Minutes of the Meeting of the Board of Directors of the
University of Louisville Athletic Association
April 24, 2001
The Board of Directors of the University of Louisville Athletic Association, Inc. met at 4:15 p.m. on Tuesday, April 24, 2001 in the Jefferson Room of Grawemeyer Hall. The Directors were present and absent as follows:
Dr. John W. Shumaker, Chairman, Presiding
Dr. Henry S. Enck, Vice Chairman
Mr. Larry L. Owsley, Treasurer
Prof. Elaine O. Wise, Secretary
Mr. Robert P. Benson, Jr.
Mr. Joseph S. Beyel
Mr. Ulysses L. Bridgeman, Jr.
Dr. William Cheadle
Prof. Michael Edwards
Mr. Richard Emmett
Dr. Carol Garrison
Prof. Robin R. Harris
Mr. D. Harry Jones
Mr. Thomas M. Jurich, ex officio
Prof. Bruce Kemelgor
Ms. Blanche Kitchen
Prof. Glenda S. Neely
Judge Olga S. Peers
Mr. Sam Rechter
Ms. Angela Richie
Prof. Joanne Rowe
Prof. Randolph G. Schrodt
Mr. Brian Veeneman
Prof. David Boyce
Mr. Owsley B. Frazier
Mr. Wade Houston
Prof. Mary Hums
Mr. T. W. Samuels, Jr.
From the University:
Mr. Neil Brooks
Mr. Kenny Klein
Ms. Janet Lively
Mr. Kevin Miller
Mr. Mike Mangeot
Mr. Mike Pollio
Dr. Gene Gilchrist
Mr. Marvin Mitchell
Mr. Thomas H. Lyons
Mr. Dave Barker
Ms. Alicia Clark
Ms. Susan Wilhelm
Ms. Terry Rutledge
Ms. Debbie Dougherty
Ms. Trisha Wolf
Mrs. Kathleen Smith, Assistant Secretary
Having determined a quorum present, Chairman Shumaker called the meeting to order.
Mr. Benson made a motion, seconded by Prof. Kemelgor, to approve the minutes of the March 2, 2001 and March 20, 2001 meetings. The motion passed unanimously.
Replacement of floor in Cardinal Arena
Chairman Shumaker asked Athletic Director Jurich to introduce the topic and lead discussion. Mr. Jurich reported that several years ago water leaks severely damaged the floor in Cardinal Arena. Although the floor was repaired, the water caused the panels to separate and the repairs never fully restored the floor to the playing surface originally intended for competition purposes. Mr. Jurich asked Mike Pollio and Kevin Miller, who had been working on the project to comment. Mr. Pollio noted that donations will fund the floor. Mr. Miller added that the floor is used often, not only for basketball practices but also volleyball games and summer camps. The floor is 11 years old and has surpassed its life. Prof. Kemelgor made the motion to approve the Athletic Director’s recommendation and to replace the floor in Cardinal Arena in the Student Activities Center . Ms. Kitchen seconded the motion, which passed unanimously.
Chairman Shumaker asked for a motion to go into Executive Session.
Prof. Kemelgor made a motion, which was seconded by Ms. Neely, to recess Open Session at 4:28 p.m. and to go into Executive Session. The motion passed unanimously.
Open Meeting Reconvenes
The Open Meeting reconvened at 4:55 p.m.
- Report on Executive Session
Chairman Shumaker reported that the Board had discussed personnel matters.
No action was taken.
Report of the Athletic Director
- Update on preparation of 2001-2002 budget
Mr. Jurich asked Gene Gilchrist and Kevin Miller to brief the board on the budget situation and the planning for the 2001-2002 Operating Budget. Dr. Gilchrist reported that he has been employed as a consultant for the athletic department since April. A committee made up of people from athletics and the university community have began looking at budget planning and creating an appropriate management structure to monitor the finances of the athletic program. The group is trying to build a sense of connectivity around management issues including internal audit. Not only will the annual financial statement audit be done at the end of each fiscal year, but Dave Barker will also introduce an audit regimen that includes September, October and November time frame. This audit will look at athletics and assure they have the appropriate internal controls. Dr. Gilchrist informed the board that he has been addressing the issue of responsibility and accountability management. There has been a complete change in the responsibility centers and the individuals who will be ultimately held accountable. Preliminary budget data will be available for an internal review with the help of Mr. Bob Benson for the Finance Committee, staff and Board.
Mr. Kevin Miller reported that the financial management committee is spending a lot of time looking at accountability for different revenue areas such as marketing, development special events, and contractual revenue. Each department in athletics has submitted revenue projections for next year. Once the revenue budget is complete they will begin working on the expense budget. Mr. Miller also informed the board that the marketing side of the budget presents several new opportunities. Mr. Benson stated that he feels really good about the direction in which athletics is moving. Mr. Jones noted that sometimes projections are missed because the budget is set too low. He is afraid that the budget issues could harm the momentum that has been building in athletics the past four years. He does not want the University to lose the reputation that Louisville is on the rise. Dr. Gilchrist assured Mr. Jones that the committee has that in mind and is striving to achieve the right balance in making projections. Mr. Miller added that there is more historical data available to use from the last three years that will help project revenues and expenses with more accuracy.
- Update on rowing facility
Ms. Lively reported that Phase II is rapidly approaching. David Karem reported the Waterfront Development Corporation will make land available for a rowing house. Ms. Lively is working with the Louisville Rowing Foundation and the Louisville Rowing Club to form a partnership to put together a rowing house that will suffice the needs of all three groups. Ms. Lively hopes to draw up a preliminary long-term lease agreement with the Louisville Rowing Foundation to construct and own the building. A joint committee made up of three representatives from the University of Louisville Athletic Association, Inc. and three representatives from the Louisville Rowing Association will make a decision on architects and construction duties. UofL will oversee the entire construction process. Mr. Beyel inquired where the projected donations would come from. Ms. Lively indicated that the primary target will be women of the community, as well as people involved in the Rowing Club and Rowing Foundation. Dr. Shumaker questioned the future size and scope of program. Mr. Jurich indicated expansion plans have been put on hold but the size of the program will not be diminished. He hopes the program will continue to grow at its current pace.
- Update on Papa John’s Cardinal Stadium
Mr. Mike Pollio reported he is working with Infinity Outdoor on signage around the stadium. Four 12 x 25 signs along Floyd Street and two 10.6 x 36 billboards on Central Avenue are proposed. The university will sign a 10-year contract in which they will receive $50,000 a year in payment for this advertising. Infinity will also build an electronic message board that will be used for ticket sales and information about the university in general. Mike Mangeot is also looking into selling advertisements for the board that will bring in at least $25,000 a year. Service America is also building awnings that will be sold for advertisement that look to bring in about $50,000 a year. Mr. Pollio informed the board that because the land is state property, the university does not need permits. He also noted that the university has first right of refusal on what will be displayed on the signage and the design of the billboards will be identified in the contract.
Mr. Jurich also noted that Coach Pitino has completed his staff. He has also signed three local players and as always will play one of the toughest schedules. The athletic staff has worked very hard at making sure the transition goes smooth. Mr. Jurich also noted that Spring Football just ended and the coaches expect great things next season.
Mr. Jurich indicated that in order to compete at the top levels the university must take full advantage of all revenue and asked for everyone’s help in that area. Mr. Benson questioned the rumors of the University of Louisville moving to another conference. Mr. Jurich assured the board that there has been no contact but in the future UofL needs to look at its options.
Professor Wise asked if there would be any changes in season ticket distribution. She noted that it seems season ticket are often passed down the line of family members which does not allow much opportunity for other long time donors to get good seats. Mike Mangeot indicated that tickets can be passed down one time per family and they have to come in at a new rate. He noted that, under the current priority ticket system, it would be very difficult to rescale seating.
Report of the Chairman
Chairman Shumaker stated that it has been an interesting year for Cardinal Athletics. He thanked Mr. Jurich and his staff for their leadership and hard work. Dr. Shumaker also congratulated Joanne Rowe for winning the 2001 Trustee Award.
Prof. Wise made a motion, seconded by Prof. Kemelgore, to adjourn the meeting at