Minutes

Board of Directors Meeting

Colorado Springs, CO

November 19-20, 2004

Board Members Present: Sheri Pittman (SP), Jiing Wang (JW), Tong Lee (TL), Tim Boggan (TB), George Brathwaite (GB), Barney D. Reed (BR), Jimmy McClure (JM), Willy Leparulo (WL), Robert Blackwell (RB).

Board Members Absent: Eric Owens, Todd Sweeris, Tawny Banh (all athlete representatives about to be replaced), and Lily Yip (who months ago had committed to promoting a tournament this weekend).

Also Present: USATT Executive Director Doru Gheorghe; USATT Technical/High Performance Director Ben Grigore; USATT Programs and Marketing Coordinator Tommy Perkins; USATT Tournament and Equipment Coordinator Felisa Huggins; USATT Accountant Carolyn Van Der Wege; USATT Administrative Coordinator Joyce Grooms; USATT General Consul Dennis Taylor; USA Table Tennis Editor, Webmaster, League and Club Programs Director Larry Hodges; USOC Sports Partnership Director Chris Vadala; and Guests: newly-elected Olympic-Athlete Representative (effective Jan. 1) Ashu Jain, Richard McAfee, and Scott Preiss.

Friday, Nov. 19

President Sheri Pittman opened the Friday evening Meeting with a nod to the 2004 election results and welcomed new Vice-President Robert Blackwell. She then presented her President’s Report. This in general dovetailed with the Agenda matters we were to discuss: how the Association was currently doing, what 2005-2008 Quadrennial Priorities the Board would collectively agree we were intent on pursuing and how best to pursue them, and the importance of the projected 2005 Budget.

In mentioning her recent representations in the U.S. and abroad, Sheri touched on the Palm Beach County Community Olympic Development Program (CODP)—said that local activities were expanding directly into the County’s schools to encourage 8-14-year-old kids in 8 schools to get involved in table tennis. She also spoke of the need for the Executive Directors of the U.S. and Canada to work together in the ITTF-recognized North American Table Tennis Union (NATTU) Development Program. In emphasizing how she valued the ITTF’s P4 objectives and the format of the U.N. Millennium Development goals, she urged the Board to adopt those principles into our association’s road map. The ITTF P4 objectives are: Popularity, Participation, Profit and Planning. The format of the U.N. Millennium Development Goals stresses the adoption of broad general goals at the top level that can be further refined and supported at the local level. During the ITTF Executive Council meeting held during the Olympics, Sheri had urged the ITTF to adopt that model.

Sheri also noted the Priorities she emphasized in her re-election bid. Among them were: creating a Marketing Division; offering our clubs financial incentives; forming State Associations; and establishing regional training centers. She stated that, after hearing reports, the Board would have the opportunity to set USATT’s priorities for the 2005-2008 quad the next day. These new priorities would be in addition to, and complementary of, the priorities already adopted by the Board in the already-approved USATT Strategic Plan and 2005-2008 High Performance Plan.

Following Sheri’s preview, Tong Lee gave his Treasurer’s Report. It was another banner year, he said. With 10 months accounted for, the Association had a surplus of $147,000. Total assets were $527,000. Since short term assets were $402,000 and short-term liabilities $85,000, our cash flow was very good. Tong pointed out that, based on the various budget categories, including Rating Fees, under Total Membership Revenues membership is increasing (the Association offers a dozen or more different kinds of membership); more people are playing in tournaments; and equipment sponsors are generating more sales. Since we’ve concentrated the last three years on building reserves, Tong said our focus on the next couple of years should be more on formulating a balanced budget rather than one with a large surplus. However, this does not preclude a surplus in 2005, if we generate more revenue than expected. In the next four years, our priorities would be on spending more on elite athletes and the elite athlete development pipeline as we execute the High Performance/Strategic Plan and the Performance Partnership Agreement with USOC, and also on fundraising through sponsorships and grants in order to fund grassroots programs to grow the sport.

Robert Blackwell, as a new Board member, wondered just how much of the $250,000 base funding provided by the USOC we were locked into spending on elite athletes. Answer: a minimum of 80%. However, given the milestones to meet in our High Performance Plan, the 2005 Budget “includes an appropriation of $282,000 or 113% of base funding for the athletes. For the first time, Junior Elite Athletes will receive more funding than the National Teams.”

Tong also pointed out that the 2005 Budget included “a proposed funding of $40,000 for a marketing director.” He said that it is unrealistic to expect any executive director to generate substantial revenues from sponsorship and grants because “he just doesn’t have the time to manage the day-to-day affairs of USATT, manage his staff, oversee the running of USATT’s tournaments, perform marketing functions, seek sponsorships, and provide sponsorship fulfillment. Moreover, without an operating budget, any marketing effort would be limited and insufficient to produce significant sponsorship revenue.” The proposed funding represents seed money to get USATT Marketing started.

Blackwell, with his experience in the field, is skeptical. What, with a mere $40,000, is this Marketing Director to do? What tools has he to market with? What’s he going to give potential sponsors? What’s the return? Tong, who has an M.B.A. in Marketing and over twenty years of work experience in sales and marketing, explained, “The Marketing Director would be compensated by a base salary and a commission, and part of the $40,000 would be used for marketing expenses.” He also envisioned the Market Director reporting to the USATT executive director, and, supported whenever necessary by appropriate Board members and current USATT marketing/administrative staff, being responsible for implementing and executing the primary functions of USATT Marketing.

These functions are: identify and analyze USATT’s assets and properties and develop marketing strategies to optimize their revenue-generating potential; develop attractive sponsorship packages, including brochures, CDs, and other sales materials that would show sponsors the value to them of a USATT sponsorship; identify potential sponsors, especially those that are outside the table tennis industry, and contact them to sponsor USATT events, and interact with them in sponsorship fulfillment; manage independent commissioned agents or representatives seeking sponsorships and grants for USATT, and coordinate their marketing efforts; and help in the production and showcasing of all major tournaments on national TV. Tong expects the Marketing Division would not be self-sufficient for two years, but thereafter would develop into a profit center, significantly contributing to total USATT revenues.  

Carolyn Van Der Wege, our Accountant, had good news. The USOC’s audit of our fiscal year 2003, scheduled from Nov. 9-11, was conducted to make sure “all USOC funds were properly spent and to make sure that the Performance Partnership Agreement had been followed.” This audit was completed in half the time allotted, and the auditor told Carolyn that he would recommend to USOC that, “due to the completeness, accuracy and detail of the financial records,” the USATT “be placed back on the regular auditing schedule of the USOC of every two years” (our last audit was more than a year ago but before that they were conducted more frequently).

Sheri said she appreciated our USOC Sports Partnership Director Chris Vadala coming time and again to address us, and in taking the floor he began by giving us info on the USOC’s Sports Partnership teams. In reply to Robert’s probing question, “What would you like to see the USATT accomplish in four years?” Chris emphasized that our public judges by performance, so “sustained competitive excellence” is what we’re after. And with the USATT we’re interested not only in your Elite Athlete performance but in your Cadet/Junior pipeline to excellence. We’re concerned that China is gaining on the U.S. in medal performance—at the last Olympics China was only four gold medals behind us. Chris spoke of a mutual sports agreement that had been formed between the USOC and China, and George Brathwaite, for one, expressed hope that Table Tennis would be a central sport in that relationship. George reminded Chris of U.S. successes in Pan Am team play, and Chris responded he certainly wouldn’t minimize that.

Newcomer Robert probed some more—asked Chris what happens if we don’t make our High Performance targets. Chris said the worst thing would be if we simply maintained a status quo—and so after these next four years there couldn’t be any guarantees about the future. However, if we did very well with our goals, the USOC would invest more money and “soft money” resources. As part of that review process, the USOC will also monitor whether USATT stays in compliance with requirements listed in the USATT-USOC Performance Partnership Agreement, which besides containing performance milestones also addresses adherence to the USOC’s conflict of interest policy.

Jiing Wang asked if we could get, say, $20,000 for a training camp in China. Chris replied that all 45 National Governing Bodies (NGB’s) want more money, and that Table Tennis was one of the five sports that haven’t as yet won any Olympic medal and thus didn’t have a high priority. Ben Grigore urged everyone to be realistic—said unlike other countries aiming for medals we don’t have $10,000,000 to invest. Ashu said, “If you don’t have talent, money can’t help you.” We need to develop talent.

Our Executive Director Doru Gheorghe was up next. He opened with, “It’s been a tough year, lots going on.” The 2004 National’s would have a striking 780 entries. As yet, there was no conclusive agreement as to where the 2005 U.S. Open would be held. Proposed packages inevitably had too high hotel rates. Better rates are available the weekend following the Fourth of July, and the tournament may be moved to a week later to take advantage of those rates. Robert warned that were either the Closed or the Open to be televised (the Closed to be aired perhaps by the Tennis Channel), we ought not to put out anything less than our best effort. Sponsors sure wouldn’t want a flat show. That would be damaging to our credibility.   

Doru went on to say he was “very satisfied” with the Headquarters Staff. He spoke of receiving Training Center bids, and said he’d be working with Tong and Dennis Taylor to set up bylaws and guidelines for States to form their own associations. He showed a copy of a Directory Book—names, addresses, phone numbers of all members—that the Bernard C. Harris Publishing Company had put out free for another NGB, and said they’d do the same for us, believing many of our members would want to buy it. Doru reminded us that we’ll soon have to vote on Coach and Athlete of the Year nominations, and updated us on Whitney Ping’s entry into the Nov.28-Dec. 5 World Junior Championships in Kobe, Japan, and on the status of Barney Reed, Jr’s required reimbursement of prize money he’d received prior to being suspended.

Doru said we needed to sharpen our focus regarding our High Performance Plan. Earlier Chris Vadala had said it was good that we debated the Plan among ourselves, which certainly Robert and others were doing. Barney, Ben, and Richard McAfee all echoed that it was indeed “a living document” and that continuing adjustments would be necessary. Was it really possible in the coming years to have medal winners? How were we going about trying to do that?

Larry Hodges spoke of increased hits on the USATT web page, and of almost 2,000 non-USATT members playing in the new USATT League Program. Larry was rightly proud of his accomplishments with the now polybagged USA Table Tennis magazine. For example: “The last 18 issues in a row, and 25 in all since I was hired in 1999, have had more advertising than the most ever recorded before I was hired ($9040).” Larry finally has a proposed contract “with Ingram Periodicals to distribute USTTA magazine on the newsstand.” He figures they have to sell 30% of the magazines for the USATT to break even. The selling price would be $4.95 an issue.

This proposed contract drew commentary. Robert was interested in readership demographics, Jiiang in what contents, perhaps a new look, would most interest a general readership; Willy Leparulo in whether $4.95 wasn’t just too much to ask, even if an appropriately seductive cover might draw the attention of a would-be buyer.

For the remainder of the evening Meeting, the Board went into Executive Session.

Saturday, Nov. 20

The all-day Saturday, June 20th Meeting, with the exception of Chris Vadala, Felisa Huggins, and Joyce Grooms, drew exactly the same attendees as yesterday’s session. Sheri’s aim this morning was to break the Board into three separate groups—call them X, Y, and Z. The idea was for them to do some independent road mapping, then report back their targeted conclusions to the reunited body. The hope was that in this way—brainstorming, prioritizing—we all might form a more focused collective vision of what we’d best be doing to supplement our High Performance Plan in terms of servicing current members and attracting new ones.

Sheri gave us some directives and fostered a short discussion. She urged that we formulate a USATT version of the ITTF’s P4 objectives: Participation, Popularity, Profit, and Planning. Obviously Public Awareness of the Sport had to be built up. Communication outlets had to be established that through various Recognition Factors—for instance, high-level competitive events, entertaining exhibition play, coordinated NATTU events, local inter-city, inter-club, inter-collegiate play, promotion of the magazine and web page—would further our Image. To make Table Tennis profitable for U.S. promoters and players—something that in 70 years of organized play has never been achieved—would certainly take Planning with a capital P. A “Dream Vision,” as Ben put it—with a Budget, noted Robert, that supported these goals. By setting its quadrennial objectives, USATT would also be able to approach the USOC and ITTF for assistance and soft money to help it in specific areas.

The X team—Ben, Jiing, Larry, Robert, Scott Preiss, and Tim—fortunately had Robert to take the lead. He immediately began to talk in specifics. Popularity is what will drive everything else. If 13.9 million people play ping-pong now, how can we gradually get 20 million to play? TV is key—it’s a huge influence on public awareness. If we expect in 2005 to show, say, 75 domestic hours (150 shows) of TT on TV, then we have to have a goal of 80 hours in 2006, 85 hours in 2007. We have to keep doing better. With a copy of Jim Collins’s Good to Great in hand, he asks rhetorically, How do better? By Planning. In 2005, establish relations with one network, in 2006 with three networks, in 2007 with five. But of course we need sponsors. And to get revenue-or-promotional producing sponsors we need quality presentations. Quality events produce the spectators that sponsors care about. Quality is essential: our Association’s integrity depends on it.

Where will the Participating spectators come from? From at-the-moment non-USATT members, club enthusiasts, rec players, risk-averse school kids, young people emotionally into pop culture. But is our web page designed to get young people interested? No. Is there anything exciting about it? No. Robert used to give presentations to sponsors. We need, he says, a property evaluation, and a sponsor package. Marketing drives Popularity. We need to know how to reach the 18-34-year-old male, how to reach the Asian community. Marketing is a science, says Robert, but techniques vary in different countries.This strikes a chord with Jiing who says, “Asians value inter-personal relations. With them it’s, first, ‘Do I trust you?’ Then it’s Business. In the U.S. it’s just the opposite.” 

The Y team—Barney, Doru, Jimmy, Richard McAfee, and Tong—also explored the medium of TV. Thought it important to combine an educational component along with the entertainment. They also urged that the word be spread through better coverage in magazines and newspapers. The Association needed to develop promotional materials.   Perhaps a large binder of press articles might help. USATT club organizers are often intimidated by not knowing higher-ups and by feeling they really don’t have anything to offer executives who are distant to them. Robert, on later hearing this, suggests, Why not produce a video on, say, How To Run A Table Tennis Tournament—with perhaps a star component built in. Something imaginative, dramatic is needed to show outsiders.

The Z team—Ashu, Carolyn, George, Sheri, Tommy, and Willy—as might be expected with its younger members saw the need to make Table Tennis a “cool” sport. They wanted a commercialized magazine on the newsstands with an eye-catching cover that shouted encouragingly, “Dominate Your Basement!” Beat Your Boss!” The first few pages would be for the masses—get them hooked. Boldness, creativity was essential. The Music/Entertainment industry had to be courted. ESPN and MTV was where it was at. Get the rappers to play. Also get our own potential medal winners to play. That meant opening up Regional Training Centers. By 2005, one; by 2007, two; by 2008, four. $40,000 for Marketing was not nearly enough.

After the three discussions were summarized by each group’s spokesperson, and another session was spent brainstorming, individual Board members’ target preferences were noted and shown collectively, then, after more discussion, the members’ preferences again noted and shown collectively, all with an aim to continually narrow our focus. By the time we’d finished it was clear that two priorities were decidedly ahead of others. State Associations and Marketing demanded first and foremost our attention. These were followed by strong attention to leagues, to getting the magazine on the newsstands, and to increasing women’s participation. Emphasis on our Top 5 Juniors also drew the Board’s attention.

With regard to our State Associations and their clubs, USATT membership rebates were understood to be important; and perhaps athletes might be paid to represent clubs at the National’s and in inter-or-intra state matches and leagues, or as coaches and practice partners for the most promising young, or as exhibition players to promote the Sport in various parts of the state. Sheri thanked the Board for its excellent cooperation in setting the 2005-2008 quadrennial objectives. She stated that between now and the next meeting advisers would be sought to help plan how USATT will pursue these goals. The primary agenda of the next meeting will focus on those presentations as well as on a review-to-date of the progress achieved through following USATT’s High Performance Plan.

Time now to discuss and approve the Budget. Tong reiterates that, as we’ve sufficiently built up our reserves, our objective this year needn’t be to have another big surplus year but plan instead to break even. However, that doesn’t mean that we could not do better than expected and still report a modest profit for 2005. Needed extra revenue, however, can only come from sponsors, so marketing our Sport is essential. Robert and others felt we ought to have an investment partner. Robert wants to know how much of the revised $286,300 budgeted for the athletes in our High Performance Plan (HPP) is fixed? How much discretionary? After a line-by-line analysis, the fact is very little discretionary money; almost all the expenses were required by the implementation of the Performance Partnership Agreement with USOC and the Strategic Plan. Some line items were discussed, several adjustments made, and $18,035 was earmarked for what was now being called Quad Objectives (with a heavy emphasis on Marketing).

Ben felt that we had to have Training Centers to make our HPP markers. Barney said that we need a strong and secure, professionally structured National Training Center. An Olympic Training Center that provides the maximum of support services to our developing world class athletes. To move forward, said Barney, we need a small budget to assist in the creation of the visual site-rendering drawings to show sponsors.

Robert wants to know more about the U.S. Open Pro Tour contract with the ITTF before approving the Budget. But perhaps our relationship with the ITTF in this matter is rather fixed? Moreover, when Dennis is asked if approval of the Budget necessarily implies approval of the ITTF contract, he says he doesn’t think so. Tong says that the Killerspin contract obligates USATT to a Pro Tour. Doru added that he is reviewing the ITTF contract with USATT counsel. Sheri reminded the Board that the direction USATT has taken over the past couple of years has been to vest the Executive Director with broader authority to implement Board directives. The Executive Director relays information to the Board as he contemplates entering into agreements and doesn’t necessarily seek Board approval through a formal motion before signing the agreements. Robert asked that members of the Board be given a copy of that ITTF Pro Tour document being discussed—especially since he considers it to be an ITTF proposal rather than a contract.   

At this point, we’re approaching the last phase of the Meeting—the moving of Motions. However, since Jiing Wang had to leave the Meeting to catch a necessary flight home, there are now 8 voting Board members present.

            MOTION 1: Move that the Board approve the 2005 Budget. 
            Proposed by: TB; seconded by TL.
            Passed: 7-1-0.
            Opposed: RB. 

A discussion now ensues as to whether the USATT ought to insist on having a President who’s a U.S. citizen. The USOC requires its Board members to be U.S. citizens and it had previously requested National Governing Bodies to require citizenship, especially of its President. Robert thinks that would be too restrictive. Suppose a candidate is really very well qualified? Barney adds that the U.S. is a nation of immigrants—such a restriction would send a bad message. Of course, we’re not voting on whether all Board members have to be U.S. citizens, and Ben points out that he doesn’t know of any ITTF member-country that has a President who’s not a citizen of that country.

MOTION 2: Move that the Board make a change in the following Chapter IX, Section 2 Bylaw.

Replace:

“Section 2. The President shall chair all meetings of the corporation. The President shall recommend for Board approval all USTTA Committee Chairs, and shall recommend for Board approval all nominations and appointments of USATT members to positions with the ITTF, USOC and other table tennis organizations. The President shall be an ex officio, non-voting member of all committees and shall perform other duties as may be assigned by vote of the Board of Directors. The President may serve no more than two (2) consecutive full elected terms as President.”

           Replace with:

“Section 2. The President shall be a U.S. citizen. The President shall chair all meetings of the corporation. The President shall recommend for Board approval all USATT Committee Chairs, and shall recommend for Board approval all nominations and appointments of USATT members to positions with the ITTF, USOC and other table tennis organizations. The President shall be an ex officio, non-voting member of all committees and shall perform such other duties as may be assigned by vote of the Board of Directors. The President may serve no more than two (2) consecutive full elected terms as President.”

            Proposed by: TL; seconded by JM.
            Passed: 5-2-1.
            Opposed: RB, BR.
            Abstained: WL. 

Now there’s a discussion as to how to handle any Conflict of Interest that may come up regarding a Board member. Tim, particularly, dislikes the idea of any one outside person (compliance officer) determining the issue, and feels strongly that the Board upfront, face-to-face, family-like discuss and decide the matter. 

MOTION 3: Move as a Standing Rule that the USATT Board of Directors, not an outside compliance officer, decides whether a Board member has a conflict of interest.

            Proposed by: TB; seconded by BR.
            Passed: 7-1-0.
            Opposed: TL. 

With regard to a possible TV contract for this year’s National’s (Doru thinks the Tennis Channel will show it), Robert’s strongly against it. With so little preparation, what kind of quality presentation could be made? Doru says, Well, it’s not going to cost us money. And showing it is something, not nothing. Robert isn’t impressed that it’s cost free; in fact, he says, you tend to get what you pay for. This show might well project a negative image. 

MOTION 4: Move that the Board give Doru approval to pursue TV agreements for our National Championships.

            Proposed by: BR; seconded by TL.
            Passed: 7-0-1.
            Abstained: RB. 

Finally, one last, non-controversial motion.  

MOTION 5: Move that we award free USATT Life Memberships to all Olympic or Paralympic medalists.
            Proposed by: TL; seconded by TB.
            Passed: 8-0-0. 

Adjournment.

Respectfully submitted by

Secretary Tim Boggan

Dec. 6, 2004