APTA TREASURER UNVEILS A DEFICIT BUDGET

By Charles E. Vasoll

At the APTA Annual Meeting in May, the new Treasurer, Jim Shapiro, indicated that the Association’s budget for 2004-2005 would show a deficit. That is, simply, the financial plan was to spend more than was taken in as income. There was no further explanation. It could only be expected that the funds needed to pay bills would come from a “Reserve Fund” of some nature.

First, of course, is the question of the deficit itself. As far as I am aware, only the Federal Government can do this, spend more than it receives. States can’t do it; Cities can’t do it School Districts can’t do it and business corporations have losses, but normally don’t plan to be in “red ink”. Once again, the Association responsible for governing our sport is off in uncharted water.

There is only one place that I know about where excess expenses could be paid from – the Life Membership dues trust fund. Hope Kerr who was the APTA Treasurer for the 1990’s decade created a separate fund for the Life Membership dues. The concept was to invest these funds and use only the interest income for annual operations. Although Life Memberships had been offered from almost the birth of the Association, no “Trust Fund” like this had been previously developed. Now it appears that this fund will be dissolved and the funds used for operational purposes.

It is unfortunate that the Association has to “raid” this reserve which took the better part of the 1990’s to establish. The membership was advised that “major” cost cutting was to take place by relocating the office to a private residence and changing staff. It does not appear that this strategy will make great strides in 2004-2005.

Now a rumor has circulated that the Association made a contract for three years with a vendor with a fee of $18,000 annually to support the web site. I fully support having a web site but I question the validity of spending this amount of dues income for it. Along with the costs associated with the publication of “Platform Tennis Magazine”, I figure that the Association is spending $12.00 to $15.00 per member on communications with the membership.

This might be acceptable if the posted Individual dues of $40.00 were received from all members. It must be recognized, however, that the majority of memberships are paid through “leagues” at a 50% discount (or $20.00 per member).

The leadership of the APTA, in my opinion, has not come to grips with the fact that platform tennis, (wonderful as it is) is a minor sport with a small following. We cannot match the amenities provided by the golf and tennis governing bodies. It’s not wrong to have big ideas but fiscal soundness must be the first priority.

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