564 Rainbow Circle
West Columbia, SC 29170
June 29, 2001

Ph: 803-794-5773
mccrary@axs2k.net

I opposed the present major downsizing of our books-and-equipment operation both on economic grounds ( the previous policy was still quite financially healthy despite declines) and because it is a major membership benefit. ( My detailed arguments are found in the transcript of the January 2001 meeting of the Executive Board.)

The downsizing policy is not working. Sales are falling sharply, as is our sales margin ( sales minus cost of sales) which is down by $67,240 for this fiscal year in relation to the previous year. Defenders of the downsizing ignore this $67,240 drop, while citing margin percentages that mean nothing without considering gross totals. The diversity of books available for our membership is dropping as well.

Our books-and-equipment operation must be improved in both content and service, but downsizing it is wrong. We must return to a more comprehensive policy in this operation.

INTERNET POLICY: I have argued consistently that the USCF must seek low-risk, non-exclusive alliances with Internet providers, in online play as well as in other Internet services.

Presently, the Board majority, despite objections by three Board members including me, have locked in an exclusive relationship with one small provider. This arrangement costs the USCF well over $100,000 a year ( see note below) and has had no impact on membership totals, which are still declining in all categories except scholastic. Our relationship with Games Parlor ( for US Chess Live) differs from other alliances only in semantics- we get to call it our site though they provide it-and money, since it costs a lot more than other Internet alliances.

We must return to a strategy of non-exclusive Internet alliances. Within present contractual limitations, I am pledged to do so. Other potential alliances with three companies were discouraged by the Board majority to make room for Games Parlor. Those possible opportunities should be revisited.

NOTE: A recent letter questioned the basis of determining the annual costs of US Chess Live. The costs are computed by adding about $60,000 in content/administrative expenses ( confirmed by figures from the USCF’s CFO) to about $33,000 in lost revenues from the old ICC contract, which was canceled to make way for the current group.To this I am adding an estimated $25,000 cost resulting from the new contract ( an amount that could be much higher.) The resulting estimate does not consider another number of thousands of dollars for free advertising in Chess Life, substantial staff time, especially from our MIS Director, and other provisions.

A STRONGER ALLIANCE WITH LOCAL AND STATE ORGANIZERS: The recent TLA fee increases do not consider that organizers are our salesmen and partners. I strongly opposed the dramatic TLA increases that did not consider this basic fact. ( I was not informed of the dramatic increases before their public announcement, although I was USCF Vice President.) The decline of adult membership has worsened in recent months; those were the first months to be impacted by higher TLA fees.

Recommendations: The membership growth and affiliate affairs committees have developed a strong consensus recommendation for TLA changes that will be more organizer-friendly but still economically sound. I support these initiatives to strengthen our partnership with organizers.

SPONSORSHIP EXPANSION: I played an active role in developing the current sponsorship contract with Excalibur Electronics for the World Chess Hall of Fame. I signed the contract with Excalibur ( as US Chess Trust President) after discussing the proposal from its inception with the late Sid Samole and presenting it with him at the August 1998 Trust meeting. As a Board member I helped facilitate the Seattle Chess Foundation’s bid to assume the US Championship.

Both sponsors have great potential to help the USCF, by opening new inroads into major media exposure and by reaching the mass of casual players outside the USCF. I am pledged to seek the further growth of sponsorship.

SCHOLASTIC CHESS: Joe Ippolito and I co-sponsored the 2000 Delegates’ motion ( ADM 00-80) that led to creation of the USCF Scholastic Council. The Council has already become a major source of input to the Board on scholastic matters.

Scholastic chess remains the healthiest part of our organization. I will continue to support a strong voice for our scholastic organizers.

RATINGS: Since last fall, service in the area of ratings has declined significantly. As I noted in my last letter, I think that diversion of our MIS resources to other things has contributed significantly to this service decline. On at least two occasions, I have traced rating-processing problems to programming issues our very competent MIS Director could address, but she does not have time to do this while maintaining US Chess Live, and meeting her other time demands.

I am pledged to a redistribution of priorities to make ratings our most important and unique service. We must also work with expert volunteers to create more efficient office processing.

DONATIONS: As President of the US Chess Trust from 1998-99, I helped improve general donations by the use of new donor incentives. In June 2000, I traveled at my own expense to a Philadelphia meeting to enhance coordination between the Trust and other US chess organizations. I am pledged to seek major fund-raising acceleration through such methods.

A number of persons are planning to write either regional or national letters supporting my candidacy. Also, the following persons have given permission to use their names in this letter:

Harold Winston, past USCF President: " John McCrary is one of the persons I most respect in the USCF. He has consistently been constructive. He has led the fight to roll back TLA fees and opposes downsizing our books-and-equipment business. John is a person of proven integrity who has worked hard for the Hall of Fame and museum soon to open. He is a man of principle as well as ideas and I strongly endorse him."

Harold Dondis, Boston Globe Columnist and winner of the USCF Career Outstanding Achievement Award: Harold endorses me as one who will help bring "a temperate, wiser management."

Joe Ippolito, former co-chair of the USCF Scholastic Committee: " John McCrary brings a wealth of knowledge. His background and experience are assets."

I chaired for 12 years the Board of Senate Plaza, the tallest residential building ( 20 stories, $8,000,000 value) in South Carolina. I also served as a program director at a large hospital, over about 110 staff and with an annual budget of over $4,000,000. I am a Ph.D. psychologist, married 31 years, with two daughters. Age 52 with excellent health.

Vice President, USCF.

President, US Chess Trust, 1998-99.

Chaired four USCF committees between 1986 and 1999.

Delegate in all USCF Delegates’ Meetings from 1984-2000, except 1985.

Member of four-person committee overseeing the World Chess Hall of Fame.

President, South Carolina Chess Association ( 8 terms).

I received the USCF Special Services Award twice, in 1994 and 1997. I was named USCF national " Volunteer of the Month." I chaired the 1988 "Committee of the Year."

Regards, R. John McCrary

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