Sports ETA Members:

Below is a copy of the letter that Al Kidd, President and CEO, Sports ETA, sent to Roger Dow of the US Travel Association earlier this week. The letter is in regard to our concerns about the current state of the stimulus and various relief packages being offered.

April 7, 2020

Roger Dow
U.S. Travel Association
1100 New York Avenue, NW Suite 450
Washington, DC 20005

Dear Roger,

On behalf of Sports ETA, I would like to personally thank you for all your hard work on behalf of the travel and tourism industry during these times of crisis.

Today, I am writing on behalf of our nearly 1,000 member organizations representing sports commissions, CVBs, sports events rights holders and allied partners to express our urgent concerns about the current state of the stimulus and various relief packages being offered, which to date have largely left our member organizations behind.

I am deeply concerned that the CARES Act does not go far enough to protect organizations, which are structured as 501(c)(6) nonprofit organizations with fewer than 500 employees. The SBA loans and other relief options included in the CARES Act have little potential to help 501(c)(6) nonprofit organizations and thus, are limited in impact.

These organizations are not eligible to benefit from the forgivable loans available under the Paycheck Protection Program. In addition, the Economic Injury Disaster Loan Program requires indebtedness, collateral and a personal guarantee for any loans in excess of $200,000.

As you know, the sports events tourism industry has an annual economic impact of more than $10 billion, and is vital to the U.S. economy.

In the month of March, our membership has reported the following lost economic impact through the cancellation or postponement of events:

• $700+ million dollars in lost economic impact from cancelled sporting events in March
• 695,000+ participants were unable to attend their sporting event
• 492 sports events were cancelled outright
• 533 sports events were rescheduled

The budgets of our member organizations have been decimated by the current situation. In addition to member dues, most are funded by receiving a percentage of hotel tax collections, and with hotels either closed or at occupancy in the single digits, these organizations are bracing to have virtually no revenue for at least the next several months, and perhaps longer. The majority of our members are reducing their workforce and have no ability to receive the lifeline created by the Paycheck Protection Program.

We are asking that the U.S. Travel Association take immediate action and advocate for the immediate availability of funds for 501(c)(6) nonprofit organizations under the CARES Act – whether that takes the form of fixing the inequity that has unfolded or by seeking new measures in Congress.

Specifically, we ask that U.S. Travel Association advocate for the following:

1. That 501(c)6 organizations be exempted from the requirement that SBA EIDL loans in excess of $200,000 carry a personal guarantee and/or collateral requirement.
2. That 501(c)6 organizations be made eligible for financing under the Paycheck Protection Program.
3. That funds be made available through the Emergency Stabilization Fund specifically for destination organizations structured as 501(c)6s and that the U.S. Travel Association join us in drafting a plan of action to ensure that these funds are made available to our member organizations as expeditiously as possible.
4. That any future action by the U.S. Congress includes other forms of economic support for our industry segment, including legislation which we expect to be taken up upon their return on or about April 20.

We are grateful for your support, and you have always been a good partner. However, we need more urgent assistance in order to provide our members with the resources they need to be successful in the future.

Please help us save our member organizations from having to close their doors or suffer from devastating cuts that will prevent them from serving their purpose of benefiting their communities and leading the way to recovery.

We look forward to working with you on a solution to our mutual challenges. Thank you for your consideration.

Sincerely,

Al Kidd
President & CEO
Sports ETA