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≡ POSSIBLE MERGER? ≡
A remarkable message was sent to the membership of U.S. Biathlon on Tuesday, which included:
“As a sport, we believe biathlon is positioned to take a significant leap forward in the United States.
“At the same time, we must acknowledge the challenges ahead. To meet rising needs for athlete support, international competitiveness and increased expectations and pressure from our largest investor, the USOPC, to deliver results, we need greater depth in our athlete pipeline, expanded operational capacity, and increased financial and performance resources.
“While we are proud of our progress, incremental growth within our current structure is unlikely to deliver the results we all know are possible. Throughout our history we have faced inflection points but been unable to take advantage of them.
“For that reason, our board leadership and I, along with input from senior staff, have entered into discussions with U.S. Ski & Snowboard regarding a potential integration that could elevate biathlon onto a bigger stage in America. Fundamental to these discussions is ensuring our high level of athlete support, and protecting the identity, culture, and community of U.S. Biathlon.
“While these discussions remain ongoing, we felt it was important to communicate directly and openly with our membership as the process advances. …
“At its core, this integration could represent a strategic opportunity to increase scale, expand awareness and broaden our athlete base, strengthen financial sustainability, and accelerate long-term competitive success. This is not a short-term survival decision.”
The message, from chief executive Jack Gierhart, was seen by The Sports Examiner and notes, this is not an idea, but a concept which has been thought out and appears ready for serious review and possible action. The sales points for the “integration” would include:
● “Current athlete support – across the spectrum – would be maintained and positioned to expand. Additionally, athletes would have access to an extensive portfolio of athlete support services provided by U.S. Ski & Snowboard including tuition support, internships, commercial opportunities and career support that will extend what we are currently providing.”
● “Importantly U.S. Biathlon would retain its brand identity. The pride our community has in the uniqueness of this sport is deeply important and will be respected.”
● “Biathlon would have representation in broader organizational governance, including seats on the U.S. Ski & Snowboard board, Athlete Council and key committees.”
As described, this is a merger of U.S. Biathlon into U.S. Ski & Snowboard, which has been trying to expand its footprint in order to present added value and interest to potential funders and sponsors.
The U.S. Biathlon Association is tiny compared to U.S. Ski & Snowboard:
U.S. Biathlon:
● 1,432 members per its USOPC diversity statement
● $1.15 million assets as of June 2024
● $566,331 in reserves
● $3.99 million revenues in fiscal 2024
U.S. Ski & Snowboard:
● 39,246 members per its USOPC diversity statement
● $106.38 million assets as of April 2024
● $71.81 million reserves
● $50.43 million revenues in fiscal 2024
The USBA message notes that an “integration” with U.S. Ski & Snowboard would provide access to its Nordic athlete pool, which could be a considerable help for athlete recruitment.
And while the finances look attractive, there is a significant legal issue, one which U.S. Ski & Snowboard has run into before, the Ted Stevens Olympic & Amateur Sports Act (36 U.S.C. §2205 et seq.), which requires in 36 U.S.C. §220522 (6) that a U.S. National Governing Body:
“demonstrates that it is a member of no more than one international sports federation that governs a sport included on the program of the Olympic Games, the Paralympic Games, the Pan-American Games, or the Parapan American Games.”
U.S. Ski & Snowboard is already a member of the International Ski & Snowboard Federation (FIS), which should prevent it from being a National Governing Body for any other sport, in this case, one governed by the International Biathlon Union.
That’s a problem and one that will have to be worked out before a merger is possible, no matter how attractive on paper.
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