MAEL No More—Cady owed $200,000?

by Christopher Menkin

After almost twenty years, the Mid-America Association of Equipment Lessors (MAEL) has disappeared, perhaps owing more than $200,000. The web site bill was not renewed. In the last billing of members, out of 250, only 20 renewed, according to one highly reliable source.

Originally the group was formed as one of the "special interest groups," who belong to the Equipment Leasing Association (ELA.) The former website stated the organization consisted of members of the industry from the upper Mid-Western states, including Illinois, Ohio, Iowa, Wisconsin, Michigan, Indiana, Kentucky, Missouri, Minnesota, Tennessee, North Dakota, South Dakota, Nebraska and Kansas.

In recent years, Leasing News wrote about their popular annual golf tournament. They also often had lunch and from time-to-time other meetings in Chicago, Illinois.

Clyde D. Cady, President, Facility Capital Corporation, Chicago, Illinois, was on the board of directors from 1990-2003, President from 1997-2003. He declined to comment on the status of MAEL or what happened, but Leasing News was able to trace the events from other directors, who did not want to be quoted. We discovered the demise of the organization in trying to up-date our leasing association section.

When Cady was president, reportedly he and his staff primarily did all the work, promotion, telephoning, organization, actual physical work, and the golf tournaments were well over 250 each year. Several former directors told us he was the force behind the main event. When he resigned, the next golf tournament in 2004 had only 70 people (72 paid, two were no show.) Reportedly all vendors were paid.

Several noted that Cady was the key organizer, and as with many board of directors, the old saying that “20% do 80% of the work was true here.” The plan was to sign up new members, selling one table for the annual meeting, four foursomes and $1,000 of sponsorships for the golf outing. Each director was assigned to bring in approximately $7,000 of event revenue “80% didn't and that is why there was never enough money to pay for the administration of the association,” Leasing News was told by one former director as the main reason for the demise of MAEL.

Another former director, well-known in the industry, told Leasing News: “How is it possible that executives who promise to do so can't find a way to achieve $7,000 per year? Four of us routinely were responsible for more than $100,000 collectively, but when the other 13 do almost nothing it just doesn't add up.”

The former president of MAEL, who was described as a “one man band” at the last tournament, actually ran the computer program, printing labels, licking envelopes, putting sponsor signs together, commenting to Leasing News “all volunteer associations really don't work.” He gave Clyde Cady a lot of credit for the success of the former golf tournaments.

Another former director of MAEL, summed it up, by saying,” Once Clyde decided at the end of 2003 that he was no longer willing to have his company shoulder virtually the entire responsibility of running the association, a group was selected to attempt to carry on MAEL. There were two major obstacles: 1) Industry shrinkage, and the lack of an available core of individuals to lead the organization and do all of the work in organizing membership, a major golf outing and an annual diner, and (to a much lesser extent) 2) Clyde's position that his company was entitled to a substantial sum as compensation for the work of his staff over the years for doing all of the work.”

The demise of MAEL is evidently the reason ELA (and the United Association of Equipment Leasing, who also ran into a similar problem in the 1990's), ended the regional programs. After a strong attempt, they found “the majority of the local meetings couldn't pay for themselves.”

Allegedly MAEL owes Facility Capital Corporation $200,000, a claim made by Clyde Cady to the board of directors for four employees in his company who actually did a lot of the work during his four year term as president. Leasing News has verified in 2005 a group of ten was to resolve the bills and “take care of business.”

Right now none of the former friends are talking with each other, and the once very popular golf tournament is another vessel that hit the “Perfect Storm.”