First Board of Directors Meeting Minutes

Meeting Minutes - Monday, May 6, 1996

The third meeting of the First Board of Directors of the Blue Line Club was convened by Kent Schwickert at 4:07 p.m. on Monday, May 6, 1996, in the Wiecking Center conference room on the campus of Mankato State University.

Voting Board Members Present

4 of 7 Seats

• Kent Schwickert, Club President
• Henry Okleshen, Club Vice President
• Brad Reeves
• Jim Bullard

Voting Board Members Present

3 of 7 Seats

• Steve Duea
• Jim Turk
• Larry Morales

Ex-officio Nonvoting Board Members Present

6 of 6 Seats

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

Agenda Approved

Without objection the agenda previously prepared and forwarded was adopted.

Minutes of Previous Meeting Approved

The meeting minutes of March 19, 1996, were then reviewed and, without objection, approved.

T.E.A.M. Presentation -Ed F. McBride & Heather Gerard

Mankato State students Ed McBride and Heather Gerard then briefed Board members about the new student organization called T.E.A.M. (Together Everyone Achieves More). Responding to questions, McBride indicated that their group of student volunteers should not be confused with the recently organized campus political party which is called TEAM.

McBride circulated materials about the T.E.A.M. organization which included this list of goals:

• To bridge the gap between Mankato State University and the Greater Mankato Area.
• To create a positive, exciting, all inclusive Homecoming parade in which the community and the University can come together and celebrate.
• To more successfully promote community and university attendance in all Mankato State University athletic events.
• To open our campus to more community related activities and support campus activities in the community.
• To break down the barriers that exist between Mankato State University and the Mankato Community.

Heather Gerard indicated that group volunteers have already handled Library Storytime jobs at the Minnesota Valley Regional Library, participated in the March of Dimes Walk America, helped out in the Blue Earth and Nicollet County River Valley Cleanup effort, along with responding to other needs. McBride mentioned that the group's expenditure budget was estimated at $4,434 and that donations had been received from community members like Kim Schwickert. The group's funds are not deposited with Mankato State University but are maintained in a private bank account.

Support letters were included in the T.E.A.M. packet from The Volunteer Center of the Greater Mankato Area, and the Mankato Area Senior Citizens Center. The student organization now has 33 student members, according to McBride.

McBride stated that T.E.A.M. wanted to work with the Blue Line Club in an effort to generate more excitement and participation in MSU's men's ice hockey program. Ed stated that he envisioned T.E.A.M. and the Club working cooperatively on various activities such as season ticket sales, special spectator oriented programs, etc., all in an attempt to keep students in Mankato over the weekends.

Blue Line Board Members made no promises of financial support though indicated a willingness to work with T.E.A.M. on projects submitted in advance and approved by the Board.

Ed and Heather finished their presenation and left at 4:22 p.m.

MSU Approved Blue Line Club Income and Expenditure Plan

MSU Student Affairs Vice President Margaret Healy reported that the University had formally approved the 1996-97 income and expenditure plan adopted by the Blue Line Club Board of Directors on March 19, 1996. The plan estimated that the Club would generate $186,634 in memberships and earned interest matched against the Club's Operating Budget of $18,901, of which $10,000 has been set aside for momentos for Club corporate and individual members. After adjustments for sales tax costs, the overall plan should "net" Mankato State $160,099 by June 30, 1997, the uses of which would be determined by MSU. Board members wanted to make it clear that such uses should be related to the intercollegiate athletics program.

Margaret Healy stated that much of the "net" from the Club's efforts this past year is being "escrowed" and set aside for the future should there be unanticipated setbacks in hockey's predicted revenue stream. She believe that a significant share of the "net" derived from the 1996-97 Blue Line Club budget would likewise be "escrowed." She expected that a portion of the receipts from both years would be used to address some "talent grant" (scholarship) support and gender equity needs.

Board members agreed to hold off on deciding what the "distinctive mementos" would be which will be provided next Fall to the Corporate and Individual Members of the Blue Line Club. [$10,000 has been set aside in the 1996-97 club operating budget for mementos-specially designed hockey pucks have been one of the mementos agreed to and their cost is estimated at $2,187.50 (625 pucks @ $3.50 each).]

WCHA Membership Status Update - Don Amiot

Amiot reported that the Western Collegiate Hockey Association will be submitting a list of criteria which Mankato State must meet before the WCHA will seriously consider a membership vote dealing with MSU.

WCHA Membership Criteria

WCHA expectations will probably include a solid MSU commitment to: 1) provide 18 full scholarships; 2) hire comprehensive coaching complement; 3) assure that hockey budgets are more fact than fiction; 4) guarantee an adequate playing facility; along with other requirements.

According to Amiot the WCHA wanted to avoid a repeat of the start-up problems experienced eleven years ago by the St. Cloud State Huskies and the Alaska-Anchorage Seawolves when they joined the WCHA Conference. WCHA Commissioner Bruce McLeod has told MSU that the 32 game schedule for each WCHA school has been reduced to 28 starting in 1997-98. This will allow the opportunity for MSU to schedule WCHA teams and see if the MSU Mavericks like the competition. The issue of University of Omaha membership and whether MSU and UNO would be admitted at the same time is as yet unresolved.

Director of Men's Intercollegiate Athletics Program Don Amiot indicated to the Board that he believes MSU now meets virtually all the WCHA benchmarks. Key to the stable budget requirement will be how the Club can maintain and/or grow in its membership over the next year or two. Gate receipt history will also be important now that MSU has been given Division I Independent status.

Board Members commented that it was essential that next year's schedule have as many Division I teams as possible and one or two homes games with a current WCHA member wouldn't hurt.

The WCHA's April 1997 meeting will allow conference members to assess Mankato State's strengths and achievements during the 1996-97 season.

Northern Michigan Move to CCHA May Impact MSU Effort

Apparently the Northern Michigan Wildcats were seriously considering leaving the WCHA and joining the Central Collegiate Hockey Association (CCHA). It was reported that the CCHA tabled Northern Michigan's membership application and the WCHA wants at least a one year notice before any conference member trys to move to a different conference. What happens if Northern Michigan leaves the WCHA remains an open question.

MSU Men's Ice Hockey Budget Presented

Board Members were then given a 4/22/96 dated proposed 1996-97 budget for the overall MSU Men's Ice Hockey Program. Projected revenues of $528,733 were shown against estimated 1996-97 expenses of $404,163. The resulting 6/30/97 year-end balance of $124,570 would be adjusted to $91,843 following a commitment of $32,727 for "gender equity scholarships.

It was noted that last year's Men's Ice Hockey Program generated $174,268 in excess receipts, a significant portion of which reflected Blue Line Club activity. Adding the projected $91,843 6/30/97 balance to this year's anticipated June 30 balance of $174,268 means that "rainy day fund" would grow to $266,111 and help to provide the WCHA with concrete evidence of MSU's long-term financial commitment to the Men's Ice Hockey Program.

MSU Hockey Revenue Estimates for BLC Low

BLC Secretary-Treasurer Cowan observed that the overall hockey budget was showing a conservative Blue Line Club membership component. The MSU budget showed only $102,000 in Corporate and $46,500 in Individual memberships whereas the Blue Line Club budget anticipated another $30,000 from new members (15 Corporate Members @ $1,200 each = $18,000 along with 20 Individual memberships @ $600 each = $12,000).

Should the Blue Line Club retain its present members while adding the planned 30 new members then the overall year-end balance for the total program would measure close to $300,000 on 6/30/97.

BLC Membership and Hockey Season Ticket Campaign

Cheryl Regan then distributed a number of draft documents dealing with the planned men's ice hockey season ticket promotion.

Board Agrees to Stick with Charitable Gift as Expressed in Budget

Jim Bullard felt that the "charitable gift" portion of what each member pays for their Blue Line Club membership should not be expressed in percent but should be clearly shown and be easily linked to the other two parts of the overall membership fee.

[Of a $1,000 Corporate membership, the 1996-97 BLC budget adopted 3/19/96 backed a need for $110 to cover the Club's operating expenses, $520 for 4 season tickets @ $130 each, leaving $370 for the charitable gift portion of the fee.]

Cheryl's draft had a 35% recommended figure or $350, whereas the budget plan adopted by the BLC Board detailed out a $370 value of the $1,000 charged to a Corporate BLC Charter Member.

July 15th Deadline for Renewals Approved

The Board agreed to a July 15th deadline for Blue Line Club membership renewals with a 50% deposit requirement.

Regan's plan for separate mailings to BLC Charter Members was approved. It would be easier to explain to them why they were only being charged last year's original membership rate as opposed to new members which are to pay $1,200 for a Corporate Membership and $600 for an Individual Membership.

Mankato Area Hockey Association - Special Tickets?

The question then surfaced on whether MSU should make a special ticket offer to MAHA (Mankato Area Hockey Association) and the young people in their program. Instead of $1 per seat should they be charged $2 for a special ticket? Where should these young people be seated and should their section be supervised by their parents or MAHA representatives? Kent Schwickert stressed that only youth hockey program participants should get any benefit from such a special ticket price. Board Members agreed that Amiot should talk to MAHA and share our concerns but that ultimately it was the University 's decision on how to handle MAHA.

Processing of BLC Membership Payments

MSU Student Affairs Vice President Margaret Healy requested that the Blue Line Club make sure how its membership payments would be handled by the University, particularly the gift portion of each BLC membership check. Blue Line Club members need to receive a receipt that is clear and distinct which indicates whether the gift is being received by Mankato State University or by the Mankato State University Foundation, Inc. The Board then authorized Secretary-Treasurer Cowan and Cheryl Regan to work with MSU University Advancement Vice President Ron Korvas, Fiscal Affairs Vice President Dean Trauger, and Healy to determine what works best both from the perspective of the BLC member as well as from the University. [See enclosed May 9, 1996 memorandum from Cowan on this subject.]

Next Board Meeting

Board Members agreed to meet once the final hockey schedule was announced and the season ticket campaign launched. [Both occurred during the week of June 4 thru June 7, 1996.] Blue Line Club President Kent Schwickert will notify the Board when there is a need for a meeting this summer.

Adjournment

Without objection the meeting then adjourned as scheduled at 5:42 p.m.