The Current Landscape of Youth Sports Governance ● Overview: Discuss how youth sports organizations like USSSA have become central to the sports economy, organizing thousands of events across baseball, softball, and other sports. However, with such large-scale operations, issues like financial mismanagement, lack of transparency, and poor governance have come to light. ● Key Topics: ○ USSSA’s role in managing millions of youth sports participants. ○ The need for governance reforms and financial transparency, particularly in light of recent lawsuits (including the Florida RICO case).

Why It Matters ● Overview: Financial transparency is crucial in youth sports to ensure accountability, especially in nonprofit organizations like USSSA. The recent USSSA lawsuit reveals that financial mismanagement can harm the organization’s integrity and community trust. ● Case Study: The USSSA RICO lawsuit, where top executives are accused of illegal sports betting, embezzling funds, and manipulating financial reports, underscores the importance of accurate financial reporting. ● Key Figures: Display metrics related to tournament entry fees, officials’ pay, and economic impact to illustrate the significant flow of money through these organizations. ● Key Recommendations: ○ Propose reforms such as

Lessons from USSSA ● Overview: The USSSA lawsuit showcases governance failures at the highest level, with executives accused of manipulating financial records and using the nonprofit’s resources for personal gain. These failures highlight the need for strong governance frameworks in youth sports organizations. ● Discussion Points: Integrity of the Game vs Economic Impact (Politics), The Oklahoma Business Plan 1 Comprehensive Lecture Overview: “Integrity of the Game vs. Economic Impact in Youth Sports” Professor K – 9-9-24 ○ Whistleblower Retaliation: How whistleblowers were retaliated against after reporting financial misconduct within USSSA (Extra Inning Softball) (Ground News) (The NonProfit Times). ○ Impact on Nonprofit Status: The potential legal consequences of misreporting on Form 990 and other IRS-related documents. ● Key Takeaway: Governance failures can lead to severe reputational damage and legal consequences for nonprofit organizations. Implementing strict governance models, compliance audits, and transparency in leadership decision-making are critical steps to avoid similar situations.

From Cash-Based to Salary-Based Payments ● Overview: One of the recurring issues in youth sports is how officials are compensated. The transition from cash-based payments to structured, salary-based models not only ensures transparency but also compliance with tax laws and fair labor practices. ● Real-World Data: ○ Highlight data on officials’ pay from USSSA events, with some events paying over $508K in officials’ fees (2024_Integrity_of_the_G…). ○ Discuss how officials are often paid in cash without formal documentation, leading to tax evasion and financial mismanagement. ● Recommendations: ○ Transition to structured payroll systems to improve transparency and ensure tax compliance. ○ Ensure officials receive benefits and fair compensation, which aligns with broader labor regulations.

Overview: Youth sports events, especially large-scale tournaments, have significant economic benefits for local communities. Events like those managed by USSSA not only generate direct revenue from event entry fees but also stimulate the local economy through increased tourism and local spending. ● Case Study: ○ Baseball Heaven Complex: Generated over $16.5M in economic impact, illustrating the importance of reinvesting these profits into infrastructure and community development (2024_Integrity_of_the_G…) (2024_Integrity_of_the_G…). ○ Firelake Ballfields: Contributed over $9.8M in economic impact. ● Discussion Points: ○ How effective governance can maximize the economic potential of youth sports events. ○ Propose partnerships between local governments, sponsors, and sports organizations to ensure the profits from these events are reinvested in the community.

Overview: Many sports complexes face infrastructure challenges that impact their ability to host high-quality events. Facilities like Bouse Sports Complex have faced issues with maintenance, lighting, and drainage, reducing their overall profitability and participation. ● Key Examples: ○ The importance of reinvesting event revenue into facility upgrades. ○ How well-maintained facilities attract larger events and increase community trust in the organization. ● Recommendations: ○ Propose a reinvestment model where a percentage of event revenue is used for facility maintenance and upgrades to ensure long-term sustainability.

The Way Forward ● Overview: Governance reforms are the key to ensuring the long-term success of youth sports organizations. By implementing stricter financial audits, promoting transparency, and transitioning to structured payment systems for officials, organizations like USSSA can rebuild trust. ● Key Reforms: ○ Introduce a governance model focused on compliance with IRS regulations, transparency in financial reporting, and ongoing legal audits to prevent issues like the ones seen in the USSSA RICO case. ○ Recommend certification and training programs for directors, officials, and coaches to ensure they understand best practices in financial transparency and governance.

Ensuring the Integrity of the Game ● Overview: Youth sports should focus on development, community engagement, and fair competition. However, as the USSSA lawsuit shows, governance and financial transparency are critical to maintaining the integrity of these organizations. Without proper oversight, these organizations risk damaging both their reputation and their community standing. ● Call to Action: Propose that youth sports organizations adopt a holistic governance model that includes financial transparency, structured labor practices, and ongoing audits to ensure their long-term sustainability and success.