Dear AHA Members,

It has been six months since I became your President. I based my campaign for President on initiating contact with you, the members, and I promised you change. Your support for me was an indication you wanted to speak and be heard, be kept informed, and that you are willing to accept change. I made good on my promise to communicate with you and have done so with my monthly email broadcasts to you. I have shared good, bad and controversial news with you, something that is not common in any breed organization. Overwhelmingly, the consensus is you appreciate my communications. Therefore, I will continue to keep you as informed as I possibly can. In this communication I will share with you what I view as positives in our association, and I will address two topics that have become controversial. You indicated you wanted change. It is being implemented, and I want you all to be aware of why change is so important and ask that you approach such changes in our organization with an informed and open mind that looks beyond our personal needs, and focuses on what is best for our breed and our association.


Effective June 1, we will have for the first time a Business Deployment Plan, or BDP, which represents the very first time in our history that you the members have had input and play a key role in shaping our destiny. As your President, I felt it was necessary to change the way we have historically done things. Rather than the Board and staff setting policy, making decisions and adopting strategic plans for you, I empowered you, the members, by providing a venue in which to tell us what you want. We have had two meetings of the Board of Directors since convention. Your directors have worked hard on helping to develop the BDP. I am proud of you and the Board for your thoughts, energy and hard work. Our BDP, which is a blueprint of sorts, goes into effect very soon. It will help us build our "new house," providing detail on how things will be accomplished, who will do them, and when they will be completed. Regardless of who the "carpenters" are, the plan will remain intact for other leaders to follow. The BDP, when complete, will be placed on the website for your review and monitoring.



I want to talk about the accomplishments of the past six months. We have established four cornerstones to re-shape our organization: Financial Stability, Organizational Efficiency, Breed Growth, and Communication.

Financial Stability: We are projecting a net profit at the end of this fiscal year of over $200,000. This is a significant improvement over last year when we experienced the largest loss ever within our association -- $545,000. Our Treasurer Frank Galovic, along with AHA Controller, Jon Barnickel established new accounting tools and are focused on benchmarking and best practices. At our Board meeting Frank informed us that we are noting a decrease in expenses which is an indication that we, as an association, are taking steps toward better accountability. And speaking of financial stability, we find ourselves for the first time in a long time out from under the potential losses resulting from lawsuits. Both the Himmel case and the South American Lawsuit have been settled.

Organizational Efficiency: Our staff is demonstrating a much better performance percentage comparison to revenue, improving greatly over last year. With our BDP, we will continue to fine-tune our business practices, operating more efficiently and in a more business-like fashion.

Breed Growth: The recent amnesty program was a tremendous success with 1,148 applications for Purebred registrations and 940 applications for Half-Arabians and Anglo-Arabians, bringing in over $300,000 in revenue to the association. Whereas in the past declines in registration hovered at around 12 percent, we are now down approximately 4 percent. While still a negative, it shows improvement. Two important initiatives we are launching should have an impact on breed growth, and I will discuss these separately in this communication.

Communication: We have developed a system of communication that brings information to you in a timely manner, as events or situations are developing. Through my communication to you I want to make sure you realize that I take your role as stakeholders in this organization very seriously. Your trust in me is important and I will do all I can to maintain that trust.




I want to refresh your mind as to why change is so important for our survival as an association and as a breed. I took your vote of confidence in me as one supporting change in our breed and association. Now, we are on the threshold of change, and I am finding some people are resistant to change. We have changes on the drawing board. Will they all be the right ones? Perhaps not always, but we have to start somewhere if we are to turn things around. Criticizing is easy; helping is productive.


Each of these subjects is a hot topic in our Arabian horse world right now. I realize that many of you are intelligent, rational people with strong moral and ethical values. As controversy continues about two major changes within our community, I am relying on you to have an influence upon those who react in a negative, irrational manner, basing opinion upon rumor and treating others in a totally unprofessional manner with accusations and petty name calling. After many years with no change, the Sweepstakes Commission took the bull by the horns and proposed changes to your Board of Directors. I had urged the Commission that more than a band-aid was needed, we need surgery to fix the Sweepstakes program. The Commission worked long and hard on a new proposal during their May meeting and presented a very heartfelt proposal to the Board. They listened to concerns and revised the proposal to accommodate those who suggested change. They are sincere and serious about helping solve the decline in Arabian breeding. I would like to list some important points for you.

• The membership is demanding a change in the Sweepstakes program.
• If nothing is changed in the program, classes must be cut and prize money must be reduced by approximately 40% this year.
• If the reduction of 40% encourages the reduction of participation in the program, next year it will be cut again and the year after and so on until it is bankrupt.
• Immediately following their May meeting, the Sweepstakes Commission presented a proposal to the Board on May 13th.
• The Board voted to have additional statistical data and supporting documentation sent to them by July 25th.
• The BOD voted to consider Sweepstakes proposals at the August BOD meeting.
• The BOD has sent Sweepstakes documents out for legal opinion and recommendations.
• The Breeders Sweepstakes Program is a breeders program not an exhibitor award program.

• Help support and encourage breeding.
• Encourage registrations and transfers.
• Encourage a wider variety of breeders.
• Try to prevent "double-dipping" or the same horse winning the prize money over and over.
• Offer more amateur classes at regionals.
• Bring people back to the event and reward the very best in our breed.
• Reward the breeder of the horse for nominating and participating.

The Sweepstakes Commission explained to the BOD the reasons and philosophy behind their decisions. As they explained to the Board, we are in a "breed crisis." Their proposal I believe called upon considerable soul-searching for what is the best for our breed. I thank them and praise them for their efforts. You can find this proposal on the AHA website. Maybe we all need to do some soul-searching! Please feel free to let your opinions or suggestions known to the Commission. The members are listed in your Handbook. The Chairman is Walter Misco; wjmstonepost@aol.com.


The new point system was established prior to my election as President. Why was it implemented? The facts that I outlined earlier in this letter are the driving forces to all changes that have to be made. Do the changes represent a cure all? Absolutely not! Will it be right the first year? Absolutely not! This is why a point monitoring committee was appointed by Bill Hughes when he was President of AHA. There was the realization that we would have to adjust the program and there needed to be a way to do this as easily as possible. So are qualifications the only reason for a point system? Absolutely not! We must encourage more participation at the local shows. Regional and national shows are successful and do not need the help that local shows need. We need to establish a value system for our horses if we are to be better able to market them.

Why Develop a Point System?
• Simplifies qualifications: A standardized point system is simple, enforceable, and easily monitored by computer. The points are easily adjustable depending on the competition in each class.
• Promotes the best horse going forward: Winning first with no one in the class is not a challenge nor are they necessarily the best horse. If a horse can get qualified in a one-horse class on the wrong lead with its head upside down there is something radically wrong with our system. However, in a large class of 25, the third place horse is perhaps a great horse and easily could have been first or second and does not get qualified.
• Allows programs to be more compatible: Computers and information technology enables easy communication with the same set of numerical values. The system is easy to understand. You do not have to get out a graph to calculate how many points you get for beating "X" number of horses. It is a standardized point system that can and should be used for all programs.
• Facilitates recognition awards: A standardized point system makes it very easy for local clubs, regions and the national organization to recognize people and horses. Horses, owners, and participant points will be easily accessible on our website. There will be no need for a person to be appointed to keep track of everyone's points for high point award programs.
• Establishes value: In our old system how much was a horse worth that is a champion? How do you determine the value of a champion? Establishing a value with points is easy, for example; how good is a horse that wins 100 hundred halter points and 100 hundred western points? If you are looking for a reining horse producer and you want to discover how many points its get have, you can do that. If you want to find out any horse's production record of points for whatever discipline, you can easily do that.
• Encourages a proactive system: How many people like to watch a one-car race or a one-horse race? Not very exciting is it? How many people want to watch our one-horse classes? The lack of participation is detrimental to our public image. The point system will encourage fewer classes with more entries. Local shows can save money on awards and combine classes. The marathon shows will have fewer classes to allow for fun and camaraderie. We won't burn out staff and volunteers with the long hours. People will feel more proud winning in a big class.

I realize that this message to you has been a lengthy one. However, a great deal is happening within our breed and association. We are making tremendous progress with our association with plans for the future that will stabilize our organization and make it a more efficient one. Now, we have to adjust to some major changes within our industry. As your President, I sincerely request that you gather your facts before making a decision, and make sure of your facts before repeating them. Feel free to contact the various committees and commissions that have an impact on our future. Constructive criticism is productive and welcomed; however, malicious criticism is not.



Thank You and God Bless,