Key Takeaways
- USA Swimming is projected to have a deficit of $1,066,960 for the 2025 fiscal year, a significant shift from the initially projected surplus of $99,532.
- The decline in revenue is due to a decrease in partnership marketing revenue, membership revenue, and meet sanction revenue.
- Expenses are also lower than projected, but not enough to offset the loss in revenue.
- The organization’s financial struggles are not new, with this being the seventh time in the last nine years that USA Swimming will operate at a deficit.
- Despite the deficits, the organization has turned a profit in both Olympic quads (2017-2021 and 2022-2025) due to significant surpluses in Olympic years.
Introduction to USA Swimming’s Financial Projections
USA Swimming, the national governing body for the sport of swimming in the United States, has updated its financial projections for the 2025 fiscal year. The new projections indicate a significant decline in revenue, resulting in an expected loss of over $1 million for the year. This is a stark contrast to the initial projection of a small surplus of $99,532. The decline in revenue is attributed to a decrease in partnership marketing revenue, membership revenue, and meet sanction revenue.
Causes of the Decline in Revenue
The decline in revenue is due to several factors. Partnership marketing revenue is expected to come in $1,807,329 below projections, partly due to the loss of TYR as the title sponsor of the Pro Swim Series. Membership revenue is also expected to fall short of projections, with the final number of registrations in 2025 being fewer than expected. Additionally, meet sanction revenue is expected to fall $75,000 shy of projections due to a shortfall in Block Party meet sanction fees. These decreases in revenue have significantly impacted the organization’s financial projections, resulting in the expected deficit.
Expenses and Cost Savings
While revenue has decreased, expenses have also been lower than projected. The decrease in expenses is due to several factors, including the extended time without a permanent CEO. The Commercial division is projected to have expenses decrease by $888,620, primarily due to personnel reductions, elimination of Splash Magazine, and USA Swimming Productions cost efficiencies. The Executive division is also expected to have expenses decrease by approximately $670,912, primarily due to decreased personnel costs related to the CEO vacancy. However, the Business Affairs division is projected to have expenses increase by $574,997 due to increased legal fees for an unanticipated antitrust lawsuit.
Historical Financial Performance
USA Swimming’s financial struggles are not new. The organization has operated at a deficit in seven of the last nine years, with 2020 and 2024 being the only two years since 2017 that it has turned a profit. Despite these deficits, the organization has turned a profit in both Olympic quads (2017-2021 and 2022-2025) due to significant surpluses in Olympic years. The 2020 Games, although postponed, saw a significant surplus, and the 2024 Games are expected to bring in substantial revenue.
Financial Projections and Future Outlook
The updated financial projections for the 2025 fiscal year indicate a challenging financial landscape for USA Swimming. The decline in revenue and expenses highlights the need for the organization to adapt and find new ways to increase revenue and reduce costs. The organization’s ability to turn a profit in Olympic years has helped to offset the deficits in non-Olympic years, but it is essential for USA Swimming to find sustainable solutions to its financial challenges. The organization’s leadership will need to carefully manage its finances and explore new revenue streams to ensure the long-term financial stability of the organization.
Conclusion and Future Implications
In conclusion, USA Swimming’s updated financial projections for the 2025 fiscal year indicate a significant decline in revenue, resulting in an expected loss of over $1 million. The decline in revenue is due to a decrease in partnership marketing revenue, membership revenue, and meet sanction revenue. While expenses have been lower than projected, they are not enough to offset the loss in revenue. The organization’s financial struggles are not new, and it is essential for USA Swimming to find sustainable solutions to its financial challenges. The organization’s leadership will need to carefully manage its finances and explore new revenue streams to ensure the long-term financial stability of the organization.
