First Board of Directors Meeting Minutes

Monday, February 10, 1997

The ninth meeting of the First Board of Directors of the Blue Line Club was convened by Kent Schwickert at 4:05 p.m. on Monday, February 10, 1997, in the Warren Street Center conference room on the campus of Mankato State University.

Voting Board Members Present

7 of 7 Seats

• Kent Schwickert, Club President
• Henry Okleshen, Club Vice President
• Larry Morales
• Jim Turk
• Jim Bullard
• Brad Reeves
• Steve Duea

Ex-officio Nonvoting Board Members Present

5 of 6 Seats

• Don Amiot - MSU Men's Athletic Director
• Cheryl Regan - MSU Athletics Promotions
• Ron Hybertson - Conference Faculty Representative (NCC)
• Don Brose - MSU Men's Ice Hockey Coach
• David Cowan, Club Secretary-Treasurer - Maverick Boosters Club Liaison

Ex-officio Nonvoting Board Members Absent

1 of 6 Seats

• Margaret Healy - MSU Student Affairs Vice President

Others in Attendance

• Starr Kirklin - MSU Corporate and Foundation Relations Director

Blue Line Club Memorial Scholarship Fund

Without objection, Board members agreed to amend the agenda to hear an update from Starr Kirklin, MSU's Corporate and Foundation Relations Director, concerning the proposed endowment fund that would be created from donations and memorials from MSU ice hockey fans. Interest earned off of such an endowment could be used to fund athletic talent grants or other needs of the MSU intercollegiate hockey program. A draft agreement was circulated by Kirklin.

It was noted that the Board's first discussed creation of a endowment or memorial scholarship fund during its meeting on January 20, 1997. The family of the late Dan Meyer had indicated an interest in using memorials establish an endowment or memorial fund. A goal of $10,000 in principal was talked about during that same session. The Meyer Family indicated to Steve Duea and Brad Reeves that such an endowment fund should not necessarily be named after just Dan Meyer, a Blue Line Club member and ice hockey fan.

After some additional discussion, Brad Reeves then moved and Steve Duea seconded that the Board adopt the following resolution:

RESOLVED, That the Board of Directors of the Mankato State University Blue Line Club authorize its Board President, Kent Schwickert, to enter into an agreement with the Mankato State University Foundation, Inc., to create a MSU Hockey Blue Line Club Memorial Scholarship Fund.

The motion was voted on and passed unanimously. Starr Kirklin agreed to work with Schwickert to develop the final agreement between the Club and the MSU Foundation.

Agenda Approved

The Board's February 10, 1997 meeting agenda was then approved as distributed and modified.

Minutes of Previous Meeting Approved

The meeting minutes of the Board's January 20 regular session were then reviewed. Kent Schwickert commented that the minutes should include discussion of his recommendation that the Mankato Civic Center do what it can to attach cup holders to the seats of Blue Line Club members. He also asked the minutes reflect discussion that the Club was still waiting for the Mankato Civic Center to install a close circuit television system though there are those in the Civic Center management who may believe the television improvement should wait until MSU is formally made a member of the WCHA (Western Collegiate Hockey Association) Conference of the NCAA. With these additions to the minutes, the January 20, 1997, meeting minutes were approved by the Board of Directors.

WCHA Final Five Tournament - March 13 to 15, St. Paul Civic Center

Don Amiot reported that WCHA Tournament Director Pat Tapp would keynote the Saturday, February 22nd, Club hospitality room pre-game gathering. That night MSU plays Air Force in the second of a two game series. [Tapp provided five sets of two tournament tickets that night as part of a well received drawing; new Maverick D-I hockey pucks on sale at the University Bookstore's table at the Civic Center were also given away.] Board members reported that many of them has already received a special WCHA's 'A Glimpse of the Future' brochure which promoted the tournament.

On Thursday, March 13th, Don Amiot indicated that Mankato State and the Blue Line Club would have a hospitality room open from 10 p.m. to midnight for WCHA coaches and officials. Board members were encouraged to attend. It was noted that Club funds may have to be used to cover the cost of the hospitality room - Board members did not object should such use be made.

WCHA Watch

Don Amiot reported that he had talked to WCHA Commissioner Bruce McLeod today, February 10th. MSU has yet to be formally invited to the WCHA's Annual Spring Meeting, a session where Blue Line Club and MSU officials had hoped to make a formal presentation and application for WCHA membership. The WCHA is now down to nine members with Northern Michigan choosing to joint the CCHA (Central Collegiate Hockey Association) Conference of the NCAA.

Blue Line Club Board members believe as Amiot does that Mankato State has met virtually every membership application criteria laid down last year by the WCHA. The Club's leaders remain deeply concerned about what appears to be a delay in allowing MSU to make formal application at the WCHA's Annual Spring Conference in Margo, Florida.

Board members remembered when MSU President Rush met with WCHA officials at Nashville in January where he informed all present that MSU was committed to Division I hockey for the 'long haul.'

1997-98 Membership Recruitment and Retention Campaign

Cheryl Regan and Don Amiot then circulated a "draft" two page proposal outlining what needs to be done and a strategy for its accomplishment. The plan dealt with Blue Line Club memberships as well as recommendations that MSU is considering with regard to regular season ticket holders, dasher board advertisers, Zamboni advertising, corporate and business game sponsors, etc.

No objection was expressed by Board members as to raising the $130 season ticket rate to $140 for next season. Next season's 35 game schedule is quite impressive and well worth the investment for fans who like good seats. (17 games will be played on home ice at the Civic Center.)

The Board agreed to discuss more of these planning details at a later Board regular meeting.

Club Membership Rates Stabilized for Next Season

Without objection, Board members agreed to continue with its plan to charge the same rates to both charter members and regular members alike in 1997-98. Last season was the final time charter members would pay what they originally had in 1995-96. Corporate Members will be asked to pay $1,200 and Individual Members will pay $600.

[A number of benefits will continue including season tickets (4 seats for Corporate; 2 seats for Individual Members), free parking, special mementos, access to the Club's hospitality room, special invitations to non-public events and receptions, sessions with the hockey players, opposing coaches, etc.]

Apparel Update & Future Civic Center Floor Sales Management

Secretary-Treasurer Cowan brought Board members up-to-date on existing apparel sales, memento deliveries, and accounts receivable yet to be paid to the club.

Steve Duea again raised his idea that the Blue Line Club should handle MSU hockey related general public clothing sales on the second floor of the Mankato Civic Center during home MSU ice hockey games. He noted that the University Bookstore now handles such sales and that MSU receives 9.5% as part of its existing contract with the University Bookstore. Duea maintained that if the Club ran hockey novelty sales, it perhaps could clear $3,500 to $5,000 which could then be used to enhance the hockey talent grant fund.

[The existing contract between Wallace's University Bookstore and Mankato State assures MSU of at least $350,000 in 1996-97 or 9.5% of gross receipts on all of its sales over a twelve month period. In 1995-96, the University Bookstore had $3,490,101 in gross sales. Last year the base guarantee to MSU was $375,000 and of that sum paid by the University Bookstore, $234,815 was set aside by the University to fund talent grants and scholarships throughout the campus. Intercollegiate Athletics receive a significant portion of that amount ($85,000 or so) for its athletic talent grant budget.]

David Cowan noted that Intercollegiate Athletics had an agreement with the University Bookstore which allowed Athletics to directly receive 9.5% of net sales (defined as gross sales less any sales tax) or $2,500 whichever was greater. That agreement dealt with football and basketball clothing and novelty sales but it was allowed to lapse. Cowan recommended that Amiot dust off the agreement and renew it for next year with hockey home games as the major focus.

Cowan argued that there was only so much energy available and that instead of embarking on a new program involving the sale to the general public of generic MSU hockey clothing apparel and novelties at the Civic Center, the Club's Board should concentrate on its effort to attract new Blue Line Club members while keeping current members.

Cowan indicated that he had his hands full this past season working with the Club's special embroidered apparel line dealing with vendors, backorders, and satisfying the Club's membership.

Amiot offered that he could hire a graduate assistant in the summer and put him/her in charge of such a project. This person would be in charge of ordering all the items, hiring staff, counting inventory, making deposits, etc., and that there would be no real burden on the Club's Secretary-Treasurer or any of its officers.

Cowan recommended that we invite Perry Cuttino, the University Bookstore's Manager, to make a presentation to the Club's Board of Directors on what was done this past season and any observations he would like to make. Cowan emphasized that the University Bookstore has significant experience in the retail sale of clothing and novelties and that to rely on a new approach coordinated by a graduate assistant would present unnecessary risks and burdens which may well spill over affecting the duties of others.

The Board agreed to further discuss the issue at a future meeting. Though the Blue Line Club's Board is not the final authority on who sells MSU novelties and clothing at the Civic Center, the University certainly would listen to any recommendations the Board had on the matter.

Monthly Club Operating Budget Report

Secretary-Treasurer Cowan reported that $7,988.16 (or 44.2%) had been spent to date out of an approved Club Operating Budget spending plan of $18,901. He noted that outlays for student payroll reflected costs associated with apparel sales and deliveries, as well as for development and maintenance of the Club's World Wide Web page on the Internet.

It was noted that a number of apparel related invoices from Promotions Works had yet to be either processed or received. That amount may end up totaling in the $7,000 to $8,500 range.

Unbudgeted income of $3,189.50 had been received to date with as much as another $350 in uncollected receivables yet to be processed. Cowan noted that the self-generated income had not been part of the $18,901 original spending plan.

Blue Line Club Participation in New Community Ice Sheet Project

Larry Morales and Brad Reeves asked the Board if the Blue Line Club could demonstrate its support of the community's effort to finance a new $1.7 million sheet of ice attached to All Seasons Arena. It was noted a community-wide fund drive was now in progress to raise the remaining $415,000.

To date, thanks in large part to the efforts of the Youth Hockey Association, $250,000 has been committed by the "Mighty Ducks" fund created by the Minnesota Legislature, and local units of government have each committed substantial sums. [Those participating in the effort include City of Mankato, City of North Mankato, Blue Earth County, Nicollet County, Independent School District #77, Mankato State University, and the Figure Skating Club, among others. The Mankato Area Hockey Association (MAHA) started the ball rolling with at $250,000 donation.]

Don Amiot indicated that MSU was considering a commitment of $150,000 over five years some of which may come from Blue Line Club funds. Board members did not object to Mankato State meeting that pledge by using some of its hockey-related escrowed funds which were originally raised through Blue Line Club memberships. However, the Club Board's voting members believed MSU's $150,000 arrangement would probably be viewed as coming from the University and the Blue Line Club's participation might get lost in the shuffle.

Morales moved and Reeves seconded that the Board recommend that the Blue Line Club set aside $1,000 a year in its annual budget for three consecutive years as a specific donation for the community's new sheet of ice project. Board members agreed that where possible such funds should be derived from excess receipts attributed to the Club's embroidered apparel sales.

Amiot indicated that the Board's resolution was not necessary as the Blue Line Club would be acknowledged within the MSU $150,000 pledge. Voting Board members expressed an understanding of Amiot's position but believed a direct contribution clearly attributed to the Blue Line Club would be of benefit to the Club's image and future growth.

The Morales motion was then voted on and passed.

Adjournment

Without objection the meeting then adjourned at 5:50 p.m.