Home Team Fantasy Sports

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High-Stakes Fantasy Football
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High-Stakes Fantasy Football
Market Overview Event Concepts Transaction /
Ownership Financial Models Demographics
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High-Stakes Fantasy Football
MARKET OVERVIEW
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High-Stakes Fantasy Football
Current Competitive Set
840 Players
322 Players
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High-Stakes Fantasy Football
Current Market
20 CAGR
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High-Stakes Fantasy Football
SWOT Analysis

• Strengths
• Largest High-Stakes game in industry
• 5-years of history
• Draft Timing (weekend after Labor Day)
• Largest Customer List

• Weaknesses
• Poor Marketing Execution
• Brand/Event Positioning
• Not structured for mass media

• Opportunities
• Media Affiliation
• Market Growing at 20
• Satellite Expansion (regionalization)

• Threats
• Competitive Attack
• Industry/Economic downturn
• Legislation

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High-Stakes Fantasy Football
SWOT Analysis

• Strengths
• Industry Reputation (Greg Ambrosius)
• Multi-Sport Affiliation (NFBC)

• Weaknesses
• Poor Marketing Execution
• Brand/Event Positioning
• Not structured for mass media

• Opportunities
• Media Affiliation
• Market Growing at 20
• All-Sports Title?

• Threats
• Competitive Attack
• Industry/Economic downturn

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FS Consumers Who Participate More than Once
First Fantasy Sport
Time Spent per week by FS Consumers Managing
Their Teams
Average of Teams Managed
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FS Consumers that Watched a FS Show
Significant Increase to 51 in 2004
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Market Summary

• A Draft-Style, Off-line Fantasy Football event
  is perfectly aligned with the current market
  conditions
• The market is growing and looks to continue
  double digit growth for the foreseeable future
• FS Consumers are predisposed to continue as a
  customer and grow their investment in FS.

The Fantasy Market is Prime to Enter
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High Stakes Fantasy Football
EVENT CONCEPTS
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Start-Up
Acquisition
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EVENT CONCEPTS
Acquisition
Start-Up

• Only makes sense if we acquire the market leader
  (WCOFF)
• Allows us to leverage leadership position to
  move quick with marketing initiatives (TV
  concept)
• Requires Capital expected valuation
  approximately 3mm

• Third entrant into industry, but competition
  ripe for the taking.
• More risk of event failure as industry is
  skeptical of new businesses
• Would require head-to-head battle where others
  have failed.
• Lower capital Requirement

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EVENT CONCEPTS
Acquisition
Start-Up

• Only makes sense if we acquire the market leader
  (WCOFF)
• Allows us to leverage leadership position to
  move quick with marketing initiatives (TV
  concept)
• Requires Capital expected valuation
  approximately 3mm

• Third entrant into industry, but competition
  ripe for the taking.
• More risk of event failure as industry is
  skeptical of new businesses
• Would require head-to-head battle where others
  have failed.
• Lower capital Requirement

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Acquisition
Brought to you by
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WCOFF
The Live Draft
When September 8. 2007 Where Las Vegas Nevada
Who 1,000 fantasy football
enthusiasts How Contestants divided into
12-team leagues in live 20-round drafts held
simultaneously Entry 1,750 per person (will
increase each year)
The Super Bowl of Fantasy Football and 250,000
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WCOFF
The Regular Season

• Each 12-team league will compete for individual
  league titles during Weeks 1-12 of the NFL season
• Weeks 1-11, each franchise will face the other
  league owners in a head-to-head match-up
• Week 12, the Top 2 teams face-off for League
  Title
• League Championship gains the winner entry into
  the 2007 Fantasy Football Playoffs (Week 13-16)

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WCOFF
Fantasy Football Playoffs

• The League Champions qualify automatically, while
  other top teams awarded wild card entry
• 96-team Bracket announced prior to Week 13
• Weekly Tournament reducing the field as follows
• -- Week 13 96 to 48
• -- Week 14 48 to 24
• -- Week 15 24 to 12

Final 12 Invited to Las Vegas for Week 16 Live
Finale
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WCOFF
2007 World Championship of Fantasy Football
2007 GRIDIRON FANTASY FOOTBALL FINALE
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WCOFF
Live Finale

• The Week 16 live Finale will be officially known
  as THE (INSERT SPONSOR) FANTASY FOOTBALL FINALE
  
• TV quality event held at the Venetian Hotel
• The NFL Games aired simultaneously while all 12
  teams watch together with 500,000 at stake and
  in cash in front of them.
• Live Scoring board allows fans (both in-person
  and at home) to follow along with every play.

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WCOFF
Cost of Entry 1,750
Payout Structure
Overall Prizes Champion 500,000 and ring 2nd
Place 50,000 3rd 20th Cumm 115,000
League Prizes 1st Place 6,000 2nd
Place 2,500 3rd Place 1,000
Estimated Payout Ratio 75
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World Championship of Fantasy Football
Transaction / Ownership
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World Championship of Fantasy Football
Acquisition Status

• Signed Term Sheet March 15, 2007
• Purchase Price of 2.4 million with 575,000
  earnout through 2010
• Diligence in process with estimated closing of
  April 30th, 2007

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Operating Strategy

• General Business Plan
• The Company will be run with the intent of
  rapidly growing the revenue base through an
  aggressive marketing effort and moving the event
  upstream in the industry.
• The business will invest heavily in marketing to
  drive growth with a bottom line goal of breaking
  even over the first three-year period.
• If debt is needed to fund additional operating
  capital over the three-year period, FCI will
  obtain public or private debt for the period
  necessary.

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Operating Strategy

• Management Structure
• Chairman of the Board Peter Pinto
• Chief Executive Officer Jesse Herron
• President and COO Dustin Ashby
• Board Members (TBD based on Investors)
• Regular BOD meetings to be held as appropriate to
  review current and future performance and
  strategy.

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Management Team

• Jesse Herron
• 7 Years with Newell Rubbermaid in various
  executive level positions currently CFO for 2
  billion Office Products Segment
• Nationally ranked Fantasy Football talent and
  currently ranked 38 in the world by FFReview.com
• 5 Year participant in various High-Stakes Fantasy
  Sports events with a tremendous track record of
  success
• Fantasy Football Expert for Fantasy Sports Power
  Hour Radio Show in St. Louis market

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Management Team

• Dustin Ashby
• 8 Years general management experience in rapidly
  growing start-up operation in the hospitality
  industry (WingHaven Country Club, St. Louis, MO).
  
• 5 year participant in high stakes fantasy
  baseball event with excellent track record of
  success.
• Currently brokers 2 Sports Radio Shows in St.
  Louis the ESPN Back Nine and the Fantasy Sports
  Power Hour.

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World Championship of Fantasy Football
Financial Models
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BASE CASE
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UPSIDE CASE
World Championship of Fantasy Football
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Super Bowl of Fantasy Football
DEMOGRAPHICS
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Who is the Fantasy Sports Consumer?
No Significant Change in Recent Years
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Who is the Fantasy Sports Consumer?
No Significant Change in Recent Years
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Who is the Fantasy Sports Consumer?
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Who is the Fantasy Sports Consumer?
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Who is the Fantasy Sports Consumer?
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Demographic Summary
-- The FS Consumer is primarily Jack, a 40
year-old, educated white male. He has a white
collar job and makes above-average income to
support his wife and family.
Demographic is Ideal to Market Against
-- What are Jacks buying habits?
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Fantasy Sports Consumer Buying Habits
Significant Opportunity in Your Space
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Fantasy Sports Consumer Buying Habits
Significant Opportunity in Your Space
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Fantasy Sports Consumer Buying Habits
Significant Opportunity in Your Space
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Fantasy Sports Consumer Buying Habits
Significant Opportunity in Your Space