Valpo to be visited by MVC this week, thoughts?

[VU2014]

Who here would start or join a group that commits to donating 5% of their pretax income towards improved athletic facilities at Valpo? If you are not willing to do that, you are essentially saying that you want something and you want someone else to pay for it.

I get people are sick of the, "Lets get a new ARC" talk. And the argument of if your not willing pay for it then don't expect it.

I think the greater overall discussion is that I/others would like to see a plan/goal/vision for a renovation from the administration. Have the athletic department set a timeline and goal amount for renovations and set up fundraising for it.

[agibson]

Renovations don't necessarily need to come from the endowment.

They more or less can't come from the endowment. The university's restricted as to what they can take from the endowment - it's probably at the few to five or so percent level. The idea is that the endowment is invested, and that you spend (some of?) the return on that investment without touching the principal. So that the principal is around in perpetuity.

It's not normal to spend endowment funds (certainly not in the tens of millions of $$) to build buildings. It's why we've had capital campaigns for construction, or in recent years why we've taken loans to fund construction projects.

Maybe the board could authorize an exception, but it's hard to imagine them wanting to spend tens of millions of endowment funds to build anything.

[VU2014]

Maybe the board could authorize an exception, but it's hard to imagine them wanting to spend tens of millions of endowment funds to build anything.

Yeah the endowment is suppose to be the "rainy day' fund so if the economy came crashing down, the University would have a safety cushion to help it survive the rough time.

Although I think it's borderline hilarious the endowment amounts that some college/universities have like Harvard $37 billion. The endowment funds just sit there and accrue the investment income tax free. There have been proposed bills in Congress on both sides of the aisle to start taxing these endowment funds as a way to raise revenue for the Federal Gov. Not sure thats a wise idea, because when has Congress ever spent tax dollar responsibly? Probably nothing will come from that. I just find it ironic that many of these institutions are sky rocketing tuition prices on students while their endowments get fat and happy. Even UIC has over a $2.25B endowment and the state of Illinois is dead broke.

[78crusader]

The University has determined its fundraising focus in the near term should be on the endowment rather than facilities.  I think that is wise.  As VU72 pointed out, the endowment for Santa Clara, a school similar to VU in several respects, is nearly 4 times more than the VU endowment.  Simply stated, the size of our endowment puts us at a competitive disadvantage.

I suspect the building boom that VU has seen over the past 10 years is over and we are entering into a new phase that will emphasize the endowment and renovations for the dorms, which are aging and badly in need of some work (I would prefer new dorms -- who wouldn't? -- but the cash simply isn't available.)  I mention the dorms simply because they are what President Heckler identified as the next renovation projects in his WVUR interview in December.

It is going to take a lead gift or two in order to make the rec center and ARC renovation happen.  This isn't impossible -- there are people out there who can write the big check -- but I don't look for any type of campaign to raise funds for these buildings.  Remember it took years to raise the necessary funds for the Union, and I submit the need for that building was even greater than the need for a rec center and a remodeled ARC. 

Paul

[bbtds]

current conference rankings have MVC as 12, summit league 17 and the HL 18.  Take Wichita St (78) out and they are closer to the Summit and HL.  Take Valpo (61) out and the HL is closer to the #21 Patriot League. 

Regardless, the tournament would be at a more neutral location.  The competitiveness of the league may not be huge but the moving of the conference tournament is a big enough reason to leave.

I wish I could have a brutally honest conversation with Mark LaBarbera on the state of conference shifting and the state of the Horizon League and the potential of moving conferences. I respect the hell out of ML and doing what he's doing with the resources (or lack thereof) that the administration is giving him. A $250million fundraising and not a dime goes to your athletic department for new infrastructure to help better your athletics programs which is great PR for the schools reputation when their Men's basketball program does well.  If I ever win the lotto, I'd write a big fat check and say this goes towards a new or major renovation of the ARC (but before I'd sign the check I'd want a commitment from the top to get the ball rolling on it.)

I would just love to sit down with ML and have a brutally honest talk conferences and what the realities are.

Call the athletic dept. I'm sure he would have an honest conversation with you.

http://www.valpoathletics.com/athletics/staff/4679/mark-labarbera/#.WJM8qhsrLIU

219-464-6894

[bbtds]

Newer/updated facilities would be nice and I hope to see more threads on this topic.

[VULB#62]

-Sell naming rights of the ARC. South Dakota State built a new Sports Complex for $66M and sold the naming rights of the stadium for $20M. I wouldn't expect $20M for just renovating the ARC but a decent chunk of change. http://www.washingtontimes.com/news/2016/apr/12/usds-new-arena-to-be-called-sanford-coyote-sports-/

I've always wondered why there isn't a closer tie between VU and Thrivent Financial - the Lutheran-based financial investment organization who, by charter, must give back to its membership -- now expanded to include all "Christians" but originally was named the Aid Association for Lutherans (AAL).  For the foreseeable future we will have the ARC right where it is, but there is no reason not to expand, renovate and sell the naming rights to the arena portion of the facility. Thrivent Arena makes a lot of sense to me.  For both Valpo and Thrivent it would be a winning situation. 

[valpo64]

Like the Thrivent Arena thing!!

[M]

I love this idea...I mean Thrivent already does the retirement planning stuff for the faculty and staff I do believe.  Make it happen fundraising department (I know you are reading this board).

[bigmosmithfan1]

Like the Thrivent Arena thing!!

Or Centier Bank... successfully, Region-based financial institution looking to continue growth.

And to loop this back to another discussion bemoaning the uneven attendance, I'd posit the fact that sitting in the high school bleachers on the south side of the arena is a sub-optimal Division I basketball fan experience and does nothing to help encourage casual fans to attend (which is what you need to fill the ARC in addition to diehards and students). Improve the facilities, improve the amenities that fans are getting for their ticket dollar, you improve attendance.

[NativeCheesehead]

And don't tell me Gus wouldn't cream himself at the chance to hear "Family Express Arena" announced on TV 18 times a year.

[VUOR63]

They're budget probably isn't big enough based on all of the $0.25 beers I drank there while at Valpo but Duffy's Arena has a good ring to it.

[valpo84]

Naming rights are helpful if we have an expansion/renovation project available. And, they are one of many funding sources for renovation. However, they may not be as lucrative or available as you all might believe.  The below articles show some deals.  Location/marketability of an arena is a critical component -- what are you selling and how is it valuable to the entity buying the rights.  Naming rights deals are also not in high demand by advertisers/marketers unless the terms and benefits provide you with the value you are spending; or if you have a strong tie to the university or cause. Does the sponsor know how to maximize the value -- interactive, direct. consumer base it desires, integrated marketing, etc.? In 15 minutes of googling, here are a few articles and suppositions:

1. US Steel Yard in Gary (baseball park -- 50 dates a year) has done 2 10 year deals in its existence with US Steel.  The most recent 10 years $2.3 million.  So about $230,000 per year.

2. Resch Center Green Bay appears to have been around $4.875 million in 2002 when built.  Additional terms were not quickly located, but this is a nearly 10,000 arena in a mid-sized town and an arena with a broader reach. Also, party providing funds (Mr. Resch) also had civic pride as a motivating factor.

3. Ford Center Evansville was $4.2 for 10 years.  It is also the primary arena for a city somewhat like GB.

http://archive.courierpress.com/features/arena-to-be-named-ford-center-in-42-million-deal--poll-video-ep-445265469-324567251.html

4. Nutter Center at Wright State looks like about $2.8 million but exact terms weren't found.  A more recent article says with financial issues at WSU, they are looking for $1 million for naming rights -- how long those would be for not discussed.

http://www.mydaytondailynews.com/news/nutter-center-naming-rights-among-possible-wsu-revenue-streams/zknAq7owQjkt2xjMgc4nnJ/

Experience has shown most deals are 10 years and vary in value based on size of arena/park, level of athletic competitions, size of the city/metro area and marketability in general of the occupants of the facility. 

http://www.sportsvenues.com/rsv.php?menu=names

Valpo is not a major regional draw or advertiser, is limited in TV exposure and the arena/city are not that big.  The ARC is not the main venue or even a competing venue for events outside of basketball in the area.  It doesn't host broader events, except Lutheran hoop tourney and the once in a blue moon concert or Phi Delt Boxing matches.  Not to be a rain cloud, but unless you found someone like Gus who wants to put his name on the side or his company's then options are limited. Thrivent (f/n/a AAL) has been a natural fit, but someone needs to put together the marketing benefits analysis on why they should. 

[covufan]

They're budget probably isn't big enough based on all of the $0.25 beers I drank there while at Valpo but Duffy's Arena has a good ring to it.

Or Jackson's!

[bigmosmithfan1]

Valpo is not a major regional draw or advertiser, is limited in TV exposure and the arena/city are not that big.  The ARC is not the main venue or even a competing venue for events outside of basketball in the area.  It doesn't host broader events

With a renovation that gets the building up toward 6,000 seating capacity with full chairbacks, it becomes attractive to concert and show promoters as a venue of interest. So that would be another rationale for a renovation and extend the building's economic viability. As for naming rights, being in a smaller city is less of an issue if the purchasers of the naming rights know they are getting 2 hours of brand exposure on national TV 4-5 times per year plus regional TV exposure (or potentially more, if a conference move led to additional TV appearances). Yes, a smaller venue will have fewer cross-marketing opportunities on site than a baseball stadium, but the real value in the naming rights comes in broadcast and print media exposure.

[valpo84]

Valpo is not a major regional draw or advertiser, is limited in TV exposure and the arena/city are not that big.  The ARC is not the main venue or even a competing venue for events outside of basketball in the area.  It doesn't host broader events

With a renovation that gets the building up toward 6,000 seating capacity with full chairbacks, it becomes attractive to concert and show promoters as a venue of interest. So that would be another rationale for a renovation and extend the building's economic viability. As for naming rights, being in a smaller city is less of an issue if the purchasers of the naming rights know they are getting 2 hours of brand exposure on national TV 4-5 times per year plus regional TV exposure (or potentially more, if a conference move led to additional TV appearances). Yes, a smaller venue will have fewer cross-marketing opportunities on site than a baseball stadium, but the real value in the naming rights comes in broadcast and print media exposure.

Although I concur with the basic premises of exposure in media, in our current state, what are the analytics on that exposure for regionally based businesses or national businesses? Can you tell the possible marketer -- we generated x million views in all forms of media?  What is the average audience on ESPN 3 for one of our broadcasts?  What is the average audience for an ESPN 2 Friday night HL tilt? What is our social media impressions for the "ARC?" Nationally, we would struggle even more with the business case. Further, regionally, we do not even have good TV broadcast coverage in the Chicagoland area that you could sell to Binny's, Thrivent, Allstate or even Walgreens.  We already know that outside of NWI, the Chicago Tribune is not writing stories that begin with dateline -- Noah's ARC and Pet Supply Stores as they couldn't find the ARC if you spotted them the C and the A.

I also concur with you that if there were to be a renovation to 6000 decent type seats and suite boxes and concession stands and wash rooms, the facility could become the type of regional attraction that allows other facilities to garner around $2-4 million over 10 years.  My general point is naming rights by themselves do not move the needle much for building the facility, but would be helpful in running the facility, especially if targeted concerts and Phi Delt intra-school and interfraternity boxing matches.

[crusadermoe]

I love the idea of spotting the Chicago the C and the A to help them spell ARC!       

Wasn't that a Thomas Henderson quote about Terry Bradshaw?..and offered on Super Bowl Week?        . 

[bigmosmithfan1]

Although I concur with the basic premises of exposure in media, in our current state, what are the analytics on that exposure for regionally based businesses or national businesses? Can you tell the possible marketer -- we generated x million views in all forms of media?  What is the average audience on ESPN 3 for one of our broadcasts?  What is the average audience for an ESPN 2 Friday night HL tilt? What is our social media impressions for the "ARC?" Nationally, we would struggle even more with the business case. Further, regionally, we do not even have good TV broadcast coverage in the Chicagoland area that you could sell to Binny's, Thrivent, Allstate or even Walgreens. 

My larger point was that assuming that we play in a small town in a small arena, therefore no one would interested in naming rights is the wrong formula. It's all about how many times the brand would be on TV/radio/other media. And Valpo is on TV a lot now.

And impressions is a complex formula, but a single game on ESPN2 is going to have in the vicinity of a million viewers (obviously, some will be less and some will be more, but that's been the rule of thumb for MAC and Sun Belt games). A company logo on the court is going to be seen hundreds of times in the game, plus mentions by the announcers, score table ads, bench chairs, etc. Calculate the ad value for that and it's going to be WAY more cost-effective than trying to achieve that brand exposure through traditional advertising (which is way more expensive). Production of one high-quality TV spot plus buying airtime runs into the millions very quickly. As streaming has grown, audiences and advertising on ESPN3 have climbed, too.

And that doesn't count "bonus" exposure - SportsCenter highlights, etc. For example, think of Rowdy's buzzer beater vs. Green Bay a few years back. The repeated viewings on SC Top 10, Plays of the Week, viral videos, etc. would have been worth millions in free advertising for any company that had a logo/name on the court. There's a reason why companies continue to pay very good money for naming rights deals, even in some non-traditional venues.

[Valpower]

Although I concur with the basic premises of exposure in media, in our current state, what are the analytics on that exposure for regionally based businesses or national businesses? Can you tell the possible marketer -- we generated x million views in all forms of media?  What is the average audience on ESPN 3 for one of our broadcasts?  What is the average audience for an ESPN 2 Friday night HL tilt? What is our social media impressions for the "ARC?" Nationally, we would struggle even more with the business case. Further, regionally, we do not even have good TV broadcast coverage in the Chicagoland area that you could sell to Binny's, Thrivent, Allstate or even Walgreens. 

My larger point was that assuming that we play in a small town in a small arena, therefore no one would interested in naming rights is the wrong formula. It's all about how many times the brand would be on TV/radio/other media. And Valpo is on TV a lot now.

And impressions is a complex formula, but a single game on ESPN2 is going to have in the vicinity of a million viewers (obviously, some will be less and some will be more, but that's been the rule of thumb for MAC and Sun Belt games). A company logo on the court is going to be seen hundreds of times in the game, plus mentions by the announcers, score table ads, bench chairs, etc. Calculate the ad value for that and it's going to be WAY more cost-effective than trying to achieve that brand exposure through traditional advertising (which is way more expensive). Production of one high-quality TV spot plus buying airtime runs into the millions very quickly. As streaming has grown, audiences and advertising on ESPN3 have climbed, too.

And that doesn't count "bonus" exposure - SportsCenter highlights, etc. For example, think of Rowdy's buzzer beater vs. Green Bay a few years back. The repeated viewings on SC Top 10, Plays of the Week, viral videos, etc. would have been worth millions in free advertising for any company that had a logo/name on the court. There's a reason why companies continue to pay very good money for naming rights deals, even in some non-traditional venues.

Do we need to start shaking down Homer for some money?

[VULB#62]

And before anyone says it -- I do know it's not where you play, it's who you play and how you play them.  Just commenting on the where for now.

I made the annual trek to Milwaukee Panther Arena last night for the (now) annual VU win.  It IS old.  But all the seats have been replaced with cushioned chairs (compared to the wood with padding chairs I remember when I was there years ago. It has a very good scoreboard.  The playing floor is attractive.  Because of poor attendance of late, many of the upper seating sections were covered over.  The whole south portion of the floor is converted to a raised boosters' booze club.  The full capacity is listed at 12,700.  Attendance last night was listed at 2267.  I'd guess that the ~268 Valpo fans that were there helped put them over 2000, but generally you couldn't tell by the rather quiet rooting and polite clapping that came from the Valpo sections (just my take -- could be wrong).

BUT....... there is no mistaking that it IS an arena, not a gym.  There are sufficient restrooms and concessions (I took a  Blue Moon beer to my seat, yay!). Despite low attendance (outside of the UWM student section) it still FELT like a D-I basketball game and had that atmosphere.  The pep band numbered 25 and was led by a member of the music department - not a student.  In retrospect, I can now see much more clearly why many on this board refer to the ARC as a HS gym.  Valpo will never build an arena anywhere as large as the Panther Arena (heck, it will never build any arena),  but much in the way of renovations and an expansion to 6,000 would totally change the visual perception and game day experience to bring it, not necessarily totally, but certainly, more in line with a basketball venue reflective of our D-I status.

Tomorrow I drive up the road to the Resch Center in GB.  It is even more modern.  And UWGB will be waiting to even the score from earlier in the season. There should be a good crowd - better than UWM.  It will be another game that has the feel of a real D-I event.  Regardless of where we are playing, we gotta bring our A-game to win. 

[VU2014]

Some testy Flames fans...

https://twitter.com/NWIOren/status/828017566148878336
https://twitter.com/JordanDrew30/status/828026902485094401
https://twitter.com/UICChuck_A/status/828258607477186560
https://twitter.com/JordanDrew30/status/828262617575735297
https://twitter.com/UICChuck_A/status/828313825963290624
https://twitter.com/JordanDrew30/status/828315732677185536
https://twitter.com/UICChuck_A/status/828319713793081344

[NativeCheesehead]

Apparently the 13 Illinois -Chicago fans got together this season and decided to troll us.

[valpo84]

Interesting article on the Big East this morning in WSJ.  You may need a subscription.

https://www.wsj.com/articles/how-ditching-football-saved-big-east-basketball-1487616324

[VULB#62]

Yep. need a subscription.  Could someone copy/paste the text?

[oklahomamick]

According the MVC message board, if the mvc had to expand they would like Valpo.  This has been brought up in the past.  The fans and basketball people don't care about Valpo being a small private school.  They don't care about the facilities.  They don't care that our swim team is not competitve. 

They want us because we make the men's basketball league stronger.  They like that we have a top 100 rpi year in and year out.  If the AD's and presidents of the mvc see it that way.....we could get a call.