AVP under financial woes again

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13 years 4 months ago #31016 by vb101
AVP under financial woes again was created by vb101
AVP is on hiatus right now. But behind the action, a lot of press is questioning the AVP's financial future.

http://volleytalk.proboards.com/index.c ... read=33031

July 25, 2010
BY LARRY HAMEL lhamel@suntimes.com
The AVP beach-volleyball tour is in dire financial difficulty and might cancel the remainder of its 2010 season after the tournament in Long Beach, Calif., this weekend, several sources told the Sun-Times.

One of the potential casualties would be the Tour Championship event scheduled for Aug. 27-29 at Oak Street Beach.

Sources said that a major investor in America's showcase beach-volleyball series has bolted and that the tour hasn't received money promised by its sponsors. It's said to be ''50-50'' whether the AVP will be solvent enough to hold the five tournaments in jeopardy -- in San Francisco, Manhattan Beach (Calif.), Chicago, Cincinnati and Hermosa Beach (Calif.).

Word circulating at the Long Beach event on Saturday was that the tour did not have enough funds to pay the players' prize money for the remaining stops and that the players had not been paid for the last two tournaments. Many teams are said to be looking to play on the international FIVB tour, despite the ''country quota'' that limits Americans to no more than four teams in that series' main draw.

A decision on the AVP's future apparently will be made during the first week of August. Sources indicated the AVP would hold all of the scheduled events or none, even though the tradition-rich Manhattan Beach stop is considered the granddaddy of all beach-volleyball tournaments.

The AVP's financial trouble has worsened even though American teams -- Phil Dalhausser and Todd Rogers on the men's side and Kerri Walsh and Misty May-Treanor on the women's -- won both beach-volleyball gold medals in the Beijing Olympics.

http://www.examiner.com/x-41599-Beach-V ... yball-tour

The Association of Volleyball Professionals hopes to soon flip its sand glass to buy time on its road to survival.

On the verge of financial collapse, the AVP is once more hurriedly patching together deals with investors to keep the nation’s top professional beach volleyball tour alive for this year.

In a press release issued Sunday to the media, CEO Jason Hodell stated that the AVP is working on financing to sustain itself for the second half of the season – including its marquee Manhattan Beach Open event in August in California.

In past years, per-tournament expenses approximated $1 million. However, given the economy the Chief Financial Officer (and former AVP player) Canyon Ceman has been forced to cut back on these operating expenses.

Although financial figures are no longer made public by the AVP, it’s estimated that at least $3 million is needed to fund the remaining five tournaments, including its marquee event, the Manhattan Beach Open.

Its primary investor, RJSM Partners, LLC, has rescued the AVP before through its $3.5 million financing in September, 2008, followed by a $1 million infusion in July, 2009. In a past press release, Hodell said, “We are all grateful that our ownership group believes in our sport and the vision of management.â€￾

Yet, this time around, the AVP is scrambling for funding for its remaining five events - and its sponsor revenue will not cover the costs.

This relatively small-sized investment firm has a controlling interest in the AVP and has been involved in top managerial decisions, such as hiring top executives to run the fledgling, yet popular tour.

Nick Lewin, the managing member of RJSM Partners, optimistically said in a Sports Business Journal article last year, “We’re trying to figure out how we can go play in places like Asia, Europe and South America and retain the base in the U.S. We’d like to see the AVP coming at you from iconic locations or beaches, like Bondi Beach and St. Tropez.â€￾

Since proclaiming these idealistic visions, his views may no longer be blinded by the sun’s rays, and beach volleyball’s promise. As a result, negotiations between his firm and the AVP are still lingering, forcing the AVP to delay prize money payouts to the players, and payments to others.

For a sport with so many inherent pluses, this news is discouraging for all who can only hope that once more the AVP will be revived.

A decision on the season will be made by next week.

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