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:

 $100:  Revenue

-$ 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.