Briana Murphy8180 Baltimore AvenueCollege Park, MD 20740brianamurphy377@yahoo.comDecember 11, 2013

Patrick Ronk, Director of Student GroupsSuite 0209 J, Adele H. Stamp Student UnionUniversity of MarylandCollege Park, MD 20742

RE: Save Acrobatics & Tumbling Fundraiser

Dear Mr. Ronk:

I have enclosed a copy of the proposal entitled, “Save Acrobatics & Tumbling Fundraiser.” This concept was initiated in response to the recent elimination of seven sports from the university’s athletic department.

This proposal elaborates on the financial gain from hosting a cheerleading competition, where all admission and merchandise sales would be used to re-instate the former Acrobatics & Tumbling team. To be more specific, this proposal analyzes the projected revenue from organizing such an event. Through the use of clever marketing and production tactics, profits would greatly outweigh any losses incurred. Overall, this fundraiser is projected to elicit a total profit of around $40,485.50.

I would like to acknowledge Patrick Ronk, Director of Student Groups, to provide insight into the program’s financial eligibility and future goals. If you agree to execute this fundraiser contact Briana Murphy, former member of the Acrobatics & Tumbling program. Feel free to contact me at any time, using the email address stated above, with any questions or concerns regarding the proposal.

Sincerely,

Briana Murphy

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Save Acrobatics & Tumbling Fundraiser

Written by Briana MurphyDecember 11, 2013

Table of Contents

Purpose of Project

Problem 6

Solution and Benefits 6

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Background

Cut Funding 7

Pertinent Definitions 7

Discussion of Findings

Past Precedent 8

Projections 9

“Save Acrobatics & Tumbling” as a Marketing Technique 12

Recommendations

First Steps to Implementation 13

Steps to Ensure Continued Success 14

Illustrations and Tables

Figure 1.0: Vendor Comparison 10

Figure 1.1: Projected Revenue 10

Figure 1.2: Projected Profit of New Merchandise 10

Figure 1.3: Projected Profit of Old Merchandise 11

Figure 1.4: Combined Total Merchandise Profits 11

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Executive Summary

Introduction

The Acrobatics & Tumbling team was unable to reach the required goal of $4.73 million to retain its Division I athletic standing after the department-wide cuts during 2011. Donation programs and alumni outreach efforts were executed, but did not generate enough funding for re-instatement. For this, we must create an initiative that supersedes all previous strategies. As a former member of Acrobatics & Tumbling, I have an excellent understanding of Division I athletics, as well as the skills necessary to organize a successful fundraiser. I remain associated

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with the athletic department, which will provide direct connections to the decision-making body.

Discussion of Findings

Research

Competition fundraisers have proven very successful in the past, especially for the Acrobatics & Tumbling program. We have previously organized various competitions while the team was still in existence, and have generated extensive revenue through them.

Specific Details

The fundraiser is expecting an attendance rate of 400 former Maryland athletes alone, in addition to 1000 projected spectators. A fee of $100 per team would be charged, as well as a $10 entrance fee per ticket for spectators. The projected revenue would be around $14,000 from ticket sales alone, an additional $3,000 from team enrollment, and $23,485.5 worth of merchandise profit totaling a projected revenue of around $40,485.50.

Extras

Selling Save Acrobatics & Tumbling merchandise may also spark awareness to those who did not attend the event, and cause an increase in outsider donations.

Conclusions

Initiating the Save Acrobatics & Tumbling fundraiser will increase funds available to Acrobatics & Tumbling, allowing for the reinstatement of the program.

Recommendations

Merchandise to be sold at the fundraiser will consist of previously unsold inventory, in addition to a smaller order of new products. As the Acrobatics & Tumbling merchandise currently in storage serves no purpose, there would be no production cost and sales would provide 100 percent profit. For new merchandise,

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A&T members should decide upon a design that will appeal to the largest audience for the highest amount of sales. Sales of new merchandise should be monitored and compared to that of old merchandise, to assess which products elicit the most revenue.

Purpose:

Problem:

The Acrobatics & Tumbling program currently lacks the funds necessary for re-instatement. According to Smith and Ourand, “With a current deficit of $7.8 million, the Acrobatics & Tumbling program will be required to obtain $4.73 million to save the sport.” If a new method of generating revenue is not implicated, the team will be forced to remain exempt from the athletic program, leaving numerous athletes devoid of scholarships and athletic opportunities.

Solution and Benefits:

As other methods of fundraising have failed, the most obvious solution would be to expand on the fundraising strategies that were successful in the past. During the A&T competition held in 2009, an attendance rate of 133 and profit of $14,000 was reached. At this time, the sport was relatively new and had a small alumni-base. Nearly four years later, however, we can expect alumni attendance to triple, based on the number of A&T graduates since 2009.

With a projected attendance of 30 teams and 1400 spectators, at a rate of $100 and $10 respectively, we can estimate a profit of $14,000 from ticket sales alone. Adding in the expected gain from merchandise sales of $23,485.5, total revenue would be around $40,485.50. Although this figure will not pull the program completely out of debt, merchandise sales will prove as a marketing strategy for increased attention toward the issue.

Background:

Cut Funding

While there are constant efforts made by family, friends and colleagues of Acrobatics & Tumbling, the substantial requirement to re-instate the sport is disheartening. As six other sports are making similar efforts to reach their goals, the donating population is being pulled from all sides for their contributions. This $4.73 million dollar budget is used for a variety of purposes: uniforms, practice space, travel expenses and, most importantly, scholarships. Those athletes who

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were exiled from the athletic department will no longer receive the scholarship increases they were once promised. Above all else, this loss of funding has the most serious impact, as it affects athletes both personally and financially.

Pertinent Definitions

National Collegiate Acrobatics and Tumbling Association (NCATA)- More commonly referred to as Acrobatics & Tumbling, the sport combines elements from competitive cheerleading, gymnastics, tumbling and acrobatics. (NCATA website)

All-star cheerleading – Also known as competitive cheerleading. Beginning at any age up until age 19, athletes perform solely at the competitive level. (USASF website)

United States All-Star Federation (USASF)- The national governing body for all-star cheerleading. Works with competition organizations to promote safe and healthy participation by developing a standard set of safety rules and competition regulations. (USASF website)

The International Cheer Union (ICU)- The world governing body for cheerleading that houses 105 member National Cheer Federations with 3.5 million athletes from over 100 nations. It hosts many global, continental and regional championships, and “continues to grow as a unified voice for all those who are dedicated to the positive advancement of cheerleading throughout the world.” (ICU website)

Varsity Brands- A company that produces cheerleading apparel, with subsidiary units and programs that regulate and administer most organized cheerleading activities within the United States. (Varsity Brands website)

SportAccord- the umbrella organization for all Olympic and non-Olympic international sports associations (SportAccord website).

All of the above definitions are involved in the marketing techniques used for the Save Acrobatics & Tumbling fundraiser, as elaborated on below:

Discussion of Findings:

Past Precedent

Cheerleading and Acrobatics & Tumbling

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Although Acrobatics & Tumbling is its own entity, it has strong ties to the cheerleading world. Not only do the rules and regulations coincide almost identically to those of cheerleading, members almost always originate from a cheerleading background. For this, it is important to maintain connections with the cheerleading community in order to reach the largest audience possible for our prospective fundraiser.

Cheerleading/Acrobatics & Tumbling as a whole has grown substantially over the past ten years. The world-governing body for cheerleading, the International Cheer Union, grew from 103 to 105 member federations in 2013. This includes programs from over 100 nations, including those from Africa, the Americas, Asia, and Europe. Additionally, it was admitted as the 109th member of SportAccord (ICU). It has become a sport that generates revenue just as football or basketball does: through competitions and apparel sales.

Varsity Brands

Varsity, the world’s largest cheerleading brand, is also a supplier for most Acrobatics & Tumbling merchandise. The company “hit $300 million in revenue, an 8% increase over 2010. It now boasts over 20 brands -- from apparel lines to national competitions.” (Leahey, 2012). Additionally, About 60 percent of Varsity's revenue comes from their apparel sales (Hobson, 2013).

As our Acrobatics & Tumbling team currently has ties to the company, due to years of purchasing Varsity Brand products, we have a connection with one of the world’s largest, most profitable suppliers for cheerleading/A&T-related gear. If this company can market merchandise that results in $180 million worth of revenue, mimicking their business practices is promising for our fundraiser.

In addition, one cannot forget that 40 percent of their revenue is generated from competitions. Although $120 million is a far-fetched figure for our fundraiser, it is a promising statistic that should convince sponsors to support our proposal.

Conclusions

Based on the overwhelming success the Varsity Brands and cheerleading organizations have seen recently, our proposal is expected to elicit similar successes by utilizing their resources. As cheerleading and A&T are strongly intertwined, transferring their business strategies over to a relatively identical sport will be a smooth process. In fact, being able to incorporate fan-bases from two extremely large organizations will only increase attendance/revenue at our fundraiser. Due to the fact that most all-star cheerleaders continue on to collegiate-level cheerleading, the re-instatement of Acrobatics & Tumbling would provide another option upon their graduation from the amateur level. For this, members of the cheerleading community will be more inclined to attend our event and

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purchase our products if it means providing them with a wider range of future opportunities.

Projections

The main reason cheerleading gear prompts such extensive revenue is due to the fact that the cheerleading world is extremely “trendy, ” as its apparel shares similar qualities to that of more traditional fashion. Once a specific trend comes into style, consumers are eager to purchase such products, even if it is for the sole purpose of fitting in with the crowd.

There are a vast number of online vendors that sell cheerleading-related gear. For simplicity, the following examples will focus solely on t-shirt sales. This is also the main type of merchandise that will be marketed at the event, as such a product appeals to both males and females of varying ages. Figure 1.0 compares the differences in costs from purchasing between four different vendors: www.varsity.com, jamwearonline.com, gtmsportswear.com and customizedgirl.com .

The first two vendors, varsity.com and jamewearonline.com, had relatively low prices in comparison to the other two venders, who were significantly more expensive. Since www.varsity.com is the cheapest option for t-shirts, we will select this brand as our producer for fundraiser merchandise.

Total Cost $Vendor

www.varsity.com

www.jamwearonline.com

www.gtmsportswear.com

www.customizedgirl.com

1 t-shirt $13.95 $17.80 $25 $25.97Figure 1.0

With an expected turnout of roughly 1,700 people (between 1,400 spectators and 300 participants), Figure 1.1 outlines the projected sales of new merchandise if each attendee were to purchase one t-shirt each. As it would cost our program $13.95 to produce each shirt, we would mark-up the selling price by 29 percent to $18. For convenience sake, the price for old merchandise will also be set at $18.

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Figure 1.1

A 29 percent mark-up would provide a gross profit of $4 per t-shirt sale. As previously stated, the majority of our merchandise will come from leftover A&T apparel that is currently being unused. For this, we will account only 30 percent of merchandise profits to be derived from the sale of new apparel. Figures 1.2 and 1.3 show the cost-benefit analysis of having the majority of t-shirt sales deriving from old merchandise.

New t-shirt sales

Quantity Sold 510

Price per item $18.00

Total Revenue $9,180.00

Per Unit Cost $13.95

Times Quantity Sold 510

Minus Cost of Goods Sold $7,114.5 ($7,114.5)

Total Profit $2,065.50

Figure 1.2

Old t-shirt salesQuantity Sold 1,190

Price per item $18.00

Total Revenue $21,420

Per Unit Cost $0

Times Quantity Sold 1,190

Minus Cost of Goods Sold $0 ($0)

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Quantity sold 1,700Price per item $18

Total Sales $30,600

Total Profit $21,420Figure 1.3

Although it is clear that sales of old merchandise provide 100 percent profit, new merchandise inventory is necessary for a variety of reasons. First, alumni of Acrobatics & Tumbling may have already purchased some of the old inventory in the past. Also, the amount of old inventory is limited, and our event should provide as much merchandise to the public as they are willing to buy. Finally, people like to purchase products that are new and fresh. They may steer away from purchasing older merchandise in order to keep up with the trends, as previously stated. Figure 1.4 projects the combined total profit of new and old merchandise sales.

New t-shirt sales Old t-shirt sales

Quantity Sold 510

Price per item $18.00

Total Revenue $9,180.00

Per Unit Cost $13.95

Times Quantity Sold 510

Minus Cost of Goods Sold $7,114.5 ($7,114.5)

Total Profit $2,065.50

Figure 1.4

In summary, Varsity Brand would be the best choice for merchandise production at our event for various reasons. Not only is it the cheapest option when compared to the prices of other vendors, it is also a company we currently have connections with. If convinced, Varsity Brands may be willing to negotiate a deal considering the extensive amount of sales previously transacted between Varsity and Acrobatics & Tumbling.

“Save Acrobatics & Tumbling” as a Marketing Technique

Combined Total Profit: $23,485.5

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Quantity Sold 1,190

Price per item $18.00

Total Revenue $21,420.00

Per Unit Cost $0

Times Quantity Sold 1,190

Minus Cost of Goods Sold $0 ($0)

Total Profit $21,420

Overall, we have found the phrase “Save Acrobatics & Tumbling” to be the most relevant and effective means of promoting our cause. We found a concise, direct quote to be more effective than a creative slogan. With such a phrase, people who are unfamiliar with the cause may be motivated to research it upon seeing a piece of its merchandise out on the street. Although this type of consumerism does not directly contribute to profits, it will most likely cause a substantial increase in attention towards the issue. This merchandise will also allow the message to be spread to a demographic that may not have direct connections with the University of Maryland, or its athletic department. It may even be the only means of obtaining information about this matter for some people.

Additionally, alumni are a complicated group to reach out to through fundraising efforts. Although former members of the Acrobatics & Tumbling program are most likely concerned about the future of the sport, they are no longer directly involved with it. Focusing more on their careers and life after college, alumni may not be paying direct attention to the issues that are currently occurring. For this, seeing merchandise that markets Acrobatics & Tumbling may spark their interest in the matter, and cause them to become more involved. As previously stated, Acrobatics & Tumbling has very strong ties to the sport of cheerleading. Between participants, spectators and brands, the two sports are directly correlated with one another. By advertising toward both A&T athletes as well as cheerleaders, the population reached would essentially double. Advertising their similarities would create a bond between the two demographics, compelling them to support one another as they are essentially one entity.

By doing so, the presence of “Save Acrobatics & Tumbling” apparel at cheerleading competitions would further promote the cause to a larger audience. For instance the Cheerleading Worlds, held by the United States All-Star Federation (USASF), is where teams from across the nation, including Maryland, come together to participate in one of the largest competitions of the season. It is broadcasted on ESPN, which would take marketing to an entirely new level. If we were to increase presence of “Save Acrobatics & Tumbling” merchandise in the cheerleading community, it would increase the chances of apparel being seen on one of the most profitable sports neworks. Although ESPN is broadcasted in America, the Cheerleading Worlds reach far beyond the United States. In partnership with the International Cheer Union (ICU), this USASF event includes teams from over 100 different nations. Increasing advertisement would allow the cause to be reached on a global level.

At the Cheerleading Worlds, “t-shirt trading” is a huge movement that has taken place since its first annual event in 2004. Here, individuals will trade team t-shirts with members of different programs. This is a huge example of inter-cultural marketing as people are not only willing to trade shirts, but will go to extensive measures in order to find a specific one. If someone were to trade their t-shirt for a

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“Save Acrobatics & Tumbling” shirt, the word would filter down throughout their team, and possibly their organization as a whole.

Figure 1.5

Recommendations

First steps to implementation

To begin the Save Acrobatics & Tumbling fundraiser, former athletes will need to agree upon a design to send to www.varsity.com to begin the production process. Quantity to be ordered is determined by the statistics above, stating that only 30 percent of the projected items sold will include new merchandise. Although merely an estimate, if every attendee purchased one t-shirt, the profits would be extensive.

Next, members must delegate responsibilities to ensure that the tasks involved in the fundraiser are coordinated and successful. Specifically, the following tasks must be delegated:

Lobby for permission from the Center for Student Groups to hold fundraiser in Cole Field House, as it is the only reasonable location to hold such an event.

Set up merchandise stands with eye-catching, professional displays to draw in the largest number of consumers possible.

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Post about the upcoming event on all forms of social media to reach out to a wide range of people

Steps to ensure continued success

After this fundraiser is implemented, results regarding attendance levels and profits should be compared to those of previous fundraisers held. If there are large discrepancies, members should discuss what went wrong or what could be executed better in the future. If it is a success, members should consider the process for expanding events in the future. This would involve searching for larger venues, or finding vendors who would sell t-shirts in larger quantities at lower prices. Members could also consider the addition of various products, after calculating the projected profits that would arise from their addition.

References:

Giannotto, Mark. "Maryland Cuts Seven Sports on 'sad Day' in College Park."Washington Post. WP Sports, 02 July 2012. Web. 14 Nov. 2013.

Prisbell, Eric. "Maryland Accepts Recommendation, Will Cut Eight Varsity SportsPrograms." Washington Post. WP Sports, 21 Nov. 2011. Web. 14 Nov. 2013.

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Smith, Michael, and John Ourand. "Fear the Deficit." SportsBusiness Daily. N.p., 3Dec. 2012. Web. 14 Nov. 2013.

Wolverton, Brad. "NCAA Agrees to $10.8-Billion Deal to Broadcast Its Men's Basketball Tournament." The Chronicle of Higher Education. N.p., 22 Apr.2010. Web. 14 Nov. 2013.

Fowler, Jeremy. "Notre Dame Grows ACC Revenue." CBSSports.com. CBS Sports, 9Apr. 2013. Web. 14 Nov. 2013.

Lewis, Jason. "Facing Elimination, Terps Teams Raise Money to Survive." CapitalNews Service. UMD Journalism, 15 Dec. 2011. Web. 22 Nov. 2013.

"History of Cheerleading." The International Cheer Union. TheInternational Cheer Union, n.d. Web. 11 Dec. 2013.<http://cheerunion.org/Content.aspx/History>.

"International Cheer Union and Federation Internationale Are New SportAccordMembers." SportAccord. SportAccord, 31 May 2013. Web. 12 Dec. 2013.<http://www.sportaccord.com/en/news/international-cheer-union-andfederation-internationale-de-lautomobile-are-new-sportaccord-members0-17034>.

Leahey, Colleen. "The Business of Cheer." CNN Money. CNN,Fortune & Money, 21 Dec. 2012. Web. 12 Dec. 2013.<http://management.fortune.cnn.com/2012/12/21/cheerleadng-varsity-webb/>.

The National Collegiate Acrobatics and Tumbling Association.Web. 12 Dec. 2013. <http://thencata.org/>.

"Mellody's Math: Cheerleading Ca-Ching." ABC News. ABC News Network, 7 June2013. Web. 12 Dec. 2013.<http://abcnews.go.com/GMA/story?id=125994>.

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