Key Takeaways:
- USA Swimming’s Sport Development department received an increase in funding by raising club dues in 2024, but is now reducing expenses by $500,000.
- The reduction in expenses is attributed to cost savings driven by efficiencies in business operations, not reduced services.
- The cost savings come from various areas, including credit card processing fees, reduced spending at the Annual Summit, and technology expenses.
- USA Swimming has committed to using the increased funding to provide better services to clubs, including more visits, education, and recognition.
- The organization still faces a growing revenue problem due to the loss of members and major sponsors.
Introduction to the Issue
The latest financial news from USA Swimming’s Board of Directors meeting has raised questions about the organization’s management of funds. Specifically, a voting member of the House of Delegates expressed concern about the reduction in expenses by the Sport Development department, which had previously received an increase in funding by raising club dues in 2024. The commenter wondered where the money had gone and whether USA Swimming had reneged on its commitment to use the funds to provide better services to clubs.
The Background on Club Dues
The club dues increase was proposed in 2024, with the aim of providing better services to clubs. The proposed increase was from $75 per year to $225 per year for existing clubs and $750 for new clubs in their first three years. After negotiation, the $225 fee was approved, but the $750 was reduced to just a club’s first year. This was the first change in club dues since 1990. USA Swimming committed to using the funds on various programs, including more visits to LSCs, alignment with LSCs on serving clubs, and more listening to coaches at the local level.
The Conflict and Lack of Trust
The conflict between coaches and USA Swimming in 2024 was not just about the increase in club dues, but also about the lack of trust between the two parties. The relationship between USA Swimming and U.S. swim coaches had deteriorated to an all-time low point by the end of Tim Hinchey’s tenure. Coaches were concerned that the increase in club dues would not lead to better services, but rather to more bureaucratic spending. USA Swimming’s commitment to use the funds to provide better services was seen as insufficient to address the underlying issues.
USA Swimming’s Explanation
USA Swimming has provided a thorough explanation for how they managed to save $499,077 without reducing services to members. According to the organization, the club dues increase went into effect for the 2026 membership year, meaning that the higher rate didn’t hit until September 2025, with that revenue not hitting the budget until the 2026 budget year. Despite this, USA Swimming says they proactively increased support to member services in 2025, including doubling club visits and increasing education and travel budgets. The cost savings come from various areas, including credit card processing fees, reduced spending at the Annual Summit, and technology expenses.
The Impact on the Organization
The reduction in expenses by the Sport Development department is a positive sign for the future of the organization. However, USA Swimming still faces a growing revenue problem due to the loss of members and major sponsors. To address this issue, the organization will need to reinvest some of the savings into programs to reverse these trends and improve the overall health of the sport. This will require a concerted effort to rebuild trust with coaches and clubs, as well as to provide better services and support to members.
Conclusion
In conclusion, the reduction in expenses by USA Swimming’s Sport Development department is a positive sign for the organization, but it also highlights the need for continued efforts to address the underlying issues and rebuild trust with coaches and clubs. The organization’s commitment to using the increased funding to provide better services to clubs is a step in the right direction, but it will require sustained efforts to improve the overall health of the sport. By prioritizing transparency, accountability, and member services, USA Swimming can work towards a brighter future for the sport.