The Seven Deadly Sins of the USTA By Javier Palenque

A few weeks ago, I was asked by a local not-for-profit to give a high-level view of what the ideal nonprofit world should be like and what the management should be doing. Granted I do not consult for nonprofits, but the essence of my research and talk covered seven key points to avoid and to be aware of. Please note that these points are based on multiple sources and a summary of many articles not listed here.

Nonprofit failure is either the shutting down of a nonprofit organization or its failure to achieve its mission. It can happen due to a lack of funds, donors, or volunteers. It can also be due to mismanagement, or a lack of a clear mission or purpose. Why does nonprofit failure matter? Nonprofit failure matters because when a nonprofit shuts down, it can mean that the people who need the services the nonprofit provides will no longer have access to them. Nonprofit failure can also have a ripple effect on the community, such as the loss of jobs and volunteer opportunities. So it is key to understand what needs measuring so one can understand why I criticize the inept USTA leadership so much. The current chairman has been at the helm of the USTA for 16 years, During that time the only things that matter are:

1. How many more volunteers are there from 2007 to today?
2. How many more kids play ( the result of the non-profit's mission) from 2007 to 2023?
3. How many more young adults play from 2007 to 2023?

Suffice it to say that the USTA is a failure in all three key measures of impact which the current salesman CEO does not measure. All they care about is the US Open which is unfortunately a corporate event that has nothing to do with tennis in the country or your neck of the woods. Here are the sins committed daily by the USTA.

1. Underestimating competition and value proposition

One of the most common deadly sins preventing the USTA's success is underestimating the competition and its value proposition. To be successful, the USTA must understand the competitive landscape and develop a clear and compelling value proposition. Pickleball gets this and is eating the USTA’s lunch! The value of the USTA to society is nonexistent. All with $500M per year.

2. Losing your way without core values and a singular mission

One of the most common reasons that the USTA is a failure is because it lost sight of its core values and mission. Without a clear sense of purpose, the USTA has under the poor leadership of its board sidetracked and ended up doing things that are not in line with the original goals of the organization. Putting a show for Wall Street is another business altogether and guess what? they do not need a government subsidy for that. Yet, the incapable board approves this stupidity and deceives the government. All with $500M per year.

3. Failure to understand operating costs

One of the most common reasons that the USTA is a failure is because they do not understand its costs in relation to its mission. They only comprehend their costs in relationship to the US Open, which is a failure as well, the costs are too high, the profits are too few and the waste and inefficiencies are massive. Imagine a $65M payroll for 14 days. Daily payroll cost is $190K, hourly $23K.

4. A scarcity mindset leads to a lack of meaningful asks of donors

One of the most common causes of the USTA failure is a lack of scarcity/poverty mindset, which leads to a lack of meaningful asks of donors. The problem arises when the US Open brings in close to $500M in 14 days and the fundraising a pathetic $5M from a handful of sources. This means that leadership is a failure and the money from the show is the cause of the laziness of the staff and the lack of need of funding for their salaries. This is effectively a scam with sponsors, I wonder if the head of JP Morgan is aware of this? A non-profit that brings in a mere $5M per year or $14K per day, but spends in payroll $23K per hour. This is called a scam.

5. Copying rather than innovating

One of the quickest ways to kill the USTA as a nonprofit is by failing to innovate. In today’s world, nonprofits must constantly be on the lookout for new and better ways to do things to stay relevant. This means being open to change and willing to experiment with new ideas. When a nonprofit fails to innovate, it not only falls behind the competition but also loses the support of donors and other stakeholders. How can the USTA innovate if it is led by Ol’boys who lack a simple understanding of the demographics of the nation, the mission and avoid dissenting voices? It cannot, so all the USTA does is copy from one year to the next the same thing and that is repeat the historical mistakes and focus on the US Open alone. Death by stupidity its called.

6. Losing track of the details

First, failed USTA leadership isn’t paying attention to the section finances, it can quickly find out that they are very close to becoming insolvent if it were not for the grants. This means they are not self-sustaining, they add no value to the supply chain and are appropriately called by me, welfare recipients.

If a nonprofit cannot function effectively, it is unlikely to be able to continue operating. Losing track of the details can be deadly for a nonprofit. If you want your nonprofit to thrive, it is essential that you pay attention to the details. Here is a detail for you USTA, the sport is dead, the people playing are too old and the people at the top are useless, all with $500M per year and $65M payroll.

7. Lackluster Accountability

One of the most common reasons that nonprofits fail is due to lackluster accountability. This is something the USTA thrives on. Without accountability, it is difficult to track progress, set goals, and measure success. This can lead to a downward spiral of decline for the organization. If one looks at the finances of the USTA, they appear to be healthy, until you start looking at each line. Just know the following: Never has the USTA had a better cash position of $360M ($270M from Cynci sale and $28M from stock returns), more debt of $610M, fewer members, less court space, fewer kids, fewer adults, less interest, and less accountability. The profits from US Open operations are minuscule, which tells you that there are too many welfare recipients. I hope the board realizes that they are committing all the sins of a not-for-profit and getting paid to do so. This is irresponsible and why I want all of them out of the sport.

Conclusion

The USTA's failure is a serious issue that can have a ripple effect on the tennis community it is killing the sport and its future. What is the solution you may ask? It starts by getting rid of the people that got the organization here, and that is showing the exit to every good Ol’ boys who are neither good nor longer boys. We need to get rid of them to think we can grow the sport. Now would be a good time.

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

I can be reached at [email protected]

PS. Watch this disturbing report on how the USTA leadership protects itself and not the kids it is supposed to support and grow. It is a failure by any measure. Yet, the employee involved is still employed, why?