Thursday, February 09, 2006

Does the Math really work for FLW?

There seems to be a bit of confusion about the math the TBF/FLW is going to use and if it really makes sense. When FLW talks about 80% of the federation, are they talking current state 35,000 or the number that is often thrown out 45,000 which is where it was at is peak about a year ago? See a few articles by below:

A recent FLW Outdoors press release contained language that appears to have
confused a few Federation (TBF) members. Here is the quote: "At the heart of FLW
Outdoors' partnership with The Bass Federation is an agreement to pay the
Federation as much as $1 million annually if all existing Federation members
join FLW Outdoors. The $1 million cash payment will be prorated based on the
number of Federation members joining. For example, if 90 percent of existing
Federation members joins FLW Outdoors, the annual cash payment will be
Some Federation members thought that only 80% of Federation
members would have to join FLW for TBF to get the full $1 million per year. But
TBF president Robert Cartlidge said that was never the case. The prorated $1
million arrangement "was exactly what Irwin (Jacobs) told the presidents in
Florida - in writing," he said, though he noted that the presidents asked for
some wiggle room there.
That proration arrangement was also what was issued
in an FLW news release announcing the TBF-FLW partnership (click here to read
the details).
But TBF did include this line in a post-Florida meeting note
to members explaining the benefits of the FLW proposal: "At least 80% of the TBF
state Federations, clubs and members will join the FLW/TBF relationship and
become FLW Outdoors members" (click here to see
that document).

Another short article:

According to Federation representatives who were at the January meetings with
BASS, the former, or previous, BASS Federation was down to around 35,000 members
as of the end of 2005. If true, that's 10,000 members (or 23%) off the alleged
45,000-strong Federation roster when ESPN bought BASS in 2001.
"Nevertheless, here's some simple math regarding the FLW Outdoors-TBF deal.
If you assume that 100% of former BASS Federation members register with FLW
(unlikely), and were not already FLW members (unlikely), that's 35,000 x $25
annual membership = $875,000. FLW's $1 million that it's giving TBF annually
minus $875,000 in annual membership dues leaves $125,000 as FLW's annual cash
contribution under this scenario (note that FLW is contributing more than just
cash to the TBF package)."

I think this adds some confusion to what the 80% number is based on... I am guess this lower number is due to a lot of clubs holding their dues, my club has only sent in the minimum 6 man roster to state and national to stay in good standing and holding the rest of our dues, to see what happens. The plot just keeps getting thicker when it comes to the Federation(s)..

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