school districts impose pay-to-play rules.

“There is a tremendous need to buy less for less,” said Mark Mertens, chief executive officer for A4, which supplies uniforms to the team market. “Everybody is getting by with fewer resources. Teams are keeping uniforms longer, recycling them and not letting them take them home at the end of season.”

F

WEEK 1118 | SGBweekly.com 17

Conditions vary depending largely on local housing values, but even outside Arizona, California, Florida, Nevada and other regions hit hard by the housing crisis, school districts are bracing for their biggest cuts since the recession.

In Charlotte, NC, where housing values are off 4.8 percent from a year ago, according to the latest S&P/Case-Shiller1 Home Price Indices, Charlotte Mecklenburg Schools (CMS) are preparing to cut $100 million from their $1.2 Billion budget for the fiscal year starting July 1. Among the items on the chopping block are six schools, hundreds of teaching jobs and middle school sports.

CMS instituted a pay-to-play policy to save middle school sports last year that charged $50 per player per team at the middle schools and $100 at the high school level. It also instituted a $1 gate surcharge at high school athletic events. All that money went toward subsidizing middle school sports. Even then, CMS could only bridge the shortfall in its $1.2 million middle school sports budget with $344,000 in private donations, including a $250,000 contribution from Charlotte Bobcats owner and former NBA all-star Michael Jordan.

While the CMS board is not expected to approve its fiscal 2012 budget until May, CMS Staff have proposed eliminating middle school sports and an across-the-board 10 percent cut to all departments. High schools would then be able to give all proceeds of their participation fee toward their $3.1 million annual budget. As of mid-April, no private organization had stepped forward to pledge donations for CMS athletics program, although about 600 parents and students met in late March to discuss launching a fund drive to save middle school sports.

At Independence High School, Athletic Director Kelly Lewis will adapt to the uncertainty by pushing out his equipment orders for the football team until July. He has already cut spending on training aids like football sleds and basketball rebounders. He is also buying fewer sweatshirts, warm up pants and polo shirts for coaches. He has yet to change the pace of his equipment rotations and has not had to turn away a single student athlete who could not afford the $100 fee, but he is starting to think about spreading helmet replacements over more years. While those cuts are mild they foreshadow a fundamental shift in the outlook for one of the nation’s best high school football programs. Independence High School has produced NFL starters Chris Leak and wide receivers Mohamed Massaquoi since the early 2000s.

“Four or five years ago if you asked me if it was going to be as bad as it is now, I would have said no,” said Lewis. “When you look at state budgets, they keep cutting education. Who knows where it's going to go.”

It will be tough for the school’s booster club to pick up the slack, said its president Rick Wolf. In the past, the club would use its income “to enhance the experience of the athlete” by buying championship rings and throwing banquets. In recent years, it has had to divert funds to pay for fuel for buses, lawnmowers, fertilizer and contractors

to over seed fields. It spent $5,000 to reupholster the benches in the weight room to prevent MRSA and $1,000 this year sharpening blades for reel mowers. CMS, meanwhile, has indefinitely backed off plans to build a new basketball gym at the 44-year-old school after canceling bond issues.

“If a booster club five years ago was happy and flourishing and raising $30,000 in a school year, we are busting our asses now raising $100,000 and its' not enhancing anything,” said Wolf. “It’s just fixing stuff.”

Wolf notes that one couple paid $900 this year to keep three of their children playing three sports at Independence. It will be tough raising more money from them.

“When you are going after someone for $30 for the booster club or $200 for a season pass and they have to come up for $300 for each child for each season, it’s tough,” he said.

Despite such gloom, it’s hard to know what will happen between now and July, when most states and local governments must approve their 2012 budgets. Some districts will undoubtedly find ways to protect sports and if last year is any guide, state and county cuts won’t be quite as deep as forecasted. At CMS, up to $85 million of the $100 million in proposed cuts could go away depending on the final state and county budgets.

In Nevada, one of the areas hit hardest by the housing bust, not a single school district has gone to pay- to-play, but that could change next year, according to Donnie Nelson, an assistant director with the Nevada Interscholastic Activities Association, which enforces rules and regulations and runs post-season tournaments for high school athletics in the state.

“Everybody in Nevada is in wait and see mode,” said Nelson, “but the effects are going to eventually hit and that could be next year.” ■

EVERYBODY IS GETTING BY WITH FEWER

RESOURCES. TEAMS ARE KEEPING UNIFORMS

LONGER, RECYCLING THEM AND NOT LETTING THEM TAKE THEM HOME AT THE END OF SEASON.

MARK MERTENS, CHIEF EXECUTIVE OFFICER, A4

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