How the US Soccer Federation Spends Revenue
The US Soccer Federation (USSF) has been in the news lately 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 2018-2019, the USSF reported reported $115 million in revenue (compared to $124 million the prior year) which came from 6 sources:
- $51 million (44% of total revenue): Sponsorship and Royalties
- $34 million (30% of total revenue): National Team Int Games Open Cup
- $10 million (9% of total revenue): Membership Dues
- $10 million (9% of total revenue): Contributions, Gifts, and Grants
- $ 6 million (5% of total revenue): Player Development Revenue and Coaching School
- $ 4 million (3% of total revenue): Investment Income
Expenses totaled $130 million (not including nearly $2 million in depreciation) which were categorized as follows:
- $37 million (32% of revenue): Compensation
- $36 million (31% of revenue): Travel and Conferences
- $24 million (21% of revenue): Fees for Services (primarily other fees with no detail provided)
- $11 million (10% of revenue): Office-Related Expenses
- $ 8 million (7% of revenue): Miscellaneous Expenses (no detail provided)
- $ 5 million (4% of revenue): Equipment
- $ 4 million (3% of revenue): Advertising, Promotion, and Sponsorships
- $ 3 million (3% of revenue): World Cup Bid
- $ 2 million (2% of revenue): Referrees
As illustrated above, USSF spent $15 million more than total revenue raised which means the organization relied on net assets ($163 million) to pay the excess expenses. At year-end, USSF had $148 million in net assets.
The largest expense for USSF is compensation which totaled $37 million for 1,228 employees, 77 of whom received more than $100,000. The highest compensated employee was Juergen Klinsmann, the former MNT Head Coach who was compensated $1,475,000.
Fees for Services totaled $24 million and primarily ($22 million) were “other fees” with no detail provided. Micellaneous Expenses ($8 million) were also not detailed.
Using the above information, every $100 was spent as follows:
-$ 32: Compensation
-$ 31: Travel and Conferences
-$ 21: Fees for Services
-$ 10: Office-Related Expenses
-$ 7: Miscellaneous Expenses
-$ 4: Equipment
-$ 3: Advertising, Promotion, and Sponsorships
-$ 3: World Cup Bid
-$ 2: Referees
-$113: Total Expenses
-$ 13: Excess Expenses over Total Revenue
As illustrated above, the three largest expenses totaling $97 million (84% of revenue) were compensation, travel and conferences, and fees for services. For every $100 in revenue the organization reported, they spent $113 and were able to do so because they had about $163 million in net assets to cover the excess expenses.
To read the IRS Form 990 (2018 for the year ending March 30, 2019), click here.
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