Thursday, August 09, 2012

USA Swimming has '2012 Swim Trials, LLC' choose the Olympians. Few swimmers realized they were swimming for a private company.

Sarah Gjerstad is in the house and don't underestimate her. She wrote article for me titled: "What’s the Problem with Swimming."

Never under estimate her. She called out John Leonard for a faulty corporate structure and he had to admit she was right in a deposition and now she outlines how USA Swimming operates and what they are getting wrong. It might surprise you especially her take on the sex abuse cases.

I promise you this is a good read and quite enlightening. I will include my comments in the comments section:

What’s the Problem with Swimming -- Sarah Gjerstad

Recently John Leonard made a statement that “Ms. Gjerstad had a complete misconnection with SwimAmerica, ASCA.” He may be insulting me, but due to his limited proficiency in English, I’m not sure. I am tempted to revive last summer’s battle with him. It was emotional satisfying to write a blog pointing out the lunacy and failings of someone who gleefully threatened Tony and me with lawsuits. Satisfying, tempting, but no longer productive. It’s time to move on.

From the lawsuits, blog posts, and comments many are dissatisfied with the programs controlled by USA Swimming. This includes club swimming, coach certification, and lack of professional opportunities for swimmers.

What is causing these problems? Is it USA Swimming? Where should people send complaints? As usual, I have an opinion. Ever the contrarian, my opinion might surprise many.

It’s easiest for me to address weak complaints, and organizations that are not responsible.

The USOC [United States Olympic Committee] has selected USA Swimming as the National Governing Body (NGB). The NGB has the authority to choose the team for international competitions, represent the US in the international sports federation, conduct national level competitions, sanction international competitions held in the US. That’s about it. USA Swimming does all that. There are no complaints with those activities. Hence, USOC is a non-player in these problems.

There have been complaints about the lack of a professional league for swimmers. Rarely in sports it the NGB and the professional league the same corporation. The NGB must be a non- profit, and the goals and business practices of professional leagues make non-profit status a challenge. Often the NGBs have the professional leagues choose the Olympians, and to some extent it is that way in swimming. USA Swimming has 2012 Swim Trials, LLC choose the Olympians. Few swimmers realized they were swimming for a private company. We don’t know the financial details, because it is private. We should be able to find out corporate information about 2012 Swim Trials, LLC to ensure no conflict of interest existed. But we can’t find information because, dare I say it again, I cannot locate its corporate registration in the Colorado Secretary of State records. But whatever the status of that corporation, USA Swimming is not the professional league. Swimmers, or someone interested in swimming, needs to form a league, and create professional meets. Patty Berg, founder of the PGA in 1948, told us in the 1970s to form a league. Why hasn’t it happened?

Club swimming is where the problems lie. The sexual abuse and the coach certification complaints are primarily occurring at the club level. USA Swimming does not approve clubs and coaches. The 59 local swimming committees (LSC) do. The problem is at the LSC level. The LSCs may claim they are only implementing USA Swimming policy, and USA Swimming CEO Chuck Weilgus has stated in a letter regarding insurance that “The various Local Swimming Committees are administrative divisions of USA Swimming. They cannot act independently of USA Swimming’s stated objectives.” The legal status of USA Swimming and the LSC’s indicates this is not true. They are formed as separate corporations, in the corporation registrations and IRS tax returns.

USA Swimming and the LSCs represent their relationship differently to the public than to the IRS. The 59 people who sign those tax returns should be paying attention. The LSCs receive tax exempt status because they provide opportunities for youth, a charitable activity. In practice, they implement USA Swimming’s objective to ensure financially sound clubs, definitely not a charitable activity.

Swimming functions differently than other sports. Most young children are coached by a parent, rather than a professional coach. Many coaches get recruited from the sidelines when they bring their 5 year olds to the first day of soccer, basketball, or T-ball practice. Children may get introduced to sports in school or camp, but it is usually the parent who throws or hits 300 balls a day to their child. Membership in elite teams start once the child has achieved some relatively high performance level.

In swimming, parents must turn responsibility of their children over to a professional coach immediately. The LSC will not allow any competition opportunities until the child joins a club. Parents cannot coach their own children outside the approved club system. You cannot be approved to be a USA Swimming club unless you have indoor “water” and level 3 certification. Why, I asked? I wanted my children to compete from May to October and practice in my backyard or neighborhood pool. The answer is the LSCs need to ensure quality coaching. Not only was this an insult to me, but also none of the LSCs business. I agree to sign a waiver regarding quality. Then they admit the policy is to ensure club dues are paid. Follow the money.

What about sexual abuse? Until age 12 or 14, sports coaching is the responsibility of parents. Often this is done through a parent in the neighborhood. When parents bring their young children to lessons, they usually stay and watch. In swimming, parents are expected to hand responsibility and control to the coach. According to an article written by John Leonard and reposted a disturbing number of times, even family vacations need to a taken according to the coaches schedule, not the family’s schedule. It’s part of the culture. Surrender control to the coach. The system trains the parents to accept that coach’s authority, and ultimately the child

does also. Sexual abuse is more likely to happen when institutions pressure parents to accept the authority of those making demands of them or their children, whether those demands are from a coach or to the priest.

There are hundreds of thousands of private club, public, semi-public (neighborhood or HOA), backyard, and school pools in the United States. The majority children who swim in these pools cannot join USA Swimming and compete in swim meets. The business interests of USA Swimming, enforced and implemented by the LSCs, do not permit it. Participation is limited to those who pay club dues. Who’s to blame for the existing system? Whatever USA Swimming objectives are, it does little to implement them. The LSCs, as independent non-profit corporations, should defy USA Swimming and provide opportunities for youth, not clubs. If not, the IRS should revoke their preferential tax status.

Excerpt of a letter from USA Swimming to James Myers dated April 29, 2008

16 comments:

westwardlostone said...

It's a wonder how a few minutes of google searching enlightens one:

Topic 1 - Few swimmers realized they were swimming for a private company. Well 2012 Swim Trials, LLC was well posted on numerous documents and if you entered you wrote a check to 2012 Swim Trials, LLC.

Topic 2 - e should be able to find out corporate information about 2012 Swim Trials, LLC to ensure no conflict of interest existed. But we can’t find information because, dare I say it again, I cannot locate its corporate registration in the Colorado Secretary of State records.

Hmmm…google a bit and you'd discover it was a joint operations between USA Swimming and Omaha whatever. So you'd just then check in Nebraska for it's biz lic...

https://www.nebraska.gov/sos/corp/corpsearch.cgi?acct-number=10099737

I stopped reading after that paragraph as I figured the rest of the post would be as ill-informed as this one paragraph.

Anonymous said...

You don't have to be a club member of USA Swimming to compete - you just register as Unattached. You don't represent anyone - just Unattached-(whichever LSC you are in.) At least that's my understanding of things.

Tony Austin said...

Firstly, you have my permission not to read.

Next, it's nebulous who they are. They have one officer and they are listed as the host of the Olympic trials or in the exact words of what I read - "Hosted by the 2012 Swim Trials, LLC - A partnership between USA Swimming and the Omaha Sports Commission CenturyLink Center Omaha;"

Yes, I think it should be looked at for what kind of partnership it is or was.

I too Googled the search string "2012 Swim Trials, LLC" and though Nebraska came up as the location for 2012 trials; (the Century Link Center in Omaha),there was no mention of this corporation being a private corporation incorporated in Nebraska. So I congratulate your detective skills.

I thought it would be interesting to see who is the officer of this operation is. The Registered Agent is an attorney - no other officers are listed - Just one guy:(I Purchased the documents to the corp to make sure)

Here is the guy who hosted Olympic trials what was his purpose and I think it was fair of Sarah to ask if our swimmers were swimming for profit:

http://pview.findlaw.com/view/1131553_1

Sarah G said...

I looked in CO records because that is the address on the 2010 USA Swimming Form 990, under discarded entities. But I couldn't find it in Nebraska either. Perhaps the 2012 at the start is a problem; I'll call both offices tomorrow.

As for unattached, the South Texas LSC only allows that for exceptional cases, such as swimmers who were off at college and are back for the summer. They would not consider it for "B" and "C" swimmers. I verified with USA Swimming, and they confirmed it was up to the LSC. Some LSCs may be more accommodating. They would not allow a May to October "season" because of the championship meets. If my kids are "B" and "C" swimmers what do I care when the championship meets are held?

Tony Austin said...
This comment has been removed by the author.
Tony Austin said...

Fixing the typos, this will get a lot traffic tomorrow.

Hi Sarah,

The Omaha Sports Commission is a non-profit. USA Swimming is a non profit but suddenly a for profit LLC shows up in-between these two organizations and they hosting trials despite in being an "organization of one".

What is your take on that, Sarah?

I understand that USA swimming charged entry fees for each swimmer and they accepted 2,000 or so swimmers making it the largest trials event in history. ALl that despite that less than 100 swimmers would be chosen.

They charged families and spectators for tickets and I suspect '2012 Swim Trials' must have made quite a bit a money.

Actually, I wonder where the money went? If it were a non profit we could find out, huh?

Cliff Murray said...

In Alaska we have entire "non-clubs" who are listed as unattached with volunteer (but USA Swimming registered) coaches and a non-profit, parent run, board. They swim in nearly every local and state competition. They are are colloquially referred to as the USO's, aka Unidentified Swimming Objects. Bottom line is that they do not want to have to pay the money to become a fully registered club.

Cliff Murray said...

In Alaska we have entire "non-clubs" who are listed as unattached with volunteer (but USA Swimming registered) coaches and a non-profit, parent run, board. They swim in nearly every local and state competition. They are are colloquially referred to as the USO's, aka Unidentified Swimming Objects. Bottom line is that they do not want to have to pay the money to become a fully registered club.

Sarah G said...

The entry fees paid 2012 Swim Trials, LLC were for a Swimvitational meet held before the trials.

Most who made the trials received per diem.

If it was truly a joint venture between two non-profits, there would be no need for a new business entity to be formed. My "follow the money" instinct suggests someone is hiding money from someone else.

Tony Austin said...

SCAQ does not force it's members to join the USMS either.

Sarah G said...

Cliff,
Unattached clubs still get quite pricey, when you add club dues, swimmer dues, coach dues, and ASCA certification.

I read that USA Swimming doesn't require coaches to join ASCA, but the South Texas Swimming does, so add ASCA dues to that.

I understand unattached swimmer, but I don't know what an unattached, registered club means. Does that mean unattached to a pool?

Tony Austin said...

I have a question for CLiff,

Does USA Swimming force "non-clubs" or LSCs to purchase insurance from USA Swimming sanctioned or owned insurance companies?

THis would include general liability or for meets.

Sarah G said...

To westwardlostone (1st comment)

2012 Swim Trials, LLC is registered in Nebraska. It's sole member is the Omaha Sports Commission.

Although the non-profit owns the limited liability company, this event was not conducted by the non-profit.

Tony: can you add a footnote about this directly on the post. Little changes. This was not a joint venture between USA Swimming and Omaha Sports Commission. The may have colluded to obscure the financial dealing, but a private business ran the trials.

This is not a problem with the NGB or trials, but I included in the paragraph about swimmers needing a professional league. If I was a top notch swimmer, I'd be organizing others well ahead of 2016 and demand a % of ticket sales and TV rights as prize money.

Anonymous said...

Isn't that the Berlin Olympic pool? Weird choice of photo for this post...

Anonymous said...

Tony,

You made a comment, "I wonder where the money went". Because 2012 Swim Trials, LLC is owned by a non-profit, Omaha Sports Commission will have to report the income and expenses as Unrelated Business Income or UBI on the Form 990. The public can get an idea of the amount of money this type of event generates. That can take several years before those Form 990s are made available to the public. Their 2011 tax return should be available soon. They should have some expenses and ticket sales listed somewhere on that 990.

Tony Austin said...

Yes that is the Berlin pool - I surprised you noticed. I picked it for many reasons.

It's a beautiful pool and the diving was was half empty or half full depending on your point of view.