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USA Fencing Board of Directors Meeting Columbus, Ohio July 1, 2013 CEO Report 1. Key Success Factors

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USA Fencing Board of Directors Meeting Columbus, Ohio July 1, 2013 CEO Report 1. Key Success Factors USA Fencing Board of Directors Meeting Columbus, Ohio July 1, 2013 CEO Report 1. Key Success Factors Finance. This year through budget cuts, better management oversight and procedures, the organization is on track to meet our projected $840,000 positive net income. If achieved, this will be the highest net income that USA Fencing has ever met. We have paid down our current and long term liabilities at an impressive rate. Specifically, since the beginning of this fiscal year we have paid down on our accounts payable by $958,000. Cash Flow has been carefully monitored and we have successfully worked through our low cash periods. Credit terms are now being extended to us which is a crucial part of managing cash flow. This is not only a huge improvement from 2012, but will provide a good reference for us next season. As of June, none of the $250,000 line of credit provided to us by the USFF has been accessed. Development. USA Fencing has completed two giving campaigns this year. Life members and past donors received a personalized letter at the end of year highlighting our successes and plans for 2013-14. To wrap up the 2012-13 season, an electronic appeal will be sent out to all members in conjunction with an ad in the Summer Nationals program. General donation revenue is up over 2011-12 by 53% reflecting an increase in over $12,000. A formal development plan was created for diversifying and increasing annual giving revenues. The organization is also applying for grant funding outside of the USOC grant opportunities and will continue to seek out other foundation opportunities. Partners & Sponsors. USA Fencing continues to work to bring in additional streams of revenue by working with our partners and sponsors. We have been able to build new partnerships and expand existing relationships to bring in funds that have directly impacted our operations. During the 2012-13 season we will have received $1,107,570 in revenue and in kind benefits from our marketing partners, suppliers, sponsors, grants and donations (excluding the USOC base funding). Of this, $329K was from new sources of funding…increasing value in kind funding by 40% and cash by 49%. These increases in revenue and in kind benefits of 42% are above industry average increases. We see this as an incredible achievement and a successful start to increasing our revenues. All numbers are reflective of the information available as of June 21, 2013. 1 Membership. The addition of the individual membership requirement for Member Clubs resulted in a 63 % increase in overall membership (as of June 21, 2013) reflecting a growth of 13,221 members and an increase in revenue of over $93,000 (8% increase in revenue). The increase is largely attributed to the new non-competitive membership. We also addressed trial lesson concerns by creating an easy way to report and document the individuals who participate in one-time lessons. Club membership held steady during the 2012-13 season despite concerns that the change with insurance requirements would result in lower number of Member Clubs. Technology for our membership was hugely enhanced this year through the new website. An easier process for noncompetitive membership was created by a batch upload, saving time for both the club owners and National Office. 2013 Sabre World Cup. The 2013 Absolute Fencing Gear® Korfanty World Cup is an indicator of the successful first steps for USA Fencing to increase tournament sponsorship and reduce costs. We generated $64,739 of value in kind and cash sponsorship this year. This is an 80% increase from the 2012 Sabre World Cup. The UIC venue provided us with more opportunities to bring in more value in kind sponsorship due to fewer restrictions than typical convention centers. The value in kind received both improved the experience for the athlete, fans, and officials, as well as reduced costs. The true cash expense to run the sabre world cup this year was $184,000 after considering the non-cash effect of the value in kind expenses. This is a reduction in cash expense output by $43,000 or 19%. All numbers are reflective of the information available as of June 21, 2013. 2013 Summer Nationals. This year’s 2013 Summer National is turning out to be the largest fencing competition in history. As our competition grows we continue to look for ways to control the costs and one of the ways that we have done this is by working our relationship with current sponsors, the Columbus Sports Commission and the city. In addition to the $50K in donated venue rental space we have received in Columbus we generated an additional $34K in cash and value in kind sponsorship. These are all new sources of revenue as in 2012 we only received donated venue rental space in the amount of $126,500. Although the donated venue rental amount is less this year, our out of pocket venue cost is $0 as opposed to $73,500 in prior year. Additionally, USA Fencing has worked with the Sports Commission to get discounts to restaurants and other attractions in Columbus to improve the experience for all attendees. 2 Marketing. The department focused on our two most marketable properties - The 2013 Absolute Fencing Gear® Korfanty World Cup and USA Fencing Summer Nationals. In Chicago, USA Fencing moved the World Cup to a more suitable location within the city, thus increasing event relevancy and exposure in an already saturated media capital. For the first time USA Fencing ticketed the tournament. Athlete gift bags were distributed which included sponsor-provided items such as athletic tape, nutrition bar, event t-shirt and the event program adding event credibility. In Columbus, OH, USA Fencing has received tremendous local fencing club and citywide support. In addition, you will see an enhanced look, feel and presentation of the tournament. USA Fencing will have venue banners, music and announcements at the finals’ stage and signage in hotels and local restaurants. Website. For the past quad, the site had been hosted by the U.S. Olympic Committee this did not allow for customization of the site or for the page to have a look and feel that were appropriate for attracting potential and future fencers, nor did it allow us to work outside the box and bring in alternative sources of income. The new site launched in late December not only is more aesthetically appealing, but it is easier to navigate in all areas. The site provides many features that the previous site did not, i.e. the ability to upload videos, stream content, create user groups, etc…including the ability to capture revenue generating opportunities such as advertising, direct membership registration, direct tournament registration, pay-per-view events, photo store and a direct annual giving portal. Traffic on the site continues to improve with more than 30,000 unique visitors coming to the page each month for upwards of 400,000 page views each month. Event Streaming. For the first time ever, both the individual and team finals of the Absolute Fencing Gear® Korfanty World Cup were streamed live from Chicago. The event was commentated by USA Fencing President Don Anthony and 2008 Olympic silver medalist Tim Morehouse and viewed nearly 9,000 times by fencing fans around the world. Social Media. USA Fencing’s social media presence has continued to expand as our Facebook and Twitter pages have more followers and traffic than almost any other national fencing federation in the world. Recently, the Facebook page has reached more than 10,000 Likes – a figure eclipsed only by Italy. 2. Operations Plan Strategic Accomplishment Highlights A. Goal 1: Generate sustainable revenue from internal and external sources a. General donation revenue up over 2011-12 by 53% reflecting an increase in over $12,000. b. 63% increase in overall membership numbers generating new revenue of over $93,000 (8% increase in revenue). c. $329,000 of new sources of funding…increasing value in kind funding by 40% and cash by 49%. d. Overall increase of $64,739 value in kind and cash sponsorships for 2013 sabre world cup an 80% increase from the 2012. e. Formal development plan was created for diversifying and increasing annual giving revenues. f. Generated $83,708 of value in kind and cash sponsorships for 2013 Summer Nationals. B. Goal 2: Grow and promote the sport of fencing and its traditions a. Launched new website in late December 2012. b. 63% increase in overall membership. c. Website grew to more than 30,000 unique visitors and upwards of 400,000 page views each month. d. Facebook page reached more than 10,000 Likes. e. Moved the world cup to a more suitable location increasing event relevancy, presentation, exposure and the first ticketed tournament. 3 f. Summer Nationals has an enhanced look, feel and presentation of the tournament: i.e. venue banners; music and announcements at the finals’ stage; and signage in hotels and local restaurants. g. First time individual and team finals of the Absolute Fencing Gear® Korfanty World Cup were streamed live from Chicago. h. The numbers for Columbus stand at 3,753 unique individuals; 7,225 total competitors and 411 teams. This reflects a 107% increase over the final numbers for this tournament in 2012 in individuals and 108% increase in total competitors and a 103% increase in the number of teams. C. Goal 3: Continually improve sports performance and development a. Obtained a 4 year grant From USOC to fully fund the men’s epee resident/national coach. b. In wheelchair fencing we secured one coach accepted into the full ICECP (international coaching enrichment certificate program) and an additional coach into the two week module in Colorado Springs.
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