Thank you for the correction.

Sam Sloan

I agree with the substance of these messages. On December 23 after
members of the LMA Committee reviewed the six-month financials, I sent
our analysis to President Goichberg and others. We predicted a fiscal
year loss in the $100,000-$200,000 and a serious cash crunch in the
summer. We recommended immediate cost-cutting measures in Crossville.
Bill chose to take the advice instead of two undoubted financial
experts in the Federation who projected a much rosier scenario.

Unfortunately weeds came in where the roses were supposed to be.

The new dues plan is fatally flawed for several reasons:
1) it is way too complicated and confusing.
2) It is not price-point sensitive.
3) It will lead to the demise of one important and tangible benefit,
Chess Life. I think something like half of our renewing regular
members
don't play in rated tournaments in any given year.
4) It will lead to declining revenues.

Cordially,

Tim Redman

I completely agree with Tim Redman.

During my one year on the board I persistently brought up the need for
cost cutting. I repeatedly asked questions about where all the money
was going. I never got any meaningful answers.

For example, Bill Hall would never answer my questions about how many
employees the USCF has. I have never heard of a company manager who
does not know how many people are working under him. I bet that the
president of General Motors can tell you exactly how many employees
the company has at any given point of time.

Whenever somebody quit the job, Bill Goichberg would announce that
expenses had been reduced as though this was a big accomplishment.

Bill Hall failed and refused to provide any meaningful financial
information upon which the board could base its decisions. My efforts
to bring about cost cutting were blocked by the votes of Goichberg,
Channing and Hough. On a six member board, they did not have a
majority but their three votes were enough to block anything from
passing.

The USCF already gets $3.2 million in annual revenues. They refuse to
tell us where all the money goes. Anybody who donates money to them
will have the same effect as someone who gives money to a broke
alcoholic so that he can buy another drink.

It seems that the only way that they can be stopped from spending your
dues money in wasteful and stupid ways is if they completely run out
of money and cannot make payroll. Only then might meaningful change
take place. I hope that this does not happen but that is the direction
in which the board is heading.

Sam Sloan

On Fri, May 16, 2008 at 12:01 AM, Timothy P. Redman
wrote:

Hi, Eric,

Good to hear from you.

It is very difficult to raise money to fund a deficit. Donors want to
fund positive programs, not bail out management.

Cordially,

Tim Redman

wrote:


Where is the appeal for donations? The fund-raising?

Cost-cutting is fine...but frankly, every single affiliate should be
called and the hat passed around. Every affiliate should be sending
in funds.

Other organizations with similar affiliate structures...have affiliates who
send a substantial portion of local proceeds to the home office. USCF
gets...$40 and some ratings dollars.

If there is a crisis, act like there is a crisis...and ask for
money...as we do locally.

Eric J.


In a message dated 5/15/2008 7:14:37 P.M. Eastern Daylight Time, Tim Redman writes:

I agree with the substance of these messages. On December 23 after
members of the LMA Committee reviewed the six-month financials , I sent
our analysis to President Goichberg and others. We predicted a fiscal
year loss in the $100,000-$200,000 and a serious cash crunch in the
summer. We recommended immediate cost-cutting measures in Crossville.
Bill chose to take the advice instead of two undoubted financial
experts in the Federation who projected a much rosier scenario.

Unfortunately weeds came in where the roses were supposed to be.

The new dues plan is fatally flawed for several reasons:

In BINFO 200802923 Bill Goichberg states:

"If costs would rise more than I expect, we might add a little bit on
to the Premium dues.

"Bill Goichberg"

Bill just does not get it. The question asked was: If Chess Life
megazine becomes optional and there are not enough subscribers to
support the editorial costs, what will the USCF do?

Goichberg's answer is simple: Simply raise the dues that the Premium
Members, those being the members who receive Chess Life, have to
pay !!??!!

That will really solve the problem.

Sam Sloan