The United States Soccer Federation, better known as U.S. Soccer has been under attack from many in light of the sexist comments and remarks that were made in light of, and were probably part of the reasons leading to the lawsuit filed by the US Women’s National Team over alleged discrimination of equal pay.
But now U.S. Soccer has Cindy Parlow Cone, an ex-USWNT player as president, and she and newly-appointed CEO Will Wilson have both announced publically that their intention to make a settlement outside of court is top priority.
U.S. Soccer surely wants to settle with the honest intentions of making things write and starting a fresh chapter with the USWNT and women-soccer fans across the country and beyond. There was also a big backlash from the public on sexist remarks made in the past, and even criticism from with within the organization. Namely Don Garber, the MLS Commissioner who is also a director of the U.S. Soccer board. Garber publically took a stand against the sexist and discriminatory sayings of other executives of U.S. Soccer.
Also, U.S. Soccer removed controversial statements that many see as sexist and discriminatory, and have made significant changes in its legal team. So there is definitely good and serious intentions there to make things right.
There is also the financial crisis that is looming due to the Coronavirus pandemic. And sports were one of the many walks of life that were hit hard, with most leagues and events cancelled due to public safety concerns. This also includes in the US Men’s top-flight soccer league, where the MLS is now considering its own options on how and when to resume play.
With the shutdown of soccer in the US like in the rest of the world, there is a fall in revenues from ticket sales, TV broadcasting rights, and any other stream of income that is part of the professional sports business model. And as this shutdown isn’t going anywhere for a while, with suspensions just being extended, U.S. Soccer is expected to take a huge financial hit like the rest of the soccer industry.
The federation lately implemented cost-cutting steps like layoffs, cutbacks, and even shutting down the U.S. Soccer Development Academy which were supposed to cost the federation $12 million this year. Seven youth national-teams are being shut down, and U.S. Soccer fired executives Brian Remedi and Tonya Wallach, and let go of staff in other departments. The total staff members that were fired of furloughed is estimated to be between 45 and 50. CEO Wilson also announced he is taking a 50% pay reduction.
A financial audit of U.S. Soccer that was performed in March 31st, 2019 shows that the organization was not really in good shape even before COVID-19 hit, with total annual expenses of $131.8 million exceeding revenues of $104.7.
In that respect, U.S. Soccer applied, and has been approved for government-backed loan as part CARES Act (Coronavirus Aid, Relief and Economic Security).
The Payroll Protection Program (PPP) which is part of the CARES Act is meant to provide small business that employ under 500 staff with a soft loan which will enable these businesses to pay their employees during the Coronavirus Pandemic.  As long as the loan money is used for payroll, mortgage interest, rent and utilities for a period of 8 weeks after the lone is made, and employee pay levels are kept steady. If not, the interest rate is 1% with payments deferred for six months.
U.S. Soccer is one example of many sports, businesses and regulatory bodies that haven’t been operating efficiently prior to the Coronavirus pandemic, and are now forced to optimize their operations and cut costs. Sadly, this has to do with many dedicated staff losing their jobs, but hopefully sports will be back soon, and efficient, profitable sports-governing bodies will flourish and be able to provide new opportunities for many.