California Memorial Stadium - Endowment Seating Program

The Endowment Seating Program (ESP) is an innovative program designed to provide Intercollegiate Athletics with the resources necessary to build and sustain its teams. The program includes just over 3,000 seats (or less than five percent of the stadium capacity) at California Memorial Stadium, and its participants receive long-term, all-encompassing access to selected seats, along with tickets, parking and benefits associated with the various ESP club levels.

The following is a financial statement on the progress of the ESP program to date. Going forward, IA will issue statements regularly after the close of each quarter to ensure transparency and support clear communications on ESP sales progress.

Summary of ESP Seats Secured

Through December 31, 2011

	Field Club Seats	Stadium Club Seats	Univ. Club Seats	Total FY 12
Total Seat Inventory	1,568	1,158	472	3,198
Sold to Date	1015	666	101	1,782
Percent of Total Inventory Sold	65%	58%	21%	56%
Percent Sold of Goal (90% of Inventory)	72%	64%	24%	62%
Total $ Value of Seat Inventory	$83,060,000	$129,450,000	$96,600,000	$309,110,000
Value of Sold Seats*	$53,920,000	$69,100,000	$21,450,000	$144,470,000
Percent of Inventory Value Sold (as $)	65%	53%	22%	47%
Percent Sold of Goal	NA	NA	NA	54%

 

Cash Received Summary
FY 10	$14,367,534
FY 11	$13,461,021
FY 12	$3,070277
Total Cash Received through Dec. 31, 2011	$30,898,832

*Based upon upfront price (a majority of the completed pledge agreements to date provide for payment over time)

In the second quarter of Fiscal Year 2012, ESP sales increased to a total of 1,782 seats, which represents 62% of IA's goal for seats sold. Another 58 seats are currently in progress, and new sales continue on a weekly basis.

Annual ESP payments are due on April 1, with a grace period until June. 30. Therefore, the majority of cash received in FY12 for ESP is expected to occur in the fourth quarter.

Through September 30, 2011

	Field Club Seats	Stadium Club Seats	Univ. Club Seats	Total FY 12
Total Seat Inventory	1,568	1,158	472	3,198
Sold to Date	941	607	95	1,643
Percent of Total Inventory Sold	60%	52%	20%	51%
Percent Sold of Goal (90% of Inventory)	67%	59%	22%	57%
Total $ Value of Seat Inventory	$83,060,000	$129,450,000	$96,600,000	$309,110,000
Value of Sold Seats*	$49,720,000	$62,750,000	$20,100,000	$132,570,000
Percent of Inventory Value Sold (as $)	60%	48%	21%	43%
Percent Sold of Goal	NA	NA	NA	54%

 

Cash Received Summary
FY 10	$14,367,534
FY 11	$13,461,021
FY 12	$1,637,722
Total Cash Received through Sept. 30, 2011	$29,466,277

*Based upon upfront price (a majority of the completed pledge agreements to date provide for payment over time)

At end of fiscal year 2011 (June 30, 2011), the number of ESP seats sold was 1,421, with another 336 seats in progress. It is important to note that the Athletic Department's definition of sold is 1) the seat holder is up-to-date in payments; and 2) the seat holder's paperwork is signed and on file in the IA office. If one or both of these items are missing, the seat is not considered sold, but only in progress.

By the end of the first quarter of fiscal year 2012 (Sept. 30, 2011), the number of seats sold had increased to 1,643, with another 123 in progress. During the first quarter, IA collected payments and paperwork for many in progress seats and also reserved a number of seats for new participants in the Endowment Seating Program.

As the down payments are made and paperwork for in progress seats is signed and mailed back by ESP donors, IA's seats sold number will increase. And as new seats are reserved for new customers, the in progress number will increase, as well. Those changes will be reflected in the next quarterly report.

Through June 30, 2011

	Field Club Seats	Stadium Club Seats	Univ. Club Seats	Total FY 11
Total Seat Inventory	1,568	1,158	472	3,198
Sold Seats to Date	829	507	85	1,421
Percent of Total Inventory Sold	53%	44%	18%	44%
Percent Sold of Goal (90% of Inventory)	59%	49%	20%	49%
Total $ Value of Seat Inventory	$83,060,000	$129,450,000	$96,600,000	$309,110,000
Value of Sold Seats*	$43,800,000	$51,725,000	$17,950,000	$113,475,000
Percent of Inventory Value Sold (as $)	53%	40%	19%	37%
Percent Sold of Goal	NA	NA	NA	41%

 

Cash Received Summary
FY 10	$14,367,534
FY 11	$13,461,021
Total Cash Received through June 30, 2011	$27,828,555

*Based upon upfront price (a majority of the completed pledge agreements to date provide for payment over time)

As of June 30, 2011, ESP participants had accounted for 1,851 seats, of which 1,421 were secured by signed agreement and the required payments through donor adherence to the established payment schedule.

The 1,421 fully secured seats (pledged and paid to date) accounted for 49.4% percent of IA's seat goal for ESP with more than 12 months to go before the stadium reopens in the fall of 2012.

The reason for the difference between the number of accounted seats and the number of secured seats is that at the close of the fiscal year, not all anticipated pledge payments had been collected for seat agreements signed in FY 2011.

While a 20% deposit was collected from participants at the time of the pledge, in some cases the remaining 80% of the first year's required payment had not yet been received. There were also some patrons who had made their required annual payments in FY 10 but were not current with their FY 11 payments. Additionally, there were some ESP seat holders who were current with their payments but had not submitted all of the signed paperwork. The IA Development Office understands that these sorts of complications are an inherent part of programs that require payments over time and by certain cut-off dates and is in the process of gathering these payments and finalizing outstanding pledge agreements. As a result of efforts over the last six weeks to obtain required paperwork and past due payments, As of August 4, 2011, 1644^ seats have been secured with current payments and signed paperwork, which equates to 57% of the ESP seat goal.

The difference between 1,851 seats accounted for and the 1,644 seats secured is 207 seats. Some of the 207 seats have been previously allocated for athletic department use; the remainder are in suspense until payment is remitted and/or agreements have been executed.

IA will continue to carefully monitor every aspect of this strategically designed program. The department remains confident that ESP will meet its objectives: providing Intercollegiate Athletics with the resources necessary for student athletes to excel in their athletics and academic pursuits.

^1644 excludes any new seats secured in FY12 (since July 1, 2011).