Report to the Task Force on Intercollegiate Athletics Cal Baseball Foundation, Inc. October 2016
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1 The Case for Cal Baseball Report to the Task Force on Intercollegiate Athletics Cal Baseball Foundation, Inc. October 2016
2 The Case for Cal Baseball Cal Baseball Foundation, Inc. October 2016 The Cal Baseball Foundation commits to continuing the successful financial model that has sustained the Cal Baseball program since 2011, while addressing the financial needs of the University. Chancellor Dirks has initiated a review of the costs, regulations, and campus impact of the intercollegiate athletics program in light of a campus-wide structural deficit of $150 million. This review is expected to result in recommendations to improve the financial stability of the Athletics Department and address Title IX obligations. In Fall 2010, a similar review by campus Administration resulted in the elimination of the men s baseball program and four other sports to reduce the athletics program s draw on campus funds. At that time, campus subsidies to the Athletics Department were viewed by some as untenable in the face of tuition increases and cuts in academic programs. In April 2011, Chancellor Birgeneau reinstated the baseball program following the Cal Baseball Foundation s commitment to implement a new financial model largely independent of campus funds. This model garnered national attention as a potential solution for collegiate sports throughout the country. (See Wall Street Journal, The Cal Baseball Resurrection April 22, 2011.) The Cal Baseball Foundation, Inc., is a 501(c)(3) non-profit public benefit corporation formed in The Foundation was established initially to serve in the limited role as the fiscal agent for the baseball program s annual golf tournament. Following the University s announcement of the program s elimination, the Foundation assumed additional responsibility to successfully secure the program s reinstatement. The Foundation s goals are to minimize the draw on endowment funds by increasing annual fund raising and game-day revenue, and to establish a long-term endowment to replace the term endowment. Board of Directors 6 Major donors to the term endowment 6 Cal Baseball player alums 7 At-large members from the Cal Baseball Community 3 Non-voting members representing the Chancellor, Athletic Director, and Head Baseball Coach The Foundation is designated by the University as a campus support group and has been recertified annually since The Foundation s communications strategy continues to generate significant interest in Cal Baseball. We issue a Newsletter three times a year to our database of over 4,000 followers. Our newly designed Website provides updates on the Foundation s activities, collects registrations and payments for Foundation events and fund raising efforts, and provides links to Calbears.com for team news and ticket information. The Case for Cal Baseball / Cal Baseball Foundation / October
3 Cal Baseball A Legacy of Excellence Baseball has been an honored tradition at the University of California for over 140 years. Before finding a permanent home at Evans Diamond in 1933, intercollegiate baseball was played at several campus sites, including west field (in the shadow of Giannini Hall) and Memorial Stadium. Photos of these contests eloquently testify to the rich history of Cal baseball and the central place it has occupied in the life of the University. The Cal-Stanford rivalry for the Axe, now a hallmark of Cal s football program, debuted at the April 15, 1899 Cal v. Stanford baseball game. Excellence on the field and in the classroom defines Cal Baseball. Supporters rallied to Cal Baseball s cause in 2011 to preserve the virtues of hard work, dedication, perseverance, and intelligence exhibited by Baseball s student athletes, reflecting the core values of the greatest public university in the world. Academic Excellence Division I Men s Baseball is where academic and athletic excellence meet. The most competitive programs nationally are also the most highly ranked schools academically as evidenced by the participant schools in the College World Series. As the number one public University in the world, Cal should remain in this league. Academic Progress Ratings Cal vs. Pac- 12 Peer Schools (Source: NCAA.org) Graduation Success Ratings Cal vs Pac 12 Peer Schools (Source: NCAA.org) Academic Progress Rating Reporting Year Ariz CAL UCLA Oregon Washington Graduation Success Rating Cohort /Entering Class Year CAL Arizona UCLA Oregon Washington Academically, Cal Baseball consistently ranks at the top of our Pac-12 peer public institutions as measured by Academic Progress Ratings and Graduation Success Rates. Our athletes have earned top Conference honors even under Cal s more rigorous academic requirements. Since the program s reinstatement in 2011, in addition to its on-field success, Cal Baseball has graduated 32 seniors, which represents 90% of players within their 4-year eligibility, and more than 15 of our players have earned Pac-12 Academic Honors. In 2016, Senior Nick Halamandaris was named the Pac-12 Baseball Scholar-Athlete of the Year. The Case for Cal Baseball / Cal Baseball Foundation / October
4 Athletic Excellence Playing in one of college baseball s elite conferences, winning two national championships, regularly qualifying for post-season play, and having its alums achieve prominence and fame in myriad professional endeavors places the tradition of Cal Baseball among the best in the nation. Men s baseball holds 20 conference championships, the most of any men s sport at Cal, and ranks 6th in national championships among all Division I men s baseball programs. Cal Baseball ranks favorably in comparison with its peer public schools in the Pac-12, both in team and individual athletic performance. The program has produced numerous Major League Baseball players, and a considerable number of players are drafted into professional baseball every year. Cal is the only institution that has two of its former players currently managing in the major leagues. Achievement Cal UCLA U of A U of O UW Rank Conference Championships National Championships College World Series Appearances USA National Collegiate Players (1990- ) Post- season Tournament Appearances All- Americans All- Conference MLB Draft Picks Major League Players (Source: Pac Baseball Media Guide) Cal Baseball s Financial Model Endowment Funds When Cal Baseball was eliminated from the University s roster of intercollegiate sports programs in 2010, Cal alums, professional associates, players, parents, and friends rallied to secure the program s future. The Cal Baseball Foundation was formed and immediately launched the Save Cal Baseball Campaign. Save Cal Baseball Campaign Total = $9.2 million from 1200 donors $500,000 and over $100,000 - $499,999 $50,000 - $99,000 $25,000 - $49,000 $10,000 - $24,999 $5,000 - $9,999 $1,000 - $4,999 up to $999 Between February and April 2011, in the span of three short months, the Save Cal Baseball Campaign raised $9.2 million, thereby securing the program s reinstatement for a 7-10 year term. Over 1,200 separate donors contributed to the fund, which is clear evidence of the widespread support for the continuation of men s baseball on the Cal campus. The Case for Cal Baseball / Cal Baseball Foundation / October
5 Annual Revenue Generation In March 2011, based on a review of peer Division I baseball programs, the Foundation adopted a Strategic Plan. This Plan, which was agreed to by the University, has guided the implementation of several revenue-generating strategies, in full coordination with Cal Athletics, to extend the life of the term endowment. As shown in the adjoining figures, our progress is impressive, yielding an increase of $426,000 in annual revenue since the program s reinstatement. Game day revenues have nearly tripled, contributions to the baseball annual fund are up 87%, and our Gala has been sold out each year since it began in 2012 an extraordinary demonstration of commitment to sustaining Cal Baseball. $0 The Foundation has introduced sponsorship opportunities for program donors, including game-day recognition and fence banners at Evans Diamond. The potential exists for substantially more revenue from this source and the Foundation is actively pursuing additional sponsors. Revenue Strategy 2010/ /16 Diff % Change Game Day Revenue $62,000 $185,000 $123, % Cal IA Contract Revenue 154, ,000 34, % Annual Development 118, , , % Gala/Auction Revenues 0 130, , % $800,000 $600,000 $400,000 $200,000 CBF Sponsorships 0 35,000 35, % Total $334,000 $740,000 $426, % Cal Baseball Annual Revenue Growth 2011 through Game Attendance Cal Baseball offers the best fan experience in the Pac-12. With the installation of field lights and new video scoreboard, and the creative coordination among the Foundation volunteers and Cal IA event staff, community support for Cal Baseball has expanded significantly, resulting in a positive impact on annual revenues. Despite an increase in ticket prices to meet revenue goals, and difficult game scheduling for the Pac-12 Network, attendance at Evans Diamond has tripled since The fan experience now includes special game-day events, including Kids Days and Public Safety Day, and expanded group ticket offerings. The Foundation hosts an annual Fan Fest and has opened The Bullpen Beer Garden to enhance the game-day experience. The Case for Cal Baseball / Cal Baseball Foundation / October
6 Facilities Improvements Working closely with the Cal Athletics Capital Projects staff, the Foundation raised funds to install field lighting and a new video scoreboard at Evans Diamond. These improvements make it possible for Cal Athletics to meet its obligations under the Pac-12 Network media contract, and the lighting installation fulfills the campus long-standing need for safety lighting for fans attending night basketball and volleyball games at Haas Pavilion and access to the Recreation Sports Facility (RSF). In 2016, the Foundation sponsored the renovation of the team locker room. Alumni Engagement The Foundation maintains a strong relationship with Cal baseball alums and their families through the annual Ralph Walker Cup, pre-season Gala, Alumni Day, and Fan Fest. Over 30 former Cal baseball players (1970-present) have formed an Era Captains player-to-player network to keep alums up to date on the status of the program and to host events to bring former student athletes back to the Cal campus. In its most recent effort, former players, family and friends launched the Bob Milano Scholarship Fund. The Alumni have initiated the Career Mentoring/Business Network, including a series of hosted workshops for current student athletes and young player alums to discuss job search skills and to mentor the transition to professional life after baseball. Community Involvement Cal Baseball is committed to the development of young athletes who are focused, self-disciplined, and dedicated to the broader community. Each year the team volunteers at the Alameda County Food Bank and sponsors a book drive at Evans Diamond to support the East Bay Book Project. More recently, Cal Baseball established a relationship with the De La Salle Academy, a middle school for boys of academic promise from low-income families. The team works with The Case for Cal Baseball / Cal Baseball Foundation / October
7 Academy students in their classrooms and at Cal, in an effort to inspire academic achievement and teamwork. Cal Baseball Financial Plan The financial challenges currently under discussion by the Task Force on Intercollegiate Athletics are not new to men s baseball, which continues to thrive despite the loss of campus funds. Since its reinstatement, the Baseball program has met its financial obligations using a model that is viable for the long term. The Foundation is committed to finishing what we began in 2011 with a strategic multi-year investment plan (outlined below) that maintains a viable men s baseball program and addresses the financial needs of the University. 20-Year Endowment Campaign Underway The Foundation has launched the silent phase of our 20-year/$15 million Endowment Campaign and has received pledges in excess of $4 million. Since major donors understand that the University is again considering reducing the number of sports, we know it will be difficult to secure additional pledges until the decision is made to retain men s baseball. Therefore, while the Task Force deliberations are underway, we are in the process of securing multi-year commitments to the Baseball Annual Fund. Funds collected by the Foundation will be transferred to the University on an annual basis upon the confirmation that men s baseball will continue to represent Cal as an intercollegiate sport. The Case for Cal Baseball / Cal Baseball Foundation / October
8 Continue Trend in Annual Revenue Growth and Reduce Program Expenses We intend to reach our target of $1.2 million in annual revenue by the end of the 2018 season, consistent with the rate of growth we have achieved over the past five years. This will extend the current term endowment through FY by which time we will complete the Endowment Campaign. We are projecting growth in our annual Gala sponsorships, donations to the Annual Fund, donor sponsorships, and game-day revenue. All four strategies are well underway and we are confident we can meet these projections given the progress in revenue generation over the past five years. $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 Cal Baseball Revenues by Category Actual Actual 2018 Target In addition to increasing revenues, we are exploring ways to reduce program expenses by up to $150,000 annually. Conclusion The Cal Baseball Foundation welcomes the Task Force s efforts to improve the financial stability of Cal Athletics. In 2011, the Foundation confronted the elimination of the baseball program and secured its reinstatement with a financial strategy that is largely independent of campus funds and has limited impact on the Athletics Department budget. Our experience implementing this strategy, with the support of the Athletics Department staff, gives us the confidence that Cal Baseball will continue its 140-year history, achieving high standards of athletic and academic performance, and reflecting the core values of the greatest public university in the world. The Case for Cal Baseball / Cal Baseball Foundation / October
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