investor deck
DESCRIPTION
Daily fantasyTRANSCRIPT
What is Sports MadMen?
• An online daily fantasy sports website focused on the top six sports in the industry
• Offers league and head-to-head contests
• Generates high levels of return through a percentage of the entry fees collected
What we do
• Transition and teach traditional fantasy sports enthusiasts about daily fantasy games
• Capitalize on the exploding market created by UIGEA of 2006 which clarified the legality of fantasy sports.
Revenue gains averaged 11.7% per year from 2009-2013
Explosive Market Potential
60% growth in daily
fantasy sport players
since 2010
Industry revenue is
forecast to grow to 1.8
billion through 2018.
Daily fantasy sports, a category that didn’t exist
few years ago, was racking in an annual $465
million in contestant fees
as of June 2012.
• Article on 5/28/13 on Forbes.com
“Atlas Ventures predicts that daily fantasy
sports will overtake traditional fantasy sports
in 5 to 7 years and that daily fantasy
wagering will generate $2 billion in fees by
the year 2020…”
• MGT Capital investments“Daily Fantasy Sports has now attracted the full interest of Wall Street and venture capitalists, as well as the large media/entertainment companies.”
Who are we – The Team
Management Team• Marquette Marshall - Founder and Chief Executive Officer
• Charles Young Jr, CPA – Chief Financial Officer
Consultants/Advisors:• Jay Correia – Owner, DreamCo. Design
• Keathel Chauncey Esquire, CPA – President, Fresh Legal Perspective
• Ahli Moore - President, XFactor Solutions
• Charles Young Sr – President, Young & Sons Tax and Accounting
Marquette Marshall - CEO
Education and Background– M.S. – University of South Florida – Educational Leadership; B.A. from
Florida State University - Physical Education– 14 years as a teacher in Hillsborough County Public Schools and Florida
Virtual School– 17 years of experience in fantasy sports; Commissioner for 8 years
Personal highlights– Currently resides in Tampa, Florida– Married with 3 children– Loves music and sports– Member of Omega Psi Phi
Charles Young Jr, CPA - CFO
Education and Career Highlights– B.A. from Eastern Michigan University – Double major in Accounting and
Economics– Coca-Cola Enterprises, Turner/Time Warner, CPA earned at
PricewaterhouseCoopers
Personal highlights– Originally from Atlanta 44 years old, Married - 10 years with 2 children– Currently resides in Tampa, FL– Loves cigars, collecting watches, member of Alpha Phi Alpha
Jay Correia
Industry Leaders
FanDuel is a web-based fantasy sports premium game and the largest company in the relatively new Daily Fantasy Sports concept.
During 2014, FanDuel plans to pay out $400 million in prizes-up from $150 million in 2013, $50 million in 2012 and $10 million in 2011.
Skyllzone LLC formed in the winter of 2009 with the goal of revolutionizing the fantasy sports industry.
In the summer of 2010, the team officially released DraftStreet.com.
Industry Leaders (cont’d)
DraftKings is a leading provider of daily fantasy sports. Large variety of both free and paid contests in multiple game types.
Featured tournaments with the biggest money pay outs. Over $200 million guaranteed in prizes.
FanThrowdown is an industry leading daily fantasy sports website.
In 2011 the FanThrowdown team came together, seeking to put the best daily fantasy sports site on the web.
• Omaha World Herald quoted the president of the Fantasy Sports Trade Association
“It’s exploded in the last couple of years,” association President Paul Charchian said. “It’s growing so fast, by the time we get the research back, it’s already out of date. It’s gotten more investment in the past two years than in the history of fantasy sports combined.”
• Article on 5/28/13 on Forbes.com“Atlas Ventures predicts that daily fantasy sports will overtake traditional fantasy sports in 5 to 7 years and that daily fantasy wagering will generate $2 billion in fees by the year 2020…”
• MGT Capital investments“Daily Fantasy Sports has now attracted the full interest of Wall Street and venture capitalists, as well as the large media/entertainment companies.”
Add’l Industry Info
Participants Entry fee
Prize Money
Rake is 10% of all entry fees.
How To Make A Profit
Bowl Game Fantasy
NFL Playoff Fantasy ChallengeNFL/NCAA Hybrid
NBA All-Star Weekend Challenge
March Madness Fantasy
I’m Different… Yes, I’m Different…
Customer Acquisition MethodWe will strategically market to target the
novice player, college player, female player
Financial Statement Info
• Fiscal Year – July 1st through June 30th
• Internal financials provided by the 10th business day
• Investor statements provided quarterly
• Internal control policies will be developed
Financial Summary 2015 -2017
FY 2015
Revenue $136,500
Web development and comp costs ($110,000)
Total Expense ($292,825)
EBITDA ($266,325)
FY 2016
$5,994,000
($142,000)
($5,862,059)
($10,059)
FY 2017
$15,163,500
($2000)
($14,366,080)
$795,420
Financial Summary 2018 -2019
FY 2018
Revenue $24,325,500
Web development and comp costs ($2,000)
Total Expense ($22,781,839)
Cash Income $1,541,661
FY 2019
$33,134,700
($2,000)
($30,897,992)
$2,234,708
Total
$78,754,200
($258,000)
($74,200,794)
$4,295,406
Total Investment Required - $375,000Start-up Costs Site Development
(Sep – Feb)
Marketing $0
Web Devlpmt, content, and hosting $100,500
Salaries & Benefits $26,657
Legal and Professional Fees $13,000
Facility Costs $500
Insurance, License, Other $350
Office Expenses $12,200
Unforeseen $7,000
Total Start-up Costs $160,207
First 6 months(Mar – Aug) Total
$60,000 $60,000
$61,600 $162,100
$64,079 $90,737
$1,000 $14,000
$9,430 $9,930
$4,100 $4,450
$4,600 $16,800
$9,000 $16,000
$213,809 $374,017
Investment Decisions, Dates, Etc.
• Commitment by Wednesday, July 30, 2014
• Cash Investment due by Wednesday, August 6, 2014
• Go live Monday, March 2, 2014…in time for March Madness