Some Restrictions on USA Swimming’s Interim CEO Lifted; Coaches Get Heated on Dues Increases

Less than a month after implementing temporary bylaw changes restricting the authority of interim CEO Shana Ferguson, USA Swimming has rescinded some of those restrictions.

At this weekend’s Annual Business Meeting in Denver, the Board of Directors restored full authority to Ferguson. This was viewed by some attendees as an indicator that Ferguson might become the CEO on a full-time basis after the departure of Tim Hinchey, though USA Swimming has hired a search firm to look for candidates for the role.

While SwimSwam reported the restrictions this week, they were implemented on September 4th by a vote of the Board of Directors without a meeting.

Of the original seven restrictions, four remain at least partially in-tact, specifically ones that relate to financial decisions, hiring and termination, and a new one was added regarding committee appointments.

Current Restrictions

Additions in Bold.

• Financial Decisions – The CEO shall obtain the approval from the Board on any Program annual expense total that has a current annual projection of $50,000 or more over the approved budget. Reviews and approvals will occur during the Periodic Reporting Meetings noted below
• Hiring and Firing – The CEO shall obtain the approval from the Board before hiring or terminating any full time, salaried employee. The CEO is prohibited from negotiating or proposing a severance package or compensation decisions, such as salary increases, with any employee without the prior approval of the Board. The CEO shall provide notice to the Board regarding the hiring or termination of any full time, salaried employee.
• Committee Appointments – With respect to appointments ordinarily made by the CEO, the CEO shall consult with the Board before CEO makes any changes in appointments to committees.
• Periodic Reporting – The CEO shall report every other week to the Board on the topics and matters that materially impact the operations or direction of USA Swimming.

Amended Bylaws Removed

• Strategic Changes – The CEO shall obtain the approval from the Board before making any organizational changes or strategic initiatives.
• Communication – The CEO shall obtain the approval from the Board before issuing any formal communication (other than regularly scheduled, routine communications, such as newsletters or staff leads communicating with their committees for daily operations) or press release on behalf of USA Swimming with stakeholders, members, sponsors (excluding sponsor contract negotiations), and/or the media
• Operational Changes – With respect to appointments ordinarily made by the CEO, the CEO shall obtain the approval of the Board before CEO makes any changes in appointments to committees or non-staff positions.
• Board Interaction with Staff – A change to the policy titled “Accountability of the CEO” addressing the Board’s delegation of the authority and accountability of staff is: “specifically revised so that only the Board Chair or Vice Chair/Chair-Elect or a Board designee as appointed and approved by the Board and communicated in advance to the CEO may give instructions to the CEO and Strategy Team members without the consent, but with the knowledge, of the CEO.

“The Board has replaced the vacated Temporary Amendments with updated protocols intended to restore the majority of the CEO’s duties and powers back to the office. This action results from our confidence in COO and Interim CEO Shana Ferguson’s ability to effectively lead USA Swimming and coordinate with the Board in the best interest of all USA Swimming members,” the board’s email said.

“The Board looks forward to continued collaboration with Shana, staff, and all USA Swimming stakeholders to support and advance the sport we all love.”

The new amendments will be in effect until a permanent CEO begins employment.

Showdown Looming on Club Dues Increase

A contentious debate session on the proposed USA Swimming club dues increases on Friday sets up for a highly-interested vote on Saturday (happening as this article is being written).

The most consequential item up for vote at this year’s session, USA Swimming has proposed a 221% increase in club dues from $70 annually to $225 annually for established clubs and $700 for the first three years for new clubs. This would be the first increase in club dues since 1990.

Coaches in attendance said that those who spoke against the increase were aggressively attacked by the pro-increase supporters. While most coaches that SwimSwam spoke to were okay with the increases, they echoed two main concerns.

One was whether the money would be effectively spent on the programming that has been promised, which includes more on-the-ground support from USA Swimming staff. The organization’s club, LSC, coach, and athlete development budget has been cut by 50% since 2019 amid a broader budget slashing for the organization which struggled financially during Hinchey’s tenure.

USA Swimming has committed to the following list of programs, though one coach told SwimSwam that even during the presentation, a malfunctioning computer led to a presenter commenting that some of the money would be spent on new computers and phones for staff members, which is not part of the list below.

• More visits from USA Swimming to LSCs
• Alignment with LSCs on serving clubs
• More club visits to variety of club sizes
• More listening to coaches at local level
• More recognition of clubs (especially those producing at an age group level)
• Regular meetings in LSC with coaches and LSC Boards
• In-person coach education
• Include coaches in decision-making process, both in-person and broad grassroots participation
• Help when clubs are facing significant challenges around facilities, board changes, etc.

Voting delegates have not received a full budget for the next year prior to Saturday’s voting session, and USA swimming talked about sending quarterly budget updates on these specific earmarked funds to try and build trust with coaches – something that has been substantially eroded in recent years.

The other most-common concern was over the financial burden of the increased dues on new clubs and whether that would stifle the growth of the sport. When the proposal was first floated, Joel Shinofield, the Managing Director of Sport Development for USA Swimming, told SwimSwam that when new clubs fail, the organization loses 70% of those members, so the increased fee was designed to allow USA Swimming to provide more support to prevent those clubs from failing.

Paris Jacobs, the owner of the 1,600-member Machine Aquatics club in the DC Metroplex, was on stage in Friday’s meeting speaking up for the changes. She told the gathered delegates and coaches that the increases would impact her bottom line as well. Jacobs has served a number of roles in American swimming, including on the Eastern Zone Board of Directors, as part of the business management team for the International Swimming League, and as the Chief Operating Officer of the American Swimming Coaches’ Association.