MINUTES OF THE BOARD OF DIRECTORS
UNIVERSITY OF LOUISVILLE ATHLETIC ASSOCIATION, INC.
In Open Session
The members of the Board of Directors of the University of Louisville Athletic Association, Inc., met on February 3, 2004, in the Jefferson Room of Grawemeyer Hall, with members present and absent as follows:
Dr. James Ramsey, Chair
Mr. Bob Benson, Treasurer
Mr. Joe Beyel
Mr. Burt Deutsch
Prof. Richard Feldhoff
Mr. Bill Forman
Mr. Grant Helman
Mr. Wade Houston
Mr. Tom Jurich, ex officio
Prof. Richard Miller
Prof. Glenda Neely
Mr. Larry Owsley
Prof. William Pierce
Mr. Mike Seebert
Prof. Robert Stenger
Prof. Richard Stremel
Dr. Shirley Willihnganz
Prof. Elaine Wise
Prof. William Cheadle
Mr. T. W. Samuels, Jr.
Mr. Sam Rechter
Mr. D. Harry Jones
Dr. Henry Enck
Prof. Paul Weber
Ms. Angela Koshewa
Mr. Mike Curtin
Mr. Dave Barker
Mr. Kevin Miller
Ms. Alicia Clark
Mr. John Carns
Mr. Gary Friedman
Mr. Kenny Klein
Mr. Pete Cautilli
Ms. Anne Rademaker
Ms. Kathleen Smith
Ms. Debbie Dougherty
Mr. Bernie Backert, Deloitte & Touche
Mr. Jim Carpenter, Deloitte & Touche
I. Convene Meeting
Having determined a quorum present, Chair Ramsey called the meeting to order. Chair Ramsey welcomed new board member, Mr. Burt Deutsch.
II. Approval of Minutes
Mr. Sticklen made a motion, which Mr. Forman seconded, to approve the minutes of October 27, 2003 and November 13, 2003. The motion passed unanimously.
III. Report of the Finance & Budget Committee
Action Item: Approval of Football Season Ticket Prices for 2004
Mr. Miller reported that student and student guest ticket prices will not be increased. Mr. Benson made a motion, which Mr. Deutsch seconded, to approve the
Athletic Director’s recommendation that the Board of Directors approve for Football a season ticket package for 2004 as outlined below.
Category (6 games) (5 games)
Reserved $168 $157
Club/Suites $198 $177
Faculty/Staff $156 $149
L-Club $156 $149
Family Plan (4 tickets) $552 $548
Single Game Reserved $28 $28/$45
The motion passed unanimously.
Information Item: 2002-03 Budget Analysis
Mr. Benson asked Mr. Miller to provide highlights of the 2002-03 budget analysis. Mr. Miller shared the following:
1. Football revenue exceeded budget by $741,000.
a. Football ticket sales exceeded budget by $723,000.
b. Football CUSA Television exceeded budget by $298,000.
- 2. Papa Johns Cardinal Stadium Non-Football Revenue exceeded budget by $192,000.
- 3. Men’s Basketball exceeded budget by $552,000.
a. Basketball ticket sales exceeded budget by $187,000
b. Guarantees exceeded budget by $174,000.
c. Basketball CUSA Television exceeded budget by $91,000.
- 4. Annual CAF donations exceeded budget by $386,000.
- 5. Revenue from NCAA exceeded budget by $386,000.
- 6. Nelligan Sports Marketing exceeded budget by $964,000.
Mr. Miller reported that total expenses were under budget by $983,000. He stated that in addition to reducing expenses and increasing revenue projections, Athletics raised an additional $4.5 million to fund Minardi Hall.
Information Item: Second Quarter Budget Analysis
Mr. Miller reviewed the second quarter budget analysis, noting that ticket sales were under budget. An internal review also is underway to determine the factors for decreased parking and concessions revenue. He reported that Athletics is working to improve the football home schedule by adding the Miami game. With respect to non-football events at the stadium, actual revenue exceeded projections. The Department is negotiating additional concerts. The US Olympic women’s soccer team will play in the stadium in late May early June. With respect to basketball revenue, actuals exceeded budget targets. Also, for the first year annual basketball seat donations increased. On the expense side, all costs remained within budget. He referenced the deferred compensation for Coach Pitino; Athletics has begun to purchase annuities to hedge this future obligation.
In June 2003 the ULAA board approved the purchase of field turf. Athletics had made the purchase for football at Papa Johns Cardinal Stadium and will purchase turf for the baseball stadium. Issues remain, however, regarding the proposed baseball property, and Athletics hopes to resolve those contingencies within the next few months. The projected baseball opening for the field date is February 2005.
Vice President Curtin added that this is the first year the financial budget has been structurally balanced. He recognized the diligent effort of Messrs. Jurich and Miller in allocating and monitoring the budget. Mr. Curtin stated the revenue exceeded budget last year and predicted it would this year. Mr. Curtin said these are excellent results and ULAA will not need to transfer funds from its reserve fund. President Ramsey thanked Athletic Director Jurich, Vice President Curtin and Senior Assoc. Athletic Director Miller for their excellent work with the budget.
Action Item: Approval of Audited Financial Statements – Year Ending June 30,
Mr. Miller asked Mr. Backert to comment. Mr. Backert said that Deloitte & Touche has issued a clean, unqualified opinion of the financial statements. He observed that Mr. Miller has done an excellent job of reconciling the account. Mr. Benson made a motion, that Mr. Seebert seconded, to approve the
Athletic Director’s recommendation that the Board of Directors approve the attached audited financial statements for the period ending June 30, 2003, as presented under Governmental Accounting Standards Board (GASB) 34 (copy available upon request).
The motion passed unanimously.
Mr. Benson acknowledged the superb efforts of the staff. He also noted that in his work in Frankfort, he has received very positive reports of President Ramsey’s recognition of elected officials at our athletic events. Mr. Benson encouraged President Ramsey to continue his efforts to showcase the many friends who help UofL.
IV. Report of the Athletic Director
Athletic Director Jurich commended Mr. Miller and Ms. Clark for the excellent
work on the budget.
Mr. Jurich reported that over 260 student-athletes made the honor roll (3.0 GPA or better) for Fall 2003. The department’s goal is 300 or more students on the honor roll. He thanked Mr. Mitchell and Prof. Wise for their contributions to this success. Prof. Wise reported the Red and Black banquet is scheduled for February 29 at the Brown & Wiliamson Club and invited all board members to attend. Board members will be seated with student-athletes. The banquet recognizes all student-athletes with a cumulative GPA of 3.25 or higher.
Mr. Jurich reported the football signing date is February 4. Coach Petrino is doing a great job. Signees for last year include Martel Jones and Michael Bush. Brian Brohm will sign this year. Mr. Jurich said Coach Petrino is a strong reason why these recruits came to UofL. From 3-4 p.m. tomorrow the media will be in the recruiting lounge; Coach Petrino will release names and show a video about Cardinal Football and welcome the athletes who signed with UofL. Mr. Jurich thanked President Ramsey for involvement and support.
Mr. Jurich expressed excitement concerning the women’s basketball program. The women’s team record this year is 12-8. Coach Collen is recruiting a terrific class this year. USA Today will write an article focusing on Coach Collen and student-athlete Crystal Kelly.
Mr. Jurich reported on the status of the RFP process for TV rights. UofL has enjoyed a long-standing relationship with WDRB, but WHAS TV submitted an aggressive bid to secure the contract. Mr. Klein confirmed that WHAS-TV submitted the best bid, noting that an ESPN official remarked it was the best package he had seen. The bid provides excellent exposure for all sports. The agreement hasn’t been finalized yet, but it increases marketing and financial opportunities for Cardinal sports. It will also promote the Athletic Department and the University. Mr. Klein noted one year remains on the existing contract with WDRB. Mr. Jurich reported the new contract with WHAS-TV will take effect July 1, 2005, for a period of five years with an opportunity to renew for five additional years. In response to Prof. Pierce’s inquiry, Mr. Jurich said that the TV contract did not depend on the timing of UofL entering the Big East. In response to Vice President Owsley’s inquiry to determine if there were any internal problems which resulted in WDRB failing to win the bid, Mr. Klein responded no internal problems existed, WDRB failed to meet the submission deadline. Mr. Miller reported that Athletics Department staff met with all bidders. WHAS elevated its initial proposal by several hundred thousand dollars. Athletics staff followed all purchasing guidelines and worked closely with Purchasing Director Don Speer throughout the entire process. Mr. Jurich thanked Mr. Mitchell Payne for his oversight regarding the appropriateness of the bid process. Mr. Miller said both parties have agreed on the terms, and the contract is now under legal review.
Mr. Jurich updated the Board regarding the arrangement with Ticketmaster, noting tickets will now be available at Kroger’s. Mr. Jurich acknowledged Mr. Friedman’s excellent work in this area.
Mr. Jurich reported that Mr. Friedman secured $350,000 in a matching grant; Athletics has until March 1st to match it and move forward on the 3rd and Central Avenue property. President Ramsey is collaborating with the mayor’s office to improve the attractiveness of that corner. People are excited about the area. The target date for completion of Patterson Stadium is February, 2005; the 2004 season will be the final year to play baseball at KFEC.
Mr. Jurich reported the basketball practice facility will remain at Cardinal Arena. YUM donated $5 million; this donation will aid in enlarging Cardinal Arena and make it a prime-time practice facility. The location is convenient for student- athletes and the expansion will increase seating.
Mr. Jurich acknowledged the $2 million gift from the Trager family for the field house. Currently, Athletics is reviewing a building of about 90,000 sq ft. by the Papa John’s Cardinal Stadium.
Mr. Jurich reported on the discussions related to the boathouse; Athletics is working with Marlene Grissom.
The AD acknowledged the University will join the Big East in the 2005-06 season. Mr. Jurich expressed his appreciation for the diligent efforts of President Ramsey to work through the necessary steps.
Mr. Jurich reported the football schedule for TV is targeted as follows:
Date Opponent Site
Sept. 5 Kentucky* PJCS
Sept. 11 at Army West Point, NJ
Sept. 18 at Tulane New Orleans, La.
Sept. 25 at North Carolina Chapel Hill, NC
Oct. 2 East Carolina PJCS
Oct. 14 at Miami* Miami, Fla.
Oct. 22 South Florida PJCS
Nov. 2, 3, or 4 at Memphis Memphis, Tenn.
Nov. 9, 10, or 11 TCU PJCS
Nov. 20 at Houston Houston, Texas
Nov. 27 Cincinnati PJCS
Mr.Miller noted there are two games on ESPN, with the possibility of three additional games.
In response to Prof. Pierce’s inquiry regarding the issues related to volleyball sharing court time with men’s basketball, Mr. Jurich reported the problem will be resolved by the addition of another gym to allow sufficient practice time.
Mr. Jurich reported that Deon Branch and Ted Washington will return to UofL to complete degree requirements as Bridgeman Houston Fellows. In late February, the University hopes to honor Deon Branch and Ted Washington, when they return.
V. Report of the Chairman
President Ramsey observed the athletic program is a great asset to the university, community and state. The athletics program is competitive in academic performance, compliance, financial integrity, and on the field. With the Athletic Department’s high standards for academic integrity, he and the Provost can focus their time and attention on the University’s academic mission. President Ramsey thanked the Athletics Department for its support in promoting the University as a quality institution. Dr. Ramsey reported recruitment for a business dean is drawing to a close with several excellent candidates. Coach Pitino and Tom have helped this recruitment.
Prof. Wise reported the success of nationally spotlighting the women’s tennis team. Four members of the field hockey team made the academic All-American teams. In addition, Christina Hershey made it to the 2nd round of the selection process for an NCAA scholarship. President Ramsey observed the University has great student-athletes and encouraged everyone to attend the women’s basketball game Friday evening.
Mr. Benson made a motion, which Mr. Houston seconded, to adjourn the meeting at 5:00 p.m. The motion passed unanimously.