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ICANN made over $500k in secret lawyer payments over [REDACTED] legal dispute

Kevin Murphy, November 17, 2020, Domain Policy

ICANN has approved a payout of over half a million dollars to outside lawyers for work on a legal dispute it does not want you to know about.

The board of directors a week ago approved the disbursement of a “[Redacted – Privileged & Confidential]” sum to undisclosed parties in relation to “extensive activity in [Redacted – Privileged & Confidential]”.

Under ICANN policy, the fact that board approval was required means that the amount being paid is at least $500,000. The redacted resolution also authorizes additional payments up to $499,999.

ICANN isn’t providing any hints about what the payments concern, other than that it’s a legal dispute of some kind. The resolution states:

When required, ICANN must engage outside legal counsel to help prepare for and defend against all types of disputes that are brought against ICANN. When those disputes become highly contentious they often require significant involvement during a certain time period by outside counsel and that significant amount of time also results in significant fees and related expenses.

The words “related expenses” may be telling. We may not just be talking about lawyers’ fees here.

ICANN also does not state when the expenses were incurred, other than to note that the org’s budget for fiscal 2020, which ended June 30, “contemplated” the need for such payments.

So we’re talking about a legal issue that ICANN was aware of before May 2019, when the FY20 budget was approved, possibly as far back as December 2018, when earlier versions of that budget were published.

Known legal disputes that were active back then and have seen activity in the last few months include the Afilias Independent Review Process complaint about the .web auction and DotConnectAfrica’s court appeal over its .africa loss.

But both of those cases are matters of public record. ICANN even regularly publishes legal documentation on both. They’re not secret.

The only cases I’m aware of that ICANN has actively tried to keep secret involve allegations of sexual discrimination and harassment made against at least one former senior staffer. One such lawsuit was filed late February 2019.

But the hundreds of thousands doled out by ICANN last week could be related to just about anything.

ICANN’s bylaws give the board a broad brush when it comes to redacting information from published resolutions:

any actions relating to personnel or employment matters, legal matters (to the extent the Board determines it is necessary or appropriate to protect the interests of ICANN), matters that ICANN is prohibited by law or contract from disclosing publicly, and other matters that the Board determines, by a three-quarters (3/4) vote of Directors present at the meeting and voting, are not appropriate for public distribution

Usually, when ICANN redacts information, it’s related to personnel matters such as management bonuses.

Whatever it was ICANN just spent your money on, ICANN ain’t saying.

These eight companies account for more than half of ICANN’s revenue

Kevin Murphy, October 19, 2020, Domain Policy

While 3,207 companies contributed to ICANN’s $141 million of revenue in its last fiscal year, just eight of them were responsible for more than half of it, according to figures just released by ICANN.

The first two entries on the list will come as no surprise to anyone — they’re .com money-mill Verisign and runaway registrar market-leader GoDaddy, together accounting for more than $56 million of revenue.

Registries and registrars pay ICANN a mixture of fixed fees and transaction fees, so the greater the number of adds, renews and transfers, the more money gets funneled into ICANN’s coffers.

It’s perhaps interesting that this top-contributors list sees a few companies that are paying far more in fixed, per-gTLD fees than they are in transaction fees.

Binky Moon, the vehicle that holds 197 of Donuts’ 242 gTLD contracts, is the third-largest contributor at $5.2 million. But $4.9 million of that comes from the annual $25,000 fixed registry fee.

Only 14 of Binky’s gTLDs pass the 50,000-name threshold where transaction fees kick in.

It’s pretty much the same story at Google Registry, formally known as Charleston Road Registry.

Google has 46 gTLDs, so is paying about $1.1 million a year in fixed fees, but only three of them have enough regs (combined, about one million names) to pass the transaction fees threshold. Google’s total funding was almost $1.4 million.

Not quite on the list is Amazon, which has 55 mostly unlaunched gTLDs and almost zero registrations. It paid ICANN $1.3 million last year, just to sit on its portfolio of dormant strings.

The second and third-largest registrars, Namecheap and Tucows respectively, each paid about $1.7 million last year.

The only essentially single-TLD company on the list is Public Interest Registry, which runs .org. Despite having 10 million domains under management, it paid ICANN less than half of Binky’s total last year.

The anomaly, which may be temporary, is ShortDot, the company that runs .icu, .cyou and .bond. It paid ICANN $1.6 million, which would have been almost all transaction fees for .icu, which peaked at about 6.5 million names earlier this year.

Here’s the list:

VeriSign, Inc.$45,565,544
GoDaddy.com, LLC$10,678,376
Binky Moon, LLC$5,231,898
Public Interest Registry$2,515,416
NameCheap, Inc.$1,755,932
Tucows Domains Inc.$1,747,648
ShortDot SA$1,643,103
Charleston Road Registry Inc.$1,385,356

Combined, the total is over $70.5 million.

The full spreadsheet of all 3,000+ contributors can be found over here.

Lockdown bump was worth $600,000 to ICANN, but end of Club Med saves 10x as much

Kevin Murphy, October 19, 2020, Domain Policy

The coronavirus pandemic lockdowns and the resulting bump in domain name sales caused ICANN’s revenue to come out $600,000 ahead of expectations, up 4%, the org disclosed last week.

But ICANN saved almost 10 times as much by shifting two of its fiscal year 2020 public meetings to an online-only format, due to travel and gathering restrictions.

The organization’s FY20 revenue was $141 million, up by $5 million on FY19, against a rounded projection of $140 million. ICANN’s financial years end June 30.

ICANN said it is “uncertain if these market trends will continue”.

Back in April, the organization lowered its revenue forecast for FY21 by 8%, or $11 million.

Expenses were down $11.1 million at $126 million, 8% lower that expectations and $4 million lower than the 2019 number.

That was mostly due to a $6.2 million saving from having two public meetings online-only.

ICANN typically spends $2 million per meeting funding over 500 travelers, both ICANN staff and community members, but that was down to almost nothing for the first two meetings of this year.

Pre-pandemic, ICANN expected these meetings, slated for Cancun and Kuala Lumpur, to cost $4.2 million and $3.4 million respectively, but the switch to Zoom brought them in at $1.4 million and $0.4 million.

ICANN would have occurred some pre-meeting travel expenses for the Cancun gathering, which was cancelled at the last minute, as well as cancellation fees on flights and hotels.

The org has previously stated that the switch away from face-to-face meetings could save as much as $8 million this calendar year.

The rest of the savings ICANN chalked down to lower-than-expected personnel costs, with hiring slowing during the pandemic.

Incidentally, if you’re wondering about the headline above, it’s a reference to a notorious 2009 WSJ article, and outrage about ICANN’s then $12 million travel budget.

Eleven years later, the FY20 travel budget was $15.7 million.

ICANN still has no clue how coronavirus will affect the domain industry

Kevin Murphy, July 21, 2020, Domain Policy

ICANN is still in the dark about how the coronavirus pandemic is going to affect the domain industry’s fortunes and its own budget, judging by a blog post published overnight by CEO Göran Marby.

In the post, Marby outlined his 10 priorities (six created by himself, four by the ICANN board) for the recently commenced fiscal year, and the impact of the virus is front and center.

Notably, it appears that ICANN is thinking about creating a new department or hiring a new senior “economist” to track the domain market and forecast trends.

Bullet #6 on Marby’s list is:

Develop a plan for the potential economist function within ICANN org to follow and evaluate Domain Name System (DNS) market trends.

Background: I’ve heard the question asked, “Is the DNS market changing?” My answer is yes, probably. The questions we need to ask now are, what’s good for the end user, and what will be bad?

My read on this is that we might be looking at a new VP — an astrologer-in-chief, if you like — whose job it would be to read the tea leaves, stare into a crystal ball, rummage through pigeon guts, and predict budget-affecting market moves before they happen.

That’s a function currently occupied by the office of CFO Xavier Calvez, but his track record is spotty, having in previous years failed to predict basic stuff like junk drops in the new gTLD space.

Another of Marby’s goals, set by the board, is:

Develop and implement a plan to ensure continued financial stability in a world affected by COVID-19.

Background: While ICANN’s financial situation is sound at the moment, the impact of the unprecedented effect of the COVID-19 pandemic on the world economy is still unknown.

ICANN’s recently passed FY21 budget predicts an 8% slump in revenue due to an estimated 33% plummet in new gTLD registrations and a 2.3% drop in legacy gTLD regs, as well as a loss of 62 fee-paying dot-brand gTLDs and 380 accredited registrars.

That said, it’s also saving millions by eschewing face-to-face meetings until the whole coronavirus mess is sorted.

It’s not entirely clear how ICANN arrived at its numbers, but it seems the domain industry is looking into unknown waters right now.

It’s undeniable that the pandemic-related lockdown mandates around the world have proved a huge boon to the industry, as bricks-and-mortar businesses retreat online to try to save their livelihoods, but it’s unclear whether this boost will continue as nations emerge from quarantine and into record-setting recessions.

ICANN’s budget is dependent more than anything else on registration volumes in gTLDs, so its fiscal stability will depend on whether people continue to buy and renew domains as they lose their jobs and their companies go out of business.

It seems inevitable that companies going bust and dropping their domains is a trend we’re going to face over the coming few years, but as long as there’s enough liquidity in the domainer community that shouldn’t prove a massive issue for ICANN, which does not care who registers a domain, merely that it is registered.

Aside from budgeting concerns, the impact of coronavirus on ICANN meetings is #1 on Marby’s list of priorities.

Work with Supporting Organization and Advisory Committee leaders, community members, and the Board to define and implement a phased plan to return to face-to-face meetings. This plan will ensure the provision of safe and effective meeting formats that support the ongoing work of the community as well as allow robust remote participation options for anyone unable to attend in person. The final plan will be integrated with regional and global engagement activities.

Background: Face-to-face meetings have always been an important part of ICANN’s DNA. Despite the current pandemic-related restrictions, the Board, community, and org must ensure that we remain able to collaborate, and that we are still able to attract new participants into ICANN.

Since March, every meeting that would usually be held face to face, including the two big public meetings, has instead been held over Zoom, which has drawbacks and limitations. This October’s Hamburg meeting will also be online-only.

Marby to a great extent has his hands tied here.

As long as the virus rages out of control in ICANN’s native US, he’s going to be limited to hosting meetings in locations not only where the coronavirus has been tackled to the degree where large congregations are permitted but also where Americans are allowed to travel quarantine-free.

The next scheduled public meeting is due to take place in Cancun, Mexico in March 2021, but that country currently has locked its border to travelers from the north.

And regardless of what laws are in place next March, ICANN’s going to have to get a read on whether any community members will feel safe enough to travel — to a windowless room where everyone wears masks two meters apart for 10 hours a day — before going ahead with an expensive in-person meeting.

It seems more likely that F2F meetings will resume first on a regional level before going fully international. Travel narriers within the European Union, for example, are relatively low, so it’s not impossible to imagine small meetings going ahead with only participants from that community.

Coronavirus is saving ICANN millions of your money, but will it use the cash wisely?

Kevin Murphy, June 21, 2020, Domain Policy

ICANN is saving millions this year due to the coronavirus-related shift to online-only public meetings.

But it’s thinking about using some of the cash to do things like pay for broadband upgrades and hotel rooms for some of its community volunteers.

During a conference call on Thursday, CFO Xavier Calvez gave out figures suggesting that the switch from in-person to Zoom meetings could save as much as $8 million of your money in 2020.

Calvez said that ICANN meetings usually cost an average of $4 million, but that the virtual ICANN 67 in March only cost the org $1.5 million to $2 million.

Because the face-to-face component was canceled only at the last minute, ICANN had already incurred some costs associated with a physical meeting.

The ICANN 68 meeting, which begins tomorrow, is expected to cost $1 million to $1.5 million, Calvez said.

If we assume that October’s ICANN 69, recently moved from Hamburg to Zoom, will see similar savings, then the total 2020 meetings bill could be down by between $6 million and $8 million.

Calvez added that ICANN’s funding during the coronavirus crisis has so far been holding steady.

No sooner had Calvez finished speaking than a pre-submitted community member question was read out wondering whether some of this cash could be redistributed to participants who are usually travel-subsidized.

Intellectual property expert Jonathan Zuck said that money could be handed out to volunteers in order to pay for things such as broadband upgrades and “finding quiet places to participate in the middle of the night”.

Perhaps surprisingly, Calvez and senior VP of global stakeholder engagement Sally Costerton did not rule this out.

In fact, she said such ideas are currently under active discussion and may be floated for public comment after ICANN 68.

One idea, I suggest, might be to compensate the 200-odd people who tuned into Thursday’s “Q&A” session for their time.

The session was scheduled to be an hour long, but the first 45 minutes were devoted to the 12 members of the ICANN executive team introducing themselves and patting themselves on the back for all the awesome work they’ve been doing.

Top-level reshuffle as ICANN loses its COO

Kevin Murphy, June 4, 2020, Domain Policy

ICANN today announced a series of organizational changes at the highest level of management after its COO decided to quit.

Susanna Bennett, senior veep and chief operations officer, will leave July 1 for pastures new after seven years on the job, and her role will be split between other senior figures.

ICANN also said today that Theresa Swinehart has been appointed head of the Global Domains Division, a role she’s been filling on an interim basis since Cyrus Namazi quit a few months back.

She’s also senior VP of multistakeholder strategy and strategic initiatives and CEO Göran Marby’s co-deputy. She’ll be keeping both of those jobs too.

In terms of ops, Bennett’s functions will be split between CFO Xavier Calvez, senior VP of HR Gina Villavicencio, and general counsel John Jeffrey. Calvez will also take on some of the MSSI responsibilities previously held by Swinehart.

The fact that Bennett and Namazi, who together were compensated to the tune of $860,000 in ICANN’s fiscal 2019, had functions that can be easily redistributed among other staffers does rather beg the question of whether ICANN has been spending domain registrants’ money as efficiently as possible.

Still, the rejigger will presumably be welcomed by those who believe that ICANN has in recent years become overly bloated and bureaucratic.

ICANN recently slashed its FY21 budget by 8% due to the expected impact of the coronavirus-related recessions.

ICANN whistleblower expects to be fired after alleging budget irregularities, bugged meetings

Kevin Murphy, May 6, 2020, Domain Policy

The chair of ICANN’s highly influential Nominating Committee expects to lose his seat after turning whistleblower to expose what he says are budgetary irregularities and process failures that could have altered the outcome of ICANN’s board-selection process.

In a remarkable March 25 letter, Jay Sudowski even accuses ICANN of secretly recording and transcribing NomCom’s confidential deliberations.

The NomCom is the secretive committee responsible for selecting people to fill major policy-making roles at ICANN, including eight members of its board of directors. It’s made up of people drawn from all areas of the community.

Because its role is essentially to conduct job interviews with board hopefuls, it’s one of the few areas of the ICANN community whose conversations are almost entirely held in private.

But Sudowski is attempting to shine a little light on what’s going on behind the scenes by filing a broad and deep request under the Documentary Information Disclosure Policy, which is ICANN’s equivalent of a freedom of information law.

In it, he accuses ICANN Org of some fairly serious stuff.

First, he claims ICANN is fudging its budget by over-reporting how many full-time equivalent (FTE) staff members are involved in NomCom work, and by denying requests for “trivial” reimbursements of as little as $47 even as NomCom cuts costs by moving to a remote-only working model.

ICANN grants NomCom a FY20 budget of $900,000, of which $600,000 is allocated to “personnel costs” related to three FTEs.

“Nowhere near 3 FTEs are allocated to NomCom. Where is this money going?” Sudowski asks, demanding under the DIDP to see records of how much ICANN actually spent supporting NomCom’s work over the last five years.

He also claims that the NomCom process may have been compromised by allowing non-voting members to participate in decision-making meetings during the 2017 cycle, writing:

ICANN Org potentially allowed the NomCom to violate ICANN Bylaws by allowing nonvoting members of the NomCom to participate in outcome determinate components of the assessment and selection process that may have fundamentally alerted [I believe this is a typo for “altered”] the outcome of the 2017 NomCom process.

The non-voting members of the NomCom are the board-appointed chair and chair-elect, as well as appointees from the Root Server System Advisory Committee, Security and Stability Advisory Committee and Governmental Advisory Committee.

The board members appointed by NomCom in 2017 were Avri Doria and Sarah Deutsch. NomCom also picked members of the GNSO Council, ccNSO Council and At-Large Advisory Committee.

Sudowski, whose day job is running a data center company in Colorado, further claims that the ICANN board has been instructed by the Org to refuse to communicate with NomCom members.

“In recent years, ICANN Org has secretly recorded and transcribed confidential deliberations of the NomCom,” he adds.

He wants evidence of all of this to be released under the DIDP, under a nine-point list of documentation requests.

It’s unfortunate that I am forced to make this request in such a public manner, but when there is controversy over a $47 expense to support a NomCom member, I can only come to the conclusion that ICANN Org is unable and unwilling to provide necessary “administrative and operational support” for the NomCom.

He also expects retribution:

I also expect that the Board, which has been instructed to not communicate with me, will remove me from my role as Chair of the NomCom, given the nature of the concerns noted in this letter. Frankly, if this comes to pass, my removal is a clear and direct attack on the autonomy and authority of the entire NomCom.

So far, his request has not been answered.

Under the DIDP, ICANN has a maximum of 30 days to reply to such requests. In reality, this has always been treated as a minimum, with both request and response typically published on the same day, exactly 30 days after the original filing.

Its responses are typically links to information already in the public record and a list of excuses why no more info will be released.

But so far, neither request nor response has been published in the usual place, 42 days after Sudowski sent his letter. ICANN has missed its deadline by almost two weeks.

The only reason the DIDP (pdf) is in the public domain at all is that Sudowski copied it to the mailing list of the Empowered Community, ICANN’s community-based oversight body. Thanks to George Kirikos for posting the link to Twitter last week.

It is a pretty extensive request for information, that presumably would take some time to collate, so I’d be hesitant to cry “cover-up” just yet.

But the fact that the request exists at all serves to highlight the shocking lack of trust between ICANN and one of its most powerful committees.

UPDATE: Sudowski has said that his request was withdrawn. There’s no particular reason it could not be refiled by somebody else, however, as DIDP is open to all.

Domain industry likely to suffer from coronavirus as ICANN slashes budget by 8%

Kevin Murphy, April 28, 2020, Domain Policy

ICANN is predicting a miserable time for the domain name industry due to the coronavirus pandemic, today announcing that it’s slashing its revenue outlook for the next year by 8%.

The organization expects to receive revenue of $129.3 million for the fiscal year beginning July 1. That’s $11.1 million lower than its previous estimate, which was made in December.

ICANN’s budget is based on projections based on previous industry performance and its accountants’ conversations with registries and registrars, so this is another way of saying that it expects the industry to suffer due to the pandemic.

ICANN said in its newly revised budget:

ICANN org funding may be impacted because the economic crisis stemming from the pandemic has the potential to impact the funding from domain name registrations and contracted parties through the end of FY20 and into the first months of FY21. ICANN org also anticipates there may be long-lasting effects of such impacts. At the time this document is published, the impact cannot yet be quantified.

The drill-down is not great, showing that ICANN expects registries and registrars in both legacy and new gTLDs to be hit.

New gTLDs are predicted to be hit hardest, with revenue from registry transaction fees dropping by a full 33% from its FY20 forecast. That’s a drop from $6.7 million to $4.5 million.

Extrapolating from its $0.25 registry fee, that means ICANN thinks there will be 8.8 million fewer billable transactions — registrations, renewals and transfers in new gTLDs with over 50,000 names — for the year ending June 30, 2021.

Expected revenue from registrars selling new gTLDs has also been slashed by a third, down from $5.3 million this year to $3.5 million next year.

Legacy gTLDs are expected to fare a little better.

ICANN predicts transaction revenue from legacy gTLDs to decrease over the period, down to $47.7 million in FY21 from $49 million in FY20. Registrars selling legacy gTLDs are expected to bring in revenue of $29.7 million, down from $33.3 million.

That also represents shrinkage measured in the millions of domains.

It gets worse. ICANN is also expecting the number of registries and registrars to decrease even faster over the course of the next year.

It thinks it will end June with 1,174 fee-paying registries, but for this to decrease by 62 in FY21. It decreased by 29 in FY20. Many of these will probably be unused dot-brands having their contracts cancelled.

On the registrar side, it expects to lose 380 accreditations in FY21, compared to a loss of 104 this fiscal year, to end FY21 with 1,977 registrars.

ICANN does not expect its voluntary contributions from ccTLDs and Regional Internet Registries to decrease, but it does expect to lose a few hundred thousand bucks from the absence of sponsorship of its in-person meetings.

This overall predicted decrease in funding has led to a matching decrease in planned expenditure, with ICANN saying it will operate with “increased prudence, frugality, and with heightened conditions of necessity”.

It’s going to save 20% less on travel — $12.4 million — due to coronavirus-related restrictions, but seems to still be planning to take the industry to Hamburg in October for ICANN 69 (even though Munich has cancelled Oktoberfest this year).

ICANN also plans to delay some projects and to reduce its average headcount by 15 to 395.

The lower budget projections come even as some registries —including CentralNic, which looks after some very large new gTLDs — have said they expect the financial impact of coronavirus to be minimal.

The revised budget is published here and ICANN’s board may approve it as early as next week.

ICANN expects “significant” budget impact from coronavirus

Kevin Murphy, April 7, 2020, Domain Policy

The ongoing coronavirus pandemic is expected to have a “significant” impact on ICANN’s budget, according to an update from the organization.

The organization published its expectations of a $140.4 million budget for the fiscal year that begins this July last December, and opened it up for public comments.

In its summary of those comments (pdf), which had a February 25 deadline and therefore were not focused on the pandemic’s potential impact, ICANN said:

the COVID-19 pandemic is affecting significantly the entire world. ICANN expects that its activities and financial position will be significantly impacted as well. The ICANN org is working with the Board to assess and monitor the potential impact to ICANN’s funding, and planned work such as face-to-face meetings, travel, etc.

Any pandemic-related changes to the budget will be published prior to board approval, ICANN said.

So where is ICANN expecting the impact? It’s not entirely clear. I would expect to see some minor gains from slashing its travel budget in the wake of social distance rules, but it’s less obvious where a “significant” shortfall could occur.

ICANN had operational revenue — the money it gets from billing registries and registrars — of $136.8 million in the fiscal year ending June 30, 2019, its most recently reported year (pdf).

Of that total, roughly $56 million came from the market leaders in both segments, Verisign and GoDaddy, both of which have been given glowing analyst coverage since the outbreak began.

One commentator recently wrote that Verisign is “immune” from coronavirus and GoDaddy’s CFO told analysts just last week that he expects the impact of coronavirus to be “minimal” in the first quarter. That could of course change in future.

Almost half of ICANN’s revenue, some $65.7 million, comes from the top 10 registries and registrars.

So is ICANN expecting to see weakness in the long tail, the few thousand accredited registrars and gTLD registries that account for under $1 million in ICANN contributions per year? Is it expecting reduced voluntary contributions from the ccTLDs and Regional Internet Registries?

Will coronavirus cause huge numbers of small businesses to abandon their domains as they go out of business? Will it inspire large numbers of the recently unemployed and quarantined to start up web-based businesses in an attempt to put food on the table? Will it cause large portfolio owners to downsize to save costs?

All of these outcomes seem possible, but these are unprecedented times, and I couldn’t being to guess how it will play out.

ICANN predicts shrinkage in new gTLD sector

Kevin Murphy, January 3, 2020, Domain Policy

ICANN will make less money from new gTLDs in its fiscal 2021 because fewer domains will be registered and renewed, according to its recently published draft budget.

The budget, released the day ICANN broke up for its Christmas holidays, shows that the organization expects to bring in $140.4 million in FY21, up a modest $300,000 on its FY20.

But it’s expecting the amount of money contributed by registries and registrars in the new gTLD sector to decline.

For FY21, it expects new gTLD registry transaction fees — the $0.25 paid to ICANN whenever a domain is registered, renewed or transferred — to be $5.1 million. That’s down from the $5.5 million currently forecast for FY20.

It expects registrar transaction fees for new gTLD domains to dip from $4.6 million to $4.3 million.

But at the same time, ICANN is predicting growth from its legacy gTLD segments, which of course are primarily driven by .com sales. All the other legacy gTLDs of note, even .org and .net, are currently on downward trajectories in terms of volumes.

For FY21, ICANN is forecasting legacy gTLD registry transaction fees to come in at $52.6 million, versus the $50.5 million it expects to see in the current FY20. In percentage terms, it’s about double the growth it’s predicting for the current FY.

Legacy gTLD registrar transaction fees are estimated to grow, however, from $31.2 million to $32.7 million.

In terms of fixed fees — the $25,000 every new gTLD registry has to pay every year regardless of transaction volume — ICANN is also predicting shrinkage.

It reckons it will lose a net seven registries in FY21, dropping from 1,170 to 1,163 by the end of June 2021. These are most likely dot-brand gTLDs that could follow the path of 69 predecessors and flunk out of the program.

ICANN also expects its base of paying registrars to go down by 100 accreditations, with no new registrar applications, causing fees to drop from $10.7 million this year to $9.6 million in FY21.

In short, it’s not a particularly rosy outlook for the gTLD industry, unless you’re Verisign.

ICANN’s financial year runs from July 1 to June 30 this year, and usually the December release of its draft budget includes some mid-year reevaluations of how it sees the current period playing out. But that’s not the case this time.

ICANN appears to be on-budget, suggesting that it’s getting better at modeling the industry the more years of historical transaction data it has access to.

The budget (pdf) is now open for public comment. I spotted a few errors, maybe you can too.