Northcentral University Middle School Athletic Program Fundraising Plan Paper Instructions For your final Signature Assignment, create a fundraising plan

Northcentral University Middle School Athletic Program Fundraising Plan Paper Instructions

For your final Signature Assignment, create a fundraising plan and a financial forecast for a sports organization or venture of your choice.

Begin by performing research to identify the various fundraising methods sports organizations use to include in your fundraising plan. Next, select an organization and venture you wish to create a plan for. Examples include building a new community high school football stadium, moving a university athletics department from Division II to Division I athletics, a general athletic department plan for a brand new high school, raising funds for the addition of a men’s lacrosse team at your university, etc.

Pick a level of sport and a project that you are passionate about. You may use an organization that you have already discussed and developed components for previously in this course.

Apply this information by creating a fundraising plan, including a financial forecast for the athletic program or project you have chosen. Your plan for fundraising should cover all aspects of the department or venture.

As the newly hired sports manager, it is your responsibility to address the following:

Pros and cons of various fundraising methods
Economic impact analysis considering the pros and cons of the program or projects’ impact on the community
The use of technological resources to promote sporting events associated with the new teams and athletic programs
Potential for sales and concessions to bolster the budget you were given
Economic challenges your project faces as you review existing budget trends and data
Potential sponsorship opportunities.
Include any premium seating, PSLs, naming rights if applicable.
Booster club and alumni association roles and responsibilities
Tax considerations

Be creative with your plan. The format for this assignment is a paper; however, you many use graphics, graphs, and tables to enhance your plan. Explain all visual effects that you include.

Length: 10-12 pages, not including title and reference pages

References: Minimum of seven to 10 scholarly resources

Your paper should demonstrate thoughtful consideration of the ideas and concepts presented in the course by providing new thoughts and insights relating directly to this topic. Your response should reflect scholarly writing and current APA standards. Be sure to adhere to Northcentral University’s Academic Integrity Policy.

Resource link

https://www.youtube.com/watch?v=owKj_rzVTsc&feature=youtu.be THE FINANCIAL STATE OF HAWAI‘I ATHLETICS:
VERSION 2.0 – REVISING THE GAME PLAN
February 2015
Hawai‘i Athletics Is Hawai‘i
We work hard, we have pride in what we do, and we are one family. When times
are tough, we come together and face the obstacles head on. In recent years, the
ability to maintain and grow our Division I programs has become challenging. We
at the crossroads of being one of the ‘haves’ versus the ‘have nots.’
Today, more than ever, we need your kōkua.
FOR MORE INFORMATION, CONTACT:
Ben Jay
Director of Athletics
Office: (808) 956-7301
Email: benjay@hawaii.edu
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EXECUTIVE SUMMARY
INTRODUCTION
When a University of Hawai‘i student-athlete steps onto the field or court, we think about how well they
will play, and whether they will win today. We don’t often think about what it took for them to get to this
point. Behind every Division I-A level student-athlete’s success is countless hours of conditioning,
training, traveling, competing, going to class and doing academic work with personal drive and
determination. Our program desires to give them the tools they need to succeed, success in life first, and
then in competition.
Our goal is to provide our student-athletes with the best educational support, facilities, equipment and
nutrition to help them the best that they can be. Our student-athletes work hard every day to make us
proud, to make Hawai‘i proud. Our men’s and women’s sport teams are Hawai‘i’s teams.
The University of Hawai‘i at Mānoa Athletics Department (UHMAD) is well known to be uniquely
challenged among Division I FBS athletic programs being 2,500 miles away from its nearest Division I
competitor with substantial team travel, mandated travel subsidy and game guarantee costs to attract
opponents to Hawai‘i. Yet the department’s operational expenditures are austere and efficient. However,
growing costs not within the department’s control (such as tuition, room, board, air travel, unionbargained raises, etc.) continue to exert pressure on the department’s generated revenues and
institutional/student fee support for the 20 sports teams in the program.
Our response to the newly changing landscape in college athletics will greatly impact our department’s
future ability to competitively recruit talented student-athletes capable of competing in the classroom, in
the competitive arena, and the quality coaches and staff working with them.
THE STRATEGIC PLAN AND THE GAME PLAN
The department’s mission and future goals are outlined in a detailed strategic plan, “The Time Is Now”,
and the specific funding needs to achieve those bold goals are outlined in “The Game Plan.
The key goals of the department’s strategic plan are:
 Strengthen the competitiveness of our overall athletics program as a nationally respected
NCAA Division I FBS athletics program and build the program to become a candidate for future
conference expansion to a high-resource athletics conference (i.e. Pacific-12 Conference).
 Strive to be as a national Top 50 athletics program (as measured by the NACDA Directors Cup
ranking). UHMAD should always strive to be a top-rated collegiate sports program that the State
of Hawai‘i can take pride in. A nationally respected program will aid in keeping the best studentathlete talent in Hawai‘i home and recruiting talented student-athletes from the mainland and
internationally.
 Generate revenue opportunities that can sustain a budget that supports a Top 50 program.
 Improve athletic competition and practice facilities to compete in the recruitment of the best
student-athlete talent. Current facilities need renovation and modernization if we are to compete
with other athletics programs and put our best face forward when potential recruits and their
parents come for their visits.
 Significantly improve game-day venue experience. This means our facilities are fully functional,
clean and updated for our fans to experience a game atmosphere that is fun and enjoyable for the
whole family.
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 Improve our student-athlete academic success, striving for the 90th percentile Academic
Performance Rate (APR) for our teams nationally. Our athletes are students first. They are here
to learn life skills and earn their degrees to succeed in life after graduation. It is our job to ensure
they have the highest likelihood of success through the academic support we provide. Our
athletes have an especially full schedule with practice and conditioning in addition to travel and
competition while still maintaining their grades.
 Strengthen our student-athlete health, strength and conditioning, and nutrition programs.
Support is critical to providing our student athletes with the best equipment, training facilities,
and nutritional meals to help maintain peak performance.
In the past two years, the department has driven forward in its best efforts to fulfill those goals. However,
beyond direct institutional and student fee support, the department has not been able to fulfill projected
revenue targets and generate sufficient revenues externally to fully subsidize the department’s annual
operating budget. Our ability to adequately fund our broad-based NCAA Division I athletics program
also has been hampered by revenues generated by, but not received, from University of Hawai‘i at Mānoa
(UHM) athletic events.
A CHANGING LANDSCAPE WILL IMPACT THE UHMAD PROGRAM
While the department has not been able to subsidize itself, especially in recent years, the department’s
dire financial condition will be exacerbated by recent events in the college athletics landscape in the
NCAA. It will rapidly change over the next 2-3 years and the new landscape will greatly impact the
competitiveness of the University of Hawai‘i’s broad-based athletics program.
Under new NCAA Division I legislation supporting student-athlete welfare issues, universities in all ten
NCAA Division I-A Football Bowl Subdivision (FBS) conferences are now permitted to offer an
additional stipend above an athletics grant-in-aid scholarship (tuition, fees, room, board, books) to eligible
student-athletes up to each university’s calculated “full cost of attendance”. FBS universities will also see
increased cost impacts by permitting universities to provide additional team meals to aid student-athlete
nutrition in all sports.
Student-athlete “cost of attendance” stipends and supplemental meals are several of the student-athlete
welfare initiatives recently approved by the NCAA and supported by institutions consisting of the five
major college football conferences (Atlantic Coast Conference, Big Ten Conference, Big 12 Conference,
Pacific-12 Conference and Southeastern Conference), now referred to as the “Higher Resource” or
“Power 5” conferences. Lucrative television contracts, multimedia rights fees, substantial football
revenues, licensing and concession revenues, as well as established annual fundraising programs, will
help pay for these enhanced benefits for student-athletes of the Power 5 universities.
But for the other Group of Five football conferences (American Athletic Conference, Conference USA,
Mid-American Conference, Mountain West Conference and SunBelt Conference), funding these
additional student welfare initiatives will be a major challenge for member institutions like the University
of Hawai‘i at Mānoa. Lacking the revenue streams benefitting the Power 5, university athletic programs
in the Group of Five football conferences are more dependent upon institutional support, student fees and
direct state support as a greater portion of their department’s operational budget support.
UHMAD FINANCIAL HISTORY
Over the past fourteen (14) years, an analysis of the UHMAD operating revenues and expenses shows a
long history of revenue shortfall. While the Department’s operating expense budgets have remained
relatively steady over several years, the Department has not been able to generate sufficient revenues
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externally or received ample institutional or student fee support to adequately fund our operating budget
in most years.
A quick summary of the department’s financial history details the shortfall of resources (as shown in
Table 1 – Athletics Department Budget Annual Surplus/Deficit :
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Ended fiscal year in deficit eleven of the past thirteen years. Projected to finish FY2015 nearly
$3.5 million in deficit.
Nine of the fourteen years will finish more than $1.5 million in deficit. Largest annual deficit in
FY2013 at $3.38 million.
Accumulated deficit past thirteen (13) years (FY2002 – FY2014) has totaled $17,515,160. But
$11,278,265 of the accumulated deficit has occurred in the past five years (FY2009 – FY2014).
Two surplus years occurred in FY2008 and in FY2011. Both occurred in most part because of
our department’s football success.
The data notes how the department’s financial status is highly dependent on the health and
success of the UHM football program. While football season ticket sales have relatively
remained steady, individual or game-day ticket sales for football have varied from a low of
$600,000 in a poor season up to $1.65 million in a good year. Football drives the department’s
revenues and supports the other non-revenue sport programs as well. Note that revenues
generated directly or in part from football include ticket sales, personal seat contributions, AKA
fundraising and other direct donations, television and radio rights fees, conference and NCAA
distributions, licensing and royalties, and apparel contracts.
PROJECTED FY2016 – FY2018 REVENUE AND EXPENSE BUDGET
Table 2A – Projected FY16 – FY18 Revenue and Expense Budget shows, in summary detail, the
department’s budgeted and actual revenues and expenses for the past four fiscal years (final FY2015
expenses are estimated as of 12/31/2014) and our future budget projections for FY2016, FY2017 and
FY2018. Table 2B provides more detailed line-item information of the department’s revenues and
expenses by departments and sport programs.
Given conservative growth of current revenue streams and projected growth in operating expenses, our
analysis indicates that the department’s history of year-end operating deficits will certainly continue.
Without new or additional subsidy support (and assuming no changes to anticipated institutional
support levels or student fees), the department’s three-year budget projections show potential operating
deficits of $2.82 million in FY2016, $4.04 million in FY2017 and $4.51 million in FY2018.
However, it should be noted that these budget figures do not include the potential financial impact of the
NCAA’s new Cost of Attendance stipends that will be permissible on August 1, 2015. As shown later in
Table 8, assuming that all awarded athletics grants-in-aid equivalencies receive the average UHM stipend,
the potential financial impact could add $1.035 – $1.232 million to our scholarship budget.
OPERATING EFFICIENTLY
While our department’s sport programs strive to compete for championships, we do so on a very barebones operating budget and budget shortfall that has led to program mediocrity. As our department
struggles to fund our program aspirations, it remains difficult to achieve a sustainable and consistent level
of competitiveness.
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As noted earlier, the University of Hawai‘i at Mānoa Athletics Department is well known to be uniquely
challenged among Division I FBS athletic programs being 2,500 miles away from its nearest Division I
competitor with substantial team travel, mandated travel subsidy and game guarantee costs to attract
opponents to Hawai’i. Yet the department’s operational expenditures are austere and efficient. However,
growing costs not within the department’s control (such as tuition, room, board, meal costs, air travel,
union-bargained raises, etc.) impacts our bottom-line and continues to exert pressure on the department’s
externally generated revenues and institutional/student fee support for the 20 sports teams in the program.
Table 3 – How Thin We Operate shows the FY2014 expense budget broken down into its major cost
centers by department and sport.
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Though understaffed to support 20 sports and 475 student-athletes, Personnel cost (salaries,
benefits, student and hourly labor, etc.) is the largest expense for the Department at 41.4% or
$12.48 million.
Scholarship Grant-in-Aid costs total $8.52 million, or 28.3% of the budget.
Team Travel/Meals/Lodging for the season are nearly $3.8 million, or 12.6% of the budget.
Recruiting is $642,422, or 2.1% of budget.
Operations is the remainder at $4.7 million but it must be noted that $1.76 million is spent on
travel subsidies paid to our Mountain West and Big West Conference institutions totaling $1.2
million and Aloha Stadium expenses for football game days are approximately $560,000. This
leaves 9.76% of the budget (~$2.94 million) to pay for game guarantees (paid to attract nonconference opponents to Hawai’i), officiating costs, materials and supplies, rental costs,
equipment, telephone and repairs & maintenance.
Without further impacting student-athlete welfare, gender equity balance or recruiting support for our
coaches, having less than 10% of operating budget available for the above costs shows how thin our
available resources are for daily operations.
HOW UHMAD COMPARES WITH OTHER DIVISION I ATHLETIC PROGRAMS
To measure our department in comparison with other athletic programs on the U.S. mainland, we
prepared several analyses measuring operating revenues, operating expenses, game guarantees, team
travel costs, direct institutional, direct state and student fee support. Our measures compared UHMAD to
our Mountain West and Big West Conference colleagues, as well as other mid-major football institutions
in the American Athletic, Conference USA, Mid-American and the SunBelt Conference.
To compare apples to apples, the most readily available financial information was obtained from 20122013 NCAA Financial Reports using the Winthrop Intelligence On-Line Database.
In Table 4 – Revenue Comparison with Group of 5 Football Conferences and Big West (NonFootball) Conference Programs, Hawai‘i’s operating revenues of $30.65 million ranked 15th on the list
of 61 schools but fell below the average American Athletic and Mountain West Conference school at
$52.39 and $34.17 million respectively.
In Table 5 – Expense Comparison with Group of 5 Football Conferences and Big West (NonFootball) Conference Programs, Hawai‘i’s operating expenses of $33.99 million ranked 13th on the list
of 61 schools but was below the average American Athletic and Mountain West Conference school at
$51.87 and $34.82 million respectively. Note in this table that Hawai‘i’s travel subsidy of $1.2 million is
included with $1.01 million in game guarantees paid to visiting opponents. Team travel expense is $3.41
million.
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In Table 6 – Game Guarantees and Team Travel Costs/Subsidy, Hawai‘i’s total game guarantee and
travel costs totaled $5.62 million which ranked 11th on the list of 70 schools (which included the Pacific12 Conference). Only seven Pac-12 and three American Athletic Conference schools ranked ahead. Due
to the $1.2 million in travel subsidies that UHMAD must pay to Mountain West and Big West schools,
the $5.62 million, UHMAD spent more than $1.27 million than the next Mountain West school, San
Diego State at $4.35 million. The $5.62 million was 16.53% of Hawai‘i’s Operating Expense Budget,
highest among the 70 schools.
In Table 7A – Comparison of Direct Institutional Support, Student Fees, Direct State Support and
Indirect Facilities and Administrative Support by Mountain West and Big West Conference
Institutions,
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At $1.68 million in student fee support and $6.36 million in direct institutional support,
UHMAD’s direct institutional and student fee support total of $8.04 million ranked last in dollar
support on the list of 19 Mountain West and Big West schools.
UHMAD’s $8.04 million funded 23.7% of its operating expense budget of $33.99 million.
Eight of the ten reporting Mountain West schools receive a greater percentage of direct
institutional, direct state and student fees support, ranging from 36.1% to 61.4%, to fund their
operating budgets. The average Mountain West school received $14.43 million (funding 41.5% of
their operating expenses).
All eight of the reporting Big West (non-football) schools range from 63.2% up to 88.0% of their
support from both sources. The average Big West school received $11.43 million (funding
75.6% of their operating expenses).
Five Mountain West schools received direct state support ranging from $140,000 for Utah State
up to $7.01 million for Nevada Las Vegas.
For 2012-2013, UHMAD received an average $3.39 million less in direct institutional, student fee
and direct state support than the average Big West school, and $6.39 million less than the average
Mountain West school.
In Table 7B – Comparison of Direct Institutional Support, Student Fees, Direct State Support and
Indirect Facilities and Administrative Support of Other Mid-Major FBS Conferences
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Compared to the other mid-major FBS schools, UHMAD’s direct institutional, student fee and
direct state support total of $8.04 million ranked 38th of 42 schools in dollar support on the list of
American Athletic, Conference USA, Mid-American and SunBelt schools.
The average institutional/state support ranged from $11.15 million for SunBelt schools up to
$17.18 million for Mid-American schools.
Six of the 41 schools received direct state support ranging from $50,000 for Florida International
up to $3.40 million for Idaho.
Institutional, state and student fee support makes up 41% of funding for the average American
Athletic Conference school’s operating budget up to 70.6% for the average Mid-American
Conference school, as compared to UHMAD’s 23.7%.
FUTURE FINANCIAL IMPACTS
In Tab 8 – The Cost of Attendance and The Increased Cost of an Athletics Scholarship, cost of
attendance (COA) will be a game-changer for many student-athletes. As of August 1, 2015, athletic
departments will be able to provide athletic aid that will equal the full cost of attendance (for full
scholarship sports), and use COA amounts for calculating partial scholarships. Cost of attendance
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amounts are different for each institution and are based on calculations made by each institution’s
financial aid office using federal guidelines. Basically, cost of attendance covers expenses beyond room,
board, tuition and books currently provided by the athletics grant-in-aid. Even though the price of
attendance varies from school to school, athletic scholarships will now cover the cost of additional
personal and miscellaneous school-related expenses. Current athletic scholarships only cover the cost of
tuition, room and board, books and fees.
Cost of living differences and varying transportation costs are some reasons why the dollar amounts
would differ from campus to campus. Another reason for differences is that the formula used for the
calculation could also vary slightly at each campus. As part of their cost-of-attendance calculations, some
schools include expenses related to transportation home twice per year, tuition fee, miscellaneous
personal expenses, loan origination fee and administrative fees.
The choice to provide the full cost of attendance to some or all student-athletes will require a significant
financial investment by the Power 5 schools, as well as the mid-major conference schools in the Group of
Five like the University of Hawai‘i, that will test our commitment to compete at the highest level.
It is not a fait accompli that everybody is going to give full cost of attendance supplements to every single
one of their student athletes. But many athletic departments want the cost …
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