news analysis Advertising that suddenly appeared on America’s national jersey at the USA 7s is raising fresh questions about USA Rugby’s fundraising.
Two days before the start of the February 11-12 tournament, a late shipment of match jerseys arrived with commercial messaging emblazoned on the chest. From the players to the Board of Directors, almost all were in the dark.
Rights to sell sponsorship of the USA jersey had been part of the tournament’s fall 2005 sale to American International Media, as negotiated by chief executive Doug Arnot. But the Board was not so appraised when the agreement was detailed at its November meeting.
The upshot is the sale value of the USA 7s was lower than was reported to the Board, because jersey rights were part of the total package.
Mr. Arnot was forced to part with the tournament last fall, following two years of losses that wiped out the union’s financial reserve. At the time of Mr. Arnot’s November 2002 hiring, chairman Neal Brendel had touted his event management and sponsorship sales expertise, including “strong relationships within the Olympic movement and with its sponsors.”
The jersey surprise also casts doubt on Mr. Arnot’s claim that the union has not had inventory to monetize. At the club as well as the international level, match jerseys are usually considered a separate and highly valuable piece of inventory and often the first thing sold.
For its part, the Board may find itself compromised with the union’s dues-paying membership, perhaps unjustly. Many directors who have been uneasy with last November’s steep hikes, which Mr. Arnot said were needed to meet the union’s operating costs, are now finding out that management has raised rather less money than it might have.
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