Report: U.S. Soccer in perilous financial situation
According to a report the U.S. Soccer Federation (USSF) is in a terrible financial situation and have applied for and been granted a government loan to help them get through the coronavirus pandemic.
Jeff Carlisle of ESPN states that the USSF had cash reserves of $160 million in the summer of 2016 but that has decreased to just $40 million and there are now “anticipating significant revenue shortfalls as a result of postponed or canceled games.”
Add in the fact that USSF is expecting to have to settle with the USWNT in their equal pay lawsuit -- the USWNT are asking for $66 million in damages -- in the coming months and the recent job losses and program cuts are starting to make sense.
The government loan which USSF has been granted will at least stop the bleeding, as the loan will not have to be paid back as long as it is used for payroll, mortgage interest, rent and utility costs for an eight-week period right after it was applied for.
New USSF CEO Will Wilson has taken a 50 percent pay cut just a few weeks into the job and said it “became quickly apparent that the status quo was not sustainable for the economic viability of the Federation.”
Senior staff have been fired, over 50 job cuts occurred and 12 youth national teams have been cut until at least 2021.
It is quite clear the USSF is in a tough spot.
Some cynics may argue that the severity of the situation may be exaggerated as the costly and lengthy legal battle with the USWNT continues and USSF may want to try and make it seem like they have very little in the way of cash to offer the players fighting for legal battle.
With the lawsuit recently seeing USSF president Carlos Cordeiro step down amid a furore over the language used in the lawsuit, it is clear that U.S. Soccer are in a very tough spot and face even tougher times ahead.