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≡ USATF DEEPER IN THE RED ≡
USA Track & Field reported, far earlier than usual, a record revenue total of $44,592,809 for 2024, a smashing 21.5% increase over the $36,706,754 in 2023.
This is usually a great cause for celebration, but according to its audited financial statements, USATF lost $1.19 million on the year and saw its net assets drop from –$4.934 million to a –$6.125 million.
The Monday-released financials and the federation’s Form 990 non-profit Federal tax return raise significant questions.
● Where did the added $7.9 million in revenue come from?
It didn’t come from sponsorships, which remained essentially level at $19.474 million, and direct grants from the U.S. Olympic & Paralympic Committee rose only slightly, from $5.827 million to $6.493 million.
There was a huge rise to $6.192 million for “Events and athlete program” revenue from just $1.338 million in 2023: that’s $4.854 million of the total added revenue of $7.9 million. Although not identified in the reports, revenue from the marathon and track & field Olympic Trials appears to be the likely big contributor to this total.
“Member-based programs” revenue (member dues and sanction fees) also rose from $3.850 million to $5.444 million and merchandise sales – in an Olympic year – more than doubled from $1.298 million to $2.780 million. Add those three areas together and it accounts for all of the $7.9 million increase.
● Where did all the money go?
Expenses rose to $45.857 million in 2024, compared to $42.167 million in 2023. There were increases in elite athlete costs ($658,000) and sports performance costs ($2.028 million), which could be expected in an Olympic year. But the merchandise revenue surge was met with a cost increase to $2.550 million, so the program netted only $229,668. “Support services” including administration, communications and marketing rose by about $1.2 million.
That took care of the revenue increases.
● So, what now?
A USATF summary attached to the Form 990 Federal tax return pointed to the deficit of $1.19 million “compared to a forecasted deficit of $1.5 million,” “due to strategic investments related to major international events and athlete programs.”
Further, the summary notes that “Management and the board of directors have introduced a range of revenue-generating and cost-saving initiatives to address its financial position as part of its post-2024 Olympic Games and 2025 business strategy” and “With renewed sponsorships, continued USOPC funding, and controlled spending initiatives, USATF anticipates an operational surplus in 2025.”
As far as sponsorships, a table in the posted Form 990 tax return listed USATF’s sponsorship payments from 2020 through 2024, with the 2024 “excess support payments” listed as:
● $18,168,565: Nike
● $750,000: NBC
● $450,000: Comcast Cable
● $340,000: Toyota
● $256,792: Hershey
● $250,000: Prevagen
● $100,004: Hyperice
● $100,000: Garden of Life
● $99,998: Orlando Health
Another eight companies paid between $25,000-65,000 in 2024.
¶
Let’s be clear, USATF is not broke. It lists assets of $29.730 million, down from $31.509 million at the end of 2023 and a net negative assets total of $6.125 million. But it had $1.227 million in cash at the end of 2024 and $11.104 million in investments, which earned $500,568 during the year.
But it entered 2025 still in financial trouble and was clearly watching expenses during this year, laying off some staff members and neither of the U.S. Grand Prix meets in Los Angeles or New York were held (and not financially supported).
USATF further obtained cash funds in 2024 from its $8 million line of credit, taking out $2.615 million and running its total borrowing up to $7.515 million, closing in on the limit, and bearing interest of 7.75% as of the end of 2024. Further, the line of credit will expire on 5 February 2026.
¶
Observed: This is the earliest USATF has released its tax forms and financial statements in some years, a welcome sign of some better transparency.
And 2025 should be better, in part as noted on page 27 of the audited financial statements:
“In July 2024, USATF and USOPC signed a transfer agreement whereby U.S. Paralympic Track & Field would become part of USATF effective January 1, 2025, unifying U.S. track and field athletes under one organization. As part of this agreement, USATF will receive conditional funding totaling $14,150,000, in annual installments through 2028, to administer and support paralympic track and field.”
Information provided to The Sports Examiner earlier this year pointed to an expected $3.7 million boost from USOPC Paralympic funding for USATF in 2025, with $3.2 million to be expended. That would help produce an operating surplus for sure.
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