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(June 25, 2009)
Dear USA Boxing Member:
As your newly appointed member to the BOD of USA Boxing in the capacity
of the LBC representative, my responsibility is to you and to keep you
fully informed about the state of amateur boxing. I was originally
going to write an "I told you so letter" for that dreadful day in
Chicago when the USOC and Tom Virgets coerced you into signing all your
rights away. However, the situation is too grave to look back, we are
now placed in the position of trying to save USA Boxing. I attended my
first BOD meeting in March 2009 and within the first 5 minutes I found
myself apologizing to the Board for blaming them on not watching your
money. I found out a short time latter that they didn't event know that
our money was not being spent properly. Naturally this was all blamed
on the new governance which you voted on in Chicago, which prohibited
interference by the Board with the Executive Director. At least that
was the excuse. The USOC saw it differently.
Fact:
USOC audited USA Boxing and blame the Board of Directors for
failure to oversee your funds and accuse the BOD of misappropriation
Truth:
The BOD did not misappropriate
d funds they just failed to put
the breaks on with an Executive Director that went on a spending spree
with our money. Nothing illegal just an abdication of responsibility by
your Board.
Fact:
USA Boxing Foundation sues and wins settlement of $1.8 Million
from USA Boxing
Truth:
This is like the money you have been saving for your child's
education suddenly being needed and you use it and he sues you.
However, what went wrong here is that you Board of Directors with the
advice of the Executive Directors thought they found a way of getting
more money out of the Foundation by stacking the Board of the
Foundation with extra votes. Naturally the Foundation members who have
been protecting your money all these years did not like it and the
courts agreed. Now there is very little money left to continue the
wonderful scholarship program we had and money to support the women's
program.
Fact:
USA Boxing hired an expert marketer in Jim Millman as their
Executive Director.
Truth:
Mr. Millman's expertise was hiring marketing companies and
individuals to do the job he was hire to do. He spent hundreds of
thousands of dollars with not a penny to show in return. He stated,
"you have to spend money to make money" I say, if it were his money
would he be spending it so lavishly? At last c
ount there were 2
marketing companies and 3 outside individuals that received over
$50,000. also marketing people he had on staff collecting salaries on a
weekly basis, all supported by your membership dollars because he was
not able to raise a dime. You BOD let this go on and on and on.
Fact:
There were 18 full time employees as of June 1,2009
Truth:
Mr. Millman was told in March when we passed the annual budget
that he needed to get the employee count down to 12. This was Gross
insubordination
Fact:
The Board of Directors approved an expense of $250,000 for the
National Championships
Truth:
Staff and Mr. Millman spent $500,000 seriously jeopardizing our
financial well being.
Fact:
Membership sent $830,000 to Colorado Spring from January to
March. This number represents about 70% of membership revenue
Truth:
Mr. Millman spent all our money in the first 3 months of the
year rather than stay on budget.
Fact:
Rule book jeopardizes safety
Truth:
Our Chief of Officials Mr. Orci was caught and embarrassed at an
arbitration because he could not defend the rules of USA Boxing because
Mr. Millman and staff took out of our rules the whole=2
0Grievance
process. Because of this our rules are basically useless.
Fact:
National Coach selection has been an exercise in frustration for
members. Mr. Millman and his wannabe heir would not relinquish the
process to the coaches that understand what was needed.
Truth:
Mr. Millman solely selected the 2 finalists. Are we getting the
best person?
Fact:
Newark NJ J will be hosting the Pan Am women's boxing
Truth:
We may not even send a team because there is no money. Hopefully
this will be rectified. This will be an embarrassment not to send a
team when the tournament is on US Soil.
Fact:
The USOC has violated our autonomy and if it continues, should be
brought up on charges for violation of the Amateur Sports Act
Truth:
That's the way thing were with despots like Warwick and Shear.
USOC has individuals in place now that are truly concerned about our
welfare. Individuals that will allow us to function. Our problem now
are within and we need changes.
Fact:
Board of Directors failed to manage our money
Truth:
Treasurer of the Board before me was appointed by the USOC and
he did not exercise due diligence.
In conclusion:
The list goes on and on but you can all see that because of the
governance change that you voted on, your money, your rules and the
boxing program itself is not being taken care of. We need oversight, we
need a board that answers to us, we need a say on how our money is being spent and more importantly we need leadership that will stand up
to anyone that tries to interfere in our business.
We, as members created this problem by voting away our rights in
Chicago , we are the only ones that can take it back.
I am proposing a telephone conference of all the LBC presidents to work
out the details. The lifeblood of USA Boxing are the LBC's and together
we can bring USA Boxing back home where it belongs.
Those of you that are interested in a telephone conference, please
notify me within one week and I will arrange it. Naturally anyone can
participate, however I believe any taking back should be by the LBC
representatives. Once we get things back we will work on restoring all
our rights and restoring our Constitution and Bylaws.
We don't have much time left, act now if we are going to act.
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