Officiating - A Gateway to Profits
It has been said that GHSA loses money on officials; we want to take a closer look as to why this statement has been made. It is generally a gut feeling among the GHSA's officials that this statement is not true. Let's take a minute to understand more about where the money is going and how it is allocated.
GHSA submitted it's Income and Expenses Summary for the fiscal year July 2018 - June 2019 to the Legislative Oversight Committee. That report showed that GHSA has $553,809 of income from officials and an expense of $611,242. This reports shows that GHSA lost $57,433 on officials for that fiscal year.
The income received from officials was from Registration fees, Clinics, Camps, Testing and Fines. Those revenue centers generated $553,809 in revenue in that fiscal year.
When looking closer at the expenses, $323,045 was spent for officiating Semi-final and Final Rounds of the GHSA State Championships. This leaves a net cost of $288,197 for services they provide to officials.
This means that the GHSA is expensing the fees to pay their portion of officials against the revenue generated by those same officials. This is likely not illegal, but this methodology of this accounting method should be in serious question. These expenses should be allocated to the gate receipts of the actual game that was worked; that would remove the $323,045 from the expenses allocated toward officials. Doing this would show and actual profit of $265,612 for that fiscal year.
This would absolutely change the narrative that GHSA loses money on officiating. The accounting methodology used should be totally reformed and the proper expenses need to be put in the proper bucket. As any good business would strive to at least break even in losing departments, we can expect GHSA to continue to offset the reported loss of $57,433. This means officials should expect to see increases or additional fees to compensate the reported losses.
How did we get here? We got here, because officials have no representation when it comes to policy. We have nothing more than an Ad hoc committee that rarely meets. This needs to be changed from top to bottom.
If you support the idea that GHSA should have more valid representation for officials within the State Executive Committee, CLICK HERE, and add your information. We will present this to the GHSA leadership and the Legislators that serve on the Oversight Committee. Let your voices be heard. Like us on Facebook and Twitter for more updates and information.