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The CyberBoxingZone News |
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Letter from the Retired Boxers Foundation
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September 16, 2000
Department of Consumer Affairs
CALIFORNIA STATE ATHLETIC COMMISSION
1414 Howe Avenue, Suite 33
Sacramento, CA 95825-3217
Dear Commissioners:
On behalf of the retired professional boxers who have fought in
the
State of California, the Retired Boxers Foundation, an IRS 501(c)3
nonprofit corporation, we are requesting that the California State
Athletic Commission correct misinformation being disseminated by
the
media in regard to the condition of the Boxer's Pension Plan.
The
Retired Boxers Foundation requests that the California State
Athletic
Commission release the value of the Boxers Pension Plan Assets.
Incomplete information has been released to the media that implies
that
the Boxers Pension Plan is nearly bankrupt because only the income
has
been reported and not the assets.
The Wall Street Journal article (9/13/00) said that the
"reserves were
reduced to $146,500 in the fiscal year that ended June 30, down
from
$470,000 in 1998." We have a
copy of the ANNUAL PENSION REPORT FOR
PLAN YEAR 1998, provided to the Retired Boxers Foundation by your
office, which shows the "Present Value of Fund as of December
31, 1998"
is " $2,846,592.15." The report also states
that the "Net Annual
Income for Plan Year 1998" is $475,806.57.
Obviously, the articles
have reported the decrease in "income" rather than the
Fund Balance
which is in fact, the assets of the Boxers Pension Fund
It is
incredibly misleading to the public to disregard the assets of the
Boxers Pension Fund. It is clear that many news sources are
totally
unaware of the assets of the Boxers Pension Fund and we would like
this
misconception cleared up.
Over the past few days, we have read and heard numerous reports
that the
California Boxers Pension Plan is "in trouble" and
"running dry" in
articles printed in the Los Angeles Times, Wall Street Journal, as
well
as in many newspapers, websites and publications that pick up
information from the wire services. On Friday evening,
September 15,
2000, Max Kellerman on ESPN's Friday Night Fights, quoted these
articles
indicating that the fund was "nearly bankrupt."
In speaking to the
reporters who released the information, they quote the California
State
Athletic Commission as the source of the information, as well as
the
"sunset" report delivered to the California State
Legislature. It is
therefore, the responsibility of the State Athletic Commission to
clarify the wire reports.
While there is no doubt that income has diminished since 1998
because of
the increase in the number of bouts held on the Indian
Reservations, it
is misleading to imply that the decrease in reserves (income) from
1998
to 2000 is primarily due to this occurrence. Your office
informed the
Retired Boxers Foundation that the Pension Fund experienced nearly
a 22%
increase in 1998 "due to the change in investment strategies
with
Columbia Trust." In February 1999, in a letter to
the Retired Boxers
Foundation, your office advised the Retired Boxers Foundation that
the
Pension Fund "which is currently with Columbia Trust, is in
the process
of being transferred to Everen Securities" and that you
expected the
return on your investments to be considerably less in the
following
years.
We understand the concern that the California Athletic Commission
has
about the loss of revenues if bouts continue to be held on the
Indian
Reservations and if the Tribes decline to contribute to the
Pension
Fund. We support any and all efforts to engage the
California Tribes in
making contributions to the Boxers Pension Fund on behalf of
professional boxers. HOWEVER, it is not
right to misrepresent the
condition of the California Boxers Pension Fund reserves to make
your
point. In fact, it causes undue anxiety for hundreds of
retired
professional fighters who have made contributions to California's
Boxers
Pension Fund.
The Retired Boxers Foundation applauds the State of California for
initiating the Boxers Pension Fund, but we also admonish the
Athletic
Commission for the poor management of this Fund. We
have accumulated
significant files on the Boxer's Pension Fund, including reports
from
the California Auditor General and legislative notes on the
revamped
legislation. In 1991, the Auditor General recommended
that the Boxer's
Pension Fund be invested in a more competitive investment or money
market account. The Auditor General also
admonished the Athletic
Commission for failing to properly report the assets of the
Pension
Plan: "The Commission did not ensure that adequate
accounting records
were maintained. Accounting records for the pension plan
should reflect
all of the pension plan's assets (such as those funds the
commission
invests in the money market fund), liabilities (such as
contributions
collected and interest earned), and expenditures (such as
contributions
refunded to boxers, etc.).. It appears that the
Athletic Commission
continues to fail to report the pension plan's assets and
therefore, are
responsible for the misinformation released to the press.
If managed properly, the California Boxers Pension Plan could have
been
a model for every state that truly wants to provide for
professional
boxers as they move from their glorious days in the ring to a
DIGNIFIED
retirement. We know that many efforts have been made
to improve record
keeping and to improve the return on the investment of Pension
Fund
assets. We also know that your department and the
commission are
inadequately funded to make all the changes that are necessary to
be
totally efficient and to insure accuracy. The
Retired Boxers
Foundation will advocate for full funding for the management of
the
California Boxers Pension Plan because it is so important to the
retired
professional boxers that we serve, but we also expect that the
Athletic
Commission demand complete integrity in not only management of
this
fund, but in reporting the true assets of the fund.
Sincerely,
Jacqueline L. Richardson Alex Ramos
Executive Director Founder and President
RETIRED BOXERS FOUNDATION RETIRED BOXERS FOUNDATION
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