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Gary_Miller
07-30-2005, 04:54 PM
There has been various hints/opions that the deal made with farnam by the AFA EC was a bad deal.

Some have asked why?

Here is my take on the deal.

First you need to know I'm new to the AFA and the farrier industry. You could say I'm still green around the gills.

The following is a copy of memo sent to AFA members in August 2004 Corporate Sponsorships.

MEMORANDUM

To: Fellow Members of the American Farrier's Association
From: Craig Trnka, CJF, President
Michael Joshua, Chairman, Finance Committee
Re: Corporate Sponsorships
Date: August 31, 2004

When the Executive Committee hired a new Executive Director in December 2003, they challenged him with finding additional sponsors for the organization. Since then we have had many discussions regarding the budget and financial opportunities. While we want to find new sources, we also want to reassure our existing sponsors and supporters that we appreciate their many years of support for the organization and our membership. In April of this year a letter was sent to every member of the Farrier Industry Association acknowledging their support and asking them to contact the AFA if they were interested in exploring new ways in which they would like to partner with the AFA.

We were approached by Farnam Companies about establishing such a partnership. Since then there have been numerous discussions with Farnam and the AFA’s Executive Committee. All of these meetings culminated in Farnam’s commitment to being a major sponsor of the AFA. In recognition of this commitment, the Executive Committee elected to name Farnam as our first Certified Corporate Partner. We will soon be naming others to this sponsorship category.

To keep our membership and long-time supporters informed of our business dealings, we are providing to you a synopsis of the Farnam arrangement.


A. Background

Farnam approached the AFA during the Annual Convention in Rochester, New York. They wanted to learn about ways in which they could become more involved with the AFA and its members.

Farnam manufactures and distributes over 200 animal health care products, including horse care products.


B. What is included with the “Farnam Partnership”?

The AFA’s Executive Committee and Executive Director followed-up with Farnam to determine their potential level of sponsorship with the AFA. We learned that they had three areas of primary interest:

1. General sponsorship of the AFA to recognize their Horseshoer’s Secret® products
2. Sponsorship of the American Farrier’s Team
3. An enhanced level of sponsorship for the AFA’s Annual Convention

Farnam then asked the AFA to review this list and attach a dollar amount to each area. We were not bashful in stating a dollar amount. The AFA has a great commodity to sell. We’ve heard from many companies (outside the AFA and FIA) about their desire to be a part of this industry. These companies see a tremendous value (and potential return on investment) in doing business with our farriers.

Farnam immediately responded with a firm commitment to area # 1 (sponsorship of the AFA to recognize Horseshoer’s Secret®), but with an understanding that they would probably want to commit to areas # 2 and # 3 in subsequent years. They also wanted to make sure that the AFA understood that this would be the start of a long term relationship and their financial commitment would be renewed annual


C. What is the AFA’s commitment to Farnam?

Included in this Sponsorship is the AFA’s official recognition of Farnam’s Horseshoer’s Secret® feed supplement.

This is NOT an endorsement of Farnam or Horseshoer’s Secret products by the AFA or its members. The AFA has had a long time policy of not endorsing product. The Executive Committee assured Farnam that this would be a requirement for a relationship with their company.

We are recognizing this brand of products and allowing Farnam to use the phrase “Official Product of the American Farrier’s Association” on the product’s labels and other marketing materials (including print ads and web sites).

The AFA continues to work with Farnam to develop methods of promoting the relationship, Farnam’s products, as well as good will for the farrier industry. It is the intent of the Executive Committee to explore these opportunities with other FIA members, as well as companies outside the industry.


D. What does it take to become an “AFA Certified Corporate Partner”?

The Executive Committee has developed specific criteria for this level of sponsorship. A “Certified Corporate Partner” will require a minimum cash contribution of $50,000 to the general fund of the AFA on an annual renewing basis.

Other levels of sponsorship will be identified and created. If you are interested in learning more about these levels, please contact us directly at the numbers stated below.


F. Where do we go from here?

Sponsorship within the AFA does not have to be financial.

We want to continue to enhance relationships with our FIA friends. Many FIA members are also members of the AFA. We want to establish a dialogue with every FIA member. Through this open communication we want to explore ways in which the AFA (as an organization) can work to promote the FIA member’s business and vice versa.

Earlier this summer the Executive Committee announced plans to produce a weekly television show on RFD-TV and Horse TV. We have determined that the best use of these new sponsorship funds will be to direct 100% of the monies towards the production of the television show. Therefore, for the first group of shows, they will be produced without commercial or sponsorship interruptions. The only promotion that will occur in the first twelve episodes will be for the American Farrier's Association. Based upon the success of these episodes, sponsorship will be solicited for subsequent shows.
It was never our intent to alienate any FIA member, supporter, or friend of the American Farrier's Association. In fact, it is just the opposite. We want to be as inclusive as possible. We look forward to enhancing a healthy and mutually beneficial relationship with every supporter.

We welcome calls from you to discuss plans to create a bigger and better American Farrier's Association.

Craig Trnka, CJF
President
(505) 235-5952
(505) 281-8982 (home)
cathorseshoeing@aol.com

Michael Joshua
Chairman, Finance Committee
(303) 435-3292
(303) 355-4197 (home)
Mdj021563@aol.com

Bryan Quinsey
Executive Director
(859) 233-7411
(859) 533-1576 (mobile)
bquinsey@americanfarriers.org



The part that I find interesting is part C, where it taks about this is not an endorsement of their product by the AFA or their members. But then it goes on to state that,

" We are recognizing this brand of products and allowing Farnam to use the phrase “Official Product of the American Farrier’s Association” on the product’s labels and other marketing materials (including print ads and web sites). "

If this is not an indication of endorsement I don't know what is. A organization does not need to say we endorse this product to insinuate endorsement. All the have to do is allow a phase such as “Official Product of the American Farrier’s Association” and to the consumer that shows endorsement.

I also found in "Jeffers Equine" catologe where the AFA official symbol is being used in a Farnam advertizement.

once agin it sure looks like endorsement to me.

Just my take
Gary

Phantom Farrier
07-30-2005, 09:49 PM
Gary,

I think you see it as most others do, as an endorsement of Farnam's food supplement. The use of our logo was also sold to Farnam for their exclusive use. For the AFA to sell or lend the AFA logo to another company would require Farnam's permission.

The deal was struck in secrecy, behind closed doors, without the knowledge or approval of the BOD or the membership. It was signed, sealed and delivered without approval. The BOD gave the EC a free pass that one time and reluctantly signed off.

Maybe we could have held out for a better deal or used different wording for the endorsement. Farriers as a whole would probably have been more supportive of the deal had the endorsement read "Proud sponsor of the American Farrier's Association".

It's water over the dam, hopefully we learn from our mistakes.

Phantom

John Blombach, CJF

Rick Burten
07-30-2005, 11:47 PM
[QUOTE=Phantom Farrier]
>Maybe we could have held out for a better deal or used different wording for the endorsement. Farriers as a whole would probably have been more supportive of the deal had the endorsement read "Proud sponsor of the American Farrier's Association".

When this deal first came to light, I called the office, and while conversing with Brian Quincey, I suggested that the wording be reworked to something like this " An official sponsor of the AFA" that alone would have left enough lattitude for other companies to also be "AN" official of the AFA or its programs. While my idea was taken under consideration, it was not adopted. Pity, it would have saved a lot of the grief we are now enduring.

>It's water over the dam, hopefully we learn from our mistakes.

Rick

Gary_Miller
07-31-2005, 12:37 AM
I don't think that it is water over the dam.

I think that there is one statement that can make this whole thing a deal breaker.

"This is NOT an endorsement of Farnam or Horseshoer’s Secret products by the AFA or its members. The AFA has had a long time policy of not endorsing product. The Executive Committee assured Farnam that this would be a requirement for a relationship with their company."

So if the general membership and the BOD felt that the way the AFA mane and Logo is being used is insinuating endorsement then the relationship could be ended.

Something for the BOD to look at.

Gary

Mike Ferrara
07-31-2005, 08:26 AM
Official Product of the American Farrier’s Association

Sort of sounds like the AFA conducted some sort of product review and decided that it (and it's members) would "officially" use this one over others. If that's not the case then it's deceptive advertising at the very least. It's a common practice in business and we see it every day. People will do all kinds of things for money...huh?

tbloomer
07-31-2005, 09:51 AM
Many organizations raise money by selling the USE OF the term "Official Product of *********"

Considering all of the work that the EC has done in secret over the past 2 years, I think that "Horseshoer's SECRET" is the right product to be an official product. LOL

Tom Bloomer

Phantom Farrier
07-31-2005, 01:27 PM
Tom,

Bravo!!!

Phantom

Dave Purves
07-31-2005, 03:53 PM
Gary, If I'm not mistaken the issue was brought up at the last BOD meeting in Chatanooga. And the board voted to continue it's "relationship" with Farnam. I could be wrong, but you may want to contact your BOD rep to get the notes from the meeting, or contact the AFA to find out for sure.
Dave