USA Cycling said it made the difficult but necessary decision to reduce its staff size by 15 percent and place an additional 25 percent on furlough for two to four months in anticipation of a 30 percent revenue reduction due to the COVID-19 coronavirus pandemic.
“Effective today, we reduced the size of our staff by 15 percent and furloughed another 25 percent for 2-6 months,” said President and CEO Rob DeMartini in a statement. “The remaining members of our organization are stepping up to help navigate these challenging times and continue to support our mission to serve American cycling.”
USA Cycling had $14.9 million in revenue in 2018, with about two-thirds coming from membership, sanctioning, camps and clinics.
In the press statement, DeMartini said that the budget set for 2020, approved by the board, could not have anticipated the realities amid the coronavirus pandemic. USA Cycling has canceled or postponed all events through May 3. With a further extension, it anticipates 775 events being impacted. In addition, the postponement of the Tokyo Olympic Games has further reduced the planned sponsorship budget.
All together, USA Cycling anticipates the 2020 revenue shortfall to be in excess of 30 percent, read the press statement.
“I am grateful for your membership in our community and support of USA Cycling and assure you we are unwavering in our commitment to serve this sport at all levels,” DeMartini said. “We will emerge stronger from these difficult times.”
USA Cycling will remain committed to the following services:
- Support the sport of cycling across all disciplines for riders and racers;
- Send a team of athletes to Tokyo in 2021 who are even stronger and more prepared to earn medals than if we had sent them this July;
- Support grassroots riding and racing so it is available in every corner of this country on any surface you prefer; and
- Continue to provide community leadership for this sport we all love so much.
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