This BOD has elected to take a different approach to managing USAB.  The 2006 BOD has selected to develop, initiate and guide a strategic and tactical approach that can handle each problem as it arises in the context of the USAB Mission statement.

How does the new BOD operate?

The Mission of USAB:

To enable US amateur boxing athletes to achieve sustained competitive excellence, develop character, support amateur boxing, and promote and grow the sport of boxing in the US.

In light of this statement, this BOD clearly identifies two areas of service and responsibility:

            1. The BOD will provide the programming and resources that will enable our USA athletes to achieve sustained competitive excellence that is representative of the most powerful nation in the world.

            2. The BOD will provide the LBC’s with the tools to obtain the resources necessary to foster character development in athletes and grow the sport in a manner commensurate with the world’s richest nation.

The BOD’s Guiding Principles:

            1.  This BOD is committed to Strategic Planning. “If you don’t know where you are going, no road will get you there”.    This BOD will not crisis manage.  All BOD actions will be executed relative to their impact on the mission, and the short-term and long-term strategic plan objectives.

            2.  The BOD is committed to clear lines of separation between the duties and responsibilities of the Chief Executive Officer (CEO) and the board.  The CEO (formally the Executive Director) will have the authority to perform the duties and responsibilities of the position.

            3.  The BOD is committed to quality and excellence.  Quality does not cost, it pays!  The BOD will hire proven quality personnel and hold them accountable for performing with excellence and producing quality local, national and international programs.

            4.  The BOD is committed to Women’s Boxing.   Women’s Boxing will grow under this BOD’s administration.

            5.  The BOD is committed to the Group and Affiliate Members. Officers will be consulted prior to any BOD actions being executed that affect Group and Affiliate Member operations.  The BOD is committed to facilitating Group and affiliate membership growth.

            6.  The BOD is committed to serving with excellence as the United States Olympic Committee NGB for the Sport of Boxing.  USAB will meet all of the USOC requirements to obtain “Top NGB” status.

            7.  The BOD is committed to the USAB MISSION! The BOD is committed to Winning!  USAB will once again field internationally successful teams that produce medals.  The BOD is committed to Growth!   USAB will provide the LBC’s with the tools to grow their clubs.

            8.  The BOD is committed to unity.  This BOD will address the organizations internal and external constituents as one unified voice.

            9.  The BOD is committed to open communication and transparency.  Quarterly, the BOD will report its actions to the membership along with an explanation of the thought process that lead to the decision.  Monthly the BOD will post on the USAB web answers to questions asked by the membership.

What has the BOD done since October? 

The BOD’s initial task was to review the major issues facing the organization.  The BOD reviewed the programming from a strategic, tactical and operational view and determined which actions required priority addressing and immediate attention.

Strategic:  Items that are reviewed by the BOD and a course of action and execution is determined by the BOD!

Tactical:  Items executed by the CEO.  The BOD gets involved by request of the CEO to facilitate the CEO in accomplishing mission goals.

Operational: Daily activities of the USAB organization.  Execution determined by the CEO.

 Strategic and Tactical items under review included:

LBC Gun’s and Hoses proposal, CEO hire, women’s boxing support, Foundation support, insurance options, A2P issues, USOC issues, CEO task forces, AIBA issues, USAB litigation, strategic planning, budget development and marketing and sponsorship planning strategy resulting from the A2P notice of termination.

The interim ED has also been working on a host of operational issues that he will discuss in his newsletter.

The BOD recognized that many of the USAB issues were interrelated, with the need to hire a CEO being the top priority.  However, priority adjustments needed to be made to accommodate for the interrelatedness of some of our most urgent issues.  For example, if USAB can not effect a suitable agreement with A2P then the job description for the CEO will change from primarily being an office supervisor to that of primarily being a marketing and sponsor fundraiser with office oversight responsibilities. 

Since A2P and the USOC have accounted for a significant portion of the USAB operating budget, the USAB relationship with the USOC and A2P has clearly impacted the appropriate qualifications necessary for the CEO position. To this date, their money has influenced USAB operations at the local, national and international level and the BOD placed improvement of this triangular relationship as its top priority.  To this end the BOD initiated a series of meetings with both USOC and A2P.  Our goal was to establish open communication with both organizations and assure that USAB was meeting its responsibilities as a NGB and as a contractual partner with A2P.  The BOD was committed to affecting a “win-win relationship with the USOC and A2P.

USOC/A2P relationship with USAB:

The BOD met with both the USOC and A2P in Colorado Springs on November 28, 2006.  The USOC meeting was exceptionally productive.  Our independent directors masterfully negotiated three commitments from Mr. Scheer.

1.  A commitment to provide the USAB with additional financial support for our Olympic development contingent upon USAB providing a well developed “high performance plan” with deliverables.

2.  A commitment to stand behind the decisions of the BOD relative to the USAB relationship with A2P.

3.  An agreement to provide a “fast track” process for USAB to meet the milestones necessary for discontinuation of NGB probationary status.

As many of you know, USA Boxing and A2P Holdings, LLC, entered into an Agreement in 2004 in respect of marketing and other subjects. 

The USAB position was to give A2P our full support and commitment towards successfully accomplishing the A2P/USAB contract. 

In addition, the BOD offered to support A2P

1) In its efforts to negotiate a new LA site for the USAB National Championships.

2) Allow A2P to negotiate on behalf of USAB for development of a resident training site in Los Angeles, California.

3) have first right to market and promote all national and international USAB sponsored competitions.

4) Continue participation in USAB strategic planning.

5) A USAB commitment to encourage AIBA to move Olympic qualifying dates so that A2P could better market USAB events.

6) Provide two positions on the committee to hire the USAB-CEO. 

In addition to what we offered, A2P insisted that USAB sign the 2^nd addendum.   Days later, A2P insisted that they be allowed to recruit, interview and hire the CEO with USOC approval of their selection, and void of any USAB participation.  The BOD rejected these demands as stated, but left the door open for additional communication on how A2P and USAB could affect a compromise solution to the 2^nd addendum that would allow both organizations to accomplish there missions. 

By letter dated December 6, 2006, A2P notified us that A2P has elected to terminate the Agreement in accordance with its terms.  As a result, the Agreement will terminate on February 4, 2007.  At present, the primary consequence of the termination is that USA Boxing will not receive approximately $1,000,000 in annual revenue from A2P. 

A2P recently demanded repayment of $266,000 along with their right to maintain 1^st right of refusal on all USA Boxing negotiations involving the USAB mark for a period of one year.    USAB legal counsel is currently representing our interest regarding this issue.

CEO Position:

The BOD has hired the firm of Teamwork Consulting to conduct a national search for a CEO.  A six member BOD task force will review the candidates and present their recommendations to the BOD.  We hope to have a sitting CEO in March, 2007.

Insurance:

Insurance continues to be the organizations greatest financial challenge.  USAB insurance accounts for 40% of the entire USAB operating budget.  Insurance for most NGB’s account for 10-15% of their budgets.  In addition to the high cost of insurance, USAB must also encumber in an escrow account an additional 1 million dollars of our money over a 5 year period to guarantee our deductibles.  The BOD is working with the ED and his task force to investigate alternative insurance options.

Foundation support:

The Foundation has always provided USAB with outstanding support.  In recent years the foundation has helped USAB by funding scholarships, supporting women’s boxing and providing the encumbrance dollar support for our insurance needs.  In October, the Foundation denied funding for both the women’s boxing program and the insurance encumbrance fund stating that the Foundations Mission prohibits it from supporting annual operational activities of USAB.  The Foundation funded both the insurance and the women’s boxing programs as emerging emergency requirements with the understanding that USAB would develop a plan to absorb these expenses into its operating budget. To date, USAB has not provided the Foundation with a viable plan that reduces its dependence on the Foundation for annual operational funding.  The BOD and ED are working with the foundation to develop a plan of action that will meet the USAB emergency needs, reduce the USAB dependence on Foundation support for operations, and involve the Foundation in future fundraising efforts that will support both organizations missions.

LBCs

For many years the local boxing organizations have been treated as a step-child of USAB.  Let’s face it, it is easier to focus on and develop a plan of action that effects high profile programs on a national level, in a national office with  paid employees, a budget supported by multiple agencies and a clear single mission at the international level.  It is much more difficult to organize a group of thousands of volunteers who receive little recognition for their hard work and operate with little or no budget, few funding opportunities, and are housed amongst multiple agencies with different mission priorities. Add to this equation the misguided belief of some LBC’s that the National Office is suppose to financially support the operations of the LBC programs, and it is easy to see why our grassroots programs are suffering.

Currently, all LBC sanctioning and membership fees go towards paying for insurance and staff for operations directly associated with LBC business. USAB only funds programs that directly support LBC activities and functions with LBC dollars. However, simply clarifying where LBC money goes does not change the fact that most of our volunteers are not in a position to obtain the financial assistance necessary to effectively operate and grow a LBC. What we need is a clear understanding of the role of the USAB National Office with respect to the LBC.

The National Office must provide the LBCs with the tools to facilitate obtainment of the resources necessary to develop the character of our athletes and grow the sport of amateur boxing in a manner commensurate with the worlds richest nation. The National Office does not exist to fund LBC’s, it exist to facilitate LBC’s in obtaining funding. 

The BOD and ED have formed a task force to launch a nation wide Guns and Hoses program that will have local and national sponsorship.  Host competition opportunities will be made available to every LBC along with a step by step promotion manual and with national office assistance for making this program a local success.   Revenue generated by these shows will be shared by the LBC and the police and fireman fund.   BOD member Lt. Dave Swavey will be chairing this initiative.  A power point presentation of the program vision will be available on the USAB web.

Task Forces:

The ED is currently putting together a list of Task Forces (formally BOD committees) to lend expertise and support to the USAB operations.  Many of you will receive an invitation to serve on these Task Forces.  I hope that you will embrace this opportunity and serve the ED and the USA Boxing program with passion and integrity.

We are moving slower than some might have hoped for, however this deliberate and diligent pace is one that will guarantee long-term success.  Our new BOD is a well balanced mix of independent directors with proven successful business experience and boxing people with proven success and dedication to the boxing communities that they serve.  I can assure you that although the challenges are many, the expertise of this BOD is more than adequate to overcome these challenges and successfully return USAB to its former elite NGB status.  My challenge to the membership is that you approach this new form of governance with an open mind, recognize the potential that these independent directors bring to USAB, and resolve to be a member of a team dedicated to the success of the USAB Mission.