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June 18, 2020

Executive Compensation at the US Soccer Federation (2017-2018)

by Anne Paddock

The US Soccer Federation (USSF) has been in the news quite often of late because the US Women’s National Team (WNT) filed a gender discrimination lawsuit against them in 2019 which is currently on appeal. A non-profit, tax-exempt 501 (c) (3), the USSF is the official governing body of soccer in the US which makes them a powerful organization in the sports industry.

In 2017-2018, the USSF reported $124 million in revenue, most of which came from sponsorships, royalties, membership dues, and a related organization (CA2016 Local Organizing Committee who hosts, organizes, stages, and promotes soccer tournaments). Expenses were $113 million.  The excess revenue ($11 million) was added to the general fund which had $163 million at year-end.

The largest expense for USSF was compensation.  1,487 employees received $36 million in compensation, which equates to an average compensation of $25,000. 88 employees received more than $100,000 in compensation with the 18 most highly compensated employees listed below:

  • $3,354,167:  Juergen Klinsmann, Former MNT Head Coach
  • $1,274,957:  Bruce Arena, MNT Head Coach (thru 10/15/2007)
  • $  836,517:  Dan Flynn, CEO
  • $  609,271:  Jay Berhalter, COO
  • $  363,534:  Andreas Herzog, Former MNT Asst Coach
  • $  345,297:  Tabare Ramos, U2OM Head Coach and YTD
  • $  211,345:  Lydia Wahlke, Legal Counsel
  • $  318,533:  Jill Ellis, WNT Head Coach (as of 12/18)
  • $  352,235:  Tom King, Managing Director Admin
  • $  338,845:  Brian Remedi, CAO
  • $  342,600:  George Chiampas, Chief Medical Officer
  • $  257,920: Christen Press , WNT Player
  • $  256,720: Rebecca Sauerbrunn, WNT Player
  • $  256,695:  Kelly O’Hara, WNY Player
  • $  251,784:  David Sarachan, MNT Head Coach (thru 11/18)
  • $  247,497:  Samantha Lewis, WNT Player
  • $  232,434:  Lisa Levine, Legal Counsel
  • $  222,316:  Eric Gleason, CFO

12 of the 18 (67%) most highly compensated employees are male while 6 (33%) are female. 8 out of the 10 most highly compensated employees are male while 2 are female. It certainly appears that the coaches for the men’s national team (MNT) were more highly compensated than the coaches for the women’s national team (WNT).

USSF pad health club fees of $185 per month for Dan Flynn and Jay Berhalter.

USSF paid Jurgen Klinsmann, the former MNT head coach $3,354,167 as part of a settlement. It is important to note Klinsmann’s employment was thru 11/16/2016.  Klinsmann received more than $19 million in compensation in 7 years:

  • 2011-2012:  $1,047,172
  • 2012-2013:  $2,515,561
  • 2013-2014:  $2,523,113
  • 2014-2015:  $3,232,481
  • 2015-2016:  $3,076,590
  • 2016-2017:  $3,302,534
  • 2017-2018:  $3,354,167

USSF paid Andreas Herzog, the former MNT Assistant Coach $355,537 as part of a settlement.

USSF paid Bruce Arena, the MNT Head Coach during the year $300,000 as part of a settlement.

Based on the above information, it appears the USSF paid about $4 million in settlement costs to former coaches of the MNT.

USSF paid Don Barber, a board member and the President of Soccer United Marketing, $27 million for a marketing partner payment.

3 independent contractors received more than $100,000 in compensation. These three contractors were:

  • $2.5 million:  Latham & Watkins of Los Angeles, CA for legal work
  • $0.4 million:  Pepper Hamilton of Philadelphia, PA for legal work
  • $0.1 million:  James Hoffman of Augora, OH for coaching consulting

To read the IRS Form 990 (2017 for the year ending March 31, 2018), click here.

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