“The Numbers in Sports - Investigating Sports Non-Profits" by Craig Harris

INVESTIGATING SPORTS

NON-PROFITS

How looking at the Fiesta Bowl’s finances (990s) resulted in the

CEO going to prison

EXAMINING THE FIESTA BOWLElite culture.

The bowl is run by four non-profits.

The bowl pays no income taxes.

WHAT’S A FORM 990?A 990 is an annual tax return that must be filedeach year with the IRS by tax-exempt, non-profit organizations.

Places to find 990s:*guidestar.org

*citizenaudit.org

*http://projects.propublica.org/nonprofits/

Tax-exempt organizations, by law, also must let you view their 990 forms.

WHAT TO LOOK FOR: Revenues and expenses: Lines 12

and 18 on the first page of current 990s.

Net assets: Line 22 of first page (Shows financial health)

WHAT TO LOOK FOR: Independent Contractors. From 2000

to 2009, the Fiesta Bowl spent nearly $1.5 million on lobbyists.

BIG TIME EXPENSES Salaries and perks: Two areas in 990. Look

to see if a non-profit is providing first-class airfare, housing allowance, club dues or personal services. (Highest compensated employees)

BIG TIME EXPENSES The bowl provided two executives

interest-free, non-secured $120,000 loan so they could become members of an exclusive golf club. (See Loans to/from Interested Persons)

BIG TIME EXPENSES: From 2000 to 2009, the Fiesta Bowl spent

$2.6 million on the Fiesta Frolic, an annual golf retreat at a Phoenix-area resort for college officials. (See Business Transactions)

SOMETIMES YOU GET A HUGE

GIFT!!!!!!

Be Ready To Change Course

CAMPAIGN FINANCE SCANDAL

Pulled 10 years of federal, state and local campaign contributions of bowl employees.

Pattern emerged.

Story led to state and federal criminal investigation.

RESULTS John Junker (left) fired.

Junker went to a federal prison in Tucson

Five other Fiesta Bowl employees have criminal records.

The bowl no longer hires lobbyists.

End of perks

UPON FURTHER REVIEWLooked at entire BCS System in 2011

Pulled 990s for all four major bowls

Similar findings with the Fiesta Bowl

POSTSCRIPT Fiesta Bowl Still Among Top 6 Bowl

Games.

Net Assets of $50.6 million.

Ex. Director Robert Shelton, who replaced Junker, was paid $589,645 in 2013-14.

Hosting College Football’s Championship Game on Jan. 11, 2016 in Glendale, Ariz.

NO MAJOR COLLEGE BOWLS? WHAT ABOUT….. Pro sports teams. Retired sports figures. Youth sports. University fund-raising arms.

BCS READING/CONTACT To see stories go to:

www.azcentral.com/news/bcs/

Contact: Craig Harris 602-444-8478

craig.harris@arizonarepublic.com

twitter: charrisazrep