VAS OFFICIAL SAYS FINANCES REASON FONDER WAS LET GO

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, February 4, 1992                   TAG: 9202040156
SECTION: SPORTS                    PAGE: B5   EDITION: METRO 
SOURCE: SCOTT BLANCHARD SPORTSWRITER
DATELINE:                                 LENGTH: Medium
VAS OFFICIAL SAYS FINANCES REASON FONDER WAS LET GO
Ken King, chairman of the board of Virginia Amateur Sports, on Monday denied there was a power struggle with VAS executive director Doug Fonder and said financial woes left the VAS board no choice but to effectively fire Fonder.
"I've been hammered over these other issues, that somehow there must be some problem," King said of reports that he and the board wanted Fonder out. "[The board] is going to try to be responsible. That's all this is, an attempt to be responsible about the handling of [VAS]."
King, a Roanoke lawyer, said Monday that as of Jan. 30, VAS had a $7,295 in cash and more than $9,000 in bills due. Fonder, who created VAS to run the Commonwealth Games of Virginia, had submitted two reports in the past two months on VAS' financial shortfalls.
In his January report, Fonder recommended more than $103,000 in cuts in the 1991-92 operational budget, reported at least a $90,000 reduction in expected corporate support and proposed he remain as the executive director with one paidassistant, Gina Dunnavant.
King, head of the board that Fonder created to oversee VAS, said the board didn't find Fonder's option financially feasible. Instead, it prepared its own financial report and chose to cut to an all-volunteer staff.
"The administrative-support side is the one in which we are going to go all-volunteer," he said. "The board made a policy decision based upon the facts in front of it. They were financial facts. When the tank's on empty, the car has to stop."
Apparently, King's metaphorical car will roll a little farther. He said Monday the board has voted to keep Dunnavant's position and salary of $20,000 for what he called "secretarial" duties: staffing the VAS offices and answering phones, with some involvement overseeing the competition at the Olympic-style sports festival this summer.
In admitting the need for a paid staff member, King distinguished between Games-related duties and the administrative duties that he said Fonder handled.
King said the board refused to consider in its budget the corporate or government money that had been committed but not received. He said, for example, that two separate corporate gifts of $10,000 were due in October and last month, respectively. None of the money had been received, he said, and the board refused to promise to pay salaries based on what it considered speculative money.
Fonder said he had signed contracts for the two $10,000 contributions, among others. Fonder also said VAS has a $30,000 line of credit at NationsBank that could have been used to meet emergency cash shortfalls.
"We haven't used it this year, but that's what it's for," Fonder said.
Fonder said he never worried that the committed corporate money would be collected.
"We haven't lost, in three years of operations, a penny from a contract that anyone owed us," Fonder said.
Either one of the $10,000 gifts received in February would have covered VAS' payroll, Fonder said.
The board didn't buy it. Fonder set up the Commonwealth Games so the events pay for themselves through entry fees, concessions and related revenue. Fund-raising covers salaries and other items such as the VAS' leased car.
"The organization has been concerned about its financial position since last summer," King said. "The board did not wish to simply operate on [hoped-for money]. [VAS] is technically insolvent. The board decided not to go any further. It was simple prudence."
King, however, did not rule out returning to a paid executive staff before this year's Games if the revamped VAS can raise the money, and he said it is "maybe even essential" that the VAS hire a Games director. Bob Hartman, who resigned last month, filled that spot under Fonder.
King did not endorse Fonder's return if VAS can pay its staff.
"He would be like any other contender for the job if that's his wish," King said.
King said neither he nor the board was at odds with Fonder, although Fonder said last Friday that there were disagreements about how the sports festival should be run.
"I'm not aware of a power struggle," King said. "I'm sorry he perceived it in that sort of way."
King said a "Games management team" is in place to run the Games in Roanoke this summer. It consists of sports coordinators, volunteer coordinators and others who have been involved in the Games.
The VAS board is to meet with the sports coordinators Saturday and with the volunteer directors next week, King said.

by Bhavesh Jinadra by CNB