Report is Highly Critical of Franklin-Based MIAA

On Thursday, July 21, 2022, the House Committee on Post Audit and Oversight released a report on the Massachusetts Interscholastic Athletic Association (MIAA), which is headquartered at 33 Forge Parkway in Franklin. The report was accepted by members of the House Post Audit and Oversight (HPAO) Committee today and released to the public.

“The Massachusetts Interscholastic Athletic Association has had longstanding issues which impacts public school athletics in the Commonwealth and our students,” said Speaker of the House Ronald J. Mariano (D-Quincy). “I want to thank Chairman Mahoney and the Committee for their thorough investigation and I’m hopeful that their recommendations will serve the MIAA with a path forward on operations.”

“This is about ensuring Massachusetts high school student athletes have the best possible experience,” said Representative John J. Mahoney (D-Worcester), Chairman of the House Committee on Post Audit and Oversight. “We believe that the report is a fair and honest assessment of the MIAA. We have had several conversations with them, and are encouraged by their response.”

Conducted by the HPAO Bureau, the report found that:

The MIAA experienced financial difficulty over the last several years (primarily due to a significant decrease in tournament revenue), and should have had a larger focus on approving a financial rescue package. Due to their financial situation and outlook, the MIAA turned to a sports management and sponsorship organization affiliated with a private equity firm.

The limited liability marketing company that the MIAA has affiliated with is an experienced, knowledgeable, financially savvy organization, and has proficient leaders and investors. In contrast, the MIAA has demonstrated an inattention to attend to its finances. As revenues declined, MIAA expenses increased, indicating a lack of focus, attention, and determination to creating a financial plan. The organization’s finances were finally supported by the alliance with a sports marketing organization and an infusion of pandemic-related financial aid.

The MIAA needs some form of prudent and vigilant oversight because of their new venture with the sports marketing organization. The HPAO Bureau met with the new MIAA leadership team several times throughout the course of the investigation, and the leadership team has pledged to make the MIAA more inclusive and responsive to its membership.

Amongst several recommendations, the HPAO Bureau lists in the report that the MIAA should:

Forward, quarterly, a copy of the report submitted by the sports marketing organization to the MIAA, to the HPAO Committee, Joint Committee on Education, and Secretary of the Division of Secondary and Elementary Education.

Publish on the MIAA website each tournament’s revenue and expenses after the completion of each tournament.

Restore all financial documents to the MIAA website.

For a period of five years, submit a concise annual letter including its financial condition to the Massachusetts Association of School Committees; the legislative committees of House Post Audit and Oversight and the Joint Committee on Education; the State Auditor; and the Office of the Attorney General, Public Charity Division; and the Massachusetts General Court’s Office of the House Clerk.

Obtain at least 25 percent of funding from member schools

A complete list of the findings and recommendations is attached to this release and the full report is available upon request.