Transcript World League Soccer - National Lacrosse League

World League Soccer
CONFIDENTIAL OVERVIEW
© George J. Daniel, 2008
All Rights Reserved
Soccer
World’s Most Popular Sport
• 265 million players worldwide
• 1.7 million teams
• Professional level leagues in over 170 countries
WORLD CUP
• Every four years
• World’s Greatest
Sporting Event
• Nation vs. Nation
• Sold out venues
• Lucrative International
TV rights
• Elicits national pride
like no other event
1994 World Cup in US
Average attendance
- 69,000
Total attendance
- 3.6 million.
Record for the highest
attendance in World Cup
history.
Highest-attended single
sport sporting event in
United States history.
Current Status of US Soccer
• US has 24 million
soccer participants
(2nd in world to China)
• Professional League
– Major League
Soccer
• Tours of International
clubs and national
teams
MAJOR LEAGUE SOCCER
– Average attendance
15,000 fans per game
– Team Salary cap of $2
million (with
exemptions)
– Expansion Franchises
sell for $30 Million
– 14 Franchises
– TV agreements pay
$20 million annually
International Club US Tour
Attendance Figures
FC Barcelona Tour 2006
80,734
Manchester United Tour 2003 67,884
Manchester United Tour 2004 62,684
AC Milan Tour 2004
56,817
Real Madrid Tour 2006
56,170
Juventus Tour 2003
54,441
FC Barcelona Tour 2003
48,150
Real Madrid Tour 2005
40,716
A crowd of 92,216 that watched Barcelona in
Los Angeles Coliseum set an all-time high for
Celtic Tour 2004
40,091
a soccer match in the United States.
Attendance for
National Team Exhibitions in US
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Argentina vs. US
Argentina vs. Brazil
Brazil vs. Mexico
China vs. Mexico
Brazil vs. Venezuela
Mexico vs. Ecuador
Brazil vs. Canada
Mexico vs. Paraguay
78,682
68,498
67,584
56,416
54,045
47,416
47,000
46,510
June 2008
June 2008
Sept 2007
April 2008
June 2008
March 2007
June 2008
March 2006
East Rutherford, NJ
San Diego, CA
Foxboro, MA
Seattle, WA
Foxboro, MA
Oakland, CA
Seattle, WA
Chicago, IL
Emotional Bonds of Fans
• The United States has
millions of soccer fans
that have either
emigrated or are
descendants of other
countries
• These fans have
allegiances to foreign
clubs and national teams
and have supported
exhibitions played on US
soil involving these
teams.
Major US Ethnic Groups
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Irish
35 million
Mexican 28 million
Italian
17 million
Polish
10 million
Puerto Rican 4 million
Chinese 3.5 million
Greek
1.3 million
Cuban
1.2 million
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(Based on 2000 US Census figures)
Concept
• A professional soccer
league based in the
US with franchises
issued to each
nationality that is
designed to capitalize
on the emotional ties
based on pride of
fans’ nationality and
ethnicity
Franchises
• Franchises will be
awarded on the basis
of nationality rather
than cities
• Club Italia, Club
Ireland, Team Brazil,
etc…)
• Develop fan
allegiance to club
based on ethnic pride
Marketing
• Each Game to be
marketed as an Event
• Ethnic groups of
participating clubs will
be targeted for ticket
purchases
Stadiums
• Games will be played in
major league, world class
facilities near high
concentration of ethnic
population
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New York
Chicago
Boston
Dallas
Houston
Los Angeles
San Francisco
Miami
Mexican Population Base
Italian Population Base
Irish Population Base
Chinese Population Base
Greek Population Base
Polish Population Base
Players
• Roster to be comprised of
players with nationality or
ties to club ethnicity
(Italian-American, Irish
born, etc…);
• Players will have their
“soccer citizenship”
established through place
of birth, ancestors or
having played in nation
• According to FIFA 2006
survey, the number of
professional players
worldwide is 113,000
Player Compensation
Average player salary estimated to be $185,000, approximately 50%
increase over average MLS salary of $125,000.
Initial Salary Cap to be $10 million compared to MLS cap of $2 million.
Salary cap to be adjusted annually based on league revenues
Season
• 20 game season from
March to August
• Each Franchise will have
right to promote and host
Ten games;
• Games will be scheduled
in proximity where
significant ethnic base
lives (i.e. Mexican team
will play in California or
Texas, Cuban team in
Florida, Irish in New York
and Boston, etc...)
Exhibitions
• Clubs can play additional exhibitions,
tournaments or "friendlies" anywhere in the
world to create additional brand exposure for
sponsors and revenue generating opportunities
for franchise.
Ticket Revenue
• Ticket revenue to all
league games is to be
shared equally on a
50/50 basis between
participating teams.
Sponsorships
• Franchises will be able to
sell all sponsorship
categories including
rights to jersey and field
signage;
• Sponsorships will be
marketed to companies
that seek to reach a
targeted ethnic groups –
ethnic food products,
airlines, etc…
• Franchises will offer
unique and very targeted
branding opportunities
not available elsewhere
Title /Jersey Sponsorships
• Presenting and title
sponsorships of
teams to be available
• Microsoft and
Herbalife are currently
paying $5 million
annually to MLS
Clubs for Jersey
sponsorships
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(Source- Sports Business Daily)
Corporate Ownership
• Possibility of corporate
ownership opportunities of
franchise exist providing an
excellent promotional vehicle
as well as an appreciating
asset (i.e. Red Bull)
• Opportunity for a unique brand
connection with a very targeted
demographic
• Red Bull paid a reported $25M
for the team, $45M for 50%
stake in stadium and $30M
over the next ten years for
naming rights
Franchise Expenses
• Club annual operating budget projected to
range from $5 million to $13 million depending
upon player salaries signed by club
Television & Licensing
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League will control all domestic and international television and licensing
rights for he benefit of all clubs
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TV and Licensing revenues generated by the league will equally divided to
all clubs
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Includes licensing revenues generated merchandise and video games
TELEVISION OVERVIEW
Three potential broadcast
arrangements available
• Rights Fee
– Network pays League
• Revenue Sharing
– Network & League
partner on TV
• Time Buy
– League buys time from
Network and produces
Broadcast Agreements
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Rights fee more likely after league
develops ratings track record.
Revenue Sharing or Time Buy
arrangements are most likely type
of agreements to be secured at
launch
League can bundle sponsorship
rights with TV commercials and
exposure to enhance value of
sponsorships and maximize ROI
Availability to purchase favorable
time slots is available on virtually
all networks.
US Broadcast Networks
General Sports Networks
Dedicated Soccer Channels
Spanish Language TV
INTERNATIONAL TV
Export games to grow international brand awareness of league
FRANCHISE EQUITY
• Franchises valuations are based on two primary
factors
– Revenues
– Comparables to similar transactions in marketplace
Franchise Valuations
• MLS Franchises sell for $30 million
• Manchester United is valued at $1.8 billion
World’s Most Valuable Clubs
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Rank
1
2
3
4
5
6
7
8
9
10
Team
Manchester United
Real Madrid
Arsenal
Liverpool
Bayern Munich
AC Milan
Barcelona
Chelsea
Juventus
Schalke 04
FORBE’S VALUATION April 2008
All figures in US millions dollars
Country
England
Spain
England
England
Germany
Italy
Spain
England
Italy
Germany
Value
1,800
1,285
1,200
1,050
917
798
784
764
510
470
Revenue
394
474
329
269
302
307
392
382
196
154
Operating Income
111
112
77
60
72
54
92
-5
35
36
SHORT TERM VISION
(3 to 5 years)
• Surpass MLS as
premier soccer
league in US
• Secure National and
International TV deals
• Consistently draw
over 50,000 fans per
game
Long Term Vision
(6 to 10 years)
• Develop and sign the World’s
Best players
• Export league worldwide to
create a global fan base
• Increase franchise equity and
revenues on par with the
World’s top clubs
• Ascend to top soccer league in
world by all metrics – player
talent, merchandise sales,
revenues, franchise equity,
popularity
MANAGEMENT TEAM
• George Daniel
– 15 years in professional sports
– Deputy Commissioner, COO & General
Counsel for National Lacrosse League
• Robert Lanza
– Former NBAPA Chief Counsel
Franchise Ownership
- Opportunity to create a Global Brand with Unique marketing
opportunities in the World’s Most Popular Sport
$10 Million (US) Franchise Fee
ACTION PLAN / TIMELINE
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Secure at least 6 franchises by January 2009
Commence league operations by February 2009
Secure TV contracts by September 2009
Inaugural Season launches March 2010