#2279 Postby TexasStooge » Sat Jul 30, 2005 4:58 pm
Play dough: At PSA, fun and games are big business
By GARY JACOBSON / The Dallas Morning News
PLANO, Texas - Youth sports are about kids, fun and competition. Increasingly, they are also about dollars. In the case of the Plano Sports Authority, millions of dollars.
PSA, one of the largest youth sports organizations in the nation, expects to reach $6 million in revenue this fiscal year. Since opening its $10.8 million StarCenter in early 2002, PSA has seen its annual revenue increase more than 2 ½ times, most of it from player registration fees that can run $110 for a basketball season. Construction of a second PSA building of about equal size could begin next year.
"Our numbers have grown at monstrous, monstrous rates," said Mary Margaret Taylor, executive director for the nonprofit organization that serves, primarily, kids who live in the Plano Independent School District. A few teams also come from as far away as Denison, Duncanville and Highland Park.
About 2.5 million people will pass through PSA's StarCenter at Carpenter Park this year. That's as many as attended Rangers games at Ameriquest Field in 2004.
Though it is the largest local youth sports organization, PSA has plenty of company. The Dallas Morning News found 22 nonprofit area youth sports groups with revenue of more than $500,000 and 105 with revenue of more than $100,000. Combined, the groups account for $46 million in annual revenue – about as much generated by Calloway's Nursery Inc., which ranked 97th on The News' recent list of privately held area firms.
The News also found 19 individuals, many of them soccer coaches, who earned more than $60,000 a year from their youth sports organizations.
The News' analysis included groups focused on youth sports that are tax-exempt. The analysis is based on Form 990 reports filed with the Internal Revenue Service. It did not include for-profit operations, leagues run by municipalities or groups that include sports as part of a broader mission.
Most of the largest local nonprofit youth sports groups focus on a single sport and the development of competitive players, often with paid coaches rather than volunteers.
But whether the kids are chasing college scholarships or playing just for fun, youth sports are big business and getting bigger.
PSA, which focuses on the fun, earned $163,000 just for the advertising signs and banners placed around the 143,000-square-foot StarCenter in the fiscal year that ended July 31, 2004. It sold $430,000 worth of concessions and spent $650,730 on officials and referees.
Taylor, a former flight attendant, started volunteering at PSA in 1978, when her children played sports. She assumed her current paid position in 1993, when PSA offered 11 sports. It offers only youth competition – currently, 20 sports for kids ages 18 and younger. Taylor says the strength of the organization has always been its volunteers, which number more than 5,000.
"We may look sophisticated, but I want you to know we are still a mom-and-pop store," she said.
Literally.
Mary Margaret's husband, Jerry, is PSA's sports director. They are two of the organization's 17 full-time employees. There are also six part-timers.
"She does pretty much all of it," Jerry Taylor said. "I just answer the phone and drive Miss Daisy," he said, referring to his wife.
PSA anticipates that a second building will receive city approval later this year and could be in operation in 2007. The building would be on city land at Enfield Park and share a parking lot with Clark Stadium, which is used for high school football games.
As with its current facility, the organization expects a long-term lease arrangement from the city on the Enfield land. For the Carpenter site, PSA pays $10 a year for 30 years with options for two additional 10-year periods.
Through all the growth, the PSA philosophy has remained the same. "We're in the business of recreation," said Bill Wadley, chairman of the board. "We're not in the business of building select teams."
That's just fine with Wendy Blessing, mother of twin 7-year-old boys and a 3-year-old girl. Her husband, John, is PSA's director of football. She served on PSA's soccer board for a couple of years and is now the director of cheerleading.
For Wendy, it's not the size of PSA that makes it special, but the family feeling.
She tells of driving home from her boys' PSA baseball game. Benjamin and Nicholas, who began playing PSA sports when they were 3, wanted to stop to watch PSA arena football at the StarCenter. In the back seat, Jennifer, the youngest, was cheering, "P-S-A! P-S-A!"
"We're a PSA family," Wendy said. "I'd rather them be there than almost anywhere else as they grow older."
Wadley remembers his introduction to PSA in 1973, just three years after the organization started. When his own kids wanted to play football, he said, he was determined not to get involved.
But when the team formed and no one volunteered to coach, he eventually raised his hand. "And that's how we got started," he said.
In the 32 years since, he has run the baseball program, headed public relations efforts, served as president and then as chairman for the last dozen years. All are unpaid volunteer positions. His paying job is as director of design for SHW Group, an architectural and planning firm specializing in schools.
Wadley designed both the existing PSA building and the proposed building. SHW donated his time.
Elite company
Nationally, PSA is a giant among the 1,200 organizations in its peer group, as determined by GuideStar, which collects and makes available information on nonprofit organizations. Revenue of just over $700,000 a year, less than one-eighth the size of PSA, puts an organization in the top 10 percent of that peer group.
In revenue and asset size, PSA resembles a metro-area YMCA more than a typical youth sports group. It generates more revenue than the Boys & Girls Club of Greater Dallas and roughly the same revenue as the Arlington YMCA, according to the organizations' annual returns and GuideStar reports.
In Plano, the Plano Youth Soccer Association and the Plano Baseball Association are also among the largest youth sports groups in North Texas.
PYSA has 8,000 players and expects about 550 teams from around the country at its Labor Day tournament, said president George Ostrander, who helped found the group in 1976.
"PSA is a good organization and the people, probably, are not going to be screaming on the sidelines like ours are," he said, adding that his group is very competitive.
In the early 1990s, soon after some baseball volunteers left PSA to form PBA, the two groups battled over the rights to fields. There were even accusations of padding rosters to get more favorable field allocations from the city.
"We have very good relations with PSA now," said Keith McDonald, president of the PBA. "We even share fields sometimes."
Don Wendell, Plano's director of parks, said PSA, which originally formed to bring together all of Plano's youth sports programs, has strong community support.
Not everyone, though, is happy. Jeff Smith, president of the neighborhood association closest to the PSA StarCenter said that the facility is good for kids but that PSA has not kept promises about parking and landscaping made to neighbors during negotiations for the building.
"It's not quite as much traffic as we thought it was going to be, but it's more aggressive traffic," Smith said. "Lots of SUVs."
Mary Margaret Taylor said that Smith was part of the negotiations on landscaping and that PSA is looking into replacing some plants that have died.
Much of the traffic comes from PSA's most popular sport, basketball, which has about 20,000 participants a year, Taylor said. Basketball is offered in four seasons; 9,000 play in the winter league.
"Basketball was the engine behind it all," she said of PSA's growth. She thinks the popularity of basketball was aided by non-Texans who moved to Plano from other parts of the country. The numbers grew strongly, Wadley said, when PSA began offering leagues for older kids not involved with school teams.
Combined, PSA sports attract more than 40,000 participants a year. Soccer has 10,000, baseball 3,000, girls' volleyball 2,500 and softball 2,000. If a kid plays more than one sport or the same sport in more than one season, he or she is counted each time.
Wadley thinks there is growth potential in coed and boys volleyball. He said that with the new building, PSA will have a total of 26 courts for basketball and other indoor sports. Currently, the organization has to rent more than 20 other gyms around town in addition to the StarCenter courts.
Wadley and Mary Margaret Taylor expect PSA's main partners in the new building to be Coca-Cola, which donated $1.5 million toward the first building, and the Dallas Stars, who financed the ice rink in the first building.
In addition, the U.S. Taekwon-do Federation and a private company, Impact Martial Arts Academy, are ready to contribute $2 million for 20,000 square feet of dedicated space, said Scott McNeely, who heads both organizations. The space would include a 7,000-square-foot taekwondo museum. McNeely's Academy currently offers a small program at the existing StarCenter.
Other sponsors are likely, Taylor and Wadley said. Acme Brick, for example, donated the brick for the first PSA StarCenter.
Jim Lites, president of the Stars, calls the PSA-Stars relationship a "really, really good marriage." The Stars pay PSA a monthly fee (more than $16,000), which finances about $3 million of original cost. He expects a similar arrangement for the new building.
The Stars, in turn, manage PSA's ice program. About three-quarters of PSA's revenue comes from indoor sports and one-quarter from outdoor sports, Mary Margaret Taylor said. About 20 percent of the StarCenter's revenue comes from the ice program, she said.
Whereas Dr Pepper is a partner with the Stars on other StarCenters around the area, there is no mention of Dr Pepper anywhere in PSA's StarCenter, nor is it available at the concession stand. That's because of PSA's exclusive agreement with Coke.
Rick Gillis, a vice president in Coca-Cola's west central region, based in Dallas, said his company likes to support positive youth programs, like PSA. "It's been a wonderful partnership for both them and us," said Gillis, whose sons play basketball, soccer and baseball at PSA. He coaches basketball.
Factoring out the Stars' share of the debt, PSA owes about $5 million on the first building, Mary Margaret Taylor said. Wadley said a primary goal is to pay off that debt. Then, PSA could cut its participation fees substantially, he said.
"What an endowment we've done for the kids," Wadley said.
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BY THE NUMBERS
Plano Sports Authority revenue for the year ending July 31, 2004 was $5.65 million.
2.5 million people will pass through the PSA's StarCenter in Plano this year
40,000-plus participated in PSA sports
105 area nonprofit youth sports organizations with annual revenue of more than $100,000 are open.
22 area nonprofit youth sports organizations has annual revenue of more than $500,000
Salary of Hassan Nazari, director of coaching for the Dallas Texas soccer club is $146,090.
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