Topic: Jim Moser's post needs an answer

[Don Weideman]

Jim Moser (cache-rtc-ac08.proxy.aol.com) -- Saturday, November 5, 2005, @ 11:21 a.m.

Here is a copy of the post I posted for Joe DeLago. Here are the facts draw your own conclusions. CHANGE MUST HAPPEN KNOW OR WE ARE HEADED FOR A CONDITION OF NON EXISTANCE. THE USAW FOUNDATION TRUST FUND HAS TAKEN OVER OUR SPORT AT THE EXPENSE OF OUR ATLETES, COACHES AND GOOD PEOPLE WHO ARE TRYING TO MAKE A DIFFERENCE. THE ONLY THING GROWING AROUND HERE IS THE USAW FOUNDATION TRUST FUND.

Joe:(I am sorry the numbers did not line up correctly, I hope you can still follow this.)

Here is how it works Joe and anybody who can read and wants to know the truth. In 1984 the USOC gave the US Weightlifting Federation 1.2 million dollars. Which has grown now to 2.3 million dollars. The policy of the USAW is to spend 1/2 of the interest from this money for weightlifting and to continually reinvest the other 1/2 along with any capital gains. This is great news for the fund and who is ever managing it.

As the fund continues to grow however, the problem is the fund grows at the expense of the poor weightlifter who gets less and less money and has to suffer through unfunded programs and budget cuts. This money I refer to the 2.3 million dollars is the USAW's money it has nothing to do with the money that the USA gets from the OTC. which is currently $397,000 dollars a year.

THESE NUMBERS ARE FROM THE USAW BUDGET FOR THE YEAR 2005. The USAW spends crap on our elite weightlifters out of the 1.2 million dollar budget only $68,000 go directly to our athletes and $232,000 goes to the funding of trips this includes Senior & Junior Athletes, Coaches and Administrators. The next logical question is where does the other $800,000 go? It goes like this

Salaries and Wages $386,591.00
Employee Benefits $111,709.00
Employee Travel $ 24,375.00
Services Other then Personal $ 22,000.00
Other (My personal favorite) $ 31,500.00
Board Members Expense $ 6,000.00

Sub total $582,175.00

Web Site $ 10,000.00
Coaching and Sports Performances Courses $ 82,000.00
National Events $ 4,000.00
Athlete Insurance $ 43,068.00
Other Insurance $ 47,104.00
LWC Membership Reimbursements $ 25,972.00
Masters Program Rebate $ 7,505.00
Weightlifting USA Magazine $ 15,000.00

Sub Total $234,649.00

TOTAL $816,824.00

Now where does our money come from:

USOC $397,000.00

USWA INVESTMENT INCOME
$2.300,000 trust fund $ 98,500.00
Short Term Cash $ 100.00
Intermediate Cash $ 8,800.00
Retail Sales $ 50,000.00
Northen Michigan University $ 24,800.00
Valeo $ 5,000.00
UESAKA BARBELL COMPANY $ 1,000.00
Adidas $ 40,000.00
USOC Room & Board $ 21,200.00
Combined Federal Campaign $ 8,000.00
Misc. Contributions $ 5,000.00

Membership Fees Income $183,500.00
Coaching Clinics and Camps $190,000.00
(Down from $254,013.00 last year, thanks to the allocation of less money for the coaching programs. This is Ignorance AT It?s FINEST))
Event Revenue and Bid Fees $ 13,500.00
Other $ 3,700.00

Sub Total $1,050,100.00

Fund Balances
General Fund $104,666.00
Contigency Fund $128,024.00
Rainy Day Fund $100,000.00

Sub Total $332,690.00

Total Revenue Resources $1,382,790.00

How Much Money Does The USAW Have:
(Estimated for 12-31-2005)
Foundation Trust Fund $2,311,577.00
Short Term Cash Management Account $ 1,325.00
Intermediate Cash Funds $ 11,243.00
Rainy Day Fund $ 100,000.00

SUB Total $2,424,145.00
Money Given to be Spent USAW For 2005) $ 98,500.00 -

Total 2,325,645.00

Joe just about everything you said is untrue, except for you will see me in a couple of weeks. I will assume you have been provided with misinformation as I beleive you are a good, honest man.

When we are told that things are unfunded because we do not have the money that is a straight out bold faced lie. WE HAVE THE MONEY THE USAW CHOOSES NOT TO SPEND IT.

THE MISSION OF THE USAW IS TO GROW THE TRUST FUND NOT PRODUCE OLYMPIC OR GOLD MEDAL ATHLETES

SINCE JANUARY 1 2003 THE TRUST FUND HAS GONE FROM $1,547,727 TO AN ESTIMATED VALUE OF $2,311,577 A PERCENTAGE INCREASE OF A 67%.

DURING THAT TIME OUR BUDGET HAS GONE DOWN, FUNDING TAKEN AWAY AND ELIMINATED IN PROGRAMS AND OUR PERFORMANCE ON THE PLATFORM HAS GONE DONE ALSO.

INTERNATIONAL PLACING 2002 2005 (estimate)
FIRST TO THIRD PLACING 173 108
FOURTH TO TENTH PLACING 75 62
ELEVENTH TO TWENTY PLACE 33 30

IF THE TREASURER PETER ROSELLI HAS NOT DISCLOSED, REPORTED AND EXPLAINED THIS TO OUR BOARD, SPONSORS AND MEMBERSHIP ? I RESPECTFULLY SUBMIT THAT THE BOARD AND THE PRESIDENT DISMISS MR ROSELLI FROM THE BOARD AND RELIEVE HIM OF HIS DUTIES AS TREASURER FOR MISLEADING OR NOT INFORMING THE BOARD, OUR SPONSORS AND THE MEMBERSHIP OF THE TRUE FINANCIAL POSITION AND MISSION OF THE USAW.

[Chris Ⓐ LeRoux]

Hmmmmm,

I have some thoughts on the matter, surprise!  

But, who do you want to respond? I really am not sure who, if anyone, would be willing from the BOD or staff. I have a suspicion Peter Roselli may pipe up a little since he has been told to resign or some such nonsense, but it wouldn't surprise me if everyone decides not to dignify it with a response.

From my experience and discussions with BOD members, I believe most will ignore it. You know, what set it all off was an announcement that the USAW had acquired a solid sponsorship. So, an announcement of good news was met with hostility, and demands for many, many questions to be answered on goheavy-what I would consider counterproductive and a waste of time. And, of course Peter provides the financial information to the BOD and BOG.

Now, goheavy has been pushing for a long time for the USAW staff and BOD to respond to the critics on the critics home turf. Well, many, many people involved in our sport, and some very important people, never look at that forum. And, most of the people that post there are never to be seen at a meet, let alone a BOD or BOG meeting. If they care so much, why don't they show up? So, just because some minority of the USAW community and a bunch of unknowns on a forum are anti-establishment doesn't mean that the majority of the community is unhappy. After all, the BOD was democratically elected.

It is unfortunate, but sometimes some BOD members feel they must respond to the misrepresentations and spinning going on goheavy in order to try and combat the spread of rumor, gossip, and misinformation. But, the complexity of many of the decisions do not necessarily lend themselves to proper discussion on an open forum, especially when dealing with a hostile political minority with control over the medium. Sometimes, the "evil" looking decision is the only decision possible under the circumstances. And, without knowing all these circumstances, readers get the wrong impression. So, I wish they would ignore goheavy and instead participate here, not under the gun, but in a respectful and organized fashion according to their own schedules and desires to help the sport.

I hope we can serve this role and help build community in the sport as our mission statement reads.

[Rhys Lucero]

In 1984 the USOC gave the US Weightlifting Federation 1.2 million dollars. Which has grown now to 2.3 million dollars. The policy of the USAW is to spend 1/2 of the interest from this money for weightlifting and to continually reinvest the other 1/2 along with any capital gains. This is great news for the fund and who is ever managing it.

This is also great news for the USAW!  I have been interested in the USAW Budget since reading Peter Roselli's interview.  
 
According to your figures, The USAW spends

Salaries and Wages $386,591.00  
Employee Benefits $111,709.00  
Employee Travel $ 24,375.00  
Services Other then Personal $ 22,000.00  
Other (My personal favorite) $ 31,500.00  
Board Members Expense $ 6,000.00  
 
Sub total $582,175.00  
 
Web Site $ 10,000.00  
Coaching and Sports Performances Courses $ 82,000.00  
National Events $ 4,000.00  
Athlete Insurance $ 43,068.00  
Other Insurance $ 47,104.00  
LWC Membership Reimbursements $ 25,972.00  
Masters Program Rebate $ 7,505.00  
Weightlifting USA Magazine $ 15,000.00  
 
Sub Total $234,649.00  
 
TOTAL $816,824.00

The recent increase in the capitalization rate of the Foundation Trust Fund is encouraging.  According to USAW policy, the Foundation Trust will be able to fully fund the USAW when it is worth $ 20.5 mil in today's dollars.  At the rate of increase shown before 2003 (assuming 3% inflation) the fund fell behind inflation.  This meant that the Foundation Fund was providing only 71% of the value it provided in 1984.  With the increase in capitalization experienced in the last two years, the fund has finally pulled ahead of the inflationary lag it has experienced since 1984.  At the current rate of capitalization, the Foundation Fund could provide the the full budget of the USAW in as few as 8 years.  Unfortunately, it is unlikely that the Foundation will continue to grow at 30% per year.
 
The USAW administration is taking strides to make the USAW self-sufficient.  It's hard to ask more from a sports administration.  Imagine a USAW with a 21 million Foundation paying half its yearly interest ($820,000) into weightlifting.  USAW would not need the USOC or even any members to continue its operation.  Imagine USAW with a 50 million Foundation (possible in 20 years with 12% annual growth [unrealistic, I know, but not impossible]) pouring half it's interest into weightlifting (2,000,0000).  That would represent a 25% real increase in budget.  And this is achievable without increasing membership, dues, sponsorship, or begging.
 
After all, there is no proof that the current budget, or any part of it, is statistically correlated with athlete performance, and the USAW is not an employer of weightlifters.  I don't think they owe their members anything beyond the service commensurate with the membership fee.  I would rather the USAW spend it's resources and time making our sport self funding, than spread their small budget over permanent potholes.  If athletes want to get paid for their lifting they should move to a country that has a professional weightlifting league.  After all, give a man a fish and he'll eat for a day...

[Chris Ⓐ LeRoux]

Here is a link to our interview with Coach Roselli for those who haven't seen it yet:

http://www.weightliftingexchange.com/viewtopic.php?t=1105