Last week, SwimSwam reached out to USA Swimming for more information regarding its tax filings from 2022, which showed the organization lost more than $17 million in net assets while running a $10 million operation deficit last year.
SwimSwam did not receive any response to multiple emails sent to USA Swimming’s media team, so we lobbed a softball question directly to each member of the Board of Directors via email as well as CEO Tim Hinchey: Is there confidence that the organization will bounce back?
Only one Board member, Ira Klein, answered. He recommended speaking with Board Chair Chris Brearton or vice president of finances Kenneth Chung, neither of whom responded to SwimSwam’s media inquiry. Klein did not answer a follow-up email asking to speak about his work on the Executive Compensation Committee.
A few months ago, one Board member told SwimSwam that they are “not allowed to speak with the press” and that all media inquiries should be directed to chief commercial officer Shana Ferguson, who continues to ignore them.
That member of the BoD did not specify what or who prevented them from speaking to the media. There doesn’t appear to be a no-media policy in the Board of Directors’ code of conduct as it says “Board members recognize that in their interaction with the media… they are not to speak for the CEO, the Board, or USA Swimming, except to repeat explicitly stated Board decisions.”
In a way, USA Swimming’s culture of silence is written into the organization’s DNA. The Board of Directors’ code of conduct states that “members will not publicly express individual judgements of the performance of the CEO.” It seems as if Board members are allowed to speak with the media — they just can’t criticize Hinchey in any interviews.
Additionally, if any Board members disagree with Hinchey’s self-assessments of key performance indicators, they must take it up in a closed session hidden from the Board’s meeting minutes. One policy provision instructs the CEO to “not allow cash and cash equivalents to drop below that amount necessary to meet operating expenditures over a 30-day period,” but Hinchey reported himself in compliance this year despite having just $2.3 million at the end of June to cover $3.3 million in operating expenses for the following month.
USA Swimming’s Board has the power to regularly review the governing policies, including the code of conduct, and “as appropriate, refine them.”
SwimSwam reviewed Board code of conduct documents from USA Track and Field as well as the U.S. Olympic and Paralympic Committee and did not find similar policies baked into their bylaws.
The response echoes that of a USA Swimming spokesperson who earlier this year told SwimSwam that it was not a good “Return on Investment” to answer media inquiries or to allow Board members to give interviews. This has, effectively, shut down accountability and communication between the organization’s leadership and the membership base that provides 62% of USA Swimming’s revenue via membership dues.
While I completely agree that there are (many) concerns about USA Swimming’s performance, this is mostly a non-story. The BOD is clearly not going to engage the media in any personnel or operational matters. There are all sorts of legal / HR reasons for that.
As for a closed session for assessing Hinchey himself, also a non-story. That’s how BOD works. Employee conversations like that won’t be held in open general meetings, nor make the minutes. Now, any member of USA Swimming may absolutely request to know the substance of closed meetings, but will have to show cause why they have the need to know. The same holds true for local clubs that are 501(c)(3). Parents can’t just dig into… Read more »
Plain and simple, USA swimming is hemorrhaging money to pay for lawsuits to cover up the numerous abusers running their clubs
I totally agree with ClubGovernanceGuy. While it’s great that pressure is being put on the Board to take ownership of many of the sport’s challenges and to make some changes, the Board also needs to protect what is going on inside the Board room. Each Board member needs to be able to speak honestly and without fear that what they say will get exploited by someone who disagrees with them. It’s hard to trust that they are hearing the membership (and I give SwimSwam credit for helping them hear the membership!), but I have to believe that, even though none of the Board members are speaking publicly, they are hearing the membership and I trust that tough discussions on many… Read more »
Word from as few within USA-S Staff is that Tim H gone post Paris
so lets reward him with an all expenses paid trip to one of the most expensive cities in the world … yea that tracks
Continue this reporting swimswam! Super important.
All of swimming and youth sports are like this. Unqualified board members that provide no oversight of inept “CEOs” that are grossly unqualified to run a business.
Swim Club boards routinely defer decision rights and controls to swim coaches that barely graduated college, and if they did, from degree programs designed to print degrees.
The sport is dying because there are no adults in the room.
can you put this on repeat, every other comment? You win SwimSwam comments today.
My 20yo made similar mistakes on far less $$. I’m super pissed at him, but he is a 2yo adult and has time to learn. What is their excuse?
this board sounds like a majority of boards who run swim clubs … no? change my mind.