USOC Resource Allocation to USATT for 2007

The USOC recently announced its 2007 resource allocation to USATT.  USATT uses this funding for support and development of elite athletes.  The information is also used in preparation of the following year’s budget. Typically USATT does not publicize the resource allocation as a news item.  This year, however, the USOC has drastically reduced the allocation to USATT; at the same time the USOC has significantly increased direct athlete support to USATT’s #1 woman, Gao Jun.   

USOC Resource Allocation to USATT

A summary of the USOC’s 2007 Resource Allocation for USATT is as follows:

Elite Athlete Health Insurance Slots:  6

The USOC has approved for disclosure the following breakdown of funding it is providing to USATT for NGB and Athlete Support:

NGB Support

Athlete Support is subject to:

·        Gao Jun must maintain a top-15 international rank to remain eligible for the NGB Funding and Direct Athlete Support.  In 2008 the international rank minimum raises to top-10.

·        Any athlete that achieves and maintains a top-15 international rank in 2007 is eligible for the NGB Funding and Direct Athlete Support.

·        NGB Funding and Athlete Support will be awarded on a six month basis.  Every six months the international rank will be evaluated to ensure the top-15 rank is being maintained. 

The NGB payment schedule reflects the 2007 dates and amounts:

Previous Years’ Allocations Compared to Present Allocation

By comparison, USATT Treasurer Tong Lee put together the table below which reflects amounts received more recently and in comparison to a decade ago: 

* Based on extrapolation of year-to-date data.

USATT received approximately $250,000 for the several years of the last Olympic quadrennium under the USOC’s policy of allocating that amount to every National Governing Body.  More recently, as it went through public reforms, the USOC changed courses and is now channelling more financial resources to sports that have shown sustained competitive excellence.

USOC’s Response to USATT’s Request for an Explanation

USATT’s Executive Director Doru Gheorghe requested an explanation as to why the USOC funds to USATT were cut so drastically.

The USOC Sports Partnership Director who is USATT’s liaison with the USOC responded, “After a thorough review and extensive discussion on USATT’s plan, international results, and governance/Board challenges, it was our determination that USOC dollars are not currently impacting overall international performances and that this trend will likely continue for 2008 and 2012.  Consequently, in a competitive pool with limited resources, we decided USATT is not a sound investment for the USOC at this time.  This decision was not taken lightly, but it finally came to the point where we needed to re-evaluate our funding strategy with the NGB.  We rarely get to talk about sport and pipeline development with USATT as the majority of our time and energy is spent on Board and governance issues.  Until the Board and governance issues are resolved we question if the group can address and be truly committed to a long-term plan.

“All that being said, we are pleased with Gao Jun’s international results and that we are able to dedicate significant resources towards her training and competition schedule.  She is by far one of the largest investments we are making towards a specific athlete, in any sport.  This level of support is also available to any other athlete that achieves an individual international ranking of top-15 in 2007 and/or top-10 in 2008.  Additionally, there are many USOC programs and services still available to USATT and its athletes, including Operation Gold, Elite Athlete Health Insurance, Tuition Assistance, medical services, Olympic Training Center use, Team Leader meetings, sponsorship opportunities, International Games support, etc.”

 Resource Allocation Guidelines

The USOC’s guidelines for resource allocations, as alluded to above, are contained below:

“The USOC shall allocate resources to the NGBs and direct athlete support to the athletes with the goal of enabling athletes, through the NGBs, to achieve sustained competitive excellence at the highest level of international competition in accordance with the following guidelines:

1. Achievement of the objective (sustained competitive excellence) may require the investment of USOC resources over a long period of time.

2. Support to NGBs should be customized based on the environment (competitive and otherwise) in which each NGB operates.
3. In order to receive USOC support, each NGB must commit to measurable and achievable goals which, if achieved over time, will meet the objective of the resource allocation process.  If the goals are not met, the level of support, and the programs it is directed to, will be re-evaluated.
4. Generally, support should be allocated with a view to maximizing the number of elite, international medals awarded to U.S. athletes, as well as maximizing the number of sports in which U.S. athletes medal.  Recognition should also be given to the impact that a successful performance could have on the USOC’s ability to generate revenue.
5. Support to NGBs and to athletes should be minimized where it will have no meaningful impact on performance.  This means that support should be minimized where there is no reasonable possibility that it will facilitate the ability of U.S. athletes to compete at the highest level of international competition, and also where U.S. athletes can be expected to compete at the highest level of international competition with or without USOC support. As a result of this guideline, some NGB’s may not receive performance-based support.
6. USOC Athlete Support will be allocated based on the existing guidelines (see Section K).”

Impact on USATT

This resource allocation applies to 2007 and after.  USATT’s budget for the duration of 2006 is, therefore, not adversely impacted.  USATT Treasurer Tong Lee and USATT Executive Director Doru Gheorghe are analyzing what cost savings can be implemented for the remainder of 2006.  They have also begun the process of preparing USATT’s 2007 draft budget.  The USATT Board of Directors will make final budget decisions at a meeting held in conjunction with this year’s National’s in Las Vegas.  The 2006 election process will be completed by then, so the re-elected and/or newly-elected Board members will participate in setting next year’s budget. 

The Elite Athlete Committee is prioritizing funding requests and all Committee chairs have been asked to submit budgetary information for 2007 as well.  With the USOC cut in funding, USATT will have to find ways to generate more income and reduce expenses.   Over the past several years USATT has accumulated a sizable reserve fund of about $400,000.  The Board could choose to tap a portion of these reserves as the organization deals with this new financial paradigm.

In response to being informed of this news, ITTF President Adham Sharara has renewed the ITTF’s offer to work with USATT in the areas of marketing, elite athlete development, and re-introduction of the ITTF Pro Tour (along with a profitable marketing strategy for USATT).  He added that, to date, the USATT Board has not affirmatively expressed its interest in any of these joint ITTF-USATT initiatives, which USATT President Sheri Pittman presented to them at the Board’s last meeting in July.

Candidates for USATT elections have been apprised of this situation and will be allotted space at www.usatt.org to address this issue as well as to present their campaign statement.   

USATT will update this message if it receives any other pertinent information.  If you have constructive recommendations on this matter, please contact Doru Gheorghe at ed@usatt.org.