The Livestrong Foundation will soon have to carry on without the leader who helped the cancer-survival charity reinvent itself after the Lance Armstrong doping scandal.
Doug Ulman, who joined Livestrong 14 years ago and is now the chief executive, revealed last month that he is moving at the end of the year to head Pelotonia, a fast-growing organization that sponsors bike rides to raise money for cancer research.
The announcement coincided with the release of Livestrong’s 2013 tax filing and financial statements, which further documented the hit the charity has taken since Mr. Armstrong admitted last year that he had used performance-enhancing drugs during his cycling career and was stripped of his seven Tour de France titles.
Total revenue fell by 39 percent, from $38.1-million to $23.3-million, while royalties and licensing fees dropped by 59 percent, from $10.3-million to $4.2-million.
Mr. Armstrong’s disgrace scared away corporate sponsors, most prominently Nike. Mr. Ulman, a cancer survivor himself, has been working to rebuild relationships with donors, clarify Livestrong’s mission to the public, and find new revenue sources.
In August, Livestrong pledged $50-million over 10 years to the University of Texas Dell Medical School, in Austin, to create the Livestrong Cancer Institutes, which will promote teaching practices and research designed to improve the care of cancer patients. In an online message about his departure, Mr. Ulman called that move a “game changer” for the foundation and “one of the proudest of my professional life.”
Now observers are wondering who will fill his shoes.
“Are there people who are seen as leaders in the organization who can step into that position, or was he the sole figure who was holding the organization together?,” said Erika James, dean of Emory University’s business school, who studied Livestrong when she was a business professor at the University of Virginia. “When the turmoil was the highest, he was looked to in some ways as the saving grace.”
Declining Revenue
The new leader will have to determine whether revenue is declining solely because of the hit to Mr. Armstrong’s reputation, Ms. James added, or whether there’s “something that’s no longer resonating about their message.”
Mr. Ulman and Jeff Garvey, the chair of Livestrong’s board, both issued statements but declined through a spokesman to be interviewed.
Meanwhile, Pelotonia—established six years ago to raise money for Ohio State University’s Comprehensive Cancer Center—expressed delight at snatching Mr. Ulman. “The board engaged in conversations with numerous leaders of successful organizations across the country, but early on, Ulman distanced himself from all others who were considered, given his significant track record of building a global advocacy brand through strategic partnerships and his passion for the mission,” the group said in a statement.
Mr. Ulman will take over just as the center is slated to open the new $1.1-billion James Cancer Hospital and Solove Research Institute. He will succeed Thomas Lennox, a cancer survivor and former executive at Abercrombie & Fitch who served as Pelotonia’s founding leader until he resigned in January to return to the business world.
A Focus on Research
Pelotonia, which reports financially to the Ohio State University Foundation, says its three-day bike rides have raised more than $61-million for the cancer center. Last year’s race raised $19-million, up from $4.5-million from the first race in 2009 (which drew Lance Armstrong as a participant).
Pelotonia’s focus on research contrasts with Livestrong’s mission of helping cancer patients and survivors navigate treatment and recovery.
The group seeks contributions from foundations and corporations to cover its administrative costs so it can tell riders that every penny they raise will pay for cancer research.
A Pelotonia spokeswoman declined to disclose Mr. Ulman’s salary but said he was offered a five-year contract offering compensation consistent with his package at Livestrong. According to tax filings, in fiscal year 2013 Mr. Ulman’s total compensation at the cancer charity, including benefits, was $404,391, while at Pelotonia, Mr. Lennox received $602,845, including $275,000 in bonus and incentive pay.
‘Thin Financial Cushion’
Mr. Lennox, who is now working to set up a national charity to spread Pelotonia’s model to other communities with cancer centers, praises his successor. “I’ve known Doug for a bunch of years and he is a great guy,” he said. “One of his unfortunate qualities is he’s a survivor. That meant a lot to me because he understands what the disease can do. I believe it’s a strength, in this case.”
He said Livestrong can rebound from losing Mr. Ulman because it retains a loyal “movement” of people who believe in the mission of taking care of people with cancer.
Brian Mittendorf, a professor of accounting at Ohio State University who analyzed Livestrong’s finances on his Counting on Charity blog, noted that the group has almost $100-million in net assets, which could help it survive despite declining revenue.
However, he wrote, its $50-million pledge to the University of Texas cancer center will leave it with “a very thin financial cushion.”
That pledge—and the group’s ability to win a $6.2-million gift last year from Movember, the annual event to raise awareness of men’s health issues—signals that Livestrong intends to move in new directions, Mr. Mittendorf said in an interview. “After the scandal, one temptation would be to just ride it out, to rely on your reserves to make up the difference. They didn’t take that approach.”
Where Doug Ulman is going next
Mr. Ulman, 37, announced last month that he would leave the charity created by Lance Armstrong at the end of the year to become chief executive of Pelotonia, an organization that sponsors charity bike rides. The three-day tours raise money for Ohio State University’s Comprehensive Cancer Center, commonly known as “The James.” Mr. Ulman will also be an adviser to the cancer center.
His connection to the cause
A three-time cancer survivor, he and his family created the Ulman Cancer Fund for Young Adults in 1997 to support, educate, and connect young people affected by cancer and their families. He led it until 2001, when he joined what was then called the Lance Armstrong Foundation as director of survivorship. He became the chief executive in 2007.
Proudest accomplishments
In an online message about his decision to leave, Mr. Ulman said that the day last August when Livestrong announced plans to establish the Livestrong Cancer Institutes at the University of Texas at Austin was “one of the proudest of my professional life.” The project will promote teaching practices and research at Dell Medical School designed to improve the care of cancer patients. Livestrong pledged to contribute $50-million over 10 years to the project. Mr. Ulman also recalled as a career highlight the charity’s decision to create the yellow silicon-gel Livestrong bracelet in 2004.
Darkest hours on the job
Mr. Ulman faced a professional crisis when Mr. Armstrong—one of the charity’s biggest assets as a star athlete who had survived testicular cancer—admitted last year that he had used performance-enhancing drugs and was stripped of his seven Tour de France titles. That led to intense media scrutiny and the exodus of corporate sponsors, most notably Nike, which said it would stop selling Livestrong-branded apparel and cut other financial ties.
How he spends time out of the office
Mr. Ulman is a board member of the Union for International Cancer Control and the Campaign for Tobacco-Free Kids. He has participated in more than 14 marathons, including a 100-mile ultramarathon in the Himalayan Mountains.
