Colorado Springs – Hours after Troy Ellerman, the commissioner of the Professional Rodeo Cowboys Association, pleaded guilty to leaking the grand jury testimony of Major League Baseball stars in the BALCO steroid case, the PRCA board of directors awarded Ellerman a year’s salary: $208,000.
That proposed and then quickly rescinded payment is viewed by some cowboys as just the latest misstep by the organization, which has been embroiled in controversy for years.
The perception among many in its membership is that the PRCA, which gets more than $6 million a year from dues paid by 8,000 members, has lost its way, struggling with financial problems and lawsuits.
The nonprofit organization also may face an investigation by the Internal Revenue Service.
The proposed Ellerman payoff coming after he resigned and as he faced two years in prison was “ludicrous,” said James Warren, a calf roper and longtime PRCA member from California. “Churns my stomach,” he said.
Cowboys lit up phone lines at the PRCA’s Colorado Springs headquarters. The board reversed itself, withdrawing the parting gift for Ellerman, 44, who had two years remaining on his contract.
“The board listened to the membership. If there’s anything positive about it, that was positive,” said Keith Martin, chairman of the board and interim CEO of the association.
The PRCA sanctions hundreds of rodeos across the nation.
Ellerman served as chairman of the board from 1999 until he took over as PRCA commissioner in January 2005.
“Troy, in my opinion, he’s got a golden tongue. He could sell ice to an Eskimo,” said Steve Gilbert, a board member. “He got himself jockeyed into where he controlled the board, and when you control the board, you can do anything you want.”
Finances were reined in
When Ellerman took over, the PRCA was on the brink of financial collapse. His predecessor had spent millions to put PRCA events on television. Without ratings and an unknown audience, the PRCA had to pay ESPN and other channels to air rodeo programming.
In 2003 and 2004, PRCA expenses exceeded revenue by $7.4 million. There were reports of lavish spending by association leaders. The organization owed $3 million in TV contracts.
In 2005, Ellerman turned the PRCA around financially, with revenues exceeding expenses by $4.65 million.
The former cowboy and California lawyer sold licensing rights for the PRCA’s Extreme Bulls to Winnercomm, a major television sports production company.
Pro Rodeo Tours was sold to Pro Rodeo Tours LLC/Grit Rock, owned by Jack Sperling, owner of the National Hockey League’s Minnesota Wild.
“In the past, there were rumors going around that we sold assets,” Martin said. “First of all, these did not involve sales. In both instances, they are licensing agreements. … That didn’t necessarily create a lot of cash right up front. …We cut off what was bleeding.”
But Larry McCormack, the PRCA’s former chief operating officer who was hired and later fired by Ellerman, said the agreements make no sense.
McCormack, who told the FBI that Ellerman leaked testimony, has filed a notice of intent to sue the PRCA for $500,000 for wrongful termination.
Allegations of secret deals
As troubling to some cowboys as the deals themselves is the way they were made. Gilbert said the licensing arrangements were made in secret.
“It was not approved by the board of directors,” Gilbert said. “I had no knowledge of it, and I know several others had no knowledge of it.”
Martin, however, said he was present at a September meeting when the agreements were made available for inspection. Martin said that under his leadership, such agreements will be open for inspection by board members.
“I think they have a fiduciary duty to know,” said Martin, who also is executive director and CEO of San Antonio Stock Show and Rodeo.
Warren, the California cowboy, was so frustrated by his inability to get records that he filed a lawsuit in October, alleging the PRCA denies members input in the association.
Warren said the PRCA also denied members a general meeting and access to board meetings.
In the arena, he said, payouts for calf-roping events haven’t changed since 1981, while entry fees have jumped to $500 from $200 and expenses have nearly tripled.
“So, we knew the direction was wrong,” Warren said. “I think we’ve lost the real ethical part of our business, and that’s the last thing that ever should have left.”
Adding to the woes, McCormack said he believes the organization is under investigation by the IRS. He was interviewed by investigators about six weeks ago.
“The IRS’s key concern is for people using an organization like that to put money in their own pockets,” he said.
The IRS would not comment on whether it is investigating; Martin denies it. “We have not been interviewed, and no one in our organization knows of any call or interview from the IRS, at all,” he said.
The PRCA’s board of directors will meet March 20 and decide how to proceed with hiring a new commissioner.
For Martin, who is in the saddle for the PRCA without a salary, the organization has to do a better job communicating with members.
“The organization is a membership organization, and our members are our customers, and we really should not be doing anything wrong or secret,” Martin said.
Staff writer Erin Emery can be reached at 719-522-1360 or eemery@denverpost.com.
Ex-PRCA chief faces prison, fine
Troy Ellerman, left, who’s also an attorney, represented Victor Conte, founder of the Bay Area Laboratory Cooperative, a lab based in Burlingame, Calif., that is at the center of a federal probe of steroid use. In court papers, Ellerman admitted he allowed San Francisco Chronicle reporters to view transcripts of the grand-jury testimony of baseball stars Barry Bonds, Jason Giambi and Gary Sheffield, and sprinter Tim Montgomery. He faces up to two years in prison and a $250,000 fine. Ellerman resigned as commissioner of the PRCA in February.
