Strategic Plan: 2013-14 Recap

PURDUESPORTSDOTCOM Volleyball advanced to the Elite Eight of the NCAA Tournament, becoming one of just five programs to advance to the Sweet 16 or further each of the last four years.
PURDUESPORTSDOTCOM
Volleyball advanced to the Elite Eight of the NCAA Tournament, becoming one of just five programs to advance to the Sweet 16 or further each of the last four years.
PURDUESPORTSDOTCOM

July 21, 2014

July 2014 Report to the President
2013-14 Program Recaps

WEST LAFAYETTE, Ind. - As part of its strategic plan, the Department of Intercollegiate Athletics releases comprehensive annual updates. Following is a look back at the 2013-14 school year.

Athletics

We accumulated 466.5 points in the Directors' Cup and ranked 48th out of 351 schools, which placed us in the 86th percentile. When tallying only those sports that we offer, our ranking moved up eight spots to 40th. Last year, we finished 42nd with 518.5 points, with an adjusted ranking of 37th when counting only our sports.

Twelve teams earned NCAA postseason opportunities, matching our average over the last five years, while 12 squads had upper-half Big Ten Conference finishes, up from six a year ago and up from our five-year average of 10. Volleyball advanced to the Elite Eight of the NCAA Tournament, becoming one of just five programs to advance to the Sweet 16 or further each of the last four years. Two other programs finished in the top 25 nationally - women's indoor track and field (19th) and women's swimming and diving (25th) - while men's golf and men's swimming and diving both placed 27th, men's indoor track and field was 32nd, wrestling was 39th and women's outdoor track and field was 47th. Women's basketball advanced to the round of 32 of the NCAA Tournament, while men's and women's tennis both were among the 64 squads that earned berths to their NCAA tournaments.

There were 32 total All-America honors (by 22 student-athletes). Six Boilermakers earned first team distinction, including Dani Bunch, who was a three-time honoree. We had 13 first team All-Big Ten selections. A year ago, Purdue had 27 All-America honors (by 24 student-athletes), including nine first team picks, and eight first team All-Big Ten selections.

Big Ten-wise, we won eight individual conference titles: Bunch (shot put - indoor track and field); Casey Matthews (1-meter diving); Raheem Mostert (60 meters and 200 meters - indoor track and field, 100 meters and 200 meters - outdoor track and field); Chukwuebuka Enekwechi (hammer throw - outdoor track and field); and Nikki Nunn (long jump - outdoor track and field). Bunch was named the Big Ten Field Athlete of the Indoor Championships and Field Athlete of the Year, while Mostert was Big Ten Track Athlete of the Championships both indoors and outdoors. Bunch was voted Big Ten Female Athlete of the Year.

We won the Governor's Cup - our all-sports competition with Indiana - for the first time since 2006-07.

Purdue hosted NCAA women's basketball first- and second-round tournament games at Mackey Arena, along with two Big Ten Championships (cross country and outdoor track and field).

Academics

Student-athletes maintained better than a 3.0 cumulative grade-point average for the 11th consecutive semester this spring - achieving a record 3.04 - and they now have performed equal to or better than the student body for 34 consecutive semesters - or 17 years. Our four-year graduation success rate stands at 82 percent, 2 percent better than last year. It is tracking to reach 84 percent in 2015, as we work toward our goal of 85 percent. This GSR metric, which factors in transfer activity, is not available for internal comparisons, but our federal rate of 72 percent is 2 percent better than the student body. Overall, 90 percent of student-athletes completing his/her eligibility at Purdue graduate. Student-athletes who graduated in May of 2013 realized a 90 percent job-placement rate.

Andie Varsho of the softball team earned first team Academic All-America honors. A total of 186 Boilermakers garnered Academic All-Big Ten distinction, up significantly from 152 a year ago.

Fiscal

Intercollegiate Athletics is a self-supporting auxiliary enterprise. As of March 31, we are forecasting net operating income of $5.8 million for the fiscal year ending June 30, on revenue of $69.9 million. This amount, along with $3.2 million of reserves, will satisfy the Ross-Ade and Mackey Complex debt payment of $9 million. Our reserves are in line with our forecasts, and we will have transferred about $3.2 million of our $12 million commitment to the Center for Student Excellence and Leadership (CSEL) from our reserves, as well. This obligation will be retired by June of 2020.

Final year-end numbers will be available in early August.

10-Year Financial Plan Highlights

Since 2011, we have annually updated our 10-year financial master plan. That work was completed in December of 2013. The update included:
* A review of all assumptions
* Changes in the Notre Dame football contract
* New Big Ten revenue projections: These projections are solid for 2014-15 to 2016-17, but are speculative in 2017-18 and beyond as the ESPN/ABC agreements expire on June 30, 2017
* A comprehensive review and set of recommendations on appropriate reserve levels
* Increasing travel costs associated with Maryland and Rutgers entering the Big Ten
* A moderation in scholarship costs reflecting the impact of the tuition freeze
* Ackerman Hills Golf Course major maintenance
* Softball Stadium construction
* An estimate on the Ross-Ade Stadium south end zone project is in the plan but is only a place marker at this point

The projections show us continuing to deplete reserves through June of 2017, and then we begin to restore reserves dependent upon aforementioned television negotiations and football revenue.

Looking to the future, there are several variables to monitor:
* Football revenue has the potential to increase, but we will need to watch it carefully.
* Retention of key staff will require market competitive compensation.
* ABC/ESPN negotiations will commence soon. The current agreement expires at the end of 2016-17. We need to take stock of the new agreement and see if it matches the current Big Ten projections.
* We will continue to work on the Ross-Ade Stadium south end zone renovation to determine the feasibility and timing of the project.
* The cost impact of NCAA restructuring could be as much as $2 million per year recurring.
* If the timing and football attendance numbers are right, we can add a deck on the east side of the stadium. This would allow additional premium seating and would add prime seats to replace those lost in the south end zone. We believe the added revenue from premium seating could satisfy the additional debt service.
* If revenues allow, we will assess sport sponsorship in 2019-20 with a desire to add a men's and women's sport, but only after reserve level targets are met and we demonstrate sufficient recurring revenue to support such an action.

To achieve the vision of the strategic plan and to remain self-sufficient will require a commitment to allow Intercollegiate Athletics to keep sufficient NCAA and Big Ten distributions revenue to compete with its peers. The NCAA Dashboard Indicators show we are in the bottom quartile of total revenue against our peer group even if you adjust for sport sponsorship, and our inquiries show that the share of incremental conference television dollars flowing back to the university are on the high side compared to the other Big Ten institutions, and yet we are still self-sufficient. We have executed our plans over the past 20 years and have seen improvement, but our implementation pace has been slowed by resource availability. We inherited a poor facility base and have had to build and restore virtually all of our facilities during this time frame while also trying to provide adequate operating budgets and coaches compensation and fund scholarship costs that have doubled over the past 10 years. As a result, our progress has been steady, but we have not yet achieved our goals.

Construction Update
* Ackerman Hills Golf Course - work will commence in August of 2014 and will be completed by the spring of 2016.
* Softball Stadium - construction commenced in January of 2014 and the new ballpark is scheduled to be ready for the 2015 season.
* Ross-Ade Stadium South End Zone - we elected to demolish the bleachers in 2014 and to provide an interim option for the 2014 and 2015 seasons. We will use this season and the marketing survey (to be completed by July) to help fine-tune the permanent option. This effort will include a design competition among five architectural firms this fall and active engagement of our fan base.

John Purdue Club

JPC membership shows a 3.5 percent increase from 8,117 (June 1, 2013) to 8,412 (June 1, 2014), although with the new membership cycle many will be made inactive by the end of the fiscal year. Annual giving was at 93.4 percent of the 2013-14 objective through May 31, 2014. With all memberships due on April 30, 2014, the normal June contributions already have been received. The objective was to increase the annual fund by 3 percent over the prior four-year average.

A young professionals group was formed within the John Purdue Club and, as of June 1, 2014, has 187 members. We believe this outreach effort will serve as a pipeline for membership in the future.

With the goal of increasing the Varsity P Club by 5 percent, the membership has reached 1,000, reflecting a 6 percent increase. These former student-athletes now comprise 12 percent of the entire John Purdue Club membership (1,000 of 8,412).

While progress on many fronts was made, we still have a shortfall in meeting our $10 million annual scholarship costs and are drawing down reserves.

Equity/HR

During 2013-14, 506 students participated in intercollegiate athletics. The equity rate stood at 55.6 percent for men (in 10 sports) and 44.4 percent for women (in 10 sports), which is in line with the university undergraduate gender distribution of 57.2 percent men and 42.8 percent women. Athletic-related aid closely approximates the university's undergraduate student gender distribution.

Exit interview data, senior leadership observations of equity practices and the Big Ten advisory commission annual survey surfaced no systemic gender equity issues.

We provide developmental opportunities to our administrative and coaching staffs annually:
* Staff Developmental Day included an update from Julie Griffith, Purdue vice president for public affairs, and a segment on how to improve recruiting skills. Sessions covering benefit changes for 2014 and violence in the workplace/active shooter concluded the day.
* Coaches Development Day included a presentation from Doug DeVos, president of Amway, and the balance of the day was spent on updating strategies to be included in Plan 2020, the update to our current strategic plan.

Additional developmental sessions are held periodically throughout the year for specific groups as topics arise.

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We continue to utilize all social media platforms. Overall growth was significant in 2013-14:
* YouTube saw a 56 percent increase in subscribers (52 percent increase in views), followed by Twitter (22 percent) and Facebook (16 percent). We are closing in on one million YouTube views since originating the platform in December of 2007.
* Our monthly average number of web site unique visitors is just over 171,000, similar to last year's average of just under 166,000.

We continue to assess and adjust, but feel like we can get our message out to a broad audience in summary or in detail. It is a moving target, and we have begun the process of a third-party evaluation of all platforms to determine effective balance and efficiency.

Leadership

The John R. Wooden Leadership Institute contains a leadership curriculum designed to accelerate leadership development for our student-athletes. Resources include the legendary Pyramid of Success, the teachings of Coach Wooden and books written by him. The curriculum includes a public service component during each year of enrollment.

The current components include:
* Monthly meetings of the Boilermaker Athletic Council
* Monthly meetings of the Emerging Leaders
* Fall and Spring EDPS courses for freshman student-athletes
* Transition programs for exhausted eligibility student-athletes
* Community service projects
* D.I.S.C. behavioral assessment
* Pyramid of Success speakers

During 2013-14, the following speakers presented a Pyramid of Success session to our student- athletes:
* Eric Thomas - motivational speaker (August 2013)
* Jeff Immelt - CEO of General Electric (October 2013)
* Chico Jensen - Purdue sexual health and sexual violence risk reduction coordinator (November 2013)
* Mitch Daniels - Purdue President (March 2014)
* Doug DeVos - president of Amway (April 2014)

Also, the following activities that support the leadership goal were completed:
* Implementation of a professional development program for student athletes that included resume, cover letter, interview skills and mock interview workshops with the assistance of CCO; individual career coaching with Roger Stewart; a career fair specifically for student-athletes; and a financial management workshop with the Purdue Federal Credit Union
* Launched Boiler-Maker-Wish, a community service program founded by Purdue student-athletes, which pairs children with physical adversity with a specific athlete or team
* Participated in two all-campus activities - Purdue 360 Diversity with Herman Boone and Take Back the Night concerning sexual assaults on campus

As to the benchmarks in this area:

One hundred percent of our student-athletes participated in a leadership activity this year with the addition of synching Boilers Back in Action and The John Wooden Pyramid of Success Speaker Series.
* Boilers Back in Action: 540
* Pyramid of Success Series: 346
* EDPS: 88
* Boiler-Maker-Wish: 77
* Emerging Leaders: 74
* Boilermaker Athletic Council: 61
* IMPACT (influencing/mentoring by Purdue athletes with the Cardinal tradition): 12

Summary

In 1992, the Board of Trustees declared, "Purdue University is committed to creating a nationally recognized athletics program that is excellent in all respects and that such a commitment is consistent with the University's academic mission and reputation."

We are committed to our strategic plan, knowing full well that only 10 schools in 2012-13 achieved the "25/85" designation: Stanford, UCLA, Notre Dame, Michigan, Penn State, Duke, North Carolina, Ohio State, Virginia and Minnesota. Over the last five years, we have ranked between the 80th and 90th percentile among all 351 Division I programs when combining both metrics (85th in 2012-13 and likely to edge forward when final 2013-14 figures are available) and, within the peer group (same 16 schools as the University's), we have been between 10th and 15th during the same period. The entire peer group is in the top quartile of the 351 Division I programs. We believe the pipeline will produce enhanced performance next year and beyond. We believe 16 of our 20 sports can reach the NCAA postseason each year and, if eight reach top-16 status and the other eight make the top 30 to 40, we can hit the top 25 even with our current compliment of sports without adjusting for mix. All 16 schools in our peer group are at the 85th percentile or higher on the athletic component, so it's the right group to compete against. We also are committed to maintaining a 3.0 cumulative grade-point average and, over the next year, expect the GSR to climb from 82 percent to 84 percent as we move closer to the goal of 85 percent. With an average cohort of about 80 students per year, the 3 percent differential means we must move from 66 graduates annually to 68.

The key is to ensure that we have adequate resources, sound plans and capable personnel. If we stay focused, we can succeed, but it will require commitment at all levels. We have to believe this effort is an integral piece of building Purdue's reputation as well as producing 21st century leaders.