MIAA Board of Directors Delays the Termination of the MIAA IA Ice Hockey Tournament

June 10, 2005

During the June 9 meeting of the MIAA Board of Directors, the Finance Committee of the Board raised concern about the financial impact of the recent MIAA Tournament Management Committee decision to discontinue the IA Ice Hockey Tournament. The Finance Committee's concern was based on both the fact that the Board had already approved the FY06 budget with the assumption that the IA Tournament was an important element of that document, and secondly that an unusual winter tournament season placed the Association in a position where this fiscal year will close on June 30 with a shortfall of $200,000.

During Board discussion, concern was expressed that students who participate in Association-sponsored tournaments in cross country, track, swimming, tennis, golf, skiing, gymnastics, and wrestling, which annually required significant subsidy, could find their future tournaments at risk. Last year MIAA provided $228,000 in subsidy for these tournaments. The Board was concerned that the $200,000 deficit carried into FY06 would be compounded by estimates of up to $100,000 in lost net income associated with the IA Hockey Tournament. The Board decided it would be irresponsible fiscal management not to act as it did. As a result of the Board action, the IA tournament will be terminated after 2007, rather than in 2006.

The economy of MIAA is driven by sponsored tournaments which generate in excess of $2,000,000 in revenue. Tournament expenses in the most recently audited fiscal year were $2,200,000. Member school dues account for approximately 12% of the Association's revenue. MIAA receives no federal or state funding.

Given the unusual negative experiences during this winter tournament season which were created by weather, small fan support of some teams, increased venue expenses, and the need to locate popular tournament events in non-traditional locations, the Board did not wish to accept the additional financial challenge represented by the sudden discontinuation of the financially successful Division IA Hockey Tournament.

The Board anticipates an ongoing debate between the Association's Ice Hockey Committee and Tournament Management Committee. The Ice Hockey Committee embraces a position that the IA Tournament is the best high school ice hockey tournament in the Nation, while the TMC feels that this elite offering is contrary to the mission and philosophy of the Association's commitment to "educational athletics". The Board vote could provide both committees and other Association school leaders opportunity to advance this debate. In the meantime, the two-year hold permits the Association's Finance Committee and Board to develop the strategies necessary to address the impact of the termination of the 1A Tournament two years hence.