First Board of Directors Meeting Minutes

Monday, July 21, 1997

The fifteenth session of the First Board of Directors of the Blue Line Club was convened by President Kent Schwickert at 4:03 p.m. on Monday, July 21, 1997, in the Warren Street Center conference room on the campus of Mankato State University.

Voting Board Members Present

4 of 7 Seats

• Kent Schwickert, Club President
• Brad Reeves
• Jim Bullard
• Larry Morales

Voting Board Members Absent

of 7 Seats

• Henry Okleshen, Club Vice President (Excused)
• Steve Duea (Excused at his own request.)
• Jim Turk

Ex-officio Nonvoting Board Members Present

4 of 6 Seats

• Don Amiot - MSU Men's Athletics Director
• David Cowan, Club Secretary-Treasurer - Maverick Boosters Club Liaison
• Margaret Healy - MSU Student Affairs Vice President
• Cheryl Regan - MSU Athletics Promotions

Ex-officio Nonvoting Board Members Absent

2 of 6 Seats

• Ron Hybertson - Conference Faculty Representative (NCC)
• Don Brose - MSU Men's Ice Hockey Coach

Approval of Agenda

Board members reviewed the 7/21/97 "tentative agenda" which had been previously distributed. Recommended changes incorporated a presentation by Mankato Civic Center Marketing Director Tim Berry and a discussion of a 9/13/97 golf tournament proposal of MSU Head Hockey Coach Don Brose. Director Reeves moved and Director Bullard seconded to approve the agenda as modified. Motion carried unanimously.

Minutes of Previous Board Meetings Approved

Director Reeves moved and Director Morales seconded that the meeting minutes be approved as distributed for minutes of June 9, 1997, and the special meeting of July 7, 1997. Motion carried unanimously.

Televised Coverage of Home Hockey Games - Tim Berry Proposal

Mankato Civic Center Marketing Director Tim Berry asked the Board what it thought about a \ proposal to televise MSU home hockey games over area cable channels. He also indicated with the Civic Center's existing close circuit television capability that the game could be piped into the Club's Hospitality Room during each event.

Berry, representing the COMPASS facility management organization which runs the Mankato Civic Center, was thinking about developing an advertising package that would support the live broadcast of four or so games in January and February, 1998. Potentially, if an entire season of home hockey events were televised on local cable, MSU would benefit as it could receive upwards of $7,500 from such broadcasts.

"We [MSU and the Mankato Area community] have a great product [Division 1 hockey]," Berry commented. "Wouldn't it be great to have a Maverick Television Network on area cable channels?" He went on to say that the Civic Center makes its money from concession sales so the more spectators the better from the Civic Center's viewpoint.

"Let's bang the drum, and get more people excited about Mankato State's Division 1 hockey program and the excellent home game schedule that is now in place," he said. "Perhaps we should target 25 or more area and regional companies in the form of group sales and make a special game night for each highlighting the attendance of employees."

Director Healy indicated that MSU needs to court nearby communities, and use the natural pride they have in their hometowns to pitch the benefits of their participation in our MSU hockey program. Having a "New Ulm Day" or an "Albert Lea Day" would be great for the spectators in attendance and fun for those watching the game on their home television sets in those same communities. "We want to make it clear that we're not taking their entertainment dollar out of town, that indeed having a great facility next door is a plus for everyone," Healy said.

Director Bullard indicated that we should concentrate on attracting older adults because the younger kids are busy with games of their own all the time. Senior citizens might truly enjoy Division 1 level competition after sitting though junior play every Friday at the high schools or middle schools.

Club President Schwickert argued that the southern metro area is a huge potential market for televised broadcasts. Such broadcasts may well develop where people drive down to Mankato and become regular game attendees. There are also a lot of MSU alumni in the seven county metropolitan area. Frustrated Minnesota Gopher fans may drive down to the Mankato Civic Center to catch an away Gopher hockey game because they can't get tickets for a home Gopher game.

Director Reeves indicated that many area chambers of commerce could use an extra revenue stream to enhance their local budgets and MSU should consider entering into a consign- ment relationship with them whereby they would earn money for each season ticket or Blue Line Club membership they sell. Again, Healy expressed concern that it not look like MSU was taking entertainment dollars out of a given community to its disadvantage. Director Morales maintained that MSU's Division 1 hockey program should be sold as a regional asset and in that way could not be viewed as competing with what any one community had to offer. "No one else in South Central Minnesota has a Division 1 hockey team," commented Morales.

Cheryl Regan, MSU's Athletics Promotions Coordinator, stated one market that is now ignored includes senior citizens. With more and more seniors living in the Mankato Area, a special marketing package should be targeted to tweak their interest.

Mr. Berry also indicated that COMPASS should proceed and invest in a large video screen in the facility where the play by play could be viewed by the fans attending the game. Production cameras and a production truck, working with the lighting set up already in place, would be great for live and delayed game broadcasts. An upgraded scoreboard with a video display terminal good for replays, would excite spectators. Though the Civic Center ended calendar year 1996 with a $300,000 shortfall, Berry believed the physical improvements at the Mankato Civic Center, along with the interest that would generated by live - or delayed - MSU hockey game telecasts would attract fan support resulting in increased attendance.

Berry indicated that they would be targeting a I-35 corridor population with live broadcasts reaching cable customers in Fairbault, Albert Lea, and Owatonna.

Blue Line Club Board members expressed support for the proposal and wished Berry well in his effort to make it happen. Tim Berry left the Board meeting at 4:49 p.m. [Berry presented the idea to the Mankato City Council later that night and the newspapers and electronic media gave prominent coverage to the issue in the days that followed.]

Status of MSU Hockey Sales Campaign - Don Amiot

Though it is not the responsibility of the Blue Line Club to deal with every income line associated with this coming year's $698,798 revenue plan for MSU's intercollegiate hockey program, Don Amiot felt it valuable to keep the Board informed about the overall progress of various sales and promotion efforts and ask for feedback. In that regard, Amiot circulated a one page financial sheet indicated that of the $115,200 goal for season tickets, to date $86,130 has been raised. Only 203 season tickets @ $144 each need to be sold to generate another $29,088. Gate sales estimates remain at $54,400.

The campaign date for the "last push" will run from September 2 to October 6. Information will transmitted to the general public via brochures, newspaper ads, radio spots, fact to face calls at area businesses, area television and radio talk shows, etc. Breakfast meetings are being planned for those working on the campaign.

Dasher board sales have brought in $70,183 against a sales goal of $87,050. Still available for sale: dasher board behind net $3,250; behind bench 2 @ $2,950 each; 1/2 Zamboni @ $4,000, 1/2 dasher board behind net @ $1,625, a company logo on the sheet of ice valued at $5,000. The total is $19,775 in potential sales.

MSU's share of clothing and novelty sales is budgeted at $2,500, Blue Line Club membership dues at $177,000 (102 corporate members @ $1,200); and 91 @ $600 each), along with the Student Senate approved $39,200 subsidy from student activity fees (because of this contribution MSU students are not charged at the gate and sit in a special student section).

Secretary-Treasurer's Report - David Cowan

The Club's Secretary-Treasurer then reported that the Club's operating budget almost broke even for the 12 month 1996-97 fiscal year. A shortfall of $108.25 resulted with income of $23,007.50 against spending of $23,115.75. It was noted that but a small portion (3.5%) of each Club member's annual dues is set aside to fund the Club's operating budget. Secretary-Treasurer Cowan indicated that the operating budget would have ended with a positive balance had not the Board okayed the expenditure of $500 for the June 10, 1997, press conference and reception when MSU announced that it had been invited to play as the #10 seed in the March, 1998, playoff tournament of the Western Collegiate Hockey Association (WCHA) Conference. Director Reeves noted a minor typo on the written financial report dated 7/16/97 submitted by the Secretary-Treasurer.

Members also reviewed financial report entries for the 1997-98 fiscal year. [The operating budget for FY'98 totals $23,000, of which $1,150 is derived from projected self-generated Club embroidered clothing and novelty sales, along with $21,850 coming from a portion of the total generated from club dues paid by Club Individual and Corporate Members.]

Without objection the Secretary-Treasurer's report was approved with the one correction noted herein.

Civic Center Hockey Event Clothing/Novelty Sales to General Public

Don Amiot, Director of Men's Intercollegiate Athletics, reported the University had received the Blue Line Club Board's recommendation that Promotion Works, Inc., be awarded the three year contract to sell MSU generic and hockey related clothing and novelties at the Mankato Civic Center during home MSU hockey events.

Amiot indicated that the University Bookstore had made a direct appeal to the Student Affairs Office asking that the University not award the contract to Promotion Works, Inc., maintaining that: 1) both companies should have had tables at the Civic Center to better determine sales potential and return to MSU; 2) that Promotion Works may have had an advantage in the deliberations of the Board in that one of the Board members was an employee of Promotion Works, Inc. [Director Duea works for Promotion Works but excused himself from voting on the Board's 7/7/97 recommendation nor was he present when the Board discussed the differences between the two private vendor responses to MSU's Request For Proposal (RFP).]; and 3) that Promotion Works didn't really conform with what was requested in terms of cash register tape capability, etc.]

Secretary-Treasurer Cowan reported that a 7/8/97 E-mail from him to MSU's Student Affairs Office detailed how the Board had reached its decision to recommend Promotion Works. Cowan indicated the financial difference between the two RFP submittals was the determining factor, though it was not the only thing considered when the Board made its recommendation to Mankato State. According to what was submitted to the Board at its 7/7/97 meeting, Promotion Works offered a 25% return to MSU on each game night's sales (pro-rated when sales are in effect), versus the University Bookstore's 15% or $150 per game guarantee, whichever was the greater figure.

Student Affairs Vice President Margaret Healy stated her office was reviewing the points made by the University Bookstore and that the University's Contract Officer was being asked to comment on those same concerns. Healy indicated that it was not unusual for private vendors to forward concerns about the terms and conditions or award of a bid or RFP. She stated until her office's internal review was completed no contract award by the University will be made.

Vice President Healy stated that the recommendations of the University's advisory boards and committees are taken seriously and the MSU appreciates the work of volunteers on those groups. However, the University is legally responsible for the final decision on recommendations forwarded by such panels and when challenges occur extra time will be taken to ensure that vendors participated in a fair and responsible process.

Healy also noted that the University's Purchasing Department had issued the RFP as a matter of routine, and had formally opened the sealed responses on the Friday afternoon preceding the Monday, July 7, special meeting of the Blue Line Club Board where each vendor was independently interviewed by Board members.

Determination of the Club's Official Memento for 1997-98

Director Morales moved and Schwickert seconded that the Board table until the August Board meeting any further discussion of what the Blue Line Club's free memento should be for our Corporate and Individual Members. Prior to the Morales motion to table, Board members directed that the Club Secretary-Treasurer contact Promotion Works and get from them options as to what the Club could provide free to its members. It was noted that Club Vice President Okleshen preferred the memento not be a clothing item and that it indicate somewhere on its surface that 1997-98 was the first year that MSU was a fully engaged Division I team.

Other Board members indicated that one of the options should include the ability of Club members to assign the value of their memento to the recently established MSU Hockey Blue Line Club Memorial Scholarship. The motion to table was voted on. Motion passed unanimously.

Hockey Alumni and Friends Golf Tournament - September 13th Event Planned

Board members then reviewed a request dated July 14th from MSU Head Hockey Coach Don Brose. Director Morales moved and Director Bullard seconded the Club endorse and co-sponsor the 60 to 70 person golf tournament at North Links Golf Course and that the Secretary-Treasurer be instructed to work with Brose to ensure that a brochure is produced and a mailing is made to all Club members. Motion passed.

Adjourned

The special meeting then adjourned at 5:20 p.m.