'Cash-strapped' Missouri Sports Hall of Fame starts to repay charities, still owes $417K

‘Cash-strapped’ Missouri Sports Hall of Fame starts to repay charities, still owes $417K

Posted by Admin December 18, 2024 Sports

‘Cash-strapped’ Missouri Sports Hall of Fame starts to repay charities, still owes 7K

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Interim CEO Jared Andrews said the Missouri Sports Hall of Fame hopes to raise the funds needed privately but may take out a loan or sell its building, if needed.

No one could accuse Jerald Andrews of sugarcoating things Tuesday.

The former CEO and executive director of the Missouri Sports Hall of Fame, who retired in 2022 and recently stepped back into the role on an interim basis, did not mince words when describing the shaky financial health of the nonprofit foundation and the Price Cutter Charity Championship that it runs.

“Both organizations are in a distressed financial condition. Both. Revenues have declined dramatically for the Hall of Fame and also the (PGA golf tournament) while expenses have increased significantly for both entities,” he said. “The end result is that both companies are cash-strapped at this point.”

Andrews admitted he had an inkling something was amiss. Started in 1990, the annual golf tournament has distributed more than $20.5 million to children’s charities across the Ozarks. The amount varies by year.

He noted while attendance and participation in the marquee event was down in the wake of the pandemic, spending had not slowed.

Rumblings of financial trouble were confirmed with the cancellation of the annual Celebration of Sharing event set for Nov. 19 — when charities involved in the 2024 PGA golf tournament were set to pick up checks and pose for photos.

“This was very disturbing to me because of what the tournament had meant to the charities for over three decades,” he said.

A short time later, Byron Shive, the son-in-law of Andrews, resigned as the CEO and executive director. Andrews agreed to return part-time, in an interim basis, until a new leader was found.

Andrews said Tuesday at least 42 charities were involved in the 2024 golf tournament and they’re collectively owed $742,409, including funds some provided upfront to participate in the tournament.

“If we had that amount of money, that’s what we would be writing checks for today is that exact amount,” he said.

He said the tournament only had $340,000 in the bank at the start of the meeting.

Checks totaling slightly more than $325,000 were distributed after the meeting. The checks, which ranged in value from $5,000 to $50,000, reimbursed charities for funds they provided as part of their tournament entry.

Andrews said the charities are still collectively owed $417,000 for ticket sales, auction items and more.

“If I were you, my next question would be ‘Will we ever receive those funds?’ and it’s sure our plan that you do receive those funds,” he said.

Andrews said it’s too early to give an exact timeline of when those additional funds will be dispersed.

Brad Sterling, of the Bolivar Kiwanis Club, was one of many who picked up an initial check Tuesday. He said the group is still owed an estimated $2,700.

“I’m happy that we got our investment back and I feel confident that we’ll get our ticket sales and the rest of what is owed for our effort,” he said.

Asked if the Bolivar Kiwanis Club will be involved in the golf tournament next year, Sterling said that decision will be up to the club before adding “I’d recommend it.”

In front of charity representatives and media outlets, Andrews explained the situation faced by the Sports Hall of Fame and what steps have been taken or are planned.

“The first point was to figure out exactly where both businesses were financially. The second was to stop the financial bleeding. It just seemed like it was constant,” he said. “The third was to stabilize both companies. The fourth was to start developing a calendar of events for 2025 for both entities, to get us back to the black.”

The other step was to find a CEO and executive director, which happened quickly. Rob Marsh, chief operating officer for the Springfield-based Pyramid Foods, which runs Price Cutter Supermarkets, was introduced Tuesday as the next leader. He starts Jan. 6.

“We’ve already started putting a plan together,” Marsh said Tuesday.

Founded in 1994 by Springfield businessman John Q. Hammons, the 32,000-square-foot Sports Hall of Fame — located just off Highway 60 near the entrance of the Highland Springs Country Club — is home to more than 4,000 items of sports memorabilia.

Over the years, the Sports Hall of Fame has inducted dozens of notable sports figures with ties to the Show-Me State, including Stan Musial, Horton Smith, Jack Buck, Bill Rowe, Lou Brock, Whitey Herzog, George Brett, Charlie Spoonhour, Cheryl Burnett, Len Dawson, Payne Stewart, Jackie Stiles, and Bob Costas.

Each year, it enshrines new members and runs the Price Cutter Charity Championship, one of 26 pro golf tournaments on the Korn Ferry Tour. The building, in need of repair, has been closed to the public.

How financial decline started

Andrews said the Hall of Fame and golf tournament were in solid shape when he retired in 2022. He said the trouble apparently started in 2023 with a Price Cutter Charity Championship that underperformed.

He said as a result, the golf tournament had to borrow $350,000 from the Hall of Fame just to distribute the funds that the participating charities were owed.

“It obviously hurt the Hall of Fame and our financial position. As a result the Hall of Fame finances were put at risk,” he said.

Andrews said in 2022, the tournament grossed $2.5 million. There were $1.3 million in expenses and just over $1 million was distributed to charities.

In contrast, the most recent tournament in 2024 grossed $1.8 million and spent more than $1.7 million.

“The tournament actually netted this past year less than $100,000,” he said. “At the same time, the Hall of Fame was also struggling financially.”

He said “falling revenue and increased expenses and incurring some debt” resulted in the current situation.

‘Stop the financial bleeding’

In late November, after Andrews returned, the Hall of Fame eliminated staff positions to “cut the payroll dramatically.” He did not specify how many jobs were lost.

“We are only paying bills such as insurance, salaries, utilities and other necessities at this point in time,” he said.

He said the Hall of Fame still owes an estimated $500,000 to vendors, including the “purse of the PGA tour, which was not paid this past summer” plus Big Cedar Lodge, Sun Belt Rentals and the Highland Springs Country Club, among others.

“In addition, the tournament owes the Hall of Fame somewhere north of $300,000,” he said.

To address the shortfall, the Hall of Fame must generate revenue and that is primarily done through fundraising and marquee events including the enshrinement of new inductees Feb. 2.

“If we can have the kind of enshrinement that we’ve grown accustomed to, we should gross around $400,000,” he said, noting that will help the financial outlook.

He said both the Hall of Fame and golf tournament are owed money from past sponsors, which they are working to collect.

The 2025 Price Cutter Charity Championship is scheduled for July at Highland Springs Country Club. He said the event will be more compact and efficient than in recent years, when the schedule was elongated.

Paying amount owed to charities, others

Andrews said the goal is to privately raise the remaining funds owed to charities. “Obviously, we’re going to try to raise most of that, if not all of it. That’d be our first choice.”

But other options for generating funds are also under consideration.

“It’s a possibility there could be a large loan taken out on this facility. The possibility of selling this building has been debated and paying all our debts,” he said, noting the Hall of Fame may be able to lease back the facility from the new owner.

“I’d hate to see us do that but that may be the course of action that has to be taken.”

He said the nonprofit’s new leader, along with the governing board, will decide next steps.

Andrews said the Hall of Fame has fallen on hard times before. He said when he was tapped to lead the nonprofit in 1995, the financial outlook was bleak.

“We turned on the light switches, nothing happened,” he said, discovering the bulbs were burned out and had not been replaced.

He said funds were tight and no checks were paid unless funds had been received. The Hall of Fame lost $40,000 in the first year.

“By the second year, we were in the black and we stayed in the black every year,” he said. “And I can’t believe we find ourselves where we are today.”