Christmas in September!!!

There we were, in the middle of trying to enjoy the Monday Morning Blues,  when all of a sudden….BAM!!  The SRRBBL Board…the gift that keeps on giving…they really “gave” today…IN EPIC PROPORTIONS!!!  OMG!!!  When does it stop?!?!?!?  This is better than Oprah or Ellen giving away money or gifts, or Sears donating time, gifts and money to do a home renovation.  Seriously, its like Christmas in September!!

We have stated numerous times that this Save SRRBBL campaign really hit its stride in the April / May timeframe of this year.  On April 25, 2017, SRRBBL Commissioner Anton Perkins sent out an email, with the 2016-17 SRRBBL P&L.  In the email, the SRRBBL Commissioner stated, “To couch any of the concerns listed, the Board of Directors is providing an Expense Report for the 2016-17 season. After officially closing the books, it is attached for your convenience.” So the SRRBBL Commissioner is clearly stating that the “books are closed”.   We all understand that, correct?  Can we all agree to that?  Good!

Below is the P&L sent by Commissioner Perkins in that email, on April 25, 2017, which we have all seen:

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Today, a Member of the SRRBBL Community noticed that SRRBBL’s 2016 tax filing has finally hit the IRS website.  We here at Save SRRBBL immediately felt inadequate in our quest to stay on top of all things SRRBBL, we were beaten to the punch…but then that feeling faded quickly, because…well…its Christmas in September!  Now, before you read on, please make sure you are sitting down…but first grab some popcorn, or a beverage of your choosing, and make sure when you sit down, you sit on your comfy couch or recliner, because this is one you will really want to savor and soak in.

Below is the first page of the tax filing of form 990EZ by SRRBBL, for tax year 2016,  to the IRS:

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For a better view, please click here: 2016_990EZ

So many questions, where to begin…where to begin.  No, literally…where to begin?

1.  On April 25, 2017, SRRBBL Commissioner Anton Perkins told the SRRBBL Community in an email that, the “books are closed“, with the round number of $87,000 in Gross Income and $80,650 in Expenditures.  Round numbers, what a hoot!  The 2016 SRRBBL tax form 990EZ above seems to have been received by the IRS no later than June of 2017, or even as early as May 2017, so no more than two months after SRRBBL Commissioner Perkins’ “books are closed” email.  So why did Gross Income change from $87,000 to $116,964, increasing by $29,964?  What?  And Expenses grew by $26,875?  Huh?  We thought the “books were closed”?  What happened in the month of two after Commissioner Perkins’ “books are closed” email? Hmmmm………?

2.  Is SRRBBL not covering its costs?  The Gross Income, assuming 853 players, comes out to $137.12 registration fee per player…amazing how all of a sudden that seems more in-line with what it should be.  But the Expenses?  The Expenses, however, come out to $126.05 per player.  So, is SRRBBL telling us that the early registration fee of $125 is priced below the average cost per player?  Is SRRBBL losing $1.05 for each player that registers during the early registration period?  What is going on here?  Better yet:

Or is there another explanation for the Expense number of $107,925? Hmmmmm….?  The 2016-17 P&L Expenditures section, distributed by SRRBBL Commissioner Perkins, in his “books are closed” email, seems pretty inclusive and simple.  What could be making Expenses all of a sudden, so much higher for SRRBBL?

3.  For tax year 2011, tax form 990EZ was filed by the previous SRRBBL Commissioner, claiming $96,472 in Gross Income.  The next four years, current SRRBL Commissioner Perkins filed tax form 990N, claiming less than $50,000 in Gross Income each of those four years:  2012, 2013, 2014 and 2015.  Gross Income for 2016 is reported as $116,964? If you assume no more than $50,000 for tax year 2015, Gross Income more than doubled from the previous year?  What?  That is a 133% increase is Gross Income over 2015?  That is astronomical!! We know a lot of companies in the Northern Virginia area who could use that type of revenue growth leadership!  Honestly, the Monday morning sales forecast conference call to drive that kind of growth is a call we all want to listen in on!

4.  We got used to all the numbers rounded to the nearest 50 or 100, what happened to Gross Income, because while all the other numbers are still rounded to the nearest 25 or 100, Gross Income is now just a number that looks believable / normal.   Interesting.  Maybe we shouldn’t be so critical?

5.  Nope…we found another reason to ask questions and be critical.  All of the league expenses on tax form 990EZ are listed under “Professional Fees and other payments to independent contractors”.  Yea, we are not sure how you list all expenses–expenses listed on the 2016-17 SRRBBL P&L provided by Commissioner Perkins–as “Professional Fees and other payments to independent contractors”  We are pretty sure the following don’t fall under that category:  Insurance ($3,000). PRCS (was $8,350 but then changed to $10,662.50 due to the infamous missing check to PRCS), Jerseys ($16,500) and our favorite category of Operating Expenses which is website, supplies and equipment ($9,000).

Strange, when you look at the 2011 990EZ for SRRBBL, it listed it’s Expenses under “Other Expenses” on the 990EZ form.  Take note that it required SRRBBL to therefore fill out “Schedule O”, where the previous SRRBBL Commissioner listed out, IN DETAIL, all of the expenses.  Why would SRRBBL Commissioner Perkins group all of the expenses under “Professional Fees and other payments to independent contractors”?  Because really, other than the refs and the person he pays to print the jerseys, which is less than $50,000 combined, what other professional fees or independent contractors are there?  Hmmmmm….?  We guess it was just easier not to have to list out all of the expenses.  All of them.

6.  Wait!!  Problem solved.  See the second page of the 2016 990 EZ form that Commissioner Perkins filed for SRRBBL.  Under “Part III”.  The IRS asks that you to, “Describe the organization’s program service accomplishments for each of it’s three largest program services, as measured by expenses”.

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Oh…sorry, we were wrong, we are now even more confused.  In this section, SRRBBL Commissioner Perkins writes, “SRRBBL provides a youth basketball program.  The players practice 2x per week and hold games on Saturday.  The youth are elementary and middle school boys and girls.  The League pays for all officials, facilities and equipment, including marketing.”

Deep breath…breath in through the nose, breath out through the mouth….breath in, breath out…find your center…

Namaste

The “League” holds games on Saturdays, yes.  HELLO!!!!!…the League also holds games on Sundays for the middle school travel teams.

Youth and elementary?  What about the high school kids in the league….THAT PLAY ON SUNDAYS, TOO?!?!?!?!?! That’s 175 kids, they total more than 20% of the players in the league.  (FYI:  If someone is using the league email addresses to promote their music, which contains titles such as “Don’t Say No” and “Sex is Not Enough”….the last organization you want to list out “elementary and middle school boys and girls” to is the Federal Government!!)

Forget Namaste, how about…and yes, it’s a repeat, but, man…it is so relevant right now:

Is SRRBBL Commissioner Perkins referring to “equipment” as “Professional Fees and other payments to independent contractors”? Is that some kind of new accounting of finance change in Corporate America that hasn’t fully made the rounds? Calling “equipment” “Professional Services”?   Is this the same invisible basketballs that most SRRBBL Coaches did not receive?  Hmmmmm….?  And “marketing”?  What “marketing” does SRRBBL do?  If anything, youth sports organizations spend very little money on marketing, especially a youth sports organization tied to a specific community and the only real option in that sport.  Other than sending out emails and maintaining a website, what “marketing” is SRRBBL doing, and why was there no mention of marketing on the 2016-17 P&L provided by Commissioner Perkins?  We get it if in the 2017-18 SRRBBL P&L, SRRBBL lists marketing costs, to try to repair the brand and reputation of SRRBBL, because it will most likely be needed, to save this league that is in a massive downward spiral.  If you are going to call out “marketing” expenses on a tax form to the IRS, the Federal Government, one would think for sure that it would be called out on the P&L provided to the SRRBBL Community.  Then again, Commissioner Perkins didn’t include the infamous missing check amount of $2,312.50.  At least there is consistency in that things continue to point to financial mismanagement.  All we can say to that is:

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7.  The net assets of SRRBBL.  Oh, this one is very interesting.  For tax year 2011, “Net assets or fund balances” at the end of tax year 2011 are $16,833.  It grew by $13,821 from 2010 to 2011.  On tax for 990EZ for 2016, SRRBBL Commissioner Perkins reports that the “Net assets or fund balances” for the tax year ending 2015 are $23,500.  Therefore, over four years, from 2012-2015. “Net assets or fund balances” grew, on average, by approximately $1,666 per year.  And yet for tax year 2016 it grew by $9,039?  Need a chart?  Here you go:

Picture22*These years are estimates as there are no financials available to determine what the exact number is.

SRRBBL Commissioner Perkins took over the league in 2012.  Again, this is why we continue to ask for something…anything…that shows the ins and out of SRRBBL cash.  There could be a logical answer for the extremely low percentages in the four years SRRBBL reported questionable Gross Income of less than $50,000, but if we were in Vegas and we were bettin’ people…

8.  If you are wondering why we keep referring only to Commissioner Perkins when discussing SRRBBL’s latest tax filing, form 990EZ for tax year 2016, please note that on the 990EZ form filed by SRRBBL for 2016, it asks, on line 42a, “The organizations books are in care of:”, and Commissioner Perkins is listed as the individual in care of the organizations books.  Plus, the SRRBBL website does not list who is on the SRRBBL Board and in what positon, so we still do not know who is the Treasurer…even though the SRRBBL By-Laws states one of the positions can be a Treasurer.

SRRBBL has to understand that, the gifts they keep on giving are going to make the actual Christmas seem really boring this year.  Filing yet another tax form that, AGAIN, raises more questions than it answers…we just don’t get it.  Well, we do get it…we’ve been “getting it” since last November when the questions began.  While the “Christmas in September” is really special, as is the Christmas in December, we think the SRRBBL Community would much prefer a “Well Run League…Year Round!”  Or for the love of all that is good in this world, anything financial related to SRRBBL that actually makes sense…that would be a gift in itself!!

Please excuse any grammar or misspellings, limited time today!