STATE OF THE LEAGUE Board of Governors Presentation August 9, 2015

The Bad News Long-Term Membership Forecast (Research conducted in 1986)

The Good News This Study was Done 30 Years Ago Source: “Bridge Playing Population Study” Contemporary Market Research 9/86

Key Membership Statistics Membership in the ACBL has GROWN by 12,721 members to over 168,200 members over the past decade. Last year, over 11,500 new members joined the League. We are on pace to beat that number in Over 25% of current ACBL members have joined the League in the past five years years old - Average age of a new member.

Focus on Primary Target Market Baby Boomers - Born between 1946 and Currently years old. There are an estimated 10,000 people who will turn 65 every day this year. And…10,000 more will turn 65 every day for the next 15 years. Total number of those born in the Baby Boomer generation still alive today exceeds 75 million.

“2/3 of all the people who ever lived to 65 are alive today!” Ken Dychtwald, PhD American Society on Aging 2013 conference

Secondary Target Market(s) “GenZ” or “iGen” College Students (18 to 25-year-olds) –Effort to grow Bridge Clubs on college campuses. –Redesign of the Collegiate Championships. Middle and High Schools (10 to 17-year-olds) –Record number of school bridge classes held in –Tough to measure effectiveness. Use online bridge to attract those with little disposable time. –Must embrace online to reach new markets.

ACBL STRATEGIC FRAMEWORK Strategic Focus Areas Develop and implement focused programs for member recruitment Identify and replicate best practices and innovations Integrate technology to meet member needs Retain more members Provide top-quality directing at tournaments Mission: To promote, grow and sustain the game of bridge and serve the bridge-related interests of our members. Vision: We will be a growing, thriving organization that actively meets the diverse needs of our members and bridge players.

“ Why did you let your Membership lapse?” Not enough time to play bridge 20% Couldn’t find suitable partner/lost partner 16% Health issues 14% Stopped playing bridge 13% No longer interested in bridge 12% Didn’t go to ACBL events/rather play socially10% Not enough benefits from membership 8% Forgot to renew 7% ACBL Member Retention Survey, December Anderson, Niebuhr & Associates, Inc.

Key Projects in 2015 “Right the ship” on ACBLscore+ –Pieces are in place to create a successful path forward. ACBL Live –Delivered timely after each session. –Key data will be robust and searchable. Member Retention Tournament Director Training & Staffing Plan –Customer service is a key focus. –Members –Tournament Sponsors

Additional Long-Term Opportunities Technology –Infrastructure is outdated. AS 400 Platform / Web Development Tools Tournament Directors –Cost effective for Sponsors and the League. Marketing –Retain. Retain. Retain. –Grow online and social play – engage new markets. Headquarters Location –Flood Plain. –Difficulty attracting/retaining top talent.

FINANCIAL HEALTH OF ACBL Total cash and investments on hand is $5,400,000 (as of 12/31). In 2014, the Pension Plan, an open-ended liability, was terminated at a cost of $1.1M. Only uncontrollable long-term liability is Accrued Post-Retirement Healthcare Benefits. Liquidity Ratio is 1.1 Total TD salaries and benefits were $3.6M. Total TD fees collected were $3M, a difference of $600,000.

2014 Key Revenue Drivers (Total $16,231,721) 1.Membership Dues - $5,189,686 $29 first year / $39 thereafter 2.Club Sanction Fees - $2,461, cents per table (46 cents online) 3.Tournament Sanction & Tournament Director Fees - $5,313,595 $4.23 at Regionals / $2.94 at Sectionals 4.NABC Revenue - $2,297,521 Three annual tournaments 5.Other - $969,580 Special Games, Magazine Advertising, Royalties, Investments, Etc.

2014 KEY OPERATING EXPENSES Employee Salaries - $7,034,635 Benefits - $1,776,755 Bridge Bulletin- $1,181,685 (w/postage) Marketing - $803,731 Technology - $632,843

THANK YOU FOR BEING AN ACTIVE MEMBER OF THE BOARD OF GOVERNORS. QUESTIONS?