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SPORTS

College booster clubs brace for difficult economic times

Saturday, February 28, 2009
(Updated 8:05 am)

Donors surveyed by UNC's Educational Foundation in November showed a keen interest in buying premium seats and luxury boxes if they are built at Kenan Stadium.

But as the economy continues to struggle, is that still true?

Athletic departments aren't the only ones bracing for revenue declines. Booster clubs, which pay for players' scholarships and help finance building projects for athletic facilities, also are anticipating a money crunch.

"Right now, we're not doing much fundraising for capital projects; we understand what's going on with the economy, so we're focusing on keeping our annual fund at a certain level," said John Montgomery, executive director of UNC's Educational Foundation, which is also known as the Rams Club. "... And so far, we have been successful at that."

Montgomery, an assistant athletics director at UNCG in 1990-96, said annual giving -- meaning annual donations ranging from $100 to $5,000 -- is on pace with last year's contributions at this time. That fund's uses include scholarships, Rams Club operation costs, pregame events and debt services. The organization paid for $8.1 million in scholarships this year.

At N.C. State, however, Wolfpack Club Executive Director Bobby Purcell is concerned because the economy is bad at the beginning of the club's giving season, which runs on a January to December calendar. Annual giving was down one percent in 2008, when Purcell considered the economy relatively strong for the first six months. The club, formally known as the NCSU Student Aid Association, paid for $7 million in scholarships this year.

"Obviously, the Wolfpack Club is not the highest priority for somebody who's lost their job," Purcell said.

Purcell said the club is encouraging donors to rank scholarships over capital campaign donations when donating their annual gift.

Fundraising appears to be slightly better at Duke, where Iron Dukes director Jack Winters said giving is slightly ahead of last year's pace. His organization raised $12.2 million last year, and the overwhelming majority of that goes to scholarship costs.

Some capital improvement projects are being put on the back burner. But June is a big month for the club, and Winters said he hopes the economy will turn around by then.

"It's going to be a race to the finish line," he said.

In Chapel Hill, the athletic department opted to break ground earlier this month on the first phase of Kenan Stadium's renovation, which includes adding a floor to the existing football center in the west end zone. The $18 million cost was financed, so the Rams Club can delay asking donors for big contributions for that project until the economy improves.

UNC athletics director Dick Baddour said he understands that new construction right now might be a tough public relations sell. But he also stressed that donors have come forward and committed to help pay for the first phase of the project, meaning "the resources are there."

He also stressed the need for the renovation -- including adding premium suites and luxury boxes in the second phase -- in order to bring more money to the athletic department's coffers.

Montgomery said he doesn't know when another survey might be conducted, but he seemed confident that donor interest in premium seats will remain high. Plans for the second stage of the renovation have not been finalized or approved, and they will partially depend on the interest in premium seats because those seats will eventually pay for the cost of the second phase. Officials hope construction can begin after the 2009 season.

Steven Reznick, a professor of psychology and chair of UNC's faculty athletic council, anticipates there will be concern among some faculty on campus if cuts are made to academics while cranes are upgrading an athletic facility. But he also said people who have educated themselves on the economics of the situation -- specifically, that the project will eventually pay for itself -- will be supportive.

"People say, 'If donors aren't giving to athletics department, wouldn't they give to to the art school or medical school?' " Reznick said. "But that's just not the case. ... Many of our biggest supporters are athletics supporters, and that's where they want to give."

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