MikeD Posted April 7, 2014 Share Posted April 7, 2014 While the performance opportunity would be truncated, and that would need to be addressed, their out of pocket cost for move-in housing would not be increased. You failed to mention the Alumni Association offer, and that they are willing to use personal funds to help compensate the added expense to the members. If they perform some type of tasks outside of their full rehearsal schedule, e.g. Bingo. But...even so, the cost is still theirs...you just gave them a way to earn some portion of it back, if they choose to. The cost is still there. Quote Link to comment Share on other sites More sharing options...
Stu Posted April 7, 2014 Author Share Posted April 7, 2014 If they perform some type of tasks outside of their full rehearsal schedule, e.g. Bingo. But...even so, the cost is still theirs...you just gave them a way to earn some portion of it back, if they choose to. The cost is still there. If asking a youth to take three simple hours out of a two-week period to read numbers off of ping pong balls, or hand out square cards with numbers on them, or wipe down a table that has soda spilt on it,… if asking that of a youth is so extremely draconian, then I fear we have a turned into a culture which deserves the narcissists in which we are teaching them to become. Quote Link to comment Share on other sites More sharing options...
Eleran Posted April 7, 2014 Share Posted April 7, 2014 Questions: Has money already been spent on new player or colorguard uniforms for this season, and if not, how much was budgeted for that? How much is budgeted to spend on new instruments or equipment, and can those expenses be deferred for another year with repairs as needed instead? I'm afraid I'm not up to speed as much as others as to actual line item amounts spent by corps each season, but so far I've only seen discussions over shortening the season to save the necessary money. If the $30k emergency is unlocked and you're looking at a potential $20k-30k deficit at end of season, I'd want to look at every aspect of the budget to see where it can be trimmed. Quote Link to comment Share on other sites More sharing options...
MikeD Posted April 7, 2014 Share Posted April 7, 2014 If asking a youth to take three simple hours out of a two-week period to read numbers off of ping pong balls, or hand out square cards with numbers on them, or wipe down a table that has soda spilt on it,… if asking that of a youth is so extremely draconian, then I fear we have a turned into a culture which deserves the narcissists in which we are teaching them to become. Of course that means that when a member is off working...they are not rehearsing. The corps will have to structure their schedule to account for that time. Plus, whether the member is working part of it off or paying the whole thing...somebody is putting up the $$$, which means the cost is still there. 1 Quote Link to comment Share on other sites More sharing options...
Stu Posted April 7, 2014 Author Share Posted April 7, 2014 Of course that means that when a member is off working...they are not rehearsing. The corps will have to structure their schedule to account for that time. Which is better; taking away some, not much, but some rehearsal time to generate revenue, or just telling the youth to fork over the cash? Plus, whether the member is working part of it off or paying the whole thing...somebody is putting up the $$$, which means the cost is still there. The cost of housing is still there; but who pays for the cost is what is in question. Having a youth spend a mere three hours working at the Bingo hall will not come close to equaling the cost of two-weeks of housing which will be compensated for by the alumni association. However, it does tell the youth you do have a responsibility to help us with this situation. The alumni, and I as CEO for that matter, see it as a character building situation indicating to the youth that something might be ‘free to them’ but it is not actually ‘free’. Quote Link to comment Share on other sites More sharing options...
Stu Posted April 7, 2014 Author Share Posted April 7, 2014 Questions: Has money already been spent on new player or colorguard uniforms for this season, and if not, how much was budgeted for that? How much is budgeted to spend on new instruments or equipment, and can those expenses be deferred for another year with repairs as needed instead? 1) Our horn/percussion uniforms are replaced every three years and they were new last season so procuring new ones are two-years out; the guard uniforms for this year have already been purchased and the funds already spent. 2) We are not a multi-million dollar per year operation, so our procedure to this point has been to replace horns via different sections every other season. This year would be the mello section; but they are still in rather good shape and we already plan to delay that purchase. We have also already decided to reuse all of the percussion equipment from last season with just doing repairs (we did, however, have to replace two battery shells, a marimba frame, and a few bars on another marimba); Our percussion sticks/mallets and our drum heads are provided to us by sponsorship so no cost issue on our part there; we have also already been in touch with a traveling repair technician who will work with us on paying out any emergency repairs needed on horns while out on tour. Quote Link to comment Share on other sites More sharing options...
JohnZ Posted April 7, 2014 Share Posted April 7, 2014 Of course that means that when a member is off working...they are not rehearsing. The corps will have to structure their schedule to account for that time. Plus, whether the member is working part of it off or paying the whole thing...somebody is putting up the $$$, which means the cost is still there. your post reminded me of the Chase Community Challenge from 2011: http://www.drumcorpsplanet.com/forums/index.php/topic/145774-cadets-stop-rehearsals/?hl=johnstown don't think it hurt them IIRC - they restructured, and did just fine. GH was considered mad then, but showed it can be done. FYI Quote Link to comment Share on other sites More sharing options...
garfield Posted April 8, 2014 Share Posted April 8, 2014 (edited) CONFIDENTIAL AND PRIVILEGED Important and Timely - Address Immediately Memo to Stu, CEO, Fictitious Dear Stu, We are in possession of your recent correspondence questioning the terms presented to marching members in our contract with them. We have asked counsel to review the contract in light of your comments and provide further guidance. Below is their response. In light of their opinion, and in light of the fact that we are not in the habit of questioning counsel's guidance, we continue to believe that truncating the 2014 tour would subject Fictitious to increased threat of a lawsuit by current marching members expecting to compete in a full tour. Based upon the projections presented in counsel's opinion, we emphasize that the cost to settle such a claim, let alone defend against it, has the potential to cripple the corps financial position and its viability as an ongoing organization. We ask you to consider carefully these implications as you deliberate your plans to cover the projected shortfall in funding. Respectfully, The BOARD OF DIRECTORS, Fictitious Drum and Bugle Corps -------------------------------------- *attachment* Dewey, Cheatem, and Howe, LPA Counsel to Fictitious Drum and Bugle Corps TO: Garfield, President and Chairman of the Board Dear Garfield, We are in receipt of your request for clarification regarding our opinion that reasonable presumption can be made by current contracted members of the corps that the 2014 summer tour will be a "full, national" tour, and that failure to deliver on that presumption could reasonably result in claims being filed against the corps. First, as you surely recall, three years ago we modified the contract to allow its consistent use across multiple seasons, by moving annual expected tour details to Addendum I of the contract, "What You Can Expect On Tour". While it is true that the Addendum is separate from the contract signature pages, it is also true that the language sets up an expectation of the upcoming tour, and potential marching members use those details in determining whether or not to sign the signature page of the contract. Because the information packet handed out at the first camp last November included these expected tour details with the contract - and the contract contains this language even today - it's reasonable to presume that members were signing up for a "full tour" and paid their fees based on that presumption. As contracts already signed, as well as new contracts yet to be awarded, contain this expectation of a "full tour", it is reasonable to presume that executive staff are planning a "full tour". Second, we are in receipt of a letter of communication presented to us by counsel to the parents of a currently contracted marching member who chooses, for obvious reasons, to remain anonymous. In it, said parent presents evidence of said student's senior thesis wherein said student purported to show the increased financial reward to music education majors who include marching one or more full-season tours in a World Class drum corps in their experience. Through detailed historic examples, and current hiring data, said student has laid out a compelling case that adding drum corps experience to one's resume can reasonably be expected to add between 10% and 30% to the music major's teaching salary, beginning in year one and continuing, at diminishing rates, through year 7 of the teacher career, where salaries align with teachers without drum corps experience. Further, the student presents data that suggests that each additional year of Word Class drum corps experience can increase that salary premium by between 5% and 10% per year. Said student received full credit and accolades for the detail and methodology of the research. The parents of said student contacted counsel after the student had heard recent rumors among corps members that a truncated tour was being considered. As this year of touring with Fictitious would be said student's last year of marching he became concerned that the truncated tour could negatively impact both his hiring prospects as well as his starting, and subsequent, salary levels. The parents asked their counsel to contact our office with their concerns. It is reasonable to view their correspondence as a "shot across the bow" of Fictitious executive staff that choosing to shorten the tour will negatively affect their child's earning potential, as well as their intent to file a claim for damages should that truncation plan be adopted this season. Lastly, the parents of said student are purported to be in possession of a video recording of the inaugural camp last November where, during his welcoming comments in front of the group, the director of the corps said with considerable excitement that "We are excited to announce to you that our funding plans allow us to again plan a full summer tour with DCI, offering you a full season of instruction, competition, fun, and hard work towards being competitive in Indy in August!". Based on past "full tours" and the implication of the director's announcement, said student decided to contract with Fictitious for the 2014 season when one was offered to him at the end of that weekend. Based upon the student's research we have concluded that a potential law suit could ask for as much as $125,000 in lost income damages, plus penalties if asked for (treble-damage is not uncommon in breach of contract cases). While we call into question the validity of their potential claims, we cannot deny the research or evidence on which it's based. As such our opinion is that substantial legal fees may be incurred in defending against the suit even while final outcome is not at all certain. Further, litigation could easily run into the following marching season, bringing into light the potential reputational damage, and effect on recruiting, that may result from the suit. We estimate that settling the case would be the best immediate option should the claim be made and, at least, cursory discovery is completed. We estimate that an initial settlement offer would require a minimum commitment of $50,000 by Fictitious, plus legal fees to that point, and it's reasonable to expect that counter-offer negotiations to settle could reach 75% to 80% of their initial claim, perhaps reaching as much as $100,000. Based on the above facts, it is our opinion that truncating the 2014 tour would invite costly litigation, and that all efforts should be used to avoid this possibility by exploring alternative options prior to officially shortening the 2014 tour. We remain ready to discuss further our opinion of the current situation should you deem necessary or helpful. Very truly yours, Daniel Cheatem Dewey, Cheatem, and Howe, LPA Edited April 15, 2014 by garfield Quote Link to comment Share on other sites More sharing options...
garfield Posted April 8, 2014 Share Posted April 8, 2014 I am in awe of Garfield's business acumen. Stu, you are getting schooled. And blaming BD for your housing policies? Lame-o. Meh, don't be. Thirty years of staring at numbers tends to pollute one's mind. Quote Link to comment Share on other sites More sharing options...
Eleran Posted April 8, 2014 Share Posted April 8, 2014 Second, we are in receipt of an a letter of communication presented to us by council to the parents of a currently contracted marching member who chooses, for obvious reasons, to remain anonymous. ... Very truly yours, Daniel Cheatem Dewey, Cheatem, and Howe, LPA The corps could save save some money by firing their attorneys, who clearly don't know the difference between "council" and "counsel". ;) 3 Quote Link to comment Share on other sites More sharing options...
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