THE EASE OF SPENDING OTHER PEOPLE'S MONEY: A USTA CASE STUDY. By Javier Palenque

A few months ago, I penned an insightful piece on Milton Friedman and the USTA's profligate use of resources. Recent actions by the USTA's CEO have further substantiated my call for his resignation.

Recall Friedman's four ways to spend money:

1. Spending your own money on yourself.
2. Spending your own money on someone else.
3. Spending someone else's money on yourself.
4. Spending someone else's money on someone else.

In recent sexual abuse cases, the CEO's attempts to conceal incidents from the press led to a $10 million settlement with one victim and a $9 million court judgment against the USTA. Adding at least $2 million in legal fees, the total surpasses $21 million. The USTA plans to cover these costs with insurance, leading to higher premiums funded by the organization. The CEO's refusal to address these issues internally, coupled with his defiant stance, highlights his comfort in spending others' money (the mission's) without fear for his job or the consequences of his poor decisions.

This irresponsibility extends to the board, which also indulges in lavish expenditures like free hotels, tickets, and first-class travel. These perks are relished by individuals who travel infrequently and, therefore, find such freebies particularly delightful.

Given the choice between protecting children from sexual abuse or safeguarding the USTA's reputation, the CEO and the board chose the latter. When this was brought to public attention and foolishly taken to court, the citizens of Florida delivered a resounding verdict: punitive damages for the CEO's incompetence.

Examining the CEO's personal financial decisions reveals further hypocrisy. The highest-paid employees of the USTA, including the CEO, contribute negligibly to the foundation. If the CEO truly believed in the mission, he would be a significant donor. Instead, he chooses to hoard his money, not contribute to the foundation or its cause. His public persona of caring about the mission and the children is a facade designed to secure his position.

The lack of empathy for abused children, who lack wealthy parents to support their fight, is glaring. A review of the foundation’s donor list reveals that neither the CEO nor the highly paid lawyers contribute anything of value. They benefit immensely from the sport while giving nothing back, using the organization’s funds to cover their mistakes. The board, fully aware of this, nonetheless sides with the nefarious Old Boys' Club.

In many places, individuals who contribute nothing to a nonprofit cause are expelled for their uselessness.

However, at the USTA, such actions are rewarded by the board. This neglect of the CEO and his lack of vision and leadership is a significant reason why tennis is declining and failing to attract new players. He then fabricates participation numbers and devises growth plans that defy mathematical logic, perpetuating more lies. In the real world, this is stupid.

It's time to tell the CEO and his cronies that we don't need selfish or unintelligent leaders in a nonprofit. We need honesty, integrity, care, and decency for our youth and sport. These traits are abundant in millions of Americans, but the problem is that the Klan only accepts those who resemble them and avoids accountability or welcomes dissent. Taken right out of the 1930's, that was 94 years ago. Come on people, this way of thinking was your grandpa's and you are 60+

A disgrace to us all. I want them all out and so should you. Their incompetence is simply unsustainable.

I say NO to ineptitude and YES to growing the game.

I can be reached at [email protected]