Is the USTA broke?

By Javier Palenque

This is what good office space looks like when the business is not managed properly

Broke or bankrupt is when a company can no longer pay its debts with the cash it generates, it is also called insolvency. Its creditors can call on the loans and force the entity in question into bankruptcy. OK, so is the USTA broke? before I answer this question one must understand the way the funds are treated at the USTA. It is no surprise that I think they mishandle everything there and that is why they hide participation data from us the people. You see if you hide data, then that leads me to believe they hide what else? If one looks at the financials for the last few years, the USTA makes very little money on a lot of revenue. This is not good because whoever is running the show should try to make as much money as possible to help more kids and people play the sport. But when there is a lot of cash generated on the top line and very little on the bottom line, it means three basic things:

1. - It is very inefficient, much waste.
2. - The investments are losers. Over-built to low-capacity utilization.
3. - The accountability is poor. Too loose for a serious investor.

Let us see at the last 5 years and in the table below, I took out the investment gain or losses, which means the table reflects just operations results. Hold on to your seats.