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Re: FIRST has $8 Million?!? What did I miss?
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You would have more credibility if you weren't posting from what amounts to an anonymous account, by the way. |
Re: FIRST has $8 Million?!? What did I miss?
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B) Downside to this agreement (and I have no problem believing it exists... I had wondered why FTC entry fees were so high when the cost of running the program appears so low)... I had three teams building three VEX robots at school, but could only justify one FTC entry fee. A neighbouring school built ten robots, but had to whittle it down to four because they couldn't afford a fifth entry fee. In both cases we could build up the equipment over time as a slow-depreciating capital expense, but the annual entry fees are an on-going operating expense. A lower entry fee (or reduced entry fees for multiple teams from one school or district) would have seen more kids and more teams competing and aided the growth of FTC and FIRST. Perhaps if extra money was generated by FTC this year it will be returned to teams next year in the way of subsidized equipment sales. I've heard of worse plans... Jason P.S. I do find the posts describing the existence of a pricing agreement between FIRST and Lego credible, even though I do not have any independent or official confirmation. I do not, however, have enough information to form an opinion on whether or not such an agreement was wise, as I can only see the "costs" of the agreement (FTC fees being, perhaps, higher than needed) and not any benefits that the agreement brought, or was intended to bring, to the FIRST community. |
Re: FIRST has $8 Million?!? What did I miss?
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The Lego FTC price thing is a different issue which sounds very bad to me. In these times of corporate greed, unethical deals and dirty politics on all sides, I would hope that organizations like FIRST would be above such behavior. If FIRST has let Lego or Pitsco force FTC to be more expensive than FLL, then shame on FIRST for not sticking up for the best interest of the students. Unless FIRST states this is 100% untrue, I will not start an FTC team. I like the FIRST mission, but Im not doing this to help Lego, IFI, Autodesk, or other stockholders. The kids need FIRSTs help, not those companies. If FIRST lowers the FRC price, I\'d still like to do that. If not, I think I\'m going to start looking at BEST, VEX or BOTBALL. |
Re: FIRST has $8 Million?!? What did I miss?
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You don't have to believe me or any of the other people FIRST has disclosed this to - ask FIRST management directly like those on our committee did. When put on the spot, they did not lie about it, they admitted it (and one apologized and said they were ashamed and embarrassed to admit it). It sounds like you will also be disappointed to learn Lego and FIRST drove up the cost of one FIRST program to benefit FLL. If that doesn't bother you and you can still support what they are doing, that is fine. I'm just saying I am very conflicted and troubled by what they have done. All of us in FIRST should have heard this directly from FIRST months ago, not through rumors, in committee meetings and on public forums, I agree with you on that also. |
Re: FIRST has $8 Million?!? What did I miss?
FIRST has helped a number of companies make profits... or at least break even.... over the years. There is nothing wrong with that... those companies have helped provide a great program to some great kids. Profits are not evil or unethical... they are required. Even for companies that deal with kids.
Right now we have information that FIRST has signed a pricing agreement. We can see some potential downsides from our perspective on teams, but don't have any information on the potential upsides. The people I have met from FIRST head office are not incompetent or unethical... quite the contrary. I am confident they would not intentionally sign a deal that was not in the interest of the overall FIRST community from their analysis and perspective. As for the cost/benefit analysis of FRC, I would stick to my previous comments that it is an expensive robotics program but that I wouldn't want it to be "cheap". I also support Rick's comments that it is not out of line with other opportunities for young people. Some things are less expensive and some are more... but if you have 20 kids on an FRC team, the entry fees break down to about $300/kid... add some parts and a bit of travel and you are looking at around $500/head. About the cost of a PS3 and a couple games. Can you do basketball for less? Sure! Soccer, sure! Hockey, competitive swimming or skiing?? Not a chance. Jason |
Re: FIRST has $8 Million?!? What did I miss?
Well the Championships are in 2d 03h 57m according to my clock. I'm fairly sure FIRST will be fully explaining details of its program to everyone. In previous posts, I have highly critisized FIRST's approach of not discloing full information to teams. However, in terms of its cash budget, from the looks of it, FIRST is rather reasonable (yes I am a business student). If I have some time after championships I will post a full ratio analysis for FIRST's budget sheets.
In terms of FIRST's deal with lego, I don't like it too much but thats capitalism for you. Unless FIRST produces parts for itself and becomes a for-profit business, there's not much they can do to prevent this from happenning. |
Re: FIRST has $8 Million?!? What did I miss?
I don't know Jason. Pricing agreements within a program are one thing. If FIRST does that with partners for a particular program, fine. But making a pricing agreement to raise the price on one group of schools because it would help a corporate partner control a market? That does not seem right or ethical. If Vex asked FIRST to raise the price of FLL to help Vex, I would expect FIRST to say no. If Lego wanted to raise or lower the cost of FLL, they should have that discussion with FIRST. But Lego should have nothing to do with pricing discussions for FTC or FRC, or at least FIRST shouldn't let them have anything to do with it.
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Re: FIRST has $8 Million?!? What did I miss?
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When I find out more about the "why" and hear more than one side of the story, then if I disagree I will be more than willing to say so. Until then, I am quite comfortable in believing that FIRST would not intentionally or inadvertently sign a deal with no long-term upside for the greater FIRST community. The fact that we don't see that upside immediately from our perspective does not mean that it doesn't exist.* The FIRST executive and senior leadership (GDC, etc.) have earned my trust and respect over the past five years... even if I do disagree with their decisions from time to time. Jason * Hmmm... next thing you know I'll be saying "FIRST works in mysterious ways" or something like that... :] |
Re: FIRST has $8 Million?!? What did I miss?
As has been pointed out in a few posts in this thread, having ~30% of the annual operating budget on hand is "safe and sane". The $1M excess revenue for FIRST last year is <5% of its operating costs. Bloated? I think not.
If you think the teams are being gouged for registration fees, then consider that lowering them by only 10% makes FIRST financially "neutral" (based on the reported 2007 revenues and expenses). A team participating in two regionals and the Championship would save $1500 on registration fees. Is this a really a budget issue? Comparing those "savings" to the total budget for such a team doesn't seem like something to get too worked up about. Is this too much for a team to pay for some insurance that an unfortunate incident (tornado, accident, platform change, etc.) doesn't cripple the entire program? I'm not a business man, but I think the return on investment in this program is fantastic. Yes, FRC is an expensive program, but the products (inspired students and entertaining, competitive events) are well worth those dollars. |
Re: FIRST has $8 Million?!? What did I miss?
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release information on it's own that is their decision. Personally I won't. I do respond to posts where I feel there are facts (that I beleive are in the public domain) that can or should be stated. Personally I love FIRST and what it does. That doesn't mean it is perfect. No company is. Is there a business partnership between LEGO and FIRST, yes. You wouldn't expect such a successful program like FLL without one. No knowing what FIRST considers public on that agreement, I am not going to comment on what it may or may not contain. Also, having been gone a year, my knowlege may no longer be correct. |
Re: FIRST has $8 Million?!? What did I miss?
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Re: FIRST has $8 Million?!? What did I miss?
I will not pretend that I understand everything about the agreements that are being discussed, but I can't help notice a little irony in these discussions and the current attitude about the politics behind all of the decisions that are currently being made.
When you have a non-profit that is forced to work with profit organizations, you will always have to worry about the potential "cash cow" that can develop from a successful program. From the perspective of someone who watched VEX take off in my school, I can see where one company could potentially make a GREAT deal of money off of schools through the FTC program. I think that FIRST has made something of a statement that they do not with for FTC to go in a direction that will benefit only one company. They are open to changing the platform to keep that "cash cow" from developing into leverage for any one company. However, what is happening on the FTC blog and here on CD is a great deal of complaining about moving to a new platform. What will really make us all happy? A corporate monopoly on FIRST equipment or a changing platform that inconviences us all? How can FIRST stay out of that type of corporate politics? They can't. They can only survive the best way possible and we need to understand that. I may not agree with all of the decisions made or the results, but I do recognize an attempt to keep things balanced and that is what I am seeing play out at this time. |
Re: FIRST has $8 Million?!? What did I miss?
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Re: FIRST has $8 Million?!? What did I miss?
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The plain simple human behavorial economic fact is that everyone that participates in FIRST 'profits' in some manner. The profit may not be monetary, it may be easing their social conscience, it may be just pure fun and enjoyment, it may be starting a business doing something you love and putting some food on the table, it can be many different things. Students, teachers, mentors, and sponsors are NOT going to join a team if they do not feel they are gaining a benefit, economic or non-economic. No one has a right to demand a one way sponsorship where only one party benefits. That is a one way transfer of wealth, and in contract law would become a null and void contract. A not so hypothetical example - A company has top notch excess shop space that they have to pay rent and utilities on because their facility is just too big. It is a sunken fixed cost. If they give a few thousand square feet to a local team to have a nice dedicated space then after tax considerations they will actually improve their bottom line. It will improve their profits. Is that bad ? Of course not. Both parties win. |
Re: FIRST has $8 Million?!? What did I miss?
Mnay non-profits keep cash reserves. Here are three: Habitat for Humanity $122 mil in 2007, Red cross $6 mil in 2007, $118 mil in 2006, Red Cross $24 mil in 2005. Why do these non-profits keep cash reserves? To be ready for disasters, new projects, expansion, etc. Would/could they benefit more people by spending this reserve vs keeping it? yes. Would they continue to operate as a corporation if they did? Probably not.
There is no problem keeping cash reserves for the right reason. Seems to me FIRST is doing what they should. |
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