Bearwear sales help ASUCLA finances

Bearwear sales help ASUCLA finances

By Patrick Kerkstra

Daily Bruin Staff

UCLA’s championship basketball team could end up eclipsing the
efforts of any consultant or specialist hired so far in turning the
associated students’ (ASUCLA) immediate financial crisis
around.

As of April 16, the student store has reeled in nearly a million
dollars after the Bruins won the Pacific-10 championship.

After factoring out the costs of employee wages, marketing
efforts and other expenses, preliminary results suggest an
association profit of more than $500,000 from student store sales
alone.

However the total profits are likely to be much higher. Through
extensive licensing agreements, the association makes money every
time an item bearing a UCLA logo is sold anywhere in the world.

Officials hope that the general good feelings surrounding the
win will result in long-term sales for the association.

"I’m hopeful that there will be a halo effect, although it’s
tough to predict that sort of thing, so customers will be inclined
to look favorably on the rest of UCLA," said the association’s
Executive Director Jason Reed.

"The phrase that people seem to be using, ‘return to glory,’ is
good for the entire university," he continued.

This year’s recent rush in sales is reminiscent of last year’s
football team success. Graduate board members Tim Beasley and Peary
Brug agreed that without the Bruins’ appearance in the Rose Bowl
last year, the organization would have lost a substantial amount of
money, instead of making the small profit it did.

But some association officials do not think profits from the
basketball championship will be as large as those from the Rose
Bowl. The reason is that the association must share profits from
certain Bearwear sales with the National Collegiate Athletic
Association, the UCLA Athletic Department and other Final Four
teams, Brug said.

Last year’s board of directors did not take any actions
comparable to the dramatic steps of this year’s board. There were
no wage freezes, no large price increases, and no major
organizational changes. The same board also passed this year’s
budget, which many have since said was "over-optimistic."

"If what we’re doing now is the right thing to do, we’re not
going to change because we got lucky," Beasley said.

The newly hired Alpha Partners consultants agreed.

"I don’t think it’s a good idea to rely on one time events, and
we plan to sift those (one time financial events) out," consultant
Charles Mack said.

"Strategically, (the basketball victory) is not relevant to the
organization," he continued. "It shouldn’t be an excuse not to make
the necessary changes."

Members of this year’s board have said at numerous occasions
that the association’s troubles run deep and that they plan to make
further changes soon.

As far as the national win goes, the association plans to
produce championship merchandise as long as there is a demand for
it, Reed said.