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Tampa Bay Buccaneers quarterback Tom Brady's charity foundation, TB12 is under scrutiny. The company is the lone provider of “sports therapy” treatment for the TB12 Foundation. The non-profit foundation has paid Brady’s company in excess of $1.6 million for its services since it was created in 2015.
It's also the only company listed as an “independent contractor” for such sessions. Public records for the quarterback's charity revealed that Brady's sports therapy and wellness company was in the red fiscally. In 2020, the company had an outstanding balance of $7 million in net capital.
Meanwhile, his TB12 Foundation has doubled its revenues in recent years with donations from just a small number of supporters. Two of the charity’s directors are paid employees of the company. Last July, the quarterback's longtime body coach and company co-founder, Alex Guerrero, and the then-CEO, John Burns, became directors of the company.
Tax records show that the company paid Guerrero and Burns $497,461 and $630,846 respectively. Both Brady and Guerrero are each listed in the 2021 tax form as a “majority owner” of the company.
Laurie Styron, executive director of independent nonprofit monitor CharityWatch, commented that it isn’t normal for a company to start a public charity, which then pays the company for its work.
Styron said:
“I can say that I haven’t come across this type of arrangement too often in my 19 years of nonprofit financial analysis in a watchdog role."
She added:
“A charity’s board members have a fiduciary duty to act in the best interest of the charity at all times,” “Doing so becomes more complicated when there are competing interests between nonprofit and for-profit legal entities, particularly when the two organizations share key staff who have to balance their fiduciary duties between the two. It has the potential to get tricky if there aren’t adequate safeguards in place.”
Is TB12 a non-profit?
TB12 was co-founded by Tom Brady and Alex Guerrero in 2013. The company started on the thought that everyone could benefit from a smarter, more holistic approach to health and wellness.
If you use any of the above quotes, please credit The Daily Beast and H/T Sportskeeda.
