(The USA Team Handball By-Laws introductory paragraph on Independent Directors and the four Independent Directors that resigned from the Board)
A Little History Lesson
When I wrapped up the “Sequence of Events Video” I remarked how for oldtimers the current situation might feel a lot like the events of 2005-2006 that led to the U.S. Olympic Committee’s decision to decertify the U.S. Team Handball Federation (USTHF). So, I decided to do a little review of what happened way back when by digging into the Team Handball News archives. In doing so I re-remembered that the very first post on this website on January 2, 2006 and many of the posts in that timeframe covered the Board of Director divisions, the USOC investigation and ultimate decertification.
First of all, can I just highlight that that was almost 19 years ago. 19 years! There have been over 2,300 posts on this website since then. I’ve been writing and commenting about handball in this country a long time. And, it’s funny, but while some of the names have changed or moved on we’re still talking about many of the same issues and challenges. As, I said to Bjoern Brembs as we discussed the decertification in a very early podcast, “I don’t know whether to laugh or cry.” And, again, that was 19 years ago…
However, there are a few things that have indeed changed for the better and one of those changes was an Olympic Committee requirement for National Governing Bodies (NGB) to have “Independent Directors” on their Boards of Directors. Because back in 2006 there was no such requirement. In fact, everyone on our Board was a handball person duly elected by the membership. Not just two members like today’s 9 member board… but all 24 members. (And, of course, that total number of board members was also silly and cumbersome, even if there also was a smaller Executive Committee that functioned more like the Board does today.)
As part of that first ever post I also had the two very first handball podcasts as I had interviewed representatives of the two board factions, Board President Mike Hurdle and Athlete’s Advisory Council Representative, Matt Van Houten. In both of the interviews the topic of independent directors was brought up, but we mostly focused on how these new independent directors would help in the all important (and still important) topic of fundraising.
But, another important role of these independent directors as the name, of course, implies is simply their independence. In theory, they can participate in board matters without the bias that comes simply from having been directly involved with the often fractured politics that is handball in the U.S.
Looking back at the situation in the 2005-2006 I’m pretty sure that if the Board had been composed of 44% Independent Directors (44% is 4/9 of our current board structure) that things would have not turned out the way they did with eventual decertification. That an impasse would have been resolved. I’m not sure exactly how it would have played out, but it would have been different.
Independent Directors (Sometimes in Name Only)
With the selection of the Dieter Esch group to become the new NGB for handball in 2008 the U.S. a new board structure with nine board members was adopted. From my notes at the 2008 summit there were to be nine board members with seven board members with business backgrounds contributing $50,000 each. Thanks, surely in part to the Great Recession, I don’t think this ever materialized and eventually the board structure adopted our current stucture with just four independent members.
I’d like to say that over time the Independent Directors have raised tons of money, but this clearly hasn’t been the case. Additionally, in some cases our Independent Directors weren’t very independent. They might have fit the definition outlined in Section 6.6 (B) of our By-Laws, but in practice some Independent Directors were actually very partisan in their views. In the 2018-19 timeframe board infighting eventually led to some direct engagement from the USOPC with the end result being the hiring of CEO Barry Siff and the selection of a new, very clearly Independent Director, Michael Wall to become the Board President.
2019 – 2024 The Most Independent Board Ever?
Arguably, the Michael Wall era Board of Directors may well have been the most independent Board USA Team Handball has ever seen. Independent in that “handball people,” for better or worse faded largely into the background. The Board had some handball people, but was signficantly less partisan than it had been. By and large it seems that decisions were being made with less bias from deeply held handball convictions. Notably, the Board also hired two CEOs (Barry Siff and Ryan Johnson) with no handball background whatsoever to make the day to day decisions.
From my persepective (and many others) this composition of Board and Administrative staff had some pros and cons. On the one hand it was a pleasant change from the historically, fractious nature of board politics. We were actually functioning like a normal organization! I realize that’s a ridiculously low bar… but historically it’s one that we’ve often struggled to clear.
But, on to other hand, I think there was a lack of direction and a tendency to avoid major decisions. For organizations with abundant resources and a clear mission it’s possible to float along comfortably at a slow pace. For organizations with very limited resources and many challenges/choices to make floating along can be very frustrating to the people that really care and are heavily invested in the sport. And, eventually it becomes more than a source of frustration as problems mount and opportunities are lost.
The Revenge of the Handball People (Actually Just Some of the Handball People)
I think the concept of Independent Directors was envisioned, in part, for those Independent Directors to serve as arbitrators between competing factions. To provide a big picture, good governance perspective on a topic rather than a partisan, passionately held viewpoint. When a board has two opinions being hotly debated by the handball people the independent members can help steer the discussion towards conclusion with their independence and often their experience with other boards of directors being taken into consideration.
But, what happens if there aren’t competing handball factions on a Board of Directors? Either because, all the handball people are in agreement… or one faction has a new, temporary majority? (i.e., A 4-3 majority due to a vacant independent board seat and the temporary removal (improperly as it turns out) of one pesky board member.)
Well… you have what just unfolded the past few months with USA Team Handball. Yes, a small group decided to seize the moment and take action with a very unorthodox sequence of events. To essentially tell the Independent Directors, we know best and we don’t really have to listen to you anymore. Or, to put it in a more positive light. It was time to quit just being frustrated and to take action to remove the uninvested roadblocks standing in the way of progress.
If you are part of this handball faction you probably see this whole sequence as a little messy, but something that just had to be done. Regrettable, but justifiable.
Or… Canaries in the Coal Mine?
However, if you are not part of this handball faction, you likely have a different perspective. And, for sure, if you not a part of any handball faction. If you are “independent” with no handball bias, you will undoubtedly see this whole sequence as very dysfunctional. Or as one Olympic Movement person said recently, “Handball just doing what they always do.”
The four Independent Directors who have resigned all saw this sequence of events as very messy and dysfunctional. Something that most definitely didn’t have to be done… but something that a small group wanted to be done. Their resignation letters all address the lack of process and poor governance.
I guess it’s possible that over time these uninvested, non-handball people gradually turned into highly invested partisan roadblocks. But, it seems rather unlikely that 4 independent directors would consciously form a new faction focused on getting their way for their new handball passion. Indeed, when push came to shove they all effectively said we just don’t want to be a party to this anymore. In that vein, the Independent Directors are canaries in the coal mine warning us that there are major problems with this current Board.
Which is it?
Well, to some extent, I’m still formulating my opinion. Gathering information, which continues to seep out. I’m actually to a certain extent sympathetic to both viewpoints. I follow handball pretty closely in this country and I’ve been been frustrated with the lack of action and leadership. That said, I’m also very much a process oriented person. That boards should strive for compromise and and consensus. Even if it takes longer and is frustrating.
It’s the age old question, “Does the end, justify the means?” I’ll have more to say on this later, but right now the more I’ve learned about the means… the more inclined I’m to say: No, not in this case.