NJSIAA announces audited financial results for 2019-2020 fiscal year
Pandemic-based cancellations took toll on assets, revenues
Budget stipend, PPP funding providing support
ROBBINSVILLE, NJ (October 14, 2020) ─ The NJSIAA (New Jersey State Interscholastic Athletic Association) today announced its financial results for the fiscal year, which ended June 30, 2020.
Net assets for fiscal year 2019-2020 decreased by approximately $640,000, compared to a decrease of $40,000 for the previous fiscal year. This decrease is due in large part to pandemic-triggered cancellations. Overall, total revenues declined by $1.2 million, or 22%, during 2019-2020 as compared to the prior year. The decrease in revenues is primarily due to the cancellation of the spring sports season as well as the boys’ and girls’ basketball championships. As a result of these cancellations, the association also recognized less revenues from corporate sponsorships and broadcast rights fees and refunded the registration fees for all spring sports officials.
“Acting in the best interests of our more than 280,000 student athletes, NJSIAA’s Return to Play plan eliminates statewide post-season championships, which will negatively impact the association’s budgeted revenues,” explains Colleen Maguire, COO of the NJSIAA. “Since June, I’ve been adamant that the current school year is about participation, not competition. This decision will have financial implications, but we are doing what’s best for the health and safety of our student-athletes. While these are difficult decisions, they are the right decisions. And now, with a workload that’s as demanding as ever, we’re doing our very best to continue moving forward.”
Looking ahead, approximately 20% of fiscal year 2020-2021 budgeted revenues are specific to gate receipts, while approximately 25% are specific to tournament entry fees. The association also anticipates additional corporate sponsorship deferrals during fiscal year 2020-2021 as a result of limited post-season championships. NJSIAA will continue absorbing operating losses until the pandemic is over and high school sports return to normalcy.
Of note, in late September 2020, Governor Phil Murphy signed a nine-month, $32.7 billion state budget that included a $625,000 stipend to help the NJSIAA offset previously identified, pandemic-related losses. In addition, in May 2020, the NJSIAA received $225,000 in Payroll Protection Program (PPP) funding. This funding is not included in these financial results. Rather, as of June 30, 2020, PPP funding is recorded as a loan subject to forgiveness during fiscal year 2020-2021.
PPP funding and the state funding stipend will offset the losses absorbed during fiscal year 2019-2020, while also helping maintain reserve levels. However, NJSIAA expects to draw on its reserves in order to absorb continued losses due to the lack of championship tournament gate receipts, potential decreases in tournament entry fees, and potential corporate sponsorship deferrals during fiscal year 2020-2021.
About the NJSIAA
Established in 1918, the New Jersey State Interscholastic Athletic Association (NJSIAA) is a voluntary, non-profit organization comprised of 436 accredited public and non-public high schools. A member of the National Federation of State High School Associations, the NJSIAA conducts tournaments and crowns champions in 33 sports. Championship competition for girls is sponsored in basketball, bowling, cross country, fencing, field hockey, golf, gymnastics, lacrosse, soccer, softball, swimming, tennis, outdoor track, winter track, volleyball, and wrestling. Boys’ championships are determined in baseball, basketball, bowling, cross country, fencing, football, golf, ice hockey, lacrosse, soccer, swimming, tennis, outdoor track, winter track, volleyball, and wrestling.