Panel named to advise Club's Board on how to spend proceeds from sale of Rockwell painting
The National Press Club announces the formation of a Financial Advisory Panel that will give advice to the Board of Governors' Budget Committee on long-term security and growth of the proceeds of the Norman Rockwell artwork sale.
The six-person panel of Club members will meet for the first time this month. The panel will give advice on issues such as which firms will handle the money, allocation of the proceeds and investment strategy. While the panel will make recommendations, final investment decisions will be made by the Board of Governors' Budget Committee and the board itself.
``The Board of Governors has made it overwhelmingly clear that it would like Rockwell sale proceeds to be used to secure the long-term success of our organization,'' National Press Club President John Hughes said. ``This panel will help ensure our board members make wise, careful decisions with these dollars.''
The members of the panel are:
Doug Harbecht, 1998 NPC president, digital media director, Kiplinger (chairman)
Traci Otey Blunt, executive vice president, RLJ Entertainment
Hazel Bradford, Washington reporter, Pensions & Investments
Paul Merrion, former Washington bureau chief, Crain Communications
Michael Norris, chief operating officer, Sodexo North America
Peter Nostrand, retired CEO, SunTrust Bank
The Club and the National Press Club Journalism Institute sold the painting, ``Norman Rockwell Visits a Country Editor,'' at a Christie's auction Nov. 19 for a hammer price of $10.2 million. The total amount the unnamed buyer paid is $11.6 million, including commissions. The Club and Institute will receive $10.7 million, which includes a share of the commission.
Of the $10.7 million, the Club will receive 70 percent of the proceeds and the Institute will receive 30 percent. After taxes, the Club's portion for investment, when combined with money from the Second Century Fund, will be more than $5 million. The Club expects to invest its share of the proceeds during the first quarter of 2016.
``We would like to see our Rockwell proceeds invested for annual growth of six percent,'' said Marc Wojno, the Club's treasurer. ``Over the decades to come, this fund should develop into a significant nest egg for the Club, ensuring our existence for many generations to come.''
Hughes said that while the Rockwell proceeds will be invested for long-term growth, the Club will be in a stronger position to make near-term investments in facilities and membership growth. The Club will use annual profits, its short-term reserve of more than $3 million and its five-year strategic plan in guiding decisions on those near-term investments.
The Journalism Institute, which is governed by a separate board, will make its own decisions regarding how its 30 percent of proceeds will be used. The Institute runs journalism training, professional development and press-freedom programs. Institute President Barbara Cochran has said the proceeds will ensure robust education and training, and will sustain Institute operations for years to come.