The University of Hawaii athletic department is asking the Board of Regents to allow it to lease and directly run an expanded logo wear operation at Ward Centre and on campus.
The request for a three-year lease at Ward Centre, as listed on the agenda for Wednesday’s meeting of the Committee on Planning and Facilities, is the latest in a series of entrepreneurial moves designed to help return the 21-team, $33 million department to solvency.
The proposed store in the former Sedona location at Ward Centre, which would more than double the current 665-square-foot Rainbowtique in the center, comes as athletics gears up to take over operation of two Rainbowtique outlets July 1, rebranding them as "H-Zone" stores handling UH athletic logo wear. Terms of the proposed agreement have not been disclosed.
Clothing and other UH merchandise with nonsports school logos would continue to be sold by the school’s Auxiliary Services Department.
But the Ward Centre and Stan Sheriff Center locations as well as enhanced presence at Les Murakami Stadium and Rainbow Wahine Softball Stadium, and what is expected to be an expanded online offering, are to be run by athletics.
Merchandise at Aloha Stadium is sold by the concession rights holder, Centerplate.
Both athletic director Ben Jay and associate AD John McNamara, who is expected to oversee the H-Zone operations according to campus officials, would not comment Tuesday pending action by the regents.
"The hope is that they (athletics) can do a better job," said regent vice chairman James Lee. "I think Ben’s background — he used to be with Bloomingdale’s — that might be a plus."
Jay was a senior operations manager with Bloomingdale’s in New York from 1986 to 1987.
Lee said, "The Rainbowtique, I don’t think, has been as aggressive as maybe as the athletic department will be. It is something he (Jay) wants to tackle."
Jay told members of the Aloha Stadium Authority in February UH hoped to realize a $500,000 profit on operation of the H-Zone in the first year, if the transfer is approved.
"They are talking about doing some innovative things with the location," said Mike Kelly, general manager of radio partner KKEA (ESPN 1420). Kelly said UH will have a radio-suitable studio in the store from which coaches’ shows and other events will be broadcast.
According to terms of UH’s five-year contract extension with KKEA signed this month, coaches shows "may originate from the ‘H-Zone’ store in Ward Center and other UH merchandise locations up to 20 times during the year to help promote UH merchandise and drive store traffic."
"As the home of University of Hawaii’s Rainbowtique stores, Ward Centers has had a great working relationship with the university for many years. We look forward to continuing to work with the them on the ‘H-Zone’ project and supporting their efforts to better serve Rainbow Warrior fans here at Ward Centers," said David M. Striph, Howard Hughes Corp. Senior Vice President-Hawaii. "We were impressed with the university’s entrepreneurial spirit in the way that they approached this expansion."
The request to the regents comes as the department is pledged to reverse what has been a red-ink operation 10 of the past 12 years. Manoa Chancellor Tom Apple "forgave" a $14.7 million accumulated net deficit last summer and said the department had three years in which to balance its books.
The department has been told to run at no more than a $1 million annual deficit in the interim.
In February, Jay won approval from the board for the department, through its booster organization, ‘Ahahui Koa Anuenue, to undertake "additional (fundraising) activities," including concerts and nonathletic events. At the time, the board approved a memorandum of understanding between the UH Foundation and Koa Anuenue that transferred five fundraising positions to the booster group.
Athletics is expected to seek the transfer of three full-time Rainbowtique positions and an undisclosed number of part-time and hourly positions to the department as of the proposed July 1 takeover.
