That's too bad. Have you exhausted all your options in dealing with this situation? You're not excluding anyone, but it sounds like the BSU is acting like a bully (which may or may not be true). How do they know that this would create conflict? The Scandanavian club is for discussion of a specific culture, a specific ethnicity so exactly what does that have to do with the BSU?
The funny thing is that the BSU has had nothing to do with the situation. Personally, I don't think they'd care. I just think the people on the student senate were being overly cautious. There's a Latino Student Union as well. Another part to this is that unlike the LSU and the BSU, the Scandinavian club was not based on having a meetingplace for people of a certain race, but of a geographic heritage, and culture of that area.
We have not done everything possible yet, the next thing to do is to create a stronger club petition for the spring and heavily contest a denial if that is the result. I told him I'd help him with the application next semester. Unfortunately he told me about all this after the fact, and I told him I'd bring the smackdown next time (I'm the political one of the group, lawyer's son, etc.).