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APBA Bod Who's in charge?

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Old 05-14-2003, 02:15 PM
  #41
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Originally posted by Baja Daze
And, thus we have the situation we see today. You've seen the following before, how about a refresher:
--------------
The Licensees currently provide roughly 54% of the APBA's annual revenues - but receive little to nothing in the way of product or services in return. This was the primary reason for the restructuring of APBA, to provide for a fairer more balanced system of governance.

Offshore has exceeded its License Fee obligation - each of the past 3 years and in fact has been overcharged by APBA during this time, nearly $450,000.00.

Offshore does NOT owe APBA a single penny.

APBA violated the License by:

Improperly increasing its annual fees by more than the contract maximum of 3%.

APBA overcharged Offshore for memberships - The Offshore Participant Membership fees, as charged by APBA, were $54 more than any other category. There is no basis for the extra charge and in fact the old leaders claim the only basis for it is that the Offshore guys can pay it. In addition, Offshore assumed most of the accounting functions associated with all its memberships, yet only $56 of each membership went to Offshore. The rest went into the APBA Treasury. This was not a problem, however, until Strang, Hearn and the others declared that this money was theirs to spend on whatever they chose. To them, the Offshore members of APBA were not really members. In their minds Offshore's members were required to pay them money but were not entitled to receive anything other than a patch, plastic card, and some decals. The overcharges for memberships alone since 1999 were approximately $175,000.00.

APBA overcharged Offshore for sanctions - APBA charged only $300 for each sanction it issued to every other category of APBA while charging Offshore a 1000+% premium on its national events and nearly 400% on its divisional events. Yet the Association does not provide a single additional service or any additional value. Again, the old guard claims the only basis for the extra charges is the Offshore guys can pay it. The overcharges for sanctions alone since 1999 were approximately $140,000.00.

APBA overcharged Offshore for mailings - Overcharges for mailing fees since 1999 exceed $30,000.00.

APBA overcharged Offshore for insurance - Since 2000 Offshore has seen its risk management rates increase by 34% for national events and a whopping 62% for divisional events, while the Stock Outboard Category's insurance rates actually were reduced 11% over that same time period. Offshore, its members and race producers therefore, without their knowledge or consent were used to subsidize the old leadership's preferred categories. The overcharges for 2001 and 2002 amounted to approximately $70,000.00.

APBA has roughly 8 employees and a payroll expense of $227,000.00 annually even though it has revenues of less than $1,000,000 and most of its operations are now fully automated. When Offshore recently assumed control of the entire sanction, insurance and membership functions of the category it did so without hiring a single additional employee.

It also paid out $27,500 in hospitalization and disability insurance premiums for an already bloated staff.

$15,000 in pension expense.

$65,000 in additional insurance expense such as Director's and Officer's Liability coverage for a small company of less than $1,000,000 in annual revenues.

$28,000 to Steve Hearn for legal services many of which such as bylaw amendments and updates simply never were performed.

$25,000 for Board of Directors related expenses.

$60,000 net loss to produce the Propeller magazine.
So........to keep it simple, the issues are now threefold.

1. The source/cause of APBA Offshore's insurance rates for an event......... Is there a larger premium associated with size of course, spectator fleet, pits or whatever to justify this? How much less is the LLC paying now and is the coverage comparable?

2. The membership fee allocation to/from Offshore VS. other divisions? Is there a logical reason for the inequity and/or is it simply because the Offshore community "can afford it"?

3. Is this all a flamboyant ruse designed to take attention away from a lack of funds at the LLC, or, on the contrary side, to protect a bloated bureaucracy?

At this point, maybe all three deserve answers.

T2x

Last edited by T2x; 05-14-2003 at 02:26 PM.
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Old 05-14-2003, 03:07 PM
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HEY T2X,

I just want to know one thing, is there insurance at the up coming event? And was there insurance at Daytona.
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Old 05-14-2003, 03:11 PM
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Originally posted by MSGANGWAY
HEY T2X,

I just want to know one thing, is there insurance at the up coming event? And was there insurance at Daytona.
I believe that's been answered in the affirmative and Rick Felsen is the broker.

T2x
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Old 05-15-2003, 12:16 AM
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Quote:
Originally posted by T2x
So........to keep it simple, the issues are now threefold.

1. The source/cause of APBA Offshore's insurance rates for an event......... Is there a larger premium associated with size of course, spectator fleet, pits or whatever to justify this? How much less is the LLC paying now and is the coverage comparable?

T2x
Something no one has mentioned in this debate is how many other categories have helicopters flying derectly over their race course during races? Just a thought.

Grin
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Old 05-15-2003, 12:20 AM
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Quote:
Originally posted by T2x
So........to keep it simple, the issues are now threefold.

2. The membership fee allocation to/from Offshore VS. other divisions? Is there a logical reason for the inequity and/or is it simply because the Offshore community "can afford it"?


T2x

Does anyone have the membership fee schedule for each category for the past three years? If not I will call Detroit
and get that Info and post it here for all to see. I will also
ask how these fees are figured.

Grin
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Old 05-15-2003, 12:30 AM
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Quote:
Originally posted by T2x
So........to keep it simple, the issues are now threefold.

3. Is this all a flamboyant ruse designed to take attention away from a lack of funds at the LLC, or, on the contrary side, to protect a bloated bureaucracy?

T2x
Lack of funds at LLC, noone knows for sure except MA, Lee M, Ted Z., Mike Jones, Greg Jacobson, and select few at APBA and they are bound by the contract not to divulge the finacial info of the LLC.

From my perspective every member had an opportunity to vote for those in power now except Hydro Prop LLC members who's leaders are cooperating with APBA HQ at this time, and Offshore members who under the LLC don't have that right.

Grin
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Old 05-15-2003, 05:36 AM
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I understand most of this. But one thing bothers me. Increases in payment, in a contract, are usually covered in percentages. So my question is that when Offshore LLC signed the agreement with parent company APBA was everything outlined? If everything was outlined then Offshore LLC would either a) pay what they owe or b) pay and go to arbitration or c) decline payment and do nothing.

I may be WAY of base here.
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Old 05-15-2003, 08:18 AM
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Quote:
Originally posted by Grin&Barrett
Something no one has mentioned in this debate is how many other categories have helicopters flying derectly over their race course during races? Just a thought.

Grin
Not all of those helicopters are paid for by the sanctioning body. Many are press, Freeze Frame, private safety copters etc.
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Old 05-15-2003, 08:35 AM
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Originally posted by Shane
Not all of those helicopters are paid for by the sanctioning body. Many are press, Freeze Frame, private safety copters etc.
Shane:

I think Grin's question has to do with the potential for extra liability insurance cost because of low flying aircraft over the race courses....... not who pays for the aircraft flight time.

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Old 05-15-2003, 08:40 AM
  #50
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Unless I'm missing something....This thread is taking a lot of the "mystery" out of this issue......and many of us are learning a lot........and I think it is a healthy and open exercise......

in a healthy and open forum.

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