1. Linda D. Robertson Associate Executive Director for Business September 2013

2. The Business of FHSAA – Myths & Truth Myth # 1 FHSAA was created by Florida Law

3. The Business of FHSAA – Myths & Truth Truth 1920 - Opened as a Private Corporation – operating out of UF’s Peabody Hall Organized and formed by coaches seeking fair play

4. The Business of FHSAA – Myths & Truth Truth 1952 – Designated a Non-Profit Private Corporation Governed by its Public & Private School MEMBERS

5. The Business of FHSAA – Myths & Truth Truth Nothing in Florida Statues for first 76 years 1997 - Legislation in Florida Statutes Named the governing organization for HS athletics for PUBLIC schools (no option) 2004 – Legislative study recommended raising fines for eligibility violations 2012 – HB 1403 changed eligibility rules on transfers

6. The Business of FHSAA – Myths & Truth Myth # 2 Perceived as relying on Public Funds (taxes)

7. The Business of FHSAA – Myths & Truth Truth ZERO state funding or direct tax dollars $0

8. The Business of FHSAA – Myths & Truth Truth 7% INDIRECTLY from Public funds (Public Schools) $168,100 Dues; $121,300 Fines; $58,700 Fees (2012-13 FY)

9. The Business of FHSAA – Myths & Truth What Are Public Funds? “Public fund refers to the funds of every political division of a state wherein taxes are levied for public purposes.” - uslegal.om

10. The Business of FHSAA – Myths & Truth Truth: The State of Florida funds Public Schools through the FEFP (Florida Education Finance Program) FEFP does NOT provide funding for Athletics or Extra Curricular Activities

11. The Business of FHSAA – Myths & Truth Truth Public Schools rely heavily on Activity Funds from ticket sales, fund raisers and donations to fund Athletics Most Public Schools use NON-PUBLIC funds to pay FHSAA dues & fines

12. The Business of FHSAA – Myths & Truth Myth #3: Perceived as relying on Penalties/Fines for funding source = $

13. The Business of FHSAA – Myths & Truth Truth Less than 3% of resources are Fines (2012-13 FY) ($121,300 Public & $53,700 Private Schools)

14. The Business of the FHSAA – Myths & Truth You can Define the Purpose of a Business by where it gets its money and how it spends its money

15. Where Money Comes From $5,164,000 2012-13 FY

16. Where Money Goes - $5,018,000 2012-13 FY

17. The Business of the FHSAA – Myths & Truth You can Define the Purpose of a Business by where it gets its money and how it spends its money Truth: 92% of expense is Event Management, Officials, Training & Publications, and General Administration 8% of expense is Compliance and Eligibility FHSAA gets ZERO from the State FHSAA is a Non-Profit Private Corporation

18. Did You Know? 90+ years ago……FHSAA Members determined State Championships should be organized & the PRIMARY Source of funding for the FHSAA

19. Did You Know? The First State Championships were in 1922 -Boys Basketball -Baseball -Tennis 32 State Championships in 2013-14

20. Did You Know? State Championship Series = 41% of Total Resources $2.1 Million out of $5.2 Million Budget

21. Did You Know? FHSAA Members through representatives - determine By-Law & Policy on School’s Share of State Playoffs

22. Did You Know? Regular Season belongs to Schools FHSAA does not regulate ticket prices or share gate revenue

23. Did You Know? 3,100+ State Series Post Season Events were Hosted by Schools Schools Share of Gate Receipts for District & Region: 100% for 24 sports 85% for 7 sports 75% for football

24. Did You Know? FHSAA State Series Generates Millions for High School’s Athletic Programs Estimated $7.9 Million in 2012-13 for Schools Athletic Programs (Gate receipts, concessions, parking, and team payouts for Finals)

25. Did You Know? FHSAA State Championships: 277 Finals Events Hosted by FHSAA each Year $1.1 Million per year – for FHSAA Funds used to pay: Participating teams Officials Trophies Other event costs

26. Did You Know? Over the past 3 years, FHSAA has redirected funds to schools through Policy Change A Few Examples: Football Classics pay FHSAA $54,000 Less Membership Dues are $208,000 Less FHSAA share of District & Region is $50,000 Less Fines at 10 year low, $175,000 in 2012-13 (was $551,000 in 2007-08)

27. Did You Know? Over the past 3 years, FHSAA has expanded the number of Classes and improved State Championship Venues to the benefit of Schools A Few Examples: Team Payouts were $393,800 in 2012-13 ($131,000 higher than 3 years ago) Team sports increased from 6 to 8 Classes – now award 8 State Titles for each team sport - providing “championship” experience to more

28. Financial Goal “Fund the organization with 100% ticket sales from State Finals, Sponsorships, Media contracts, and Royalties so there is No Financial Burden to our Schools”

29. What’s Next? 3 yr Plan – Fee Adjustments 1. Eliminate FHSAA share of gate for State Series Dist/Region for Individual Sports – was 15% (CC, SW, TRK, WR) – NOW Zero Shared 2013-14 2. Eliminate/Reduce Tournament Sanction Fees 3. Eliminate/Reduce FHSAA membership and Legal fees

30. How Policy is Changed Eligibility rules, Fees, Dues and Revenue sharing are developed in By-Law and Policy from elected representation of our MEMBER SCHOOLS Representative Assembly FHSAA Board of Directors

31. FHSAA Purpose From Articles of Incorporation approving FHSAA as State of Florida not for profit corporation To promote, direct and control all interscholastic athletics of schools of which its members are principals, To establish, maintain and enforce such rules as may be necessary to provide that all such activities shall be part of and contribute towards the entire educational programs of the high schools of the State of Florida, To cooperate closely with the State Department of Education in the development of that program, To safeguard the physical, mental and moral welfare of the students of Florida high schools and protect them from exploitation, Through its members,…to improve opportunities for all Florida high school students, and protect their interests, To advance the professional and welfare status of its members. Must annually report to the Secretary of State of the State of Florida

32. Bottom Line FHSAA was formed 93 yrs ago by schools FHSAA By-Laws & Policy are written by member schools FHSAA is a private, non-profit corporation generating funds primarily from events and corporate partnerships