Iroquois Falls Eskimos Jr. A Hockey Proposal

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1 2015 Iroquois Falls Eskimos Jr. A Hockey Proposal March 2,

2 Table of Contents Executive Summary... 3 Project Description... 4 Project Purpose... 4 Project Benefits... 5 Jobs Created/Retained... 6 Project Budget... 6 Potential Sponsorship... 7 Community Sponsorship... 7 Project Management and Reporting... 7 Proposed Founding Board Composition... 8 Proposed Non-Profit Organization... 9 Legal Structure Project Sustainability Conclusion Proposed 5 year budget

3 Executive Summary The Town of Iroquois Falls has recently lost it s Junior A Hockey franchise and the community is faced with, on a short timeline, the decision of keeping Junior A hockey in the community. In order to purchase another franchise for Iroquois Falls, it requires your support. A business plan has been created. If Mayor and Council believe that the business plan can be implemented successfully, then a commitment is required from you to ensure that Iroquois Falls will once again have a Junior A hockey team for the upcoming season, as well as in future years. In order to meet the fast approaching deadline of May 1 st, a commitment is required on the following items : The use of the access transit hall (no charge) for a community meeting to determine the commitment of the residents To provide the new team with the same rights as the old team in terms of the use of the locker room, first aid room, lockers, office etc (no charge) To provide the new team with the same exclusive rights to all advertising in the arena i.e., rink boards, on ice advertising etc. The use of the access transit hall (no charge) for an Annual General Meeting to present to the season ticket holders, sponsors and community the annual financial statement, ups & downs of the season, next steps for improvement etc, Provide the players with membership for the sports complex (no charge) for their conditioning Provide an area where the team could do their off-ice training 4 days a week. (no charge) Approval for the creation of a non-profit organization intended for managing a Junior A hockey team. Cost of ice time frozen at current rate for the next 5 years. First consideration be given to the Junior A club to operate cafeteria as a source of income for the team. Present rental fees frozen for 5 years. Provide the Start-Up Committee with $5000 (non-refundable) for the application to the NOJHL for a new team. This can be made payable directly to the office of the NOJHL Approval for the purchase of a NOJHL team franchise 3

4 Project Description Project Summary The Abitibi Eskimos, a Junior A hockey team was brought to the community and operated as a local Junior A team for 16 years. A few weeks ago the Board of the Abitibi Eskimos announced they would be moving the franchise to Timmins, leaving Iroquois Falls without a Junior A Hockey team. Iroquois Falls has always had a strong fan base and continues to do so. Home games were played almost exclusively on Saturday nights throughout the season; it was an activity for all ages and created a great sense of community pride and spirit. With such a large fan base, losing the Abitibi Eskimos is losing part of the community. Not only has Junior level hockey been a rich part of Iroquois Falls history, but it has provided motivation for aspiring young hockey players. Iroquois Falls currently has several teams within the Minor Hockey Association. There is a team in all levels from Tykes to Midget. Securing a long term commitment to Junior A hockey will help foster a sense of community and promote healthy active living for years to come. It will give an ongoing event for those of all ages to attend, as well as give all the current levels of hockey something to work towards. Many of the Eskimos have completed hockey here and continued on to College and University. Project Purpose The main outcome of this project is to secure long term commitment for Junior A hockey within Iroquois Falls. For the Town of Iroquois Falls to commit $5000 towards explore the possibility of purchasing a franchise from the NOJHL. To ensure our outcomes are met, we must create a non-profit organization intended for managing the Junior A hockey team and commit to supporting Junior A hockey in the long term. Once an organization is created, a Board of directors, Organization Staff and volunteers will be tasked with implementing this business plan successfully. If executed successfully, the business plan projects a profit and allows for Junior A hockey to stay in Iroquois Falls. Prior to executing this purpose and spending any dollars for an application, the Start Up committee would like to host a community meeting to determine if town residents and all sponsors are still committed to a new team, it s terms are the following: 4 1. Commitment to continue with the purchase of season tickets 2. Commitment from sponsors to continue their support 3. Commitment from residents and sponsors to donate to a New Team Start Up Fund This fund will similar to the Honour Wall the current team has, but this fund will have HONOUR 4. Commitment to provide the required billet homes for players. More homes will be required, because if we start a new team here, all players will reside in Iroquois Falls. This eliminates the cost of the shuttle van that was used to transport players from Timmins. 5. Commitment that there will be enough help to run a professional board of directors with elections and length of terms.

5 Project Benefits The creation and implementation of a non-profit organization to manage a Junior A hockey team in Iroquois Falls on a long term commitment will; Create a competitive Junior A Hockey team. Create a supportive business mix of the Town, corporate and local business sponsors, Community sponsors and volunteers to ensure successful implementation of the business plan. Return a source of revenue for the Jus Jordan Arena that was lost with the relocation of the present franchise. Encourage current Iroquois Falls hockey players to pursue their Junior career in Iroquois Falls rather than in other communities; keeping our youth. Bring a sense of community togetherness. Bring role models into the community for younger citizens. Encourage the youth to be involved in youth activities. Encourage healthy active lifestyles for youth. Create opportunities for volunteerism with the community. Create a good reputation for the community and the hockey club resulting from out of town players and families resulting in word of mouth marketing. Increase enrolment in local high school A non-profit organization will allow a Board of Directors and staff the ability to solely focus on the mission statement and mandate of the organization, while being able to implement a prosperous business plan ultimately resulting in a profit for the Town of Iroquois Falls. The proposed mission statement for the corporation is (which may involve some changes once the founding Board is created) The Iroquois Falls Eskimos Junior A Hockey Club is a not for profit organization committed to developing team members and student athletes into becoming better players and outstanding member of society. The team is dedicated to providing a junior hockey opportunity that provides a positive on ice experience as well as a positive off- ice lifestyle for each of our team members. Our community goal is to involve our players and the organization in the Town of Iroquois Falls surrounding area. We will work with volunteer community programs and non-profit organizations, community outreach programs, school organizations and charities to help build leadership qualities for our players. We also would work closely with Iroquois Falls Minor Hockey programs. Winning a hockey game is one goal within our junior hockey program. Developing strong citizens with Iroquois Falls provides many outdoor activities both indoors and outdoors for our youth, including cross country skiing, outdoor rinks, bowling, swimming, weight room, squash and many more activities. We will build a winning tradition both on and off the ice and do our best to provide an opportunity for junior hockey players to advance in all aspects of life. 5

6 While the mandate for the organization is to be set by the Board of Directors, it will be based upon the implementation of the business plan including areas such as; General Management of the Team Management of Finances Revenues Expenses Fundraising Sponsorships Game Day Co-ordination Billet Co-ordination Jobs Created/Retained The creation of the non-profit organization for Junior Hockey will be ran by mostly a volunteer base, but will also create and aid in retaining positions throughout the community. In order to successfully operate a non-profit Junior A Hockey Team there will be one position created; a General manager/coach, along with aiding in the retention of multiple jobs in the community such as; arena staff, player and equipment trainers, physical fitness trainers, teachers, doctors, dentists etc. Project Budget The budget outlined below refers to initial cost required to allow the creation of a non-profit organization, purchase of an NOJHL team franchise, and cash flow for the season ticket sales go on sale and players get signed. The non-profit organization will require cash flow funding initially by residents and sponsors. This format will ultimately be leaving no burden on the tax payers, but in fact potentially creating a direct financial benefit to the Town through profit generation of the organization, after the complete payable is received. Budget Requirement to start up a Jr. A Hockey team NOJHL new team application fee $5, Not for profit organization fees $5, NOJHL Franchise Purchase $40, Cash Flow Money $50, Total $100,

7 Business Plan Operating Budget(detailed budget on page 12) Year 1 Year 2 Year 3 Year 4 Year 5 Revenues $185,500 $191,575 $197,904 $204,498 $212,374 Expenses $249,524 $257,095 $265,045 $273,392 $282,157 Net Cost -$64,024 -$65,520 -$67,141 -$68,894 -$69,783 Sponsorships $79,500 $82,000 $84,625 $87,381 $90,275 Profit $15,476 $16,480 $17,485 $18,487 $20,493 Potential Sponsorship Since a long term commitment has not yet been made by the Town of Iroquois Falls, receiving firm commitment from sponsors can be an almost impossible task. Despite this, after several conversations with the local sponsors, we are very optimistic with response received for the continuance of current sponsors and we quickly identified a number of new sponsors who ve indicated they are prepared to step up. Community Sponsorship (Eskis Booster Club) The Eskis Booster Club was formed in advance of the season with a goal of supporting the team in terms of fundraising, increasing awareness and gate entries. In their first season, the club has raised nearly $10,000. It is worth noting that the Booster Club elected not to move forward with other planned events in light of the announcement of the team leaving for Timmins. The Booster Club has confirmed that they would continue to support a new Jr. A franchise in Iroquois Falls should one be secured. Project Management and Reporting The non-profit organization will consist of a 6 member Board of Directors who will hire one staff. The Board of Directors will be composed of 1 Council Representative, 2 Business Representatives and Community Representatives. The Board of Directors will elect a Chair and a mandate will be set to ensure the implementation of the business plan is successful. The non-profit organization will report to its season ticket holders/sponsor/council at its annual general meeting at the end of each season. 7

8 Proposed Founding Board Composition CHAIR MUNICIPAL REPRESENTATIVE: 1 BUSINESS COMMUNITY MEMBERS: 2 COMMUNITY REPRESENTATIVES: 3 Total 6 Members Terms: 1 year term, with option to renew for a total of 5 terms. Resources: Town Staff, Sponsors/Business owners, season ticket holders etc. Process: Municipal Representative nominated by Council Initial business and community members will be elected at a community meeting for the first year and at the annual general meeting the following years. The Chair will be selected by the Board. 8

9 ROPOSED NON-PROFIT ORGANIZATION ` BOARD OPERATIONS SUB-COMMITTE FINANCE SUB-COMMITTEE ADVERTISING AND SPONSORSHIP SUB- COMMITTEE SPONSORSHIP GENERAL MANAGER COACH RELATIONS PLAYER RECRUITMENT ESKIS BOOSTER CLUB ARENA OPERATIONS BOOKING AND FACILITIES TRAVEL PLAYER RELATIONS, BILLETS, COMMUNITY AWARENESS STAFFING AND VOLUTEERS 9

10 Legal Structure For the creation of the non-profit organization, a Municipal By-Law must be passed as well as articles of incorporation. Key points to be included in a Municipal By-Law and articles of incorporations for the establishment of a non-profit organization are as follows: 1. Duration of agreement and notice by either part 2. Funding arrangements: for what period, how accounted/audited/controlled 3. Board composition and size, terms of office, governance requirements, remuneration 4. Frequency of reporting. Once approved, the articles of incorporation and Municipal By-Law can be created. Project Sustainability Various factors will determine the continued existence of the non-profit organization, some of the factors that will affect the sustainability of the non-profit organization for Junior A Hockey in Iroquois Falls are: Professionalism and commitment of Board and Staff Creation of durable relationships with key stakeholders, corporate sponsors, advertising sponsors, community sponsors, players and fans. Creation of durable relationships with Council, Town administration and the community at large. Successful implementation of the Business Plan. Successful, attainable partnerships that follow the mandate of the organization 10

11 Conclusion Junior A Hockey in Iroquois Falls has always been a supported sport, with an average attendance of over 500 fans per game year after year, the sale of over 300 season tickets this season, over $100,000 of donations to the Honour Wall and successful implementation of the Eskis Booster Club, it is evident that the support is still within the community. The IGLOO is the without a doubt the nicest arena in the north and we do not want to lose it. If the Business Plan is implemented successfully, a non-profit organization has the potential to effectively manage a Junior A Hockey Team future years to come out of the community s Jus Jordan Arena, affectionately known as the IGLOO. In order to bring this vision to reality, it requires a commitment from Mayor and Council of the Town of Iroquois Falls on the items listed page 1 (one) and listed again for your convenience below: The use of the access transit hall (no charge) for a community meeting to determine the commitment of the residents To provide the new team with the same rights as the old team in terms of the use of the locker room, first aid room, lockers, office etc (no charge) To provide the new team with the same exclusive rights to all advertising in the arena i.e., rink boards, on ice advertising etc. The use of the access transit hall (no charge) for an Annual General Meeting to present to the season ticket holders, sponsors and community the annual financial statement, ups & downs of the season, next steps for improvement etc, Provide the players with membership for the sports complex (no charge) for their conditioning Provide an area where the team could do their off-ice training 4 days a week. (no charge) Approval for the creation of a non-profit organization intended for managing a Junior A hockey team. Cost of ice time frozen at current rate for the next 5 years. First consideration is given to the Junior A Club to operate cafeteria as a source of income for the team. Present rental fees frozen for 5 years. Provide the Start-Up Committee with $5000 (non-refundable) for the application to the NOJHL for a new team. This can be made payable directly to the office of the Northern Ontario Junior Hockey League. Approval for the purchase of a NOJHL team franchise 11

12 5 Year Operating Budget Operating Revenues 2015/ / / / /20 Season Tickets $62,500 $65,625 $68,906 $72,351 $75,969 Home Game Gates $39,000 $40,950 $42,998 $45,147 $47,405 50/50 proceeds $15,000 $15,000 $15,000 $15,000 $15,000 Training Camp $4,000 $4,000 $4,000 $4,000 $4,000 Player Fees $55,000 $55,000 $55,000 $55,000 $55,000 Booster Club $10,000 $11,000 $12,000 $13,000 $15,000 Total Operating Revenues $185,500 $191,575 $197,904 $204,498 $212,374 Operating Expenses NOJHL Annual League Fees $14,024 $14,024 $14,024 $14,024 $14,024 NOJHL Official Travelling Expenses $6,000 $6,300 $6,615 $6,945 $7,293 NOJHL/NOHA Cards $5,225 $5,486 $5,760 $6,049 $6,351 NOJHL/CJHL Trade Fees $20,000 $20,000 $20,000 $20,000 $20,000 NOHA/OHF/HC/USA Transfer Fees $3,000 $3,000 $3,000 $3,000 $3,000 General Manager/Head Coach $50,000 $52,500 $55,125 $57,881 $60,775 Ice Time Games $6,750 $6,750 $6,750 $6,750 $6,750 Ice Time Practises $12,500 $12,500 $12,500 $12,500 $12,500 Ice Time Training Camp $1,125 $1,125 $1,125 $1,125 $1,125 Game Day Staff $4,200 $4,200 $4,200 $4,200 $4,200 Programs $500 $500 $500 $500 $500 Time Keepers $1,700 $1,785 $1,874 $1,968 $2,066 Referees (2 refs & 2 linesman) $8,500 $8,925 $9,371 $9,840 $10,332 Motels (Includes Bus drivers room) $16,000 $16,800 $17,640 $18,522 $19,448 Bussing (Includes driver) $50,000 $52,500 $55,125 $57,881 $60,775 Team Meals $14,000 $14,700 $15,435 $16,207 $17,017 Fitness $5,000 $5,000 $5,000 $5,000 $5,000 Trainer Supplies $3,000 $3,000 $3,000 $3,000 $3,000 Travel (Scouting) $2,000 $2,000 $2,000 $2,000 $2,000 Website and Broadcasting $1,000 $1,000 $1,000 $1,000 $1,000 Tickets $2,000 $2,000 $2,000 $2,000 $2,000 Telephone and Computer $2,000 $2,000 $2,000 $2,000 $2,000 Track Suits $2,500 $2,500 $2,500 $2,500 $2,500 New Jersy/Socks/Pant Shells $3,000 $3,000 $3,000 $3,000 $3,000 Equipment $15,000 $15,000 $15,000 $15,000 $15,000 Team Photos $500 $500 $500 $500 $500 Total Operating Expenses $249,524 $257,095 $265,045 $273,392 $282,157 Operating Gain (loss) -$64,024 -$65,520 -$67,141 -$68,894 -$69,783 Sponsorship Corporate Sponsors $50,000 $52,500 $55,125 $57,881 $60,775 Player jersey sponsors $16,500 $16,500 $16,500 $16,500 $16,500 Game day sponsors $13,000 $13,000 $13,000 $13,000 $13,000 Total Sponsorship $79,500 $82,000 $84,625 $87,381 $90,275 Net Gain (loss) Regular Season $15,476 $16,480 $17,485 $18,487 $20,493 12

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