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2021 USAToday NCAA D1 Finance Report


northernraider

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7 minutes ago, nodak651 said:

UND doesn't technically pay the ralph rent.  If you're looking at UND's financial statement to the NCAA, I would think that they classify the Ralph's cut of ticket sales and marketing revenue, etc, as rent, which is why I believe such a high number is reported.

Could very well be.
UND doesn't pay rent for games at the Alerus ?

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2 hours ago, gfhockey said:

I thought rea gives us what’s left after they cover all their expenses

After covering expenses AND dumping literally as much money as they want into the Ralphs Repairs, Maintenance, and Building Enhancement account.

Section 2-4 -    Budget/Disposition of Net Income/Audit
A)    Annually, on or before July 1 REA and the UND Department of Athletics will exchange proposed annual budgets, subject to availability.
B)    REA will annually, to the extent that funds are available as determined by UND and REA, fund a Reserve for Extraordinary Repairs, Maintenance, and Building Enhancement. There is no cap on the amount that can be funded annually to the Reserve for Extraordinary Repairs, Maintenance, and Building Enhancement account, but UND and REA desire to make an annual minimum deposit of $500,000, subject to the availability of funds. This Reserve will be reviewed annually to determine the adequacy of the funding requirements, such requirements to either remain the same or to be increased or decreased, depending upon the outcome of the review. Expenditure of the reserve will be subject to mutual agreement. At such time as REA (or another management company mutually agreed upon by UND and REA) no longer manages the Sports Complex, the entire Reserve fund will be transferred to UND for the benefit of the Sports Complex.
C)    One hundred twenty (120) days after REA's fiscal year ending May 31 each year, REA will remit to UND for athletic purposes; a portion of REA's net income as determined by the UAS Board of Directors.

 

 

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2 hours ago, nodak651 said:


USAGE AGREEMENT BETWEEN THE UNIVERSITY  OF NORTH DAKOTA
AND
RE ARENA,  INC.

This Agreement, made effective as of the 1st day of July, 2020, (the Effective Date), by and between RE Arena, Inc. (REA), a Nevada Corporation, and the University of North Dakota (UND), an arm of the State of North Dakota in Grand Forks, North Dakota.

WITNESSETH:

WHEREAS, pursuant to a Management Agreement (Management Agreement) between Arena Construction, Inc. 
(ACI) and Ralph Engelstad Arena, Inc. dated March 1, 2000, andsubject to the terms and conditions 
of the  Lease Agreement (Lease) between the State of North Dakota doing business as the State Board 
of Higher Education and the University of North Dakota and ACI dated March 29, 2000,  REA manages, 
operates, and maintains a sports complex which includes the Ralph Engelstad Arena (Main Arena), the 
Olympic Arena, and the Betty Engelstad Sioux Center (cumulatively referred to as the Sports 
Complex), together with any improvements, extensions, expansions, or additions to such facility;

WHEREAS,  UND desires to use the Sports Complex for use by UND's athletic department;
and
WHEREAS,  UND wishes to provide for the use of the  Sports Complex by UND for other UND activities.

NOW, THEREFORE, in consideration of the mutual covenants set forth herein and for other good and 
valuable consideration, the receipt and sufficiency of which are  hereby acknowledged, the  parties 
hereto agree as follows:

ARTICLE I -   DEFINITIONS AND TRADEMARKS
Section 1.1-  Definitions

A)        UND ice hockey usage area:
Main ice sheet, Olympic ice sheet, players' benches, penalty boxes, team locker rooms, training  
room, equipment  room, nutrition room, weight room, Hockey Skill Center, visiting team locker room,
oom, lounge, offices, coaches'
locker room, officials' room, Zamboni area, goal judges' area,


storage, press box and video areas, downstairs media room, main arena seating, and North and South 
club rooms. Team locker rooms, training rooms, equipment rooms, nutrition room, weight room, 
student athlete lounge and classroom, lounge, offices, and coaches' locker room in the Ralph 
Engelstad Arena are to be used by the UND hockey programs only. These areas are not to be used by 
other athletic programs without the express written consent of REA and  UND.

B)        Other UND athletic usage areas:

1) For the Main Arena, other locker room needs as negotiated and for basketball: basketball goals, 
the scorers' table, the floor, players benches, locker rooms, storage, shot clocks, on floor PA, on 
floor press row and upper press box and video areas, downstairs media room, main arena seating, 
North and South club rooms (consistent with patron lease agreements), and all appropriate padding.

2)  For the Betty Engelstad Sioux Center: For Basketball - locker rooms, basketball goals, scorer's 
table, scoreboard, storage, floor, players' benches, shot clocks, on floor PA, on floor press box, 
media room, seating, all necessary padding, weight room, sports medicine room(s), players' 
lounge(s), club lounge(s), coaches' offices, and staff area(s).

For the  Betty Engelstad Sioux Center: For Volleyball - locker rooms, nets, standards, scoreboards, 
storage, floor, players' benches, on floor PA, on floor press box, media room, seating, all 
necessary padding, weight room sports medicine room, players' lounge, club lounge, coaches' 
offices, and  staff area.

For the Main Arena: For Soccer - locker room, access to weight room,  lounge,  storage, coaches' 
offices, coaches locker room, sports medicine room, and general staff area office /  reception 
area.

UND agrees to utilize the BESC visiting team locker rooms for home UND basketball and volleyball 
events. The locker  rooms in the Olympic Arena are not to be used for UND basketball and/or 
volleyball events in the Betty Engelstad Sioux Center, without the express written consent of REA. 
Visiting soccer teams will be allowed to use locker rooms in the Olympic Arena.

UND Pride of the North band will be provided with storage space in the Olympic Arena during the 
term of this Agreement.

 


C)        The weight room and the Hockey Skill Center may be used by both UND hockey 
student-athletes and Hockey Academy participants. UND hockey student-athletes will be given 
priority with access to team workouts in the weight room and Hockey Academy participants will be 
given  programming  priority in the  Hockey Skill Center.

D)       Other UND activity usage areas shall be determined according to the needs of the 
particular activity, subject to mutual written agreement of UND and REA.

E)        REA shall make the final determination regarding the allocation and utilization of all 
areas, offices, and space within the Sports Complex.  REA shall consult with UND regarding the 
allocation  and utilization of areas, offices and space occupied by UND prior to changing the 
allocation and/or utilization of UND occupied areas, offices, and spaces.

F)        REA shall maintain  exclusive  use of the  Betty Engelstad Sioux Center storage building, 
however, UND Athletics will be provided with access to the storage building laundry room and UND 
Athletics will be allowed to use the laundry room as a uniform storage area.

G)       Usage Term: Shall be defined as a ten (10) year and three (3) month term beginning on July 
1,  2020, and ending on September  30,
2030.

Section 1.2  -   Trademarks

A)        Ralph Engelstad Arena Trademark: The name "Ralph Engelstad Arena" is trademarked.  
Unauthorized use is strictly prohibited. UND is granted license to use the  Ralph  Engelstad Arena  
name only in the promotion and advertising of the events covered by this Agreement. No other use of 
the name "Ralph Engelstad Arena" by UND will be permitted without prior written approval from REA.

B)       University of North Dakota Trademark.: The name "University of North Dakota" and its 
associated marks are trademarked, including but not limited to the Fighting Sioux, Fighting Hawks, 
Interlocking ND,  etc. All licensing  and use of  UND trademarks  for merchandising and promotion 
will be through Learfield Licensing Partners.

 


ARTICLE II - USAGE PERIOD; RIGHT OF ACCESS; USAGE/SERVICES; BUDGET/  DISPOSITION OF NET 
INCOME/AUDIT; ITEMS INCLUDED WITH FACILITY USAGE; ITEMS NOT INCLUDED WITH FACILITY USAGE; ITEMS 
SUPPLIED BY UND DURING UND EVENTS; PRESS BOX; AND USE OF FACILITY FOR OTHER UND EVENTS

Section 2.1  -    Usage Period

A)        REA agrees that UND ice hockey will have first priority over any other scheduling for all 
aspects pertaining to event dates and ice time usage in the Main Arena and the Olympic Arena in 
accordance with an event calendar to be developed by REA in consultation with UND.

B)        REA agrees that  UND basketball and  volleyball will have first priority over any other 
scheduling for all aspects pertaining to event dates in the Betty Engelstad Sioux Center in 
accordance with an event calendar to be developed by REA in consultation with UND.

C)        Other UND events, in addition to those events scheduled
through the event calendar as referenced above in Sections 2.1(A) and 2.1(B) may be scheduled as 
time and space permits, however, upon the mutual agreement of UND and REA, these events may be 
cancelled or postponed, subject to rescheduling from time to time, for the booking of other events 
in the Sports Complex. All UND events, other than UND Athletic events, will require a separate and 
distinct written agreement between UND and REA. Events that will require a separate and distinct 
written agreement include, but are not limited to, the following:  UND Camps, UND Clinics, and UND 
Receptions, Socials, and/or Banquets.
Section 2.2    -     Right of  Access

A)        REA hereby grants  UND exclusive use of the UND locker  rooms, the coaches' locker rooms, 
the coaches' offices, team equipment rooms, and UND staff areas. For all other areas for which use 
is provided pursuant to Section 1.1, UND's use shall be nonexclusive in that REA may use it for 
other activities when not being used for a UND event or activity, subject to the advance mutual 
agreement of the parties. UND and  REA will agree on "season" and "off-season" access hours to the 
Sports Complex that will be enforced by REA.

B)        REA shall have the  right to a reasonable  access of any and all areas of the Sports 
Complex occupied by UND.


C)        UND will have access to common areas necessary to effectuate usage of the facility and 
exterior areas including but not limited to common pedestrian and parking areas.

D)       UND and REA to compile a mutually agreeable gated area parking list for UND Athletic 
events annually.

Section 2.3 -   Usage Fees/Services

A)       REA will manage all ticket revenue from UND athletic events described below on behalf of 
UND. For purposes of determining the ticket  revenue to  be split by UND and REA, tickets which are 
included in suite license agreements and club lounge rooms as defined in Section 4.3 are not 
included in the ticket revenue pool. Ticket revenue is derived from the following categories of 
tickets: single game general admission tickets, single game reserved seat tickets, student single 
game tickets, additional single game suite / club tickets (also referred to as Standing Room Only 
tickets), and season tickets, including student season tickets. Ticket revenue means base ticket 
prices as approved by UND and does not include fees and charges such as ticketing fees, facility 
fees, or other service charges. REA agrees to include tickets sold to the Green Room and the 
Warm-Up Lounge in the ticket revenue pool. Tickets to both the Green Room and the Warm-Up Lounge 
will be purchased by REA at the season ticket price. If event tickets are included or traded to 
facilitate a sponsorship deal, the pool needs to be made whole and these trade tickets need to be 
included in the annual ticket settlement as paid tickets. Tickets are not deemed to be mutually 
exclusive or comp tickets if there is an exchange of value. Ticket revenue also includes any 
complimentary tickets given by UND or REA above its' allotment as set out in Section 3.3 that have 
not been approved by the other party. Complimentary UND student tickets are exempt from the ticket 
revenue calculation and comp ticket grid by mutual agreement of the parties. Single game tickets 
for UND football are  governed by an  existing contract  with the  Alerus Center, but the ticket 
revenue derived from UND football is included in the calculation of the ticket revenue in this 
Agreement. Ticket  revenue does not include affiliated conference and/or NCAA playoff games as 
those events are governed by affiliated conference and/or NCAA regulations, which are incorporated 
herein by reference. All ticket revenue, as defined above, will be pooled into the UND /  REA joint 
ticketing pool, excepting those revenues in the previous sentence.

The following  UND athletic events will be ticketed events:
- men's hockey
- men's basketball

 


- women's basketball
- women's volleyball
- football

The ticket revenue from all of these sports will be included in the gross ticket revenue that is 
allocated in this Agreement.

There will not be a facility fee imposed on any UND Athletics regular season event tickets;  
however, there will be a facility fee on affiliated conference  and/or  NCAA playoff  games as 
those events are governed by affiliate conference and/or NCAA agreements.
There will be a facility fee on UND ticket sales for the first round of the  hockey conference 
playoffs.

The facility fee for the first-round hockey conference playoff series (such as NCHC) shall be 
retained by UND, subject to conference and/or NCAA policies.

The facility fee for pre-season events or special events like the WNIT or NIT, post-season events 
like the WNIT, NIT, or CIT, and post-season conference tournaments like the Summit League 
Tournament, and special events like the Hockey Hall of Fame Game shall be retained by REA, subject 
to conference and/or NCAA policies.

REA  acknowledges  and  is  aware  that  UND  has  a  contractual agreement  with the Alerus  
Center  for  UND football  that  may require UND to allocate revenue to the Alerus Center.

Annual suite leases, suite rentals, and club seats sales at the Alerus Center are not included in 
the ticket-pool.

B)        Payments:

1)    On or before September 1 annually, REA agrees to pay UND One Million Dollars ($1,000,000), as 
a ticket revenue advance. On or before June 30 annually, UND and REA agree to reconcile ticket 
revenue for the past usage year and REA will make a final ticket revenue payment to UND, if 
necessary. REA will prepare settlement documents to facilitate the June 30 payment.

2)   Recognizing that  UND Athletics and REA agree to jointly ticket UND athletic events, UND and 
REA agree to split ticket revenues as follows:
-    Fifty-two percent (52%) to REA and Forty-eight percent (48%) to UND

 


The ticket  revenue retained  by REA, as outlined  in this Agreement, is also referred to as the 
Facility Usage Fee in multiple locations throughout this Agreement.

C)        REA may contract with UND for materials and personnel in service and utility areas 
subject to the mutual agreement of the parties. These service and utility expenditures are to be 
governed by separate agreements between REA and UND and are discussed in this Agreement as a 
reference only.

UND employees may work for REA. It  is the responsibility of each UND employee to comply with the 
UND and the State Board of Higher Education policies regarding outside employment or consulting.

D)       Agreements for all other UND events, including UND camps, held at the Sports Complex will 
be negotiated on an event-by-event basis subject to the mutual agreement of the  parties.

Section 2-4 -   Budget/Disposition of Net Income/Audit

A)        Annually, on or before July 1 REA and the UND Department of Athletics will exchange 
proposed annual budgets, subject to availability.

B)       REA will annually, to the extent that funds are available as determined by UND and REA, 
fund a Reserve for Extraordinary Repairs, Maintenance, and Building Enhancement. There is no cap on 
the amount that can be funded annually to the Reserve for Extraordinary Repairs, Maintenance, and 
Building Enhancement account, but UND and REA desire to make an annual minimum deposit of $500,000, 
subject to the availability of funds. This Reserve will be reviewed annually to determine the 
adequacy of the funding requirements, such requirements  to either remain the same or to be 
increased or decreased, depending upon the outcome of the review. Expenditure of the  reserve will 
be subject to mutual agreement. At such time as REA (or another management company mutually agreed 
upon by UND and REA) no longer manages  the Sports Complex, the entire Reserve fund will be 
transferred to UND for the benefit of the Sports Complex.

C)        One hundred twenty (120) days after REA's fiscal year ending May 31 each year, REA will 
remit to  UND for athletic purposes; a portion of  REA's net income as determined by the UAS Board 
of Directors.

 


D)       Annually, REA agrees to provide the President of UND with the following: REA financial 
statements including separately reported assets, noncurrent assets, current liabilities, and 
noncurrent liabilities and a copy of REA's most recently filed IRS form 990. In addition, REA will 
provide to UND a monthly financial report.

E)        Pursuant to National Collegiate Athletic Association  (NCAA) regulations, REA will allow 
UND to audit its operations to determine the expenditures REA has made for or on behalf of UND's 
intercollegiate athletic program.

Section 2.5 -  Items Included with Facility Usage Fee

The aforementioned usage fee includes: lighting, heating, air conditioning, and water; the light 
and sound systems as installed; standard equipment; event staffing (including but not limited to 
police, security, ushers, ticket takers, parking staff, audio/video technicians, medics for men's 
hockey, and an electrician); ambulance service for spectators and fans if deemed necessary by REA; 
standard cleaning services normally provided after each event; and all other services, space, or 
available equipment necessary to present the event.

Section 2.6 -  Items Not Included with Facility Usage Fee

All equipment, staffing, and services requested by UND not included in the usage fee or supplied by 
UND shall be provided by REA at UND's sole expense per REA's published Equipment, Staffing, and 
Services rate schedule except where otherwise noted. These following items are not included with 
the facility usage fee:

A)        License fees: License fees required for UND activities associated with UND events.

B)        Unique equipment, staffing, or service costs: Only as required by UND and with UND's 
approval  of actual charges.  If outside vendors of equipment, staffing, or services are to be 
used, the use of such outside vendors will be mutually agreed upon and coordinated with REA.
C)        Special hook-ups for electrical and utility services: In accordance with all applicable 
codes and as per UND written requirements for any event.

D)       Food, beverage, and catering services: Press box food, suites, Champions Club pre-game 
events, as per agreement of the  parties, such agreement to be reached at least three (3) days 
before the event.

 


E)        Medics for Men's and Women's Basketball, Women's Volleyball, and Women's Soccer.

F)        UND Owned Equipment: The equipment located in the Sports Complex for which  UND has title 
will be managed consistent  with UND policy for equipment inventory located in non-UND owned 
facilities. The equipment will be tagged with a UND inventory tag and insured by UND. On an annual 
basis, UND will do a physical inventory of this equipment and provide REA with a copy of the 
inventory report for the REA files.
Section 2.7 -    Items Supplied by UND during UND Events
A)        Public Address Announcers; and

B)        Medical providers (team doctors) for the teams.

Section 2.8 - Press Box

UND will have control of the  press box area on game day. UND will supply telephone and Internet 
lines as needed. REA personnel will have access to the press box on game day to operate facility 
control systems located in this area, including video boards, air handling units, and lighting.

Section 2.9 -  Use of Sports Complex for Other UND Activities

REA will allow intramural programs, physical education and exercise science classes, summer camps, 
and other UND events to use the Sports Complex at mutually agreed upon rates when booked in advance 
and when there are no conflicts with other major events. Any charges for these activities will be 
negotiated on an event by event basis and confirmed with separate agreements between REA and the 
sponsoring  organization  from  UND, subject to the approval of the University of North Dakota's 
Vice President for Finance and Operations and the UND Director of Athletics. Once booked, these 
additional UND events (non-intercollegiate athletic events) may be pre-empted with advance written 
notice to  make way for revenue producing events in the Sports Complex.

UND and REA will execute separate and distinct written agreements for all UND camps and clinics 
that include members of the general public, subject to the approval of the University of North 
Dakota's Vice President for Finance and Operations and the UND Director of Athletics. These 
agreements will include, but will not be limited to, the following terms:
-    rental fees
-    facility usage terms, dates, and times
-    msurance

 


ARTICLE III - NOVELTIES; TICKETING/FINANCIAL SEITLEMENT; COMPLIMENTARY TICKETS; AND  PARKING

Section 3.1 -  Novelties

The parties agree that REA may operate a retail outlet within the Sports Complex and  that REA may 
sell licensed  UND items from that location  (including online sales and other sales from that 
location to off-site addresses), subject to the trademark terms outlined in Section 1.2. REA may, 
but is not required to, enter into a separate agreement with the UND Boosters to sell licensed UND 
items in the Sports Complex. Nothing in this clause gives REA the right to sell licensed UND items, 
or any other items, on UND property or at UND events other than events at the Sports Complex, 
unless approved in writing in advance byUND.
Section 3.2 -  Ticketing/ Box Office Operation /  Financial Settlement

The Athletic Box Office will be located at the Sports Complex under the management of REA. REA will 
be responsible for managing, monitoring, and controlling the box office activities within the 
necessary parameters established by UND and the NCAA to ensure appropriate institutional control. 
Pursuant to this agreement, both parties agree that UND must, at all times, maintain institutional 
control of box office activities in compliance with  NCAA  regulations. If at any time during the 
course of this agreement, UND makes a determination that institutional control has not been 
maintained,  both parties agree to amend this agreement immediately to regain institutional control 
as mandated by the NCAA. REA will provide staff to manage and operate the box office. All receipts 
from the box office at the Sports Complex will be deposited with REA.

UND Athletics will be responsible for the credit card fees on  UND Athletics event tickets and 
Champions Club payments.  REA will be responsible for all other expenses associated with running 
the box office except out of town travel expenses  for  UND Athletics  events  when  a box office  
representative is requested to be present at the event. REA will invoice UND for reimbursement of 
these expenses incurred by box office staff as events occur.

REA and UND agree to include a flat dollar amount in the UND athletics season tickets (included in 
the face value of the season tickets) to create a credit card revenue pool that will be used to 
cover the cost of credit cards for UND Athletics events (tickets and Champions Club). For the  
2019-2020 season, the identifiable and flat credit card revenue amount per season ticket is $20  
for men's hockey, $10 for men's and women's basketball, and $10 for football. UND will pay the box 
office credit card charges for UND Athletics events (tickets and Champions Club) at the rate of 
2.75% with revenue from the credit card revenue pool. After paying for the credit card charges on 
tickets and Champions Club, UND gets the balance, if any, from the credit card revenue pool.  The 
revenue

 


generated from the credit card pool is excluded in the calculation of the revenue split for tickets 
as described in Section 2.3.B.

In consideration for the expenses to be incurred by REA to operate the box office, REA will retain 
all revenues collected from customers during the ticket selling process above and beyond the face 
value of tickets sold.  REA and  UND agree to review a credit card plan annually and will mutually 
agree on any changes that need to be made to the credit card plan based on items such as credit 
card usage, online renewals, etc. The goal with the credit card plan is to have customers pay for 
credit card charges with an identifiable credit card revenue pool included in the face value of 
season tickets.

Section 3.3 -  Complimentary Tickets/Trade-outs

A)        Each party will be entitled to complimentary tickets as set out in the Complimentary 
Ticket Grid (Grid) that is attached to and part of this Agreement. This Grid is subject to change 
upon the mutual agreement of the parties. Further, the parties may mutually agree to a change in 
the complimentary ticket allotment for any individual event. Complimentary tickets provided either 
under the Grid or by mutual consent will not be counted as ticket revenue.

B)        UND student tickets are not counted as comp tickets in this Agreement. Complimentary UND 
student tickets are considered to be mutually exclusive and are not counted against either of the 
parties to this Agreement.

C)        Marketing promotions made by the mutual agreement of UND and REA are not included in the 
Grid and do not count against the complimentary ticket allotment of either party or as ticket 
revenue.

D)       Operation Enduring Friendship (OEF) is a promotion between UND and REA. Ticket revenue 
generated by the Operation Enduring Friendship promotion will be counted as ticket revenue; 
however, complimentary tickets do not count against the complimentary ticket allotment of either 
party under the Grid provided both UND and REA agree in writing to the OEF complimentary ticket 
plan.

E)        Trade-outs  (a service given to  UND or  REA in exchange for tickets or advertising) will 
be treated as a cash sale at face value in the calculation of ticket revenue or advertising revenue 
as it pertains to this Agreement.

Section 3.4 -  Parking

 


REA will be responsible for parking lot staffing and traffic management in all REA leased lots 
(North, South, and East) on game day for all men's hockey regular season games and conference 
playoff games, men's and women's basketball  regular  season games and conference  playoff  games, 
volleyball  regular season games and conference playoff games, and all other post-season athletics 
events. Special parking areas will be designated for UND coaches, players, event staff, and 
Champions Club members. Parking in those areas will be allowed with a pass only.

Parking lot staffing for all other UND athletic events at the Sports Complex, including NCAA 
championship events will be negotiated on an event- by-event basis as there may be a charge for 
guest parking and/or parking lot staffing for other events.

UND and REA will coordinate parking activities in an attempt to remain compliant with UND's campus 
parking plan for all events.

The Champions Club is responsible for the cost associated with the development of Champions Club 
hang tags. REA reserves the right of final approval of hang tag design and artwork due to the fact 
that REA staff will have to differentiate these hang tags in the parking lots during events.

REA retains the  right to sell sponsorships  / naming  rights to  REA owned parking lots.

The Champions Club is responsible for the cost associated with Champions Club Diamond Club parking 
signage.  REA reserves the  right of final approval of parking signage artwork, as well as the 
location and quantity of Champions Club Diamond Club parking.

UND and REA to mutually agree on a parking and access plan for UND Lot #84  (Gravel Lot).
ARTICLE IV - ADVERTISING; CONCESSIONS; SUITES; AND ALCOHOL SALES

Section 4.1-Advertising

A)       The UND Athletic Department shall maintain Institutional Control of all marketing 
activities and sponsorship sales as outlined by the NCAA. The marketing, advertising, and 
promotional activities of UND Athletics at and/or by REA shall conform to the principles as 
governed by the NCAA Constitution. Particular attention shall be paid to the areas of Budgetary 
Control and Responsibility for Actions of Outside Entities in the execution of the marketing, 
advertising, and promotional activities of UND Athletics.

 


B)        UND Athletics and REA agree to market and sell UND Athletic and REA events per the terms 
outlined in Exhibit "A" (attached).

For  purposes  of this Agreement,  revenues  derived from the sale of sponsorships do not include 
ticket revenues or Champions Club contributions.

Any and all gross revenues from the sale of the applicable inventory that is paid to or deposited 
with REA will be pooled for the purpose of settling the Usage Agreement, unless written agreement 
to the contrary is executed between the parties.

Direct sales expenses associated with generating the sponsorship revenue will be deducted from the 
gross amount of the sponsorship money before the Usage Agreement split. Direct Sales Expenses are 
defined as "hard costs" directly tied to the fulfillment of a sponsorship/ advertising agreement  
contemplated  in this agreement, not including payroll expenses. Examples of direct sales expenses 
include the fees associated with printing dasher board advertisement and the costs associated with 
providing food and beverages in the sponsor suite if such credit is included in the sponsorship 
package.  Each direct sales expense must be incurred to fulfill the obligations of the respective 
sponsorship / advertising agreement. There will be a gross amount of sponsorship money, a figure 
for the total sales expenses, and then a net amount of sponsorship money. The net amount will be 
the amount that will be split by the parties per the Usage Agreement.

On or before June 30, of each year and based on the terms above, REA will pay to UND thirty-six 
percent (36%) of all of such net sponsorship revenues received by REA. Any and all athletic 
sponsorship revenue from all sources that is paid to or deposited with UND from sponsors for UND 
Athletics will be applied as a credit toward REA's obligation to pay UND as required in this 
section (e.g., Rydell Chevrolet trade agreement). UND is to provide REA with the  UND trade summary 
by April 30  of each year so that REA can facilitate the sponsorship payment noted above by June 30 
of each year. REA will prepare settlement documents.

REA is not involved with advertising / sponsorship sales for UND football at the Alerus Center.

C)        No solicitation, distribution, or sale of any products, services, raffle tickets, 50 / 50 
draw tickets, advertising, or publicity materials or flyers of any type shall be permitted on the 
Sports Complex premises without obtaining the approval from the other party, except for game 
programs.

 


D)        REA reserves the right to make announcements in the interest of public safety, to provide 
information to attendees, to market and promote internal assets such as the Sioux Shop, and/or to 
announce upcoming events at the Sports Complex.

E)        UND shall retain all rights for radio, online (streaming), television broadcasting of UND 
Athletic events, web based content such as social media sponsorships and advertising on 
undsports.com and shall be allowed to broadcast athletic events from the Sports Complex without 
paying REA a rights fee. UND Athletics will keep 100% of the revenue derived from these activities. 
UND broadcast contractors will be given access to all areas and currently available equipment 
necessary to perform their duties.

F)        Advertising, solicitation, announcement, and broadcasting rights for NCAA, conference  
playoff events, and other pre-season,  post- season and special events will be determined according 
to NCAA and conference policies and procedures. To the extent that such policies and procedures 
conflict with the terms of this Agreement, the league and NCAA policies and  procedures govern.

Section 4.2 - Concessions

A)        REA will  retain all concessions  rights, including revenues, merchandise selection, and 
pricing.

B)        No outside food and/or  beverages  will be allowed  in the Sports Complex without the 
advance written approval of REA.

C)        Neither UND nor any of UND's attendees, advertisers, or sponsors may sell or give away 
any samples of food, beverages, or any product without prior written approval of REA.

Section 4.3 - Suites

The Arena's one-thousand  and sixty-four (1,064) seats in its fifty(50) suites and two hundred 
sixty-four (264) seats in two (2) club lounge rooms will not be included on the ticket manifest. 
The suite owner, club seat owner, or REA must pay for any additional tickets at face value and such 
tickets are to be considered general admission tickets and treated pursuant to Section 2.3(A). The 
suite owner, club seat owner, or REA must pay for any additional tickets above suite seating 
capacity as defined in the suite license agreement or club seat contract at a price that will be no 
less than the general admission ticket price.
Such tickets are to be treated pursuant to Section 2.3(A).

Suite #225 will be used by UND and the University of North Dakota Alumni Association and  
Foundation pursuant to the terms of a separate


and distinct suite lease agreement between REA and the following parties: UND and the University of 
North Dakota Alumni Association and Foundation.

Suite #231 will be utilized to market Game Day sponsorship packages and single game suite rentals. 
UND will be allowed access to  Suite  #231 on UND Athletic event game days to meet and greet Game 
Day sponsors.

Section 4-4 -  Alcohol Sales

In accordance with section 3.3-4(ii) of the Management Agreement for the Sports Complex signed 
April 4, 2000, REA may sell beverages of all kinds, including alcoholic beverages, to the extent 
they may be legally sold  now or hereafter  may become legally able to be sold, in accordance  with 
applicable laws, ordinances, rules, and regulations.
Further, there will be close control and monitoring in the facility to prevent sales to underage 
individuals or purchase of alcoholic beverages by anyone for underage individuals. Immediate 
expulsion and possible other penalties will be directed at any violator of this policy.

There will be a total prohibition  against any violation of the North  Dakota alcohol beverage 
statutes and against any alcohol beverages being brought into the facility by spectators, players, 
and staff, other than those who have responsibility for the supplies.  Any violation  will  result 
in immediate expulsion and  possible further legal action.

A)        Beer will not be sold or allowed to be carried into and consumed in the student seating 
area for games included in the student season ticket package.

B)        There will be no beer or alcohol sales by "hawkers" in the student seating area during 
UND athletic events.

C)        The suites will have liquor availability at the discretion  of  REA and the suite holder. 
The suite holder is prohibited from allowing alcohol  to  be consumed  by persons below the  legal 
drinking age and to take responsibility for adherence with facility policies and North Dakota 
statutes.

D)       The availability of alcoholic beverages in the two private clubrooms will be at the 
discretion of REA.

E)        No alcoholic beverages  will be sold to any individual  who appears to be intoxicated, 
and security personnel will remove intoxicated individuals engaging in disorderly conduct from the 
facility.

 


F)         Unacceptable fan behavior will not be tolerated and will result in immediate expulsion 
with the possibility of further penalties.

G)        REA management will provide adequate personnel for monitoring enforcement of the 
established policies and compliance with North Dakota statutes.  REA acknowledges  that alcohol  
may not  be allowed in public areas for  NCAA championship  events, subject to NCAA policy.

ARTICLE V  -   TERM AND TERMINATION

Section 5.1 -  Term

The Term of this Agreement  is July 1,  2020  through September 30,   2030,
unless otherwise terminated.

Section 5.2  -  Termination

A)        This Agreement may be terminated at any time upon the mutual written agreement of both 
parties.

B)        Defaults and Material  Breaches.  Each of the  following shall constitute a default and 
material breach of this Agreement:

1)         The failure by either party to cure a payment default under this Agreement,  
notwithstanding the  non-defaulting party's right to interest on any such sums that become 
delinquent.

2)        Either party's failure to comply with a material term or condition of, or to satisfy a 
material obligation it has assumed under this Agreement.

C)        In the event either party to this Agreement fails to perform any obligation hereunder  or 
violates  any provision  of  this Agreement, the other party may give notice to such party of such 
failure and demand the performance of the  non-performing party's obligations hereunder or 
compliance with the terms and conditions hereof within a reasonable period after the date of such 
notice, which period shall not exceed thirty (30) days. In the event the party receiving notice of 
such failure or violation does not correct, remedy, or cease such failure or violation within the 
time specified in such notice, the other party may terminate this Agreement, whereupon all 
obligations of the  parties hereto that had not been incurred as of the effective termination date, 
including but not limited to the obligation to pay the balance of fees due, shall

 


terminate. In the event that fees due have been paid, a prorated return of fees will occur 
immediately.

Any such termination of this contract shall be without prejudice to any obligations or liabilities 
of either party already accrued prior to such termination.

ARTICLE VI -AUTHORIZATION; COMPLIANCE;  AND COVENANTS

A)       Subject to the terms and provisions of the Management Agreement between ACI and Ralph 
Engelstad Arena,  Inc., and subject  to the terms and conditions of the  Lease between the State of 
North Dakota doing business  as the State Board of  Higher  Education  and the University of North 
Dakota and Arena Construction, Inc., dated March 29, 2000, REA hereby represents and warrants to 
UND that: REA has all requisite power and authority to enter into this Agreement and to consummate 
the transactions contemplated herein; all acts and proceedings required for the authorization, 
execution, delivery, and performance of this Agreement have been taken; and this Agreement and all 
documents and instruments delivered hereunder are legal, valid, and binding on REA and enforceable 
in accordance with their respective terms.

B)        UND hereby represents to REA that: UND has all requisite power and authority to enter 
into this Agreement and to consummate the transactions contemplated  herein; all acts and 
proceedings  required for the authorization, execution, delivery, and performance of this Agreement 
have been taken; and this Agreement and all documents and instruments delivered hereunder are 
legal, valid, and binding on UND and enforceable in accordance with their respective terms.

ARTICLE VII -  INSURANCE

A)        UND's general liability coverage will be provided through the state risk management  
fund. Limits under the fund are $250,000  per person and $1,000,000  per occurrence.  UND will 
provide insurance coverage for UND-owned equipment and other property that is stored within the 
Sports Complex.

B)        Throughout  the Term  of this Agreement and at REA's expense,  REA will maintain: (a) 
insurance against the loss or damage to the Sports Complex and any improvements by fire, lightning, 
windstorm, hail, explosion, riot, aircraft, vehicles, smoke, and other risks commonly included in 
extended coverage policies written in Grand Forks, North Dakota, in an amount not less than eighty 
percent (80%) of the full insurable value of the Sports Complex and any improvements or in such 
greater amount as is required to comply


with the coinsurance provision of any insurance policy maintained by REA; (b) commercial general 
liability and property damage insurance in an amount of no less than Five Million Dollars 
($5,000,000.00); (c)  appropriate  worker's  compensation insurance; and (d) all other forms of 
insurance required by law or customarily maintained by owners of like property.

C)        Policy Provisions. All insurance maintained by REA pursuant to Section 7(B) will: (a) 
name UND and REA as insureds as their respective interests appear; (b) include an effective waiver 
by the insurer of all rights of subrogation against any named insured; (c) provide that UND has the 
same rights as REA regarding notice of cancellation or termination of the policy; and (d) be issued 
by companies and in forms reasonably satisfactory to UND in all other respects.

D)       Any attorney who represents UND under such insurance policy must first qualify as and be 
appointed by the  North  Dakota Attorney General as a Special  Assistant  Attorney  General  as 
required under section 54-12-08 of the  North Dakota Century Code.

E)        Delivery of  Policies.  Promptly at the  signing of this Agreement  and at least annually 
thereafter, REA will deliver to UND true and correct copies of all insurance policies and renewals 
required by this Agreement together with appropriate evidence of payment of the premiums therefore.

ARTICLE VIII -  LIABILITIES AND LIMITATION OF LIABILITY

Section 8.1 -   Liabilities

Each party shall be responsible for all claims, losses, liabilities, damages, and expenses which 
are proximately caused by the wrongful or negligent acts or omissions of that party or its agents 
or employees acting within the scope of their duties. Each party disclaims any liability or 
responsibility for any losses, damages, or expenses that are not proximately caused by the wrongful 
or negligent acts or omissions of that party or its agents or employees acting within the scope of 
their duties. The tort liability of UND is as set out in chapter 32-12.2 of the North Dakota 
Century Code and subject to the conditions and limitations contained therein. Nothing herein shall 
preclude either party from asserting against third parties any defenses to liability it may have 
under the law or be construed to create a basis for a claim or suit when none would otherwise 
exist. In the event that a suit is brought against either party, the party sued will give notice to 
the other within fourteen (14) days of the service of any summons and complaint or any other claim. 
This provision shall survive the termination of the Agreement.


ARTICLE IX -   MISCELLANEOUS

Section 9.1- Cooperation

The parties hereto recognize that, in the performance of this Agreement, the greatest benefit will 
be derived by promoting the interests of both parties. Therefore, each of the parties enters into 
this Agreement with the intention of loyally cooperating with the other in carrying out the terms 
of this Agreement, and each party agrees to interpret its own provisions, insofar as it may legally 
do so, in such manner as will best promote the interests of both parties and will render the 
highest service to the public concerned.

Section 9.2 -  Amendments

Neither the Agreement nor any term or provision hereof may be changed, waived, discharged, or 
terminated, except by a written instrument signed by the parties hereto.

Section 9.3 -  Force Majeure; Substantial Damage

In the event that either party to this Agreement is unable to perform its obligations hereunder or 
to enjoy any of its benefits because of the substantial damage or destruction of the Sports Complex 
due to any cause, a natural disaster, or action or decree of a governmental body with appropriate 
jurisdiction (hereinafter referred to as a "Force Majeure Event"), the party that has been so 
affected shall immediately give notice to the other party of such fact and shall do everything 
possible to resume its performance. Upon the other party's receipt of such notice, each party's 
obligations hereunder shall be suspended for the period of such Force Majeure Event and, if 
applicable, the payments due pursuant to Section 2.3 shall be reduced pro rata and UND shall be 
refunded the difference between the amount paid and the amount of the reduced payment. If the Force 
Majeure Event lasts for a period one year or more from and after the date that the other party 
receives notice of such Force Majeure Event, and the party that received such notice has been able 
to perform its obligations hereunder despite such Force Majeure Event, the party that received such 
notice may terminate this Agreement by giving notice thereof to the  party unable to perform 
because of such Force Majeure Event.

Section 9.4 -  Public Safety

UND shall at all times conduct the events in full regard for public safety and will abide by all 
regulations as required by local authorities and REA. REA will at all times keep UND supplied with 
copies of its current regulations. REA shall have the right to interrupt or terminate any event 
when, in the sole judgment of REA, it is necessary in the interest of protecting the safety of the 
public. Wherever possible, REA shall confer with UND before any such termination.


Section 9.5 -  Evacuation

REA shall have the sole right to determine when and if it is necessary to evacuate the Sports 
Complex for whatever reason. In the event such an evacuation occurs, REA and UND will settle the 
expenses for the event in a reasonable manner.

Section 9.6  -   Admissions

A)       Doors shall be opened for the event in accordance with advertised times in consultation 
with UND, REA policies, and North Dakota state law. REA reserves the right to open the doors early 
if  REA deems it necessary to move the public into the Sports Complex in a safe and orderly 
fashion. REA may cancel any event preparations in order to safely move the  public into the Sports 
Complex as long as the cancellation of the  event preparations does not interfere with the event 
itself. The term "event preparations" does not include the on-the-ice or on-the-court pre-game 
activities of the teams.

B)       All Sports Complex patrons shall be prohibited from bringing food and beverages, bottles, 
cans, containers, alcoholic beverages, projectiles, weapons, items which may be used as weapons, 
incendiary devices, or any controlled or illegal substances into the Sports Complex or onto the 
Sports Complex premises.

C)        REA reserves the right to conduct a reasonable search of all persons and their 
possessions prior to entry. REA reserves the right to enforce the attached camera policy (Exhibit 
"B") for all UND athletic events.

D)       Re-entry on ticket stub is not permitted without an "exit scan" as allowed by Sports 
Complex policy.

E)        Smoking is not permitted inside the Sports Complex as the Sports Complex is a smoke-free 
facility. Guests will not be allowed to exit and re-enter for the purpose of smoking at UND 
athletic events.

F)        No animals will be permitted in the Sports Complex unless the animal is part of the show 
or exhibit, or if the animal is used as a service animal.

G)       REA reserves the right to eject or cause to be ejected from the Sports Complex premises 
any persons causing a danger to persons or property, a breach of the peace or other disorderly 
conduct, or who otherwise violates Sports Complex rules and regulations, including violations of 
the  REA and UND Fan Code of Conduct.


H)       UND and REA hereby agree that they will not discriminate against any persons relative to 
admission, services, or privileges offered to or enjoyed by the general public. UND and REA agree 
that they will not discriminate against any person relative to hiring and employment practices for 
any UND event involving UND or REA staffing. Therefore, there will be no discrimination on the 
basis of race, color, sex, religion, sexual orientation, gender identity, genetic information, age, 
political belief or affiliation, national origin, the presence of any mental or physical 
disability, veteran status, or status with respect to marriage or public assistance. REA agrees to 
make necessary changes to the Sports Complex to comply with the ADA, and further, REA agrees to pay 
for said accommodations in order to comply with the ADA.

Section 9.7- REA Control and Adoption of Rules and Regulations

REA shall at all times maintain control of the Sports Complex and  shall be the sole administrator 
of its rules and regulations relative to its operation of the Sports Complex. REA fully reserves 
all rights and authority to adopt such reasonable rules or regulations that it, in its sole 
discretion, deems appropriate. REA agrees to provide UND with notice of any material change in 
operating policies or procedures that impacts UND or UND's events.

Section 9.8  -  Licenses

Each party shall pay, obtain, and be responsible for any and all taxes, license, or permits that 
are required by that party for events occurring at the Sports Complex. UND will be responsible for 
any and all taxes, licenses, or permits specifically required for its events, while REA will be 
responsible for any and all taxes, licenses, or permits required for the operation of the Sports 
Complex.

Section 9.9  -  Defacements

UND shall not injure, mar, or in any manner deface the Sports Complex or any equipment contained 
therein, and shall not cause or permit anything to be done whereby the  premises or equipment 
therein shall be in any manner injured, marred, or defaced. Further, other than in the areas over 
which UND has exclusive control or in regard to UND-owned equipment, UND will not drive or permit 
to be driven nails, hooks, tacks, screws into any part of the Sports Complex, or any equipment 
contained therein, and will not make or allow to be made any alterations of any kind to the Sports 
Complex or any equipment contained therein, and will not affix or permit to be affixed by adhesives 
any signs, posters, notices, or graphics of any description without the written consent of REA.  
UND agrees that if the Sports Complex is damaged by UND,  UND shall pay REA such reasonable sums as 
shall be necessary to restore the premises to their original conditions, ordinary wear and tear 
excepted.


Section 9.10 -  Assignment

This Agreement shall not be assigned, transferred, or otherwise encumbered by either party without 
the express written approval of the other.

Section 9.11 -   Severability

If any of the  provisions contained herein shall for any reason be held to be invalid, illegal,  or 
unenforceable, such invalidity,  illegality,  or unenforceability shall not affect any other 
provisions contained herein.

Section 9.12 -  Independent Contractors

The parties shall perform as independent contractors under this Agreement. Each party, its 
employees, agents, or representatives are not employees of the other party for any purpose, 
including, but not limited to, the application of the Social Security Act, the North Dakota 
Unemployment Compensation Act, and the North Dakota Workers' Compensation Act. No part of this 
Agreement shall be construed to represent the creation of an employer/employee relationship. Each 
party will retain sole and absolute discretion in the manner and means of carrying out its 
activities and responsibilities under this Agreement, except to the extent specified in this 
Agreement.

Section 9.13 -  Entire Agreement

This Agreement shall constitute the entire agreement of the parties pertaining to the use of the 
Sports Complex by UND. Any and all prior agreements or understandings of the  parties other than 
those contained or referenced herein shall be null and void.

Section 9.14 -  Compliance with Law

UND and REA agree that they will comply with all applicable federal, state and local laws, rules, 
regulations, and/or ordinances, including but not limited to those relating to public records, 
Family Educational Rights and Privacy Act (FERPA), non-discrimination, accessibility and civil 
rights.

Section 9.15 -    NCAA Regulations

UND and REA agree that NCAA rules and regulations pertaining but not limited to items such as 
institutional control and responsibilities, ticket sales, advertising, budget procedures, and 
employment, apply in the performance of this Agreement.



REA grants UND full access to records pertaining to all ticket sales. For UND, this access would 
include, but not be limited to, Athletic events and Chester Fritz events, Champions Club 
memberships, away game ticket sales, and all information on the Archtics system, including season 
ticket sales.

Section 9.16 -  Authority and Jurisdiction

Any privilege, right, or pre-eminence of authority not herein defined or clearly expressed shall be 
construed in accordance with the laws of the State of North Dakota, and any action herein must be 
brought in the Northeast Central Judicial District Court of North Dakota.

Section 9.17 -  Notices

Any demand, notice, or request provided by this Agreement shall be in writing, addressed to the 
party to whom notice is to be given or to whom a demand or request is to be made, and delivery 
shall be made by facsimile, or certified mail, by means of which the sender obtains a receipt of 
delivery from the earner.

The provisions of this section do not supersede any statutes or rules of court regarding notice of 
claims or service of process. In the event of a conflict between this section and any statutes or 
rules of court, the statutes or rules of court govern.

Notice to REA shall be addressed as follows: RE Arena, Inc.
Attn: Jody Hodgson
One Ralph Engelstad Arena Drive Grand Forks, ND 58203
Phone: 701.777.6633
Facsimile: 701.777.6643

Notice to  UND shall be addressed as follows: Attn: Jed Shivers
Vice President for Finance and Operations / Chief Operating Officer Twamley Administration 
Building, Room 314
University of  North Dakota
264 Centennial Drive Stop 8378 Grand Forks, ND 58202-8378 Phone: 701.777.3511
Facsimile: 701.777,4082


Bill Chaves, Director of Athletics University  of  North  Dakota 2751 2nd  Ave N. Stop 9013
Grand  Forks,  ND 58202-9018
Phone: 701.777.2993
Facsimile: 701.777.2285

Each  party shall  promptly  advise the other in writing of any change of address or facsimile 
number.

9.18 -   Confidentiality

Neither REA nor UND shall disclose or use any private, confidential, proprietary, or trade secret 
information provided from one to the other except as required in and by the terms of this Agreement 
or as required by law. REA and UND shall be responsible for the storage, security and custody of 
their confidential information and shall take reasonable steps to protect against the unauthorized 
disclosure and use of proprietary and confidential information. In order to be deemed confidential 
hereunder, information must qualify for at least one exception to North Dakota's open records laws. 
Specifically, REA and UND shall:

1)   Not disclose proprietary and confidential information to any third party without the prior 
written permission of the other party, and

2)   Limit disclosure of proprietary and confidential information to those of the receiving party's 
officers, employees, agents and representatives who have a need to access proprietary and 
confidential information and who have been informed of the confidentiality of the information being 
disclosed and who are under a duty to comply with the confidentiality obligations under this 
section.

9.19 -  Conflicts of Interest

REA shall adopt and maintain a Conflicts of Interest policy for officers and members of the  REA 
Board of Directors.

9.20    -  Headings

This Agreement's paragraph headings are for quick reference and convenience only and do not alter, 
amend, or otherwise affect the terms and conditions set out herein.

 

 

COMPLIMENTARY TICKET GRID 2020-2030

HOCKEY Tickets Per Game - UND 700 REA 200
BASKETBALL Tickets Per Game* - UND 450 REA 50
FOOTBALL Tickets Per Game - UND 875 REA 50
VOLLEYBALL Tickets Per Game - UND 225 REA 50

*When Men's and Women's basketball play on the same night (doubleheaders), the 450- ticket 
allocation is for both games, not each game. The venue utilized for the home games does not affect 
the complimentary ticket allotment for either Men's or Women's basketball (i.e. BESC or Main 
Arena).

Tickets included  in sponsorship  packages by UND and REA are not included  in the grid as all 
sponsorship and trade tickets are to be paid tickets.

Tickets provided pursuant to the Operation Enduring Friendship (OEF) promotion with the Grand Forks 
Air Force Base are not included in the grid and do not count against the complimentary ticket 
allotment of either party provided both UND and REA agree in writing to the OEF complimentary  
ticket plan.


EXHIBIT "A" AGREEMENT FOR SERVICES
Marketing  / Sales Agreement  between
University of North Dakota (UNO) and RE Arena, Inc. (REA)


In recognition of the mutual benefit derived by UND Athletics (UNO) and the Ralph Engelstad Arena 
(REA) in collaborating on marketing and sales functions for the UNO athletics enterprise, both 
parties agree upon the following:

Advertising and Marketing
UNO will provide  the staff, resources, and equipment  necessary to market,  promote, and advertise 
UNO athletics and UNO athletic events.

Advertising Budget
UNO will provide all of the funds necessary to market, promote, and advertise the UND athletic 
programs.

Staffing
UNO will provide the staff necessary to market, promote, and advertise UNO athletics and UND 
athletic events. The UNO Director of Athletics retains the right to approve any and all marketing 
activities conducted on behalf of the University.

Sponsorship and Advertising Inventory
REA and UND will consult with each other on advertising and/or sponsorship agreements which impact 
the other party due to exclusivity or any other terms limiting the other party or requiring use of 
inventory mutually marketed (e.g., tickets or game promotions). REA reserves the right to market, 
subject to market conditions and sound business practices, advertising and sponsorships that are 
mutually agreed upon between REA and UND. When beneficial, a UNO and/or REA representative may 
accompany a staff member from the other party on a sales call. Any and all Athletic marketing 
revenue or trade inventory from the mutually agreed upon inventory that is paid or deposited 
exclusively with UNO will be applied as a credit toward REA's obligation to pay UNO as outlined in 
the Usage Agreement (e.g., Rydell trade agreement), not including inventory the parties agree to 
exclude (e.g., Academic Awards and Champions Tour events).

Football Inventory:  UNO Athletics  or its designee  will  sell the inventory  allotted to UNO 
Athletics  by the Alerus Center  and all of this sponsorship  revenue  will go to UNO.



Radio  Inventory:  UND Athletics or its designee / contracted  service provider shall sell the 
radio inventory and UND Athletics or its designee  / contracted  service  provider retains 100% of 
this revenue.

Television  Inventory:  UND Athletics or its designee / contracted service  provider shall sell the 
television inventory and UND Athletics or its designee / contracted service provider  will retain 
100% of this revenue.

Web  based Inventory:  UND Athletics or its designee / contracted service  provider  shall sell web 
based inventory including but not limited to social media sponsorships and advertising on 
undsports.com and UND Athletics or its designee / contracted service provider will retain 100% of 
the revenue from this activity.

Betty Engelstad Sioux Center Sponsorship Summary

•     REA will sell, manage and fulfill all permanent advertising in the BESC, this includes 
permanent signage such as:
o    Backlits
o    Scorer's tables
o    Goal  standards
o    Triangle signs behind backboards
o    Permanent court advertising
o    Any other permanent  signage
The sale of this inventory  is subject to split as outlined  in Section  4.1.

•     UND Athletics ("UND") will sell, manage, and fulfill all temporary event signage and in-game 
opportunities in the BESC, including the following:
o    Game sponsorships
o    In-Game promotions (prior to the game, time-outs, in-game, half-time, post-game)
o    PA Announcements
o    BB I VB display opportunity (1 table in a single 8'  x 10'  area)
o    Premium items for BB and VB (handouts at doors)
o    UND will administer  and operate all event promotions outlined above.
•     UND retains 100% of the revenue from the sale of this inventory.

*Temporary signage in the BESC defined as any advertising, signage or other content that leaves the 
court area once the promotion or event is over. It is not displayed or used for the entirety of the 
event. Examples include floor signage, sideline signage, and in- game s1gnage.



•     Volleyball  and Basketball  Game Sponsorships to include: o    Media Build-up
o    Online and social media build  up before and during the game
o    Distribution  rights - one table at the game
o    Two :15 PA announcements  during the game
o    On court signage during halftime  promotion  (temporary  signage)
o    Opportunity to purchase 10 single game tickets for that sponsored event

•     Rivalry Series - UND retains the right to sell a rivalry series sponsorship  package for 
major conference opponents and for the games included in this rivalry series package, UND is 
allowed to place event signage in the BESC that can remain "up" and "visible" through the event, 
provided it does not conflict with (exclusives) or cover any existing inventory.

If  UND seeks to sell something  not clearly identified  above as UND inventory, advance written 
approval from REA is required. In the flow of what is made available to UND and what is not, REA 
controls everything and allocates inventory to UND.


EXHIBIT "B"
Ralph Engelstad  Arena Camera Policy
REA Camera Policy
Non-flash, non-professional still cameras may be used to take pictures at REA events for personal 
use provided their use does not interfere with the game or other guests' enjoyment of the game. 
Fans may not block the view of others or block aisles while taking pictures. Camera lenses greater 
than four inches in length are prohibited. Tripods, monopods, and other camera support pods are 
prohibited without building issued Media Credentials. The team / event producer reserves the right 
to deny camera use at any time before, during or after and event and to prohibit the use of any 
camera that is deemed to be unacceptable. Failure to comply with the Ralph Engelstad Arena Camera 
Policy may result in the camera being confiscated.


REA  Recording  Policy
Video Recorders and/or Digital Cameras with recording capabilities are prohibited at all times time 
during REA events without building issued Media Credentials. The Ralph Engelstad Arena reserves the 
right to examine and prohibit use of any camera that it's' personnel deems to be unacceptable.  
Tape recorders  are not allowed  at any  time.  Failure to comply with the Ralph  Engelstad  Arena 
Recording  Policy may result in the tape / film being confiscated.

**The camera policies are general and can be overridden based on a specific request from
the team, attraction, artist or promoter.
 

The UND/REA usage agreement is in the quote box.  Quoted myself and deleted the post to prevent anyone from having to scroll through the whole thing every time they go to this thread...

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Rather than everyone having to wade through that thing, here's how most of the money goes:

  1. Sept 1 - REA cuts UND a check for $1M as an advance on ticket sales
  2. During the entire year, REA takes 100% of ticket sales for MIH, MBB, WBB, VB & FB - this is called the Facility Usage Fee (UND is on the hook for credit card processing fees)
  3. During the entire year, REA collects 100% of MIH advertising money in the REA and 100% of permanent advertising for MBB, WBB, VB(UND keeps temporary/movable ad money)
  4. REA keeps 100% of concessions
  5. REA keeps 100% of suites revenue(1,328 seats, which is 11.4% of the REA capacity)
  6. UND pays for all marketing of UND athletics
  7. REA deposits $500,000 or thereabouts into a reserve account
  8. June 30 - REA gives UND 48% of the ticket revenue collected throughout the year, minus the $1M advance
  9. June 30 - REA gives UND 36% of the net advertising money collected(this means REA gets to subtract the costs of printing the ads, etc. before giving UND its cut)
  10. Aug 29 - REA cuts UND a check for whatever it wants to, though there's an unofficial agreement that this will be between $500k and $1M.

If/when UND takes over management of the arena, UND gets the money in the reserve account

 

Looking at this, I think the USA Today report is accurate. UND "takes in" $4.9M in ticket revenue. The REA then keeps $2.55M of that, which is included in the $3.68M 'Facilities/Overhead' column. The REA then gives back something between $500k-$1M, which is either included in the 'Contributions' or 'Other' columns(probably Contributions).

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5 hours ago, Hammersmith said:

Rather than everyone having to wade through that thing, here's how most of the money goes:

  1. Sept 1 - REA cuts UND a check for $1M as an advance on ticket sales
  2. During the entire year, REA takes 100% of ticket sales for MIH, MBB, WBB, VB & FB - this is called the Facility Usage Fee (UND is on the hook for credit card processing fees)
  3. During the entire year, REA collects 100% of MIH advertising money in the REA and 100% of permanent advertising for MBB, WBB, VB(UND keeps temporary/movable ad money)
  4. REA keeps 100% of concessions
  5. REA keeps 100% of suites revenue(1,328 seats, which is 11.4% of the REA capacity)
  6. UND pays for all marketing of UND athletics
  7. REA deposits $500,000 or thereabouts into a reserve account
  8. June 30 - REA gives UND 48% of the ticket revenue collected throughout the year, minus the $1M advance
  9. June 30 - REA gives UND 36% of the net advertising money collected(this means REA gets to subtract the costs of printing the ads, etc. before giving UND its cut)
  10. Aug 29 - REA cuts UND a check for whatever it wants to, though there's an unofficial agreement that this will be between $500k and $1M.

If/when UND takes over management of the arena, UND gets the money in the reserve account

 

Looking at this, I think the USA Today report is accurate. UND "takes in" $4.9M in ticket revenue. The REA then keeps $2.55M of that, which is included in the $3.68M 'Facilities/Overhead' column. The REA then gives back something between $500k-$1M, which is either included in the 'Contributions' or 'Other' columns(probably Contributions).

Thanks for the summary.  I just wanted to put the whole thing out there because people just don't understand how much money the Ralph really controls, and people bashed Kennedy for trying to improve this deal...

Don't forget 0% merchandise/Sioux Shop.

For the record, the Ralph allocated zero dollars profit to UND the past two years.

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2 hours ago, Cratter said:

Seems like a pretty fair deal to me.

I mean before the new Ralph they were averaging 5,000 (and minus a 1,000 free ones for the students?) tickets a game and had to run the facility.

New $6 million scoreboard probably wouldn't have happen if UND ran the Ralph.

You're probably right.  2 Million of that, saved from UND Athletics profit, could have gone to where UND needed it most....  look at the state of all the other sports right now.   

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9 minutes ago, nodak651 said:

You're probably right.  2 Million of that, saved from UND Athletics profit, could have gone to where UND needed it most....  look at the state of all the other sports right now.   

Then UND would have had to spend $8 million down the road for the same scoreboard eventually to upgrade it.

UND sadly let all their athletic facilities fall into despair.

Look at the Hyslop and Memorial Stadium.

Luckily others bailed them out.

They would have blown that $2 million on a new academic committee on diversity relations or just maybe start a new money sucking sport on campus....like Women's hockey.

Oh wait they already tried that. What geniuses over there. Give them more money!

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5 hours ago, Cratter said:

Then UND would have had to spend $8 million down the road for the same scoreboard eventually to upgrade it.

UND sadly let all their athletic facilities fall into despair.

Look at the Hyslop and Memorial Stadium.

Luckily others bailed them out.

They would have blown that $2 million on a new academic committee on diversity relations or just maybe start a new money sucking sport on campus....like Women's hockey.

Oh wait they already tried that. What geniuses over there. Give them more money!

Lots of assumptions.  The Ralph was built twenty years ago.. the status of UND athletics and college sports in general has changed significantly since then.  Can we at least stick to the facts please?  The current situation is that pretty much all revenue is controlled by an organization other than the UND Athletic Department, supposedly for the benefit of UND Athletics (as a whole). 

Look at the status of the basketball programs while they were actually playing in the Hyslop, drawing thousands more than the Betty even holds.  Thank God the Ralph helped UND Basketball move into a smaller facility.  Imagine if UND actually had to pay for it themselves finance it through the alumni foundation or something, right?!  In exchange for the Ralph's donation help, the basketball program only had to give up half of their ticket revenue, two thirds of their marketing sales, and all of their concession sales..  AND they now get to play in a modern and well designed gym, rather than an old dump of an arena which would need tons of updating - a dump like Duke's Cameron Indoor comes to mind, but I guess they are lucky enough in that they can at least design the floor however they want, which would maybe help if they have a branding strategy I guess.  If UND M/W Basketball still played at the Hyslop, there's no way they would have won their conference tournaments that one time. 

As for football, how generous of the Ralph to sell Football tickets on Ticketmaster while only taking 52% of the revenue in return.  Even if UND received it's full share of football revenue which has mostly nothing to do with the Ralph, UND would totally be too stupid to use it for things such as coaching pay, to help move the football locker rooms out of a hyslop swimming pool facility, scholarships, food, or even safety equipment. 

UND Sports programs are doing great!  We have the money to attract some of the best coaches in their respective conferences!  Our Mens basketball coach even hit a six figure income a few years ago, and that program doesn't lose ALL of their assistants every off season.  Meanwhile, the football team has only lost two or three assistants to programs within our own league. 

In seeing how well UND athletics are currently doing, and considering how UND didn't spend much on it's facilities 20,30,40+ years ago, I guess you're right after all - I admit it!  In regard to the money UND generates at the Ralph (and Alerus Center), we are truly lucky that the Ralph is willing to spend it for our Athletic Department. The two million they spent on a new scoreboard was probably the best use of those funds and I'm guessing the payback period on that investment will only be a couple years, at which point they can probably look to buying a full-ice video projection system or gold-plating the Ralph's toilets.  It's not like UND could have put that money, and/or some of the 4 million in the Ralphs existing Capital Improvements account toward the number one project on UND Athletics master plan.  For the best return to UND Athletics, spending that money to replace the best scoreboard in college hockey for an even besterest scoreboard in college hockey was definitely the best use of those funds.  

I'm glad the Ralph has UND's best interests in mind, as it would be just a shame if UND invested enough in non hockey sports that UND became attractive to other conferences, given the current climate of college athletics.  Wouldn't want to pull or SHSU, Jacksonville State or JMU and put ourselves in a situation that could cause hockey to lose some of it's attention.  If/when NDSU and SDSU changes conferences, who gives a crap if we are positioned to move with them anyways, I mean moving to D1 FCS ten years after them turned out great!  

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