032. Delegate Manipulation – Part 2 – American Muscle Monopoly
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How we arrived at the debauchery the NPC is today
The NPC is a fair non-profit organization, right? WRONG! What is correct is it’s registered as a non-profit organization. That’s where the truth ends.
Their financials reveal otherwise. Their behaviour is also the opposite of fair.
With the inside information from this podcast, discover
- How the NPC came to be and why
- How Jim Manion became the president… and who put him there
- How deep the corruption goes (it’s not just the politics)
- What underhanded tactics Jim Manion uses to keep hist control (it’s worse than you think)
- Where all the money they collect from the athletes goes… and the claims they make about it to the IRS
- and much more….
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Hosts: Randy Roach and Tamas Acs
Episode #32
American Muscle Monopoly
In This Episode:
An update on the 2016 American election primaries
A look at the recent anti-trust lawsuit filed by Lee Thompson against the NPC and IFBB
A historical review of the monopolies of the iron Game over the past 75 years
What is in store for the Manion family in 2016 pertaining to this lawsuit
Related Links:
Link to The American Muscle Monopoly
Link to current online version of MuscleSport magazine
Link to Lee Thompson’s facebook
Episode Summary
Randy updated his coverage of the 2016 American election primaries with the dropping out of Ted Cruise from the race
Randy feels that Cruise did America a big favour by dropping out and avoiding a potential social-political crisis at the Republican convention in Cleveland if they tried to take the nomination from the front runner Donald Trump
Talk of the possibility of a split in the Republican party to create a third party run would guarantee a Hillary Clinton presidency Randy feels
Arnold Schwarzenegger does not support Donald Trump and is on board with the current globalization project
Randy used Arnold as a segue into part 2 of this series which is the lawsuit filed by Lee Thompson against the NPC and IFBB
In his early thirties in 1999 Lee Thompson sold one of the world’s largest oil/gas and chemical emergency response companies to Halliburton Services
He Joined the NPC in 2002, became the NPC chairman for Texas and in 2006he became a judge for the IFBB Professional League
Lee grew tired of the whole IFBB/NPC scene by 2015
The IFBB state that they let him go , but Lee said he left on his own
Lee started his own organization called NPC Global
He had to change the name to NSpire Sports League due to trademark conflict with the NPC
Thompson knew this beforehand, but did so to draw information as to who owned the trademark
Thompson set up a contest for his new organization for December of 2015 and found the NPC interfering with athletes wanting to compete in his show
Lee filed a suit on November 5, 2015 against the NPC for violating the sports act of 1978 which states that amateur athletes can compete anywhere they like without penalty
Two days later, Joe Pietaro of MuscleSport magazine wrote on the extensive allegations levied against the NPC. Tamas read from Joe’s report..
Tamas read off these allegations:
The lawsuit states that throughout his affiliation with the NPC, Thompson personally “discovered countless instances of unethical, unlawful and underhanded conduct on part of Manion, Manion’s subordinates and employees” of the NPC, and said conduct was “directed towards industry sponsors, athletes competing in unaffiliated events and athletes competing in National Physique-sanctioned events. Such conduct included, but was not limited to, extortion, coercion, intimidation, assault, battery, fraud, fraudulent inducement, tortious interference and duress.”
The suit further alleges that Thompson uncovered “contests that were “rigged” in an effort to exert additional control over the industry and those participating in same. The judging and/or scoring of these competitions was “rigged” in order to ensure that certain athletes won competitions and to ensure that certain athletes failed to win competitions.” Another point was Thompson encountering “numerous instances of tax fraud on the part of National Physique in an effort to maintain its non-profit status and enrich its officers and directors.”
Regarding what has happened since Thompson left the NPC in September, the suit alleges that he has been the “victim of various attempts by Manion and National Physique to tortuously interfere with his and Nspire’s attempts to organize, promote, market and conduct Nspire-sanctioned events and competitions. National Physique and Manion have harassed, threatened, intimidated, punished, banner and/or ostracized athletes and sponsors in the industry as a result of their affiliation with Thompson and/or Nspire.”
Thompson and the NPC supposedly settled the suit when Jim Manion issued a public statement that the NPC was not to interfere with athletes wishing to compete in Thompson’s NSpire events
Thompson stated that the NPC did in fact continue their harassment so he refilled his suit in January of 2016
Thompson immediately followed with a second suit which was an anti-trust suit against both the NPC and IFBB
Rafael Santonja of the IFBB and Jim Manion, Steve Weinberger, Sandy Ranalli-Williamson of the NPC were served notice of this suit at this year’s 2016 Arnold Classic
Randy then shared from his recent MuscleSport magazine article, “The American Muscle Monopoly” on the previous monopolies of the Iron Game over the past 75 years
Bob Hoffman of York, Pennsylvania grew to a major power in American weightlifting and the AAU using the success of his oil burner business through the depression years of the 1930s
He began his Strength and Health magazine in 1932, coached his York weightlifting club and began producing his own York barbells
The AAU (Amateur Athletic Union) controlled all amateur sports in America for the first 75 years of the 20th century
Bob Hoffman’s rule over AAU weighlifting gave him favourable positioning over bodybuilding when the AAU ran its first Mr. America contest on the heels of a national AAU weightlifting event
Bob Hoffman and his York gang ruled and monopolized the commerce of the American Iron Game for the 1940s, 1950s, 1960s and much of the 1970s
Joe and Ben Weider began to cut into this market in 1940 with the launch of their own magazine, Your Physique
The Weiders were no challenge to the AAU in terms of physique competitions when Joe and Ben unrolled their IFBB (International Federation of Body Builders) in the later 1940s
The IFBB was basically dormant internationally through the 1950s
It was through the 1960s that the IFBB began to rise into a more recognized position
Oscar State, Secretary of the International Weightlifting Federation (IWF), took a liking to Ben Weider and helped Ben organize the IFBB into a viable international governing body for the sport
Oscar knew the IWF was going to drop bodybuilding from under its wing and he was instrumental into bringing that existing body of national affiliates over to the IFBB when the IFBB ratified their constitution at their first congress in 1971
Oscar was also instrumental in getting the IFBB GAISF status (General Association of International Sports Federations)
GAISF was an international coordinating body that gave official recognition to just one global governing body per sport
The 1970s would be the decade the IFBB would take control of bodybuilding from Bob Hoffman and the York controlled AAU Weightlifting Committee
The Sports Act of 1978 would create this opportune environment because it divested power from American amateur sports from the AAU and NCAA to the United States Olympic Committee (USOC)
Ken Sprague was a Key figure in shifting this power by placing Jim Manion in the chairmanship position of the AAU Physique Committee which was slowly transitioning into the new NPC (National Physique Committee)
Sprague wrote the rule book and knew how to manipulate the delegates and the vote to both put Jim Manion in power and to keep him inpower in 1977 and 1978 respectively
Ken did so believing it was better for bodybuilding to have it under the control of the west-based Weiders as opposed to the east-based York gang
It would also benefit Ken Sprague and his Gold’s Gym in terms of promotion to have Manion in power also.
By the 1980s, Jim Manion was in control of American amateur bodybuilding, Wayne DeMilia was taking control of professional bodybuilding and both men helped the Weiders who leveraged their related industries to become the new monopolizers of bodybuilding
Wayne departed the IFBB in 2004
He took with him the corporation Pro Division Inc. which he started for pro bodybuilding
Jim Manion took control of pro bodybuilding with a new organization called the IFBB Pro League
With all of his positioning, Jim Manion took over an enormous amount of power for both American amateur bodybuilding and the professional ranks
When Lee Thompson became fed up with what he had experienced in both the NPC and IFBB he left to begin his own organization
Manion had his promoters run shows on the same day and in the same cities where Thompson was running contests in order to hurt Lee Thompson’s events
Manion does not seem to care that this also hurts his own promoters efforts as they also loose contestants to Thompson’s contests
The promoters most likely have to do as Manion says if they want to continue promoting contests in their districts
Tamas then read another facebook post by Lee Thompson regarding the IRS:
Today, I am grateful for an AMAZING legal team for compiling one of the most comprehensive legal responses I have ever read. I have received countless calls from those in the sport who understand law and from legal experts commending this team on it’s stance for doing what is right and just for the members of the community.
I am also glad the package I submitted to the IRS WhistleBlowers section was received. As I have recommended to many of my former trustee’s and directors of James B. Manion’s Non-Profit organization the NPC you too SHOULD review the laws pertaining to 501c3’s and/consult with your own legal or tax consultant as to the potential LIABILITY you may be exposed too at his point. The choice is YOURS at this point in time…
Tamas stated how most people fear the IRS more than anything else
Randy again mentioned that there are links to his “The American Muscle Monopoly” article included with this podcast along with a link to Joe Pietaro’s online spring edition of MuscleSport magazine
Randy also reminded listeners about Volume III, Book 2 and how it will deal with the unbelievable relationship between Wayne DeMilia and the Weider brothers
Hot off the press update:
Randy and Tamas piped in again later that day with another update from Lee Thompson’s posts
Tamas read the following:
Interesting facts for the 2014 990 – NPC filing
1. J.M. Manion listed on 990 for the first time ever as a photographer without a bid for his services.
2. Around The NPC & IFBB with JM Manion was compensated more than $300K while the President of the organization was only compensated $250K.
3. I was still an active Board of Governor during this period and there was NEVER a compensation committee vote brought to the members.
Does it make any sense what so ever that a photographer made more than the President?
And 2 MILLION dollars spent on printing. Printing of what? And finally again, it states ALL Board of Governors authorized…I never voted to approve any funds. More than 50% of the revenue brought in by the non-profit 501c3 is spent on printing – yet it’s purpose is to promote the amateurs…where are those publications I ask?
This tax form discloses the financial breakdown for the NPC showing how Jim Manion earned $250,000 as president
Lee Thompson pointed out the oddity of a photographer making more than the president, that being JM Manion earning $300,000 for that position
Even more perplexing to Lee Thompson was how two million dollars went out for printing
As one of the board of governors, he was not aware of any of this
Randy reiterated the coercion of promoters to run shows against Lee Thompson’s events in order to put Thompson out of business
Randy recalled back in 1973 when Joe Weider instructed Tom Minicheillo to run his Mr. Olympia on the same day as Dan Lurie was running his Pro Mr. America
Tom ended up getting hurt financially due to his lowered attendance due to competing with Dan who had Steve Reeves as a guest star that drew a packed house
Randy pointed out to all the current NPC members who are paying a constantly growing fee as to just where it appears to be going…into the pockets of the Manion family
Where the Weider brothers looted bodybuilding via their leveraged industries, Manion is making his fortune off the backs of the athletes
Randy and Tamas concluded that with the IRS involved that it will most likely be a rough road for the Manion family