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HomeMy WebLinkAbout2/4/2019 Item 1, Raymer - SLO Baseball AllianceFoundationCity of San Luis Obispo Attn: Mayor and City Council 990 Palm St. San Luis Obispo, CA 93401 Dear Mayor and other Members of the SLO City Council, Jan. 25, 2019 Among the myriad of items you manage in the city budget, we hope that you might also consider helping to ensure that the SLO Blues can continue to offer this very popular summer collegiate baseball program here. Despite strong community support, their annual income does not quite cover their expenses. We will use the following abbreviations: Foundation — SLO Baseball Alliance Foundation, Inc. (We are a 501(c)(3) corporation that supports summer collegiate baseball in the area.) Blues — SLO Blues Summer Collegiate Baseball Team LLC — SLO Baseball Alliance, LLC (They manage and operate the Blues.) The Blues have been our local baseball team for 72 years, having been started in 1946 by veterans returning from WWII. Now, each year they have 32-35 home games in Sinsheimer Stadium, and draw a total of over 32,000 local fans, or about 1000 per game on average. (For example, last year they had a total attendance of 33,544 for 34 home games.) Our Foundation's role is quite similar to that of other 501(c)(3) foundations that support and promote programs in Arts and Entertainment, such as theatre groups, dance and ballet companies, symphonies, performing arts centers, etc. In our case, we support baseball. As is stated in the attachments, "The specific purpose of this corporation is to amateur sports development, competition, and community entertainment." (State -approved Articles of Incorporation, Section IIB), and "The specific objectives and purposes of this corporation shall be to provide summer collegiate baseball entertainment for the benefit of the community and collegiate amateur baseball players." (Bylaws, Section 2). The Blues provide exactly the type of program that our Foundation wants to support. Consequently, our agreements with them state that we will support them to a certain minimum level, providing they continue to provide a program that meets our requirements. (See attached "Renewed Management Services Agreement" and "Renewed Memorandum of Understanding.") We have no overhead; we are all volunteers. All funds that we raise are used in accordance with the above stated objectives and purposes. The financial basis of our request is also documented in the attachments. These include appropriate financial statements for both the Foundation and the LLC (P&Ls, IRS returns, and debt ledger) for recent years. In these attachments, you will find that our Foundation support of the Blues has been: 2016 40,000 2017 45,000 2018 50,000 You will also see that on average and with small variations, the Blues annual budget is about $340,000, and the income to cover these costs come from the following sources: Ticket sales Business sponsorships 30% 30% Miscellaneous (concessions and food, baseball camps for children, player fees, merchandise sales, etc.) 20% Foundation Loan (debt increase) 15% 5% It is this last item that concerns us. The debt was already substantial when the new LLC management took over (Jan 2, 2015), and now it has increased to over $230,000. (See the debt ledger.) We would like to be able to increase our support to the point that the management can afford to continue the program. This is the financial basis of our concern and our request. We have a goal of an additional $25,000 per year to allow this program to continue and to stop the losses. Any amount that you could provide to help us reach this goal would be appreciated. Unless you specifically request anonymity, we would acknowledge your help both at the stadium and in print. We would also discuss with you other possible ways to acknowledge your support, and/or ways you could work with the Blues directly, if you wish. Since ly yours C ris 'aeasurer SLO Baseball Alliance Foundation, Inc. chrisr lorecriersas.com (805) 782-5256 Copy: SLO Department of Parks and Recreation Attachments: Blues Fact Sheet and Action Photos Foundation Legal Status Foundation IRS Returns Foundation P&Ls and Balance Sheets LLC Financials Current Agreements The San Luis Obispo Blues Baseball Organization has three main objectives. The first is to promote first-rate affordable family entertainment to California's Central Coast residents. The second objective is to provide collegiate players the opportunity to further develop their professional skills while playing against the highest level of competition. The third is to continue the development and expansion of our collegiate internship program. • Summer Collegiate Baseball • Member of the 9 team California Collegiate League (CCL) • Founded in 1946 by WWII Vets retuning home as a semi- professional team • Blues have won 2 CCL titles in the last eight years • Players come from universities both locally and across the country • More than 40 former Blues currently playing professional baseball • Blues draw more than 30,000 fans each summer • Players use wooden bats The Blues make it a priority to give back to this great community. To that end, we partner with more than 30 local non-profit organizations each season by donating 100 general admission tickets to each entity for entry into a mutually agreed upon home game. In that same community -driven effort, the Blues created the Educational Partner Program. We partner with approximately 10 local elementary schools by granting free admission to the entire family of every student, teacher, and school staff member for entry into a mutually agreed upon game. The SLO Blues play approximately 50 games each summer (roughly 35 at home and 15 on the road). Blues opponents are mainly other summer collegiate teams from around the state. The end of the season is marked by a playoff tournament in August, which determines the CCL Champion. All Blues home games are played at historic Sinsheimer Stadium located at 900 Southwood Drive in San Luis Obispo, CA 93401. The facility is owned by the San Luis Coastal Unified School District, run by the City of San Luis Obispo, and used by multiple community groups. Built in the Iate1970's, the stadium has a capacity of 2,250. San Luis C a SLO Baseball Alliance, LLC 3591 Sacramento Dr., Ste. #114 San Luis Obispo, CA 93401 Ph: 805-512-9996 The players who compete for the Blues each summer are amateur athletes and must currently be on a collegiate roster. The Blues historically have received athletes from notable universities with strong baseball programs such as Texas A&M, Oklahoma State, Missisipi State, Tennessee and Nebraska. The Blues foster a 'leam-by-doing' approach through our internship program. Each year more than 30 college students help run nearly every aspect of operations. The Blues have had interns from Cal Poly, Oregon, Gonzaga, Northwestern, Texas, Arizona State, Humboldt State and San Jose State. HOUSEHOLD INCOME OF BLUES FANS I I $]O),ODM i 1014 $�xaOrosY.9s0 q�p.. $sq WOlo l<,pp9 I y* i sss,aooro4esse a I I I I $]g00010 94,Y09 1 I1K � IeL Min ]f1,g0q f14 G4e $w;. sox ss14 7014 8594 ;PCMw IYN9ti M01 PrO=_ 0 SLO BLUES BANNER 6 SPONSORSHIP OPPORTUNITIES DASEB Anlerica