1. Linda D. Robertson Associate Executive Director for Business February 2015

2. FHSAA History 1920 - Opened as a Private Corporation – operating out of UF’s Peabody Hall Organized and formed by coaches seeking fair play

3. The Business of FHSAA 1952 – Designated a Non-Profit Private Corporation Governed by its Public & Private Schools 2014 – 798 Member schools (227 Private; 571 Public)

4. History of Legislation regarding FHSAA 1997 – First recognition in Florida Statutes Named the governing organization for HS athletics for PUBLIC schools (no option) 2003– Legislative study recommended raising fines for eligibility violations and added physical exam requirements 2012 – HB 1403 changed eligibility rules on transfers and recruiting

5. The Business of FHSAA – Myths & Truth Myth # 1 Perceived as relying on Public Funds (taxes) Truth FHSAA does NOT receive state funding or tax dollars The Florida Education Finance Program(FEFP) does NOT provide funding for Athletics or Extra Curricular Activities Public Schools rely heavily on Activity Funds from ticket sales, fund raisers and donations to fund Athletics FHSAA Policy requires member schools only use non- public funds to pay FHSAA dues, fees and fines

6. The Business of FHSAA – Myths & Truth Myth #2: Perceived as relying on Penalties/Fines for funding Truth Less than 3% of resources are Fines (2013-14 FY) ($112,739 Public, $23,460 Private Schools, $14,530 Officials)

7. 2013-14 $150,000 in Fines 469 school fines for $135,500 = Average $289 per fine

8. History of Fines FY 2008 $521,475 FY 2014$150,229

9. Financial Goal (adopted 2009) “Fund the organization with 100% ticket sales from State Finals, Sponsorships, Media contracts, and Royalties so there is No Financial Burden to our Schools”

10. 6 Yr Record $400,000 - Membership Dues Reduced to nominal $25 $168,000 – More being paid to Finals Teams ($417,000/year) $371,000 – 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 $1.2 million more PER YEAR to schools compared to 2008

11. Let’s Talk About… What’s Better for Student-Athletes FHSAA changes since 2008 33% More participation in Championships 6 to 8 classifications in team sports 2 to 3 classifications in Golf (50% increase) 3 to 4 classifications in Swimming & Diving Competitive Cheer began Regional Competitions Inclusion of Adaptive Track and Unified Sports Basketball New Rural Division in Team Sports (except soccer) New FASMED Committee focusing on Student Welfare and Safety Changes in Policy & By-Laws that are Student Focused

12. Transparency to the Public Website: Budgets – Detailed and Summarized (sample charts next slide) Audits IRS form 990 Presentations – Myths & Truths State Championship Attendance, Financials, Other Statistics Public Board Meetings: Discuss/Approve Budgets, and set Fee Policies Present independent audits annually (& provide to State Auditor General) IRS form 990 provided for information Board minutes archived on website Florida High School Athletic Association

13. Where Money Comes From $5,297,426 2013-14 FY

14. Where Money Goes - $5,032,501 2013-14 FY

15. School Athletic Funding Regular season is 100% school resource (nothing to FHSAA unless special event) Post season: $8+ Million (tickets, concessions, parking and team pay for championships) stays at school 3,678+ State Series Events are Hosted by Schools Schools Share of Gate Receipts for District & Region: 100% for 24 sports 85% for 7 sports 75% for football

16. School Athletic Funding Changes in last 6 Years on % of Gate to FHSAA: 2008/09 – 16 Sports paid $60,000/yr in participation fees (instead of % of gate) 16 Sports paid 15%-25% of gate to FHSAA Today: 7 team sports pay 15% of gate football pays 25% of gate ALL other revenue shares to FHSAA have been eliminated

17. FHSAA State Championships: 246 Finals Events Hosted by FHSAA each Year Single largest funding source for the FHSAA $1 Million per year gross revenue Funds used to pay $690,000 expense: Participating teams paid $417,000 Officials Trophies Other event costs Net to fund FHSAA $310,000

18. Financial Reform FHSAA is an organization in the middle of major financial reform – a few examples: 2008/09: $300 - $1,100 member fee based on size $500,000 collected in fines 32 sports paid either share of gate or participation fee for State Series $249,000 paid to teams participating in State Finals Today: $25 Membership fee $138,000 collected in fines 8 team sports share a percent of gate for State Series $417,000 paid to teams participating in State Finals

19. The Business of the FHSAA You can Define the Purpose of a Business by where it gets its money and how it spends its money 89% of expense is Event Management, Officials, Training & Publications, and General Administration 11% of expense is Compliance and Eligibility FHSAA does not receive State funding or tax dollars FHSAA is a Non-Profit Private Corporation FHSAA’s post season State Series generates $8+ million per year for member schools athletics

20. 501c(3) Annual Resources Then and Now Florida High School Athletic Association State Series Events

21. Funding a Non-Profit Athletic Organization Member Fees Service Fees Donations (rare) Sponsorships/Advertising/Media Rights Event Fees & Ticket Sales Merchandizing (Logo mechandise, photography, souvenirs) Interest on Investments Choices are being made to develop a model that best serves the purpose of the organization at the least cost to those it serves (member schools)