Minnesota State University, Mankato. Blue Line Club. Meeting Minutes June 11, 2018

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1 Minnesota State University, Mankato Blue Line Club Meeting Minutes June 11, 2018 A regular meeting of the Blue Line Club was convened by President Jason Beal at 4:08 PM on Monday, June 11, 2018, in the Bud Myers Field House Conference Room at Minnesota State Mankato. With 9 of 11 voting Board Members present a quorum of the Board was declared. Board Member Voting Attendance Status Board Seat Expiration Date Jason Beal, Club President Present Board Term Expires February, 2019 Steve Vassar, Club Vice President Present Board Term Expires February, 2019 David Cowan, Club Sec-Treasurer Present Board Term Expires February, 2019 Casey Stedman Present Board Term Expires February, 2019 Eric Boelter Present Board Term Expires February, 2019 Thomas Gropel Excused Absence Board Term Expires February, 2019 Brent Pattison Present Board Term Expires February, 2020 Bronson Power Present Board Term Expires February, 2020 Steve Wilcox Present Board Term Expires February, 2020 Jeremy Clifton Excused Absence Board Term Expires February, 2020 Darcy Anderson Present Board Term Expires February, 2020 Board Members Ex-officio Nonvoting (Can make motions but can t vote and aren t counted to make a quorum.) Attendance Status As Ex-officio Board Members there are no Expiration Dates or Term Limits Kevin Buisman Present Intercollegiate Athletics Director John Harrington Present Women s Hockey Head Coach Mike Hastings Excused Absence Men s Hockey Head Coach Greg Weis Present Assist. Athletic Dir. for Develop. & Revenue Generation Nick Lewis Present Athletics Marketing & Community Engagement Dir. Meeting Minutes Approved Without objection the meeting minutes of May 14, 2018, were approved by the Board of Directors. Hospitality Room Venues Discussed There was considerable discussion concerning the pros and cons about reducing the number and changing the location of the Hospitality Room pre-game function. As a continuation from the discussion held at the May 14th Board session, Plan A would move the Club s Hospitality Room functions from the Mankato Place s Event Center to a limited number held at the Verizon Wireless Center s larger room venues like the Grand Ballroom and the Performing Arts Center. The number of Hospitality Room events would go to 5 premier dates in the Verizon Wireless Center s Ballroom 1

2 and/or Performing Arts space from the more traditional 16 Hospitality Room functions traditionally held in the Mankato Place s Event Center catered by Charley s Restaurant. (These Hospitality Room event numbers do not include the potential for post-season WCHA Round 1 and Round 2 home events, of which there were four last year.) Existing Blue Line Club Membership Levels Total Club Membership Season Tickets for Donation Member Blue Line Club Members Levels Blue Line Club Seats Cost BLC Maverick Level $340 x 4 = $1,360 $825 $2, Corporate Packages BLC Varsity Level $340 x 2 = $680 $415 $1, Corporate Packages BLC Purple Level $340 x 1 = $340 $220 $ Points brought up that supported the new Verizon Wireless Center venue include: Ever larger crowds have been attending last season s Event Center Hospitality Room functions which averaged each Friday and Saturday. The crowded atmosphere in the Event Center is problematic and food has run out in the past. Space limitations should not be an issue in the Verizon Wireless Center. The $40,000 paid last year in catering and room costs for 20 Hospital Room functions ($2,005 per night - $1,404 base + $205 beverage + $241 service charge + $155 taxes = $2,005) were split between Athletics (70%) and the Club (30%). Such costs should be significantly reduced in the future to divert more money into men s and women s scholarships and program support. The five premier Hospitality Room functions proposed would be packed full of exciting programs to make the fewer times more memorable. Food and beverage costs have been covered in the past thanks to the success of the Annual Dan Meyers Memorial Blue Line Club Golf Tournament held in July. Even though the individual dates at the Verizon Center are more expensive (up to $4,000 each), the Club should net out a substantial savings against the $40,000 figure paid in the past. This would allow the Club to invest more of its fundraising income for hockey program support and not Club operating costs. Scholarship and recruiting costs are increasing and more needs to be done to direct resources accordingly. We ve been very lucky with the Dan Meyers Golf Classic but Mother Nature could take a bad turn and the Club s primary fundraising source would be adversely affected, hence the need to trim future expenses to provide a financial cushion which doesn t exist at present. Maverick Level ($2,185) Club members (a.k.a. Corporate members) would likely continue to invest in the hockey program and not change their membership level. Club Members who are at the Varsity Level (a.k.a. Individual), may decide to reduce their current investment but will lose their coveted Blue Line Club seats as a consequence. Points favoring existing Event Center venue and keeping a larger number of Hospitality Room functions include: Reducing the number of times the Hospitality Room is offered would move Club members to consider changing their investment in Maverick Hockey from what they now pay to just the cost of season tickets with a loss to hockey of the amount previously set aside for a tax deduction (now viewed as program support ). If the Club Members buy only season tickets, and sacrifice their traditional seats in the process, the donation loss could be more that the net savings generated from the cutback in the number of 2

3 Hospitality Room functions. This would happen primarily within the group of 121 individual or Varsity level members who provided $50,215 in donations in Reducing by 2/3 the times the Hospitality Room happens limits opportunity for Club members to connect and socialize in a dedicated space. The value added by five premier events in the Verizon Center will be offset by the perceived loss of: meals, the chance to win attendance prizes, and frequently hear coaches. Board Endorses New Hospitality Room Venue and Five Premier Events Darcy Anderson moved, and Erick Boelter seconded, that the Club s Board of Directors adopt Plan A which passes along a $30 Season Ticket increase as well as having Athletics negotiate a contract with Verizon Wireless Center to secure five pre-game Hospitality Room Men s Hockey game dates in either the Grand Ballroom (preferred) or Performing Arts Space. (Dates would include: October 13-Boston, October 2-Alaska Nanooks, November 3-U of M Gophers, January 5-Michigan Tech, and March 2-Bemidji State.) No Hospitality Room pre-game functions would be held in the Mankato Place Event Center for the season. MOTION CARRIED. Existing Plan A Plan B Hospitality Pass Season Tickets $340 x 4 $370 x 4 $370 x 4 BLC Maverick Level Tickets $1,360 $1,480 $1,480 BLC Hospitality Passes 4 x $130 = $520 BLC Maverick Level Program Support $ $825 $825 Total $2,185 $2,305 $2,825 Season Tickets $340 x 2 $370 x 2 $370 x 2 BLC Varsity Level - Tickets $680 $740 $740 BLC Hospitality Passes 2 x $130 = $260 BLC Varsity Level Program Support $415 $415 $415 Total $1,095 $1,155 $1,415 Financial Report Secretary-Treasurer David Cowan then provided Board Members with an update on the Club s various accounts. Cowan noted that the Club s budget year for began July 1, The Athletics Department still owes the Club for $1, for Blue Line Club branded jackets issued to new members. Blue Line Club Transaction Categories Club Operating # Dan Meyer Memorial Golf Classic Clearing # Foundation Golf Classic # Quasi- Endowment (Book Value) # & Interest Acct. # Foundation Endowment # & Income Acct. # Prior Yr. Forward 7/1 $ 1, $ 8, $ 55, $ 90, $ 211, Current Fiscal Year Income 4, $ 49, $ 28, Transfers 27, $ (27,238.00) Less Expenditures (39,711.50) $ (23,217.98) Less Endow.Adm. Fee Market Adjustments $ 21, Endow.Earnings Dist. $ (6,338.48) Transfers to Endowment Principal $ 11,769.32

4 Less Scholarships $ (38,000.00) Existing Balance $ (6,361.40)) $ 7, $ 45, $ 90, $ 238, Endowment Earnings 7/1/17 Beginning Not Not Applicable $ 4, $ 5, Balance Applicable Interest from Principal Not Applicable 2, $ 6, Scholarship Transfer Not Applicable Enhance Principal Not Applicable $ (11,769.32) Transfer Balance Not Applicable $ 6, $ Cash - $54, $ (6,361.40) $ 7, $ 45, $ 6, $ It was noted that the Jeremy Clifton motion made at the May Board meeting was implemented moving the $11, in earned interest in the Foundation endowment income account # to the Dan Meyer Memorial Blue Line Club Foundation Endowment account # enhancing its balance to $238,552. Quasi-Endowment Earned Interest Dedicated to Scholarships Eric Boelter moved, and Brent Pattison seconded, that the Board endorse a long-term policy whereby any and all earned income from the Club s University held Quasi-Endowment (# $90,869.25) be transferred for hockey scholarship support. The earned interest total of $6, presently in # would be transferred to scholarships. The principle in # would not be enhanced. MOTION CARRIED. Board Underwrites Cost of Conference Championship Rings Erick Boelter moved, and Steve Vassar seconded, the Board pay for the Men s Conference Championship rings, the cost which is now estimated at about $11,000-$ MOTION CARRIED. Eric Boelter moved, and Steve Vassar seconded, that the financial report be approved. MOTION CARRIED. Dan Meyer Memorial Golf Classic Monday, July 23, 2018, at Mankato Golf Club An update was presented on the forthcoming Blue Line Club s Annual Memorial Dan Meyer Golf Classic. Board members were told by Athletics Director Kevin Buisman about a prior major golf classic sponsor which will not be contacted as the parent company apparently is withdrawing from community events like ours. Hockey Coaches Seek Support to Reception Area Improvements Wall History Project Women s Head Coach John Harrington presented some concepts about sprucing up the reception area by the weight room of the Men s and Women s Hockey space down at the Verizon Wireless Center. Both the Men s and Women s coaches think that wall space should be devoted to treatments: 1) highlighting MSU participation in the World Junior Olympics; 2) academic award winners; 3) retired jerseys of outstanding players, etc. Cost of the enhancement: $8,000 to $10,000. David Cowan moved, and Eric Boelter seconded, that the Board endorse the wall history enhancement project. Board members wanted more financial details before any of the Club s money was spent. MOTION CARRIED. 4

5 50 th Anniversary Year of Men s Varsity Hockey It was reported that plans were in the works by Intercollegiate Athletics to highlight this Fall the 50 th Anniversary of Men s Varsity Hockey. Adjournment Steve Vassar moved, and it was seconded, that the meeting be adjourned. MOTION CARRIED. The meeting adjourned at 5:25 PM. Respectfully Submitted, David Cowan Blue Line Club Secretary-Treasurer 5

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