First Board of Directors Meeting Minutes

Meeting Minutes - Monday, June 9, 1997

The thirteenth session of the First Board of Directors of the Blue Line Club was convened by Vice President Henry Okleshen at 4:03 p.m. on Monday, June 9, 1997, in the Warren Street Center conference room on the campus of Mankato State University.

Voting Board Members Present

5 of 7 Seats

• Henry Okleshen, Club Vice President
• Brad Reeves
• Jim Bullard
• Steve Duea
• Larry Morales (Excused)

Voting Board Members Absent

2 of 7 Seats

• Kent Schwickert, Club President
• Jim Turk

Ex-officio Nonvoting Board Members Present

3 of 6 Seats

• David Cowan, Club Secretary/Treasurer - Maverick Boosters Club Liaison
• Don Amiot (Excused) - MSU Men's Athletics Director
• Cheryl Regan - MSU Athletics Promotions

Ex-officio Nonvoting Board Members Absent

3 of 6 Seats

• Margaret Healy (Excused) - MSU Student Affairs Vice President
• Don Brose - MSU Men's Ice Hockey Coach
• Ron Hybertson (Excused) - Conference Faculty Representative (NCC)

Agenda Items Reviewed

Director Steve Duea moved that the Board's June 9, 1997 meeting agenda be approved as distributed. Motion passed without objection.

Minutes of Previous Meeting Distributed

The meeting notes of the Board's session of May 19, 1997 were then reviewed. Director Jim Bullard moved and Director Duea seconded that the minutes be approved. Without objection the motion carried.

Secretary-Treasurer's Report

Club Secretary-Treasurer David Cowan then provided the Board with an overview of the Club's existing 1996-97 income and expenditure budget dated 6/6/97. The financial update showed that the Club's operating budget was in good shape with $23,007.50 in receipts ($18,901 from that Club related fees from membership dues; $3,599.50 in apparel sales beyond issued memento credits ; and $507 from the Notre Dame luncheon), and $22,413.20 in expenditures. Though the "books" don't close until June 30, 1997, the club's operating cost center has excess receipts of $594.30. It is anticipated additional postage, copying, and other expenses will occur prior to month end.

Community Sheet of Ice Donation - FY'98 Will be First of Three Years

Board members recognized that it would have to delay until the next fiscal year the Club's $1,000 contribution goal to the new community sheet of ice advocated by MAHA (Mankato Area Hockey Association). (On February 10, the Blue Line Club's Board of Directors voted to "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.")

Status of Men's Ice Hockey Budget for 1997-98

Don Amiot, Director of the Men's Intercollegiate Athletics Program then distributed the latest draft of the hockey expenses and income for 1997-98. Of projected expenditures totaling $685,610, the Blue Line Club has $23,000 set aside or 3.35% of the larger sum.

Other projected twelve month spending sums include: $158,973 for salary and fringes of head coach, assistant coaches, and a graduate assistant; $92,787 for officials, equipment repair, game guarantees, dasher board graphics, supplies, replacement equipment, pre game meals; $20,000 for on and off-campus recruitment; $21,500 for promotions and advertising, $71,000 for travel; $85,000 for scholarships/talent grants; $111,350 for ice rentals, ushers, security, music, etc., and $102,000 for matching scholarship and recruitment $90,000 (gender equity) and $12,000 for MSU's commitment to the community's second sheet of ice project.

Compared with the $436,890 for FY'97 (which includes $32,727 for gender equity), spending has increased $248,120 or 56.9%. Men's scholarships alone moved from $40.000 projected for FY'97 to $85,000 estimated next year. Salaries and fringe benefit costs on hockey money went from $77,880 last year to a projected $158,973 for FY'98. The spending changes are consistent with the move into a strictly Division 1 playing environment.

Revenues are also different between last year and next. Estimates for FY'97 totaled $528,733 compared against FY'98's $698,798, for a increase of $170,065 (32.2%). Blue Line Club memberships estimates for FY'97 were $148,500 compared against FY'98 estimates of $177,000 (102 Corporate @ $1,200; 91 Individual @ $600), the difference due primarily to the raise in membership dues for FY'98 and not to an increase in overall memberships. Student activity fee subsidies from the Student Senate remained at a constant of $39,200 for both years. Increases in both season ticket sales and gate receipts are also anticipated for next year: season tickets $72,150 estimated for FY'97 goes up to $115,200, and gate receipts move from $43,200 in FY'97 to a new high of $54,400 projected for FY'98. Dasher board and Zamboni ad sales change from an estimated $65,400 this past year to a projected $87,050.

Broadcast rights may be a real revenue item in the next few years. St. Cloud State apparently receives $6,000 annually from such a source. The $1,000 included as a "budgeted" income line will probably be difficult to get from area broadcasters who have been paid in the past to broadcast events or have stated that they are just breaking even on the sale of advertising to broadcast the events. Blue Line Club Board members agreed that the University should take a harder line with such businesses and seriously consider dropping radio broadcasts altogether if vendors will not pay MSU for the exclusive right to broadcast hockey events. With the tremendous 34 game schedule in place for next year, it was hard for Board members to believe that local broadcasters couldn't sell enough advertising to make a profit and pay MSU something as well.

MSU Seeded #10 in Next March's Playoffs for WCHA's Final Five Tournament

Don Amiot, Director of Men's Intercollegiate Athletics, circulated a letter dated June 3 from WCHA Commissioner Bruce McLeod which invited MSU to participate as the #10 seed in the initial round of the WCHA's Final Five Tournament. That initial round will be played the weekend of March 13 through March 15, 1998 with the Final Five Tournament played in Milwaukee, Wisconsin March 19 to 21, 1998. Mankato State Mavericks will be the only non-WCHA member in the tournament. Blue Line Club Board members greeted the news with a round of applause and handshakes.

Current members of the WCHA include:

• U of Minnesota Gophers
• U. of Wisconsin Badgers
• Colorado College Tigers
• St. Cloud State Huskies
• U of M Duluth Bulldogs
• University of North Dakota Fighting Sioux
• Michigan Tech Huskies
• Alaska-Anchorage Seawolves
• Denver Pioneers

On Mankato State's schedule for next year there are eight of the nine WCHA members schools, only the University of Wisconsin Badgers will not play against MSU next year.

Amiot reported that that full membership for MSU would not occur until the 1999-2000 academic year.

News Conference/Reception - Tuesday, June 10, 1997 at Mankato Civic Center

Board members concurred with Amiot that a news conference announcing the WCHA Playoffs invitation should be held as quickly as possible. Don Amiot indicated that a news conference had already been scheduled for Tuesday, June 10, at 4:30 p.m. in the Blue Line Club's Hospitality Room in the Mankato Civic Center. Mankato State President Richard R. Rush will make the formal announcement with Head Hockey Coach Don Brose and Don Amiot available to answer any questions. A telephone hook-up with WCHA Commissioner Bruce McLeod will be part of the news conference.

Board members expressed no objection should it be necessary to use what remains in the Club's operating budget to help pay for the reception which follows the news conference.

[The reception cost $500 for all the food that was provided and the invoice is being processed against the Club's cost center on Mankato State University's accounting system.]

Membership Recruitment and Retention Drive & Season Ticket Sales

Cheryl Regan, Athletics Promotions Coordinator, brought the Board up-to-date on Blue Line Club membership renewals. At this stage in the annual renewal and new member drive, the new members brought in as Corporate ($1,200) or Individual ($600) members make up for the anticipated attrition. For example in FY'97 there were 102 Corporate members, at this point in the drive there at now 100. Last year there were 91 Individual members, and so far we have 97 signed up. In effect, the $177,000 membership objective for FY'98 has already been exceeded with the membership numbers just reported ($178,200 derived from 100 Corporate @ $1,200 and 97 Individual @ $600 each). It is anticipated that the 800 season ticket goal will be achieved as well generating $115,200.

Board members agreed that an special effort needs to be made to capitalize on the invitation to participate in the WCHA Playoffs and bring more companies and individuals in from neighboring communities.

Apparel Update & Future Civic Center Floor Sales Management

Though Board members had wanted to wait to see an actual sample of a Request For Proposal (RFP) that the University of Minnesota Gophers used to get private vendors to handle general public apparel and novelty sales at home hockey events, the Board asked Don Amiot, working with Club Secretary-Treasurer David Cowan, to proceed and prepare a RFP that the University could send out. [Items to be included in the RFP have been discussed at previous Board meetings and can be found in those minutes.]

Known members of the Club that might be interested in receiving a RFP form include Promotion Works and MGA Graphics. Dasher board ad buyers who might be interested include the University Bookstore ("official" on-campus University contract vendor located in the Student Union) and the Maverick Bookstore (off-campus site). Last year Promotion Works got the two year exclusive contract to handle Blue Line Club embroidered apparel and mementos, MGA Graphics did the glossy apparel flyers, and the University Bookstore handled general public sales of MSU hockey and generic clothing and novelties. The Board believes the University hockey program should benefit from its new prominence and that private sector vendors should pay for the privilege of having an ideal setting to sell their wares.

If possible Amiot would try to get the RFPs faxed out as early as Friday, June 13, with a response date from vendors of June 20. The Blue Line Club Board would then meet in special session to visit with each vendor in 15 minute sessions on Monday, June 23, and then make its recommendations to the University. [Due to commencement conflicts, Cowan and Amiot draft changes, and the year-end rush at MSU's Purchasing Department, the calendar had to be altered to allow vendors to submit by 2 p.m. Thursday, July 3, with the Blue Line Club convening at 4 p.m. on Monday, July 7, to hear vendor presentations.]

Adjournment

Director Jim Bullard moved and Director Steve Duea seconded that the meeting be adjourned. Without objection the meeting then adjourned at 5:28 p.m. [Normally no motion would have been necessary as the agenda said the meeting ended at 5:30 p.m., but some directors apparently wanted to "beat the clock."]