Drum Corps International Forms Summer Tour Fuel Partners, LLC to Hedge Against Rising Fuel Prices
ADDISON, Ill.–(BUSINESS WIRE)–May 26, 2006–Drum Corps International, the world leader in producing and sanctioning competitive marching music and related stadium events for youth, today announced that several of its member corps have entered into a hedging transaction to lock in current fuel prices. The deal was structured to protect corps participating in Drum Corps International’s Summer Music Games Tour against the increasing cost of fuel.
With more than 140 scheduled Drum Corps International-sanctioned events across the United States each year, the corps participating in the hedge will travel approximately one million vehicle miles this summer and consume an estimated 170,000 gallons of fuel. Ten corps formed the Summer Tour Fuel Partners, LLC, which allowed them to purchase options on fuel prices to reduce the impact of rising fuel costs and keep their fuel budget below $500,000. The hedging transaction has been extended to all Drum Corps International member corps that wish to join the Summer Tour Fuel Partners.
“During the summer of 2005, corps’ fuel costs increased approximately 25 percent,” said Chuck McCurdy, manager of the Summer Tour Fuel Partners and board member of Drum Corps International. “Larger organizations like trucking companies and airlines already participate in this type of transaction. With the amount of touring we do, we believe it is within the scope of Drum Corps International to help its corps control the risk associated with fuel hikes during summer touring.”
“This fuel hedge is a major milestone for corps in managing their exposure to fuel costs,” said Drum Corps International CEO Dan Acheson. “Drum Corps International is adopting a more proactive, forward looking approach to budgeting, enabling it to continue to provide world-class performing arts athletes with the highest level of music education beyond the scholastic experience.”
Each traveling corps in Drum Corps International is comprised of up to 135 high school and college students between the ages of 14 and 22. Traveling corps compete in Drum Corps International’s marching music events across the United States each summer, performing at major venues such as the Georgia Dome, the Alamodome and the RCA Dome, culminating with the Drum Corps International 2006 World Championships at the University of Wisconsin in Madison. The Summer Music Games Tour will kick off this year on June 18 at Benedictine University in Lisle, Ill.
Drum Corps International has experienced unprecedented growth since 2000, with more than 350,000 people attending Drum Corps International-sanctioned events during each of the 2004 and 2005 seasons, and close to 50,000 in attendance at the 2005 World Championships. Additionally, the ESPN2 broadcast of Drum Corps International’s 2005 World Championships drew an estimated audience of 700,000.
About Drum Corps International
From modest beginnings more than three decades ago, Drum Corps International has developed into a powerful, nonprofit, global youth organization with far-reaching artistic, educational and organizational influence. DCI is now recognized as the world leader in producing and sanctioning competitive marching music and related stadium events for youth. For additional information on the Summer Tour Fuel Partners, the Summer Music Games tour, the Drum Corps International 2006 World Championships, or for information on sponsoring a Drum Corps International event, go to http://www.dci.org or contact Drum Corps International at 630.628.7888. Drum Corps International is located at 470 South Irmen Drive, Addison, IL 60101.
