Linda D. RobertsonAssociate Executive Director for

BusinessSeptember 2014

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)

2004 – Legislative study recommended raising fines for eligibility violations

2012 – HB 1403 changed eligibility rules on transfers

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 & TruthTruth7% INDIRECTLY from Public funds (Public

Schools)$163,800 Dues; $126,540 Fines; $108,102 Fees

(2013-14 FY)

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

TruthPublic Schools rely heavily on Activity

Funds from ticket sales, fund raisers and donations to fund Athletics

FHSAA Policy requires member schools to only use non-public funds to pay FHSAA dues, fees and fines

Ticket sale income is not Public Funds

The Business of FHSAA – Myths & Truth

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

funding source

= $

The Business of FHSAA – Myths & TruthTruthLess than 3% of resources are Fines (2013-14 FY)

($126,540 Public & $23,460 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$5,297,426

2013-14 FY

Where Money Goes - $5,032,501

2013-14 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: 89% of expense is Event Management, Officials, Training & Publications, and General Administration11% 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 = 40% of Total

Resources

$2.1 Million out of $5.3 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

$1.2 Million per year – for FHSAAFunds used to pay:

Participating teamsOfficialsTrophiesOther event costs

Did You Know?

$400,000 - Membership Dues Reduced to nominal $25$168,000 – More being paid to Finals Teams$191,000 – Less in Fines$116,000 – Less in FB Classic Fees & elimination of

Recognized Sport Participation fees

$65,000 – Less in Tournament Sanction Fees$43,000 - FHSAA Share of State Series Reduced – now

only collect 15% on 7 sports and 25% football

In 2014-15 - FHSAA will redirect $983,000 more PER YEAR to schools compared to 2009

5 Yr Record In Addition to redirecting $983,000 more

PER YEAR to schools from FHSAA funds:2011-12 set $1 increase in State Series ticket

price –Generating $600,000 per Year for Host

Schools to keepTotal Annual Increased

resources to High School Athletics since 2009 =

$1,583,000

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”

501c(3) Annual Resources Then and Now

Florida High School Athletic Association

State Series Events

What’s Next?3 yr Plan – Fee Adjustments

Eliminate/Reduce regular season tournament sanction fees for member schools hosting events

30% reduction for 2014-15 Goal is to eliminate completely by 2017-18

Monitor and collect fees on third parties (non-members) hosting or sponsoring events and any nationally televised events

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 94 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