CHOCVB Board Meeting Minutes 051921

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DocuSign Envelope ID:502009F3-4D5D-4553-94B6-17FCBFF12415 of success across all of them. We very much want to remain that way. We want to be committed to having over 800 student athletes every single year versus many other schools that maybe only have 400 and only spots with a minimum number of sports, which I think is either 16 or 17, in the NCAA. If you look at the amount or resources we have for student athletes, we are in the bottom three schools of those 65 schools. Because we have so many teams and so many student athletes which spread our resources out as widely as we can so we can afford as many people the opportunity to compete at the college level. If you follow college athletics right now,there is an ongoing discussion of whether student athletes should be paid. It is called name/image/likeness and whether they should be able to make money off their own name. There is talk about all the finance related with college sports. From our vantage point,the finances are important but they are nowhere near as important as our core values are. For us that is providing a Carolina education to over 800 student athletes every single year, having broad-based opportunities for them to compete in many different sports, and then for them to have choices about the future of their career. Whether it is to go pro, which very, very,few of them do. We always want to make sure they have the choice to go on to a great career after they leave Carolina. We are going to lose a lot of money this year due to COVID. Thankfully, our donors, the Ram's Club, have stepped up. We created something called the Carolina Victory Fund. About half of our loss will be covered through the Carolina Victory Fund. We are going to have to take on some additional debt to cover the other half. We will have to pay that back over time so that is going to put a tremendous amount of stress on us to reduce expenses and grow revenue everywhere we possibly can. Ticket sales is our largest source of revenue,which we have budgeted at 60%capacity next year, so we are looking at another significant loss next year. Therefore, we are going to be very focused over the next several months and years in continuing to eliminate, maintain, and restrict our expenses as much as we possibly can and grow revenue as much as we can so we can come out of this crisis in a strong position. Many people said to us and challenged us by saying, "Why don't you just cut sports then?" And many universities decided to do that over the last nine months. Every single one of them is embroiled in tremendous legal battles and is being dragged through the mud PR-wise. Even Stanford, the gold standard of college athletics. They have 36 sports teams. They announced about six to nine months ago they were going to cut eleven of them. They have four or five lawsuits that they are dealing with right now. Just yesterday they announced they are going to re-instate those eleven sports programs. That just affirmed the decision we made last summer not to cut sports. We are always going to be about twenty teams. We are always going to be about eight hundred students. We are always going to be about excellence. However, excellence is expensive so we are going to have to find ways to rethink our financial model over the next several years. Laurie asked Rick when the Carolina Basketball Museum will reopen and he answered June 1, 2021. Mark Sherburne commented about the excitement he's seeing in people coming to Chapel Hill to see games, especially the parents and participants and that there is a huge pent-up demand for the upcoming football season this fall. The Carolina Inn is sold out for every single home game except the last. Mayor Hemminger commented on how great UNC was in working with the Town of Chapel Hill through the COVID pandemic in adhering to the varying rules and protocols and ensuring the community felt safe. 4 1 P a g e CHOCVB BOD Meeting May 19 , 2021