This story has been updated.
Spending continues to outpace revenues at USA Track & Field (USATF).
According to the organization’s 2023 Form 990—a tax form nonprofits must file and make public—USATF overspent by $5.6 million last year. The organization had $35 million in total revenues, and $40.6 million in expenses in 2023.
As a result of the 2023 shortfall, at the end of the year, total liabilities were greater than assets by $4.5 million. That gap has grown wider since 2022, when USATF was still in the black, although barely. The organization in 2022 reported $568,000 in assets.
The shortfall is caused by what Aarti Parekh, a USATF spokesperson, wrote in an email to Runner’s World were “board-approved investments.” Those investments included expenses related to hosting the 2022 World Championships, obligations for the 2023 Diamond League final (the Prefontaine Classic), and costs for the Grand Prix and Journey to Gold meets.
“As outlined in our audited financials, 2023 was a pivotal year in USATF’s quadrennial journey to the 2024 Olympic Games,” Parekh wrote. “So, these strategic expenditures reflect USATF’s commitment to athlete readiness on the world stage and delivering historic on-field success at all levels, including a record-breaking showing in Paris.” American track and field athletes won 34 medals in Paris.
USATF had been slow providing financial information about 2023. The Form 990 is required to be publicly posted once it is filed with the IRS. A version of it first showed up on the nonprofit news site Pro Publica, which obtains data directly from the IRS. The Pro Publica version showed the form was filed with the IRS on November 14. USATF posted the form on December 23.
In past years, USATF has posted the form before Thanksgiving, and attendees at the annual meeting in December knew what is in it before going to the meeting.
“USATF posts its Form 990 once the corresponding year’s audited financials are completed,” Parekh wrote. “The 2023 audited financials were completed at the end of last week, and in line with our standard procedure, the Form 990 has been posted on our website following the audit.”
For the first time in recent years, the salary of CEO Max Siegel is not the most notable item in the return.
Siegel took home a total of $1.17 million in 2023, down from the 2022 total of $1.26 million and far below his $3.86 million pay package in 2021. His compensation caused an outcry among members of USATF, as it was more than three times the pay of any other executive in the Olympic movement.
Marketing revenues fell. In 2023, USATF reported revenues from sponsorships and royalties of $19.2 million. In 2022, the number was $23.3 million, in 2021 it was $20.2 million, and in 2020, the pandemic year, it was $20.1 million.
In response, USATF indicated that some sponsor agreements were changed during the pandemic, without saying which ones.
“Comparing revenue through the COVID period is challenging due to modifications in sponsor relationships during that time,” Parekh wrote. “Some sponsors adjusted their agreements during that period, which impacted revenue streams. Additionally, USATF recognizes revenue differently based on the timing of when it is earned versus when it is received, which can create fluctuations in year-to-year comparisons.”
A slide shown during a presentation at the USATF annual meeting earlier this month was labeled “extraordinary expenses FY (fiscal year) 2023” and listed eight items, one of which was uniform VIK (value in kind).
“USATF continues to follow the guidance and recommendations of its audit firms regarding the reporting of VIK,” Parekh wrote. “In addition, the extraordinary circumstances caused by the COVID-19 pandemic, including a stockpile of uniforms, have impacted our reporting in ways not previously encountered. These unique circumstances are reflected in our financials.”
At the annual meeting, the membership elected Curt Clausen as the new president of USATF, a volunteer position. Clausen, who competed in three Olympics during his career as a race walker and is now an attorney with Major League Baseball, will oversee the board of directors, which is in turn responsible for overseeing Siegel and the national office.
In November 2023, Siegel signed a new, five-year contract to remain the CEO of USATF. In the press release announcing the deal, board member Will Leer said, “As CEO, Max has reversed the financial woes of USATF and created a strong revenue base which has provided millions of dollars in financial support to athletes.”
In 2023, the organization reported spending $6.8 million on athlete support and development, up from $3.6 million in 2022.
Sarah Lorge Butler is a writer and editor living in Eugene, Oregon, and her stories about the sport, its trends, and fascinating individuals have appeared in Runner’s World since 2005. She is the author of two popular fitness books, Run Your Butt Off! and Walk Your Butt Off!
