Seattle Sport & Social Club

Seattle Sport
& Social Club
Student #1
Student #2
Student #3
Student #4

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 2 Seattle Sport & Social Club

Mission Statement
 To
foster a community of like-minded
Seattleites who want to socialize,
adventurize, and have a good time.

What We Do
 Provideour community with an organized
way to have fun through coed athletic
leagues, events, and outdoor adventures.

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 3 Seattle Sport & Social Club

Business Model
 Three distinct revenue streams
 Membership Dues
 Event Fees From Attendees
 Event Fees or Benefits from Partners

 Membership dues would provide the company with

upfront cash and help the company build a loyal
following
 Each league, event, or adventure would have a
profit built into the pricing structure
 As our company grows in popularity, businesses will
want to partner with us in order to grow their own
business and popularity

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Membership Model
Members Non-Members
 Members would receive  Non-members would still
priority access & have access to all of our
discounted fees for all
leagues, events, and leagues, events, and
adventures adventures
 Discounts to our business  Would pay a higher fee for
partners including bars & all leagues, events, and
restaurants, health clubs,
and museums adventures
 Option to invite one  Risk missing out on all of the
“guest” per event who fun!
would receive the same
priority access and
discounted fees

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Target Markets:
Active, Fun & Social Individuals
Primary
 Males + females, ages
21-44
 Unmarried, no children
 Moderate discretionary
income
Secondary
 Males + females, ages
21-44
 Married or unmarried
couples, perhaps with
young children

Potential Market Size

 Seattle population ages 21-44:
280,000
 Seattle population single, no
children: 73,000
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 6 Seattle Sport & Social Club

Customer Value
 Provide opportunities to participate in a
wide range of fun, organized activities
 Sport leagues – kickball, bowling, etc.
 Activities – biking, kayaking, etc.
 Social events – happy hours, cultural events,
etc.
 Allow for social interaction with current
friends, while meeting new people
 Discounts at various businesses

Competitors
 Will face competition from existing
co-ed sports leagues, but currently
no competition providing a more
holistic sport & social club offering.
Competition is limited to sports
leagues only:
 Underdog Seattle
 Come Back Seattle Lachowetz – Spring 2014 – SCH-MGMT 697
 7 Seattle Sport & Social Club

Porter’s 5 Forces Model

 Buyer Power
 Low – Individual, dispersed buyers. Power can be higher for
influencers with large networks of friends, colleagues, etc.
 Supplier Power
 Moderate – Will need to partner with activity venues, sports
equipment suppliers, etc. Must establish good relationships and
terms for success of business.
 Industry Competition
 Medium – Will face competition from existing sports leagues, but
will differentiate as we expand to other activities and adventures.
 Threat of New Entrants
 Moderate – Low start up costs allow for ease of market entry,
network of business partners will decrease threat of new entrants.
 Substitutability
 High – Competing for attention and time of busy, active people.
Offering can be substituted for any leisure activities.

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 8 Seattle Sport & Social Club

Sponsorship Opportunity
University District StreetFair
The longest running festival of its kind in the nation.
StreetFair brings together vendors, music, food and
drink over a weekend in May.
Sponsorship Opportunity Demographics
 Currently offering A $5,000
 52% of attendees
event sponsor or a $3,000
Stage Sponsor. between ages 26-50
 Would work with  32% have income level
organizers to determine a above $75,000
sponsorship for a field
(Estimate to be in the  51% Female, 49% Male
$3,000-$5,000 range)
 Use field to hold Seattle
Tournament Cup (details
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 9 Seattle Sport & Social Club

Sponsorship Opportunity
Tournament Cup
Create a Tournament Cup across the leagues
of our local competitors (Underdog Seattle &
Come Back Seattle) to be held during the
University District StreetFair.
 Select popular sport of the season  Our name and logo would appear in
(kickball or softball) all the event schedules and websites
 The other two organizations have their and would have our name attached
playoffs at the end of April/ start of
May. This would make the timing of to the field and tournament
the festival ideal for a tournament of  Can set up sales of merchandise as
champions well as some giveaways at a booth.
 Use fields adjoining the festival at the Ways for people to buy memberships
University
 Would give people a view of the fun available
and camaraderie they can get from  Trophy for the winning team would
participating in our sports! have our name as well as the
 Timing would be great to get University District StreetFair name
members for Summer leagues and
events

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Pricing strategy
 Penetration
 Competitive market
 Several competitors offer similar services
 Match competitors’ prices for non-members
 Undercut competitors’ prices by 10% for members
 Annual membership fee: $150
 Value added: discounts on SSSC’s fees and numerous
partner discounts as well
per per team free agent
Prices team free agent (members) (member)
flag football (11 players/team) 550 70 495 63
soccer (7 people/team) 875 80 788 72
softball (9 players/team) 735 75 662 68
basketball (5 players/team) 585 75 527 68

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Ownership & Financing

 General partnership
 Benefits: easy to set up; inexpensive to create
 Drawbacks: personal liability for business debts;
liability could limit investors; potential for differing
management decisions
 Equity capital
 4 partners x $20,000 each = $80,000
 Debt capital
 SBA guaranteed bank loan: $40,000
 Benefits of this financing model
 Equity financing has no interest in repayment
 Debt capital lets us keep full ownership in business

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Financial plan: Y1 startup costs (2015)

Goal: establish brand & attract customers
# games/month cost/month First year's costs
field rental
adult sports team admin
fee/team (flat fee) 30
games: synthetic (hourly) 60 20 1200 14,400.00
practices: synthetic (hourly) 40
games: grass (hourly) 50 20 1000 12,000.00
practices: grass (hourly) 24
field lighting fee (hourly) 20
source:
http://www.seattle.gov/parks/re
servations/FeesAndCharges/fiel
d.htm
business licence (annual fee) 90 90.00

referees (per game): 15-40 DOE 30 40 1200 14,400.00

source:
http://www.barefootstudent.co
m/jacksonville/jobs/part_time/a
dult_sports_league_referees_um
pires_127188
park use fee: 10-25 per hour 20

shared office space (monthly) 199 2,388.00

website design 5,000 5,000.00
insurance, accounting, legal 2,000 2,000.00
advertising/promotions 3,000 3,000.00
event sponsorship 3,000.00
administrative salary 1500 18,000.00
total Y1 expenses 74,278.00
 13 Seattle Sport & Social Club
Financial plan: Y1 estimated revenues
(optimistic, middle, pessimistic)
#
players price/team (NM) teams price/free free agents price/ team (M) teams price/free free agents
optimistic /team NM M (NM) revenue agent (NM) revenue (NM) (M) revenue agent (M) revenue (M)
football 11 8 8 550 4400 70 560 495 3,960 63 504
soccer 7 8 8 875 7000 80 640 788 6,304 72 576
softball 9 8 8 735 5880 75 600 662 5,296 68 540
basketball 5 8 8 585 4680 75 600 527 4,216 68 540
revenue per type 21960 2400 19,776 2160
revenue from
team&player fees 46,296
revenue from
memberships 43,200
total revenue
(optimistic) 89,496
#
players price/team (NM) teams price/free free agents price/ team (M) teams price/free free agents
middle /team NM M (NM) revenue agent (NM) revenue (NM) (M) revenue agent (M) revenue (M)
football 11 6 6 550 3300 70 420 495 2970 63 378
soccer 7 6 6 875 5250 80 480 788 4728 72 432
softball 9 6 6 735 4410 75 450 662 3972 68 405
basketball 5 6 6 585 3510 75 450 527 3162 68 405
revenue per type 16470 1800 14832 1620
revenue from
team&player fees 34,722
revenue from
memberships 32,400
total revenue (middle) 67,122
#
players price/team (NM) teams price/free free agents price/ team (M) teams price/free free agents
pessimistic /team NM M (NM) revenue agent (NM) revenue (NM) (M) revenue agent (M) revenue (M)
football 11 4 4 550 2200 70 280 495 1980 63 252
soccer 7 4 4 875 3500 80 320 788 3152 72 288
softball 9 4 4 735 2940 75 300 662 2648 68 270
basketball 5 4 4 585 2340 75 300 527 2108 68 270
revenue per type 10980 1200 9888 1080
revenue from
team&player fees 23,148
revenue from
memberships 21,600
total revenue
(pessimistic) 44,748
 14 Seattle Sport & Social Club

Future of the Company

 Profitability
 Like many start up ventures, we may not be profitable in the first
year of operations if we do not meet our optimistic revenue
projects, but will continue to grow in future years to establish
profitability. Estimates will be reassessed continuously during and
after the first season of activities to determine their accuracy.
 New Events
 As we grow and gain more brand recognition, we can start to
do more community wide events (races, outings, adventure
trips, etc.).
 New Leagues
 After starting with standard leagues, we can generate interest
for different types of leagues to reach different people.
 Local Partner
 Look to create a local partnership with a Seattle Company to
push both of our brands forward.

Lachowetz – Spring 2014 – SCH-MGMT 697