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June 22, 2020

How the US Soccer Federation Spends Revenue

by Anne Paddock

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.

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