FHSAA – The Business Myths & Truth

1. FHSAA – The BusinessMyths & Truth Linda D. Robertson Associate Executive Director for Business

2. The Business of FHSAA – Myths & Truth Myth #1 FHSAA was created by Florida Law

3. The Business of FHSAA – Myths & Truth Truth • 1920 - Opened as a Private Corporation – operating out of UF’s Peabody Hall • Organized and formed by coaches seeking fair play

4. The Business of FHSAA – Myths & Truth Truth • 1952 – Designated a Non-Profit Private Corporation • Governed by its Public & Private School MEMBERS

5. The Business of FHSAA – Myths & Truth Truth • Nothing in Florida Statues for first 76 years • 1997 - Legislation in Florida Statutes • Named 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

6. The Business of FHSAA – Myths & Truth Myth #2 • Perceived as relying on Public Funds (taxes)

7. The Business of FHSAA – Myths & Truth Truth • ZERO state funding or direct tax dollars $0

8. The Business of FHSAA – Myths & Truth Truth • 7% INDIRECTLY from Public funds

9. 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

10. 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

11. 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

12. The Business of FHSAA – Myths & Truth Myth #3: • Perceived as relying on Penalties/Fines for funding source = $

13. The Business of FHSAA – Myths & Truth Truth • Less than 6% of resources are Fines

14. 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

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

16. Where Money Comes From$5,200,000

17. Where Money Goes - $5,300,000

18. 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 Truth: • 91% of expense is Event Management, Officials, Training & Publications • 9% of expense is Compliance and Eligibility • FHSAA gets ZERO from the State • FHSAA is a Non-Profit Private Corporation

19. Did You Know? 90+ years ago……FHSAA Members determined State Championships should be organized & the PRIMARY Source of funding for the FHSAA

20. Did You Know? The First State Championships were in 1922 -Boys Basketball -Baseball -Tennis 32 State Championships in 2012-13

21. Did You Know? State Championship Series = 45% of Total Resources $2.25 Million out of $5.2 Million Budget

22. Did You Know? FHSAA Members through representatives - determine By-Law & Policy on School’s Share of State Playoffs

23. Did You Know? 3,100+ State Series Events were Hosted by Schools Schools Share Gate Receipts for District & Region: 100% of gate for 24 sports 85% of gate for 7 sports 75% of gate for football

24. 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)

25. Did You Know? FHSAA State Championships: 277 Finals Events Hosted by FHSAA each Year $1.2 Million per year – for FHSAA Funds used to pay: Participating teams Officials Trophies Other event costs

26. Did You Know? Over the past 2 years, FHSAA has redirected significant funds to schools A Few Examples: Football Classics pay FHSAA $54,000 Less Membership Dues are $215,000 Less FHSAA share of District & Region is $20,000 Less

27. 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”

28. What’s Next?3 yr Plan – Fee Adjustments • Eliminate FHSAA share of gate for State Series Dist/Region for Individual Sports – was 15% (CC, SW, TRK, WR) – NOW Zero Shared 2013-14 • Eliminate/Reduce Tournament Sanction Fees • Eliminate/Reduce FHSAA membership and Legal fees

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

30. The Truth Eligibility rules, Fees, Dues and Revenue sharing are developed in By-Law and Policy from elected representation of our MEMBER SCHOOLS • Representative Assembly • FHSAA Board of Directors

31. What IFHB1279 Had Passed? • Governance of the FHSAA would have been removed from its Member’s control • Eligibility Rules severely changed • Executive Director and Board would be replaced • Restrictions on funding the Organization determined by Legislature – designed to financially strangle the Corporation in 4 years • FHSAA terminated in 4 years as Public School governing organization

32. Bottom Line • FHSAA was formed 93 yrs ago by schools • FHSAA By-Laws & Policy are written by member schools YOU ARE THE FHSAA!