Cpl final v5

Charlotte
Professional
Lacrosse

SportSummit2009
SPORTSUMMIT USER CONFERENCE
PARIS, FRANCE. CONFERENCE: SEPT. 18-20

Lacrosse is a High-Growth
Sport

Lacrosse is the fastest growing team sport in the United
States with 10-year growth rate of 137.8%
US Lacrosse Participation 10-Year Growth Trend

1300 2/3 of lacrosse participants fall into the highly desirable
marketing demographic of young Males <25 years old
Thousands of Participants

1040

780
40% of Participants come from affluent Families with
Household incomes over $100,000 - compared to 25.8% of
520
the general population
260
Sporting Goods Manufacturers Association
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

(c)charlotteprolacrosse.com 2

And its positioned well to
continue that growth

What was once a niche sport played primarily in the Northeast
United States is now expanding across the country:

Growth in youth participation in newly fertile areas such as California and Minnesota
have outpaced traditional strongholds like Connecticut over the past 8 years:

Connecticut +179% California +232% Minnesota +900%

High school lacrosse is now sanctioned in 21 states with Illinois becoming the 22nd in
2011

A record 60 teams will compete in the NCAA Division 1 men’s lacrosse championship this
year (with 115,000 in attendance for the Final Four)

New division 1 college varsity programs are popping up in states like Alabama, Arkansas,
Georgia and Wisconsin


growing quickly in the
carolinas

North and South Carolina just sanctioned high school lacrosse for
the 2009/10 season
Rich Thomas, the commissioner of the SCLL, makes
Lacrosse's growth
There are over 60 high school and middle school boys and girls
the sport sound as if it's fastest-growing transplant
in South Carolina since kudzu.

in South Carolina "With lacrosse, even though all you may have
initially is a die-hard group, it spreads very
reflects national
teams now in charlotte
quickly," Thomas said. "It really combines the field
strategy of soccer with the offense and defense of

trend basketball, the physical contact of ice hockey and
open-field excitement of football."

Updated 7/31/2008 9:28 PM The growth of the sport in football-crazy South
Carolina is indicative of how fast lacrosse is
growing nationwide. According to the National
By Jim Halley, USA TODAY
Federation of State High School Associations,

-
lacrosse has seen a 280% increase in participation

Nearly 1,900 participants
in the last decade, making it one of fastest growing
high school sports in that period.

In the first few years of the league, the South
Carolina Lowcountry schools dominated. That
changed shortly after Bill Harner, formerly the
principal at Hilton Head Island, became the
Superintendent of Schools for Greenville County and
pushed for the sport at the club level.

11 local men’s & women’s collegiate teams including Queens
"A lot of the athletic directors in the county didn't
like the way he implemented it, but you have to give
him credit," said Riverside boys lacrosse coach
Brent Boling. "My former AD fought it, but when he
finally let us on campus, we came in right behind

University, Davidson, Belmont Abbey and Pfeiffer University
By Richard Shiro, The Greenville (S.C.) News
basketball in revenue the first year on campus. I
Riverside High of Greer defeated Bluffton 21-17 for the have 70 kids come out for the team every year and
South Carolina girls lacrosse championship in the spring. we keep about 30."

Advertisement

GREENVILLE, S.C. — Shane LeCroy was a volleyball
coach who never played lacrosse before he started

Men’s and women’s adult club teams are just now being established
coaching it at Greenville. DeAnn Louis, a parent who
was frustrated that Riverside (Greer, S.C.) couldn't
find a girls lacrosse coach, decided to coach and
learn the game at the same time.

in Charlotte
This past spring, LeCroy and Louis coached the
boys and girls champions of the South Carolina
Lacrosse League (SCLL). The league has grown from
six high school teams in 2001 to an expected 32
boys teams and 28 girls teams next spring. The
state's high school association will meet Friday to
consider whether to officially sanction statewide
play and state championships.


Charlotte Professional
Lacrosse LLC

Charlotte Professional Lacrosse LLC intends to take advantage of
the sport’s growth potential in Charlotte by operating a men’s
professional lacrosse franchise here.

2 viable
options


Professional Lacrosse Leagues

The MLL is the premier outdoor professional lacrosse league in North America

Season is a 12-week season from mid-May to mid-August

6 team league: Boston, Chicago, Denver, Long Island, Toronto and Annapolis

League underwritten by New Balance chairman Jim Davis

The NLL is the premier indoor professional lacrosse league in North America

Season is a 16-week season from January through April

11 team league: Boston, Buffalo, Calgary, Denver, Edmonton, Minneapolis, Orlando,
Philadelphia, Rochester, Toronto and Washington

Started in 1987 by midwest concert promoter Chris Fritz


MLL better option for
charlotte market

Game presentation is more traditional

- Outdoor venues

- Uses traditional collegiate and high school rules (except
there is a two-point goal line located 16 yards out from each
goal and a 60-second shot clock)

May to August timing doesn’t directly compete with any other
Charlotte-based major league sports

Cost structure is more favorable for MLL as venue costs are
substantially lower (indoor vs. outdoor)


investment opportunity

Purchase operating rights to MLL franchise in Charlotte
- Franchise fee (officially $1.5 million, but not really)
- Fund operating costs - franchise will lose money in the near-term. Team will
eventually operate profitably but long-term revenue streams are unpredictable at
best in sports (due to winning/losing vs. fan expectations)

Become an owner of the entire league
- The MLL operates under a single entity ownership structure. Operating rights allow
investor to become part owner of league vs. owner of specific team

Multiple long-term exit options
- Owning a piece of the league allows for two exit options:
* Sell team operating rights
* League gets purchased


Single entity ownership
Single entity ownership allows leagues in their infancy/growth stages to contain player
costs and market the league more effectively. It is also the structure currently
preferred by larger leagues including the NFL and NHL - but their ships have already
sailed. The single entity structure is preferred because it puts the league in a stronger
position for the future with labor negotiations, merchandising sales contracts, broadcast
rights negotiations and league and team marketing. The MLS is the largest sports league
that operates under this structure. As an “owner” of the Charlotte team, investors would
be part owner of the MLL league as a whole. League ownership percentage would depend
on the number of teams for the 2011 season. One of the two following scenarios are
likely for Charlotte’s entry into the MLL:

2 Scenarios

We would Purchase the chicago We would be an expansion team with a Philadelphia
Machine team from the league and counterpart and the league would expand to 8 teams.
move them to Charlotte keeping the Chicago would continue to operate under league
league at an even 6 teams control and travel to prospective markets for their
“home” games


Charlotte’s MLL team

Business to launch in July/August 2010

Start playing in May 2011

Games to be played in newly upgraded American Legion Memorial
Stadium on the CPCC campus

Team should have some recognizable players on the squad as many
of the MLL’s players hail from top southeast institutions including
UNC, Duke, Maryland, and Virginia.

Potential for homegrown talent in the future


Capital Requirements &
Capital requirements
Proposed Schedule

$3.5 Million $250K
$250K
$250K
$3,000,000

$2,500,000

includes franchise fee
$500K
$250K
$2,000,000

and capitalization for
$1.5M
$1,500,000

$1,000,000
expected operating losses $ 500,000

over2011 2012 2013 2014 seasons
2010 the first 5 2015 $0
(c)charlotteprolacrosse.com
(c)StartYourDoc.com 11

Important Milestones
Raise $$

2011 Season Kicks Off
CLT VIP Meetings

Launch PR
Launch Company

Hire Key Staff
Expansion Draft
Sponsorship Sales

STH Sales/Mkting

Group Sales/Mkting

Game Sales/Mkting
2011 Schedule Out

’11
1

11
10

‘10

0

0

0

0

11
‘10

0

1

Feb ’1
July ‘1

Aug ‘1

Nov ‘1

Dec ‘1

Jan ’1
Oct ‘1

April ’

May ’
May ‘

March
June

Sept

How Charlotte Pro Lacrosse
Will Create Value

SportSummit2009

Leverage Three factors
Proposed Schedule

charlotte’s Future growth
$250K
$3,000,000
$250K

Continued growth of lacrosse
$2,500,000
$250K
$250K
$500K
$2,000,000

$1,500,000
long-term strength of MLL
$1.5M

$1,000,000

$ 500,000

$0
2010 2011 2012 2013 2014 2015


Long the Charlotte Metro
2010 2015 2020 2025
1 New York City New York City New York City New York City
2 Los Angeles Los Angeles Los Angeles Los Angeles
3 Chicago Chicago Chicago Chicago
4 Dallas/Ft. Worth Dallas/Ft. Worth Dallas/Ft. Worth Dallas/Ft. Worth
5 Houston Houston Houston Houston
6 Philadelphia Atlanta Atlanta Atlanta
7 Atlanta Philadelphia Miami Phoenix
8 Miami Miami Washington DC Miami
9 Washington DC Washington DC Philadelphia Washington DC
10 Boston Phoenix Phoenix Philadelphia
11 Phoenix Riverside/San Bernardino Riverside/San Bernardino Riverside/San Bernardino
12 Detroit Boston Boston San Francisco
13 San Francisco San Francisco San Francisco Boston
14 Riverside/San Bernardino Detroit Detroit Detroit
Estimated 500,000 additional people 15 Seattle Seattle Seattle Seattle
16 Minneapolis Minneapolis Minneapolis Minneapolis
17 San Diego San Diego Tampa-St. Petersburg Tampa-St. Petersburg
18 Tampa-St. Petersburg Tampa-St. Petersburg San Diego San Diego
19 St. Louis St. Louis Baltimore Orlando
8,750,000 20 Baltimore Baltimore St. Louis Baltimore
21 Denver Denver Orlando Denver
22 Pittsburgh Orlando Denver Las Vegas
6,562,500
23 Portland. OR Portland, OR Las Vegas St. Louis
24 Cincinnati Sacramento Portland Portland
4,375,000 25 Sacramento Pittsburgh Sacramento Austin
26 Orlando San Antonio San Antonio Sacramento
27 San Antonio Las Vegas Austin Charlotte
2,187,500
28 Cleveland Cincinnati Charlotte San Antonio
29 Kansas City Kansas City Cincinnati Cincinnati
0 30 Las Vegas Charlotte Pittsburgh Kansas City
31 San Jose Austin Kansas City Pittsburgh
32 Columbus Cleveland San Jose San Jose
33 Charlotte San Jose Columbus Nashville
2010
34 Indianapolis Columbus Cleveland Indianapolis
2015
35 Austin Indianapolis Indianapolis Columbus
2020
2025

Long Lacrosse Here

Both North and South Carolina are embracing lacrosse at the high
school level which is driving participation across the states

US Lacrosse has 4,800 members in North Carolina and about 900
of those are in Charlotte

Charlotte ranks as the #2 North Carolina market behind the
Research Triangle but is ahead of the other local hotbeds of
Winston-Salem, Greensboro and Wilmington (according to the
North Carolina chapter of US Lacrosse)


Long MAJOR LEAGUE LACROSSE

Major League Lacrosse in its 10th season and is just now figuring things
out. The initial owners had a quick-growth strategy that didn’t pan out.
Too many teams operated on an underfunded basis and without sports
business acumen. The League is now working to change that:

Jim Davis at New Balance is becoming more involved. Lacrosse sales are 10% of New
Balance’s domestic business and he is personally vested in the league’s long-term success

NFL owners are increasingly looking at Lacrosse as filler for their venues now that MLS
teams are moving to soccer specific venues.
- Broncos Bowlen’s own the Outlaws
- Patriots Krafts will come in within 5 years


Lacrosse will become viable
as a pro sport this decade
Lacrosse is poised to continue its rapid growth across the United states and in Canada. Even with
growth, it will still be a comparatively small sport in the US sports industry. That said, the elevated
income profile of its core consumer significantly raises its ability to support professional sports
leagues.

1999 Total 2008 Total 2018 Projected
Sport 10-Yr Growth
Participants Participants Participants

Lacrosse 480,000 1,127,000 134% 2,640,000

Snowboarding 3,600,000 5,900,000 64% 9,670,000

Mountain Biking 8,600,000 10,200,000 19% 12,097,000

Skateboarding 5,800,000 9,800,000 69% 16,560,000

Soccer 13,200,000 15,500,000 17% 18,200,000

Tennis 11,200,000 12,600,000 12.5% 14,175,000

Ice Hockey 2,100,000 1,900,000 -9.5% 1,720,000

Baseball 15,900,000 15,200,000 -4.4% 14,530,000

keys to business success

Run professional business operation with experienced sports
management team

Find viable venue. Primary considerations: location, cost & amenities

Invest in revenue generating activities

Keep overhead and non-revenue generating expenses extremely low

Ingrain the team within the Charlotte community


Management team

Jim McPhilliamy - 20+ years sports management experience
- Senior Vice President Marketing, Charlotte Bobcats 2007-2009
- Partner in leading sports consulting firm Brandthink 2002-2007
- Held senior positions at major agencies DraftWorldwide and Digitas
- Strategic advisor to multiple sports entities including the Tampa Bay Rays, Pittsburgh
Pirates, Houston Rockets, the Atlanta Spirit (owners of Thrashers & Hawks),
Minnesota Vikings, the NBA, Dale Earnhardt Inc. and more

Wade Leaphart - experienced sales executive
- Top sales executive 2 years in a row for Charlotte Bobcats
- Extensive nascar experience and relationships

Robert Carter - social media expert
- Digital media specialist at Belk
- Led Bobcats social and direct marketing campaigns


Venue: memorial stadium

Location is ideal. Centrally located on the outskirts of Uptown
Charlotte within 30-minute drive time for over 50% of the lacrosse
target market (20,000+ Charlotte households with kids in house and
income > $200K)

Venue refurbished and reopening July ’10

City has already agreed to be our home stadium should team
franchise be awarded

Lowest cost structure in the league at $6,900 per game for rental


becoming relevant in clt

CBS Radio group has already agreed to promote the team across
their six stations on a revenue sharing basis
- #1 WPEG-FM (Urban)
- #2 WBAV-FM (Urban/Adult Contemporary)
- #3 WSOC-FM (Country)
- #5 WNKS-FM (Contemporary Hit Radio/POP)
- #11 WKQC-FM (Adult Contemporary)
- #15 WFNZ-AM (Sports Talk)

CBS Radio also has agreed to “rent” us space at a steep discount
within their office space
- Saves money
- Gives us access to dj’s/talent on an unlimited basis

Sports Business Journal will do a recurrent reality feature on the
business: good for sponsorship sales and attracting future investors


Who Will Come

Hardcore Lacrossers 25%
20%
Casual Lacrosse
Affluents 20%

This group comprises
55% of attendees but
represents 75% of Fickle Entertainment 35%
ticket revenues Seekers Core
Although this group only Family/Group Fun
represents 25% of
revenues, they make or
break game day
atmosphere 23

Sold via direct sales
Hardcore Lacrossers Casual Lacrosse Affluents
There are an estimated 2,236 youth-to-collegiate school players in These educated and wealthy families send their children to the
the Charlotte market. These kids play for their varsity, junior best private and public schools in the Charlotte metro area. The
varsity, middle or grade school teams. There are an additional 315 children of these families have been exposed to lacrosse at school
post-collegiate members of US Lacrosse in Charlotte (according to or elsewhere and play recreationally either in school or for fun but
the NC Chapter of US Lacrosse). are not considered core fans of the sport (They play under 25
times per year).
In total with the addition of clubs/academies factored in, we
estimate there to be 3,000 core lacrosse players (a core player is These families have household incomes > $200,000 and index high
one who plays frequently - 25 or more times per year) in Charlotte on lifestyle characteristics that parallel lacrosse lifestyle
representing approximately 2,650 households. Based off school characteristics (index high on travel, snow skiing, sailing/jet skiing,
team rosters and through some pretty easy research, we should be and skateboarding). Charlotte has about 21,000 of these families.
able to identify and contact each and every one of these household 12,000 live within a 30-minute drive time of Memorial Stadium (the
directly once the team launches. 30-minute drive time is an important indicator of likelihood of
attendance for casual fans of a sport).
We expect this target audience to grow rapidly in the Charlotte
market at about an 8-10% annual rate for the foreseeable future. We have already purchased the mailing list for this group from
This is important because this group will comprise our season ticket InfoUSA. This group overlaps with the core fan demographically, so
base. To launch successfully, we need to sell 1,000 tickets per we estimate approximately 2,000 less households in our target silo
game to this group. That equates to 312 season ticket accounts at here - 10,000 total.
an average of 3.2 tickets per account (which is the norm for sports
subscriptions on a STH-basis). We need to sell approximately 575 tickets/game to this group to
start. This will be a combination of season ticket sales and single
That is a penetration rate of around 12% and is within the realm of game offers. Since this group is less passionate about the sport,
possibility with a sport with this much passion tied to it. the average size of their purchase will likely be 2.5 tickets per
game. Therefore, we will require 1,380 purchases over the coarse
of the season. We estimate this to be about 750 total customers
from this group - a penetration rate of 7.5%. That is an aggressive
number but there are many targets from the broader 21,000 group
that live outside the fringe of the 30-minute drive time that will
also come to games on less frequent basis. With them included, we
believe we will have to do business with about 5% of this target
24 group in total.

influenced via marketing
Family/Group Fun Fickle Entertainment Seekers
These families and individuals are looking for entertainment options These young, post collegiate singles are looking for fun. They have
for their tribe on weekends and throughout the week. These families entry-level to mid-management corporate jobs and have disposable
have a wide income profile ($50,000 - $200,000 annually) but are income that will find its way to events, venues and happenings that
driven by price/value regardless of where they fall. are deemed “cool enough.”

There are 92,500 of these families in the Charlotte metro and we There are about 74,000 total people in this group within a 30-minute
estimate a conservative 40% - or approximately 37,000 - live within a drive time of Memorial Stadium. - 62,000 singles with an additional
30-minute drive time of Memorial Stadium. These families are best 12,000 or so married couples without children. This group will travel
reached through promotional offers via timely and targeted a little farther than other target audiences to attend a good event.
advertising.
This is a fickle group that may come for a while and then disappear.
We need to sell approximately 575 tickets/game to this group to That said, it is one of the most important groups because they add to
start. This will be a combination of group sales and single game the event‘s atmosphere making it cooler for everyone else.
promotions. Since this audience will be targeted for group sales
(groups of 10 or more), the average size of their purchase will likely We need to sell approximately 700 tickets/game to this group to
be closer to 4 tickets per game. Therefore, we will require 750 start. This will be a will be almost all single game ticket sales. Since
customer purchases over the coarse of the season. That equates to a this audience is primarily single, they may come as a group, but they
penetration rate 2% - which is reasonable given our access to existing purchase individually. Therefore, we will require 4,000 customer
group lists and our advertising relationships. Again, we expect some purchases over the coarse of the season from this group. That
roll-over attendance from people who are in this target demo but equates to a penetration rate 5.4% - which is tough to hit. That said,
outside the 30-minute drive-time boundary. we have already reached agreement with CBS Radio on a revenue
sharing arrangement that will promote Charlotte Pro Lacrosse across
their 9 different radio stations to help us reach this hard-to-get
target group. Attracting this group is the focus of most of our
advertising and social marketing efforts.


How Many Will Come:
Year One

% of Paid #/Per Game
Attendance
Hardcore Lacrossers 35% 1,000

Casual Afﬂuents 20% 575

Family/Group Fun 20% 575
League Attendance
2008 2009 2011
Fickle Entertainment 25% 700
Denver 9,310 8,431 8,000 Seekers
Boston 4,762 4,665 4,500 Comps N/A 450
Washington 2,914 3,200 3,300 (League, Sales, & Other)
Charlotte Projected 3,300
Toronto
Long Island
N/A
2,430
2,596
3,405
3,000
3,500
TOTALS 100% 3,300
Chicago 2,911 2,569 N/A


How Many Will Come:
Long-term Growth
Memorial Stadium is a 15,000 seat venue. Success down the road would necessitate upgrades to
Memorial Stadium or a change of venue. Both good scenarios if they should occur.

Year Attendance Ticket Revenue
2011 (6 home games) 17,100 $381,480
2012 (6 home games) 19,878 $424,920
2013 (7 home games) 27,083 $556,063
2014 (7 home games) 31,815 $650,956
2015 (8 home games) 42,152 $952,963
2016 (8) 46,080 $1,050,000
2017 (8) 51,216 $1,200,000
2018 (8) 57,040 $1,343,000
2019 (8) 63,752 $1,515,000
2020 (8) 71,440 $1,741,000
2021 (8) 79,296 $1,945,000
2022 (8) 88,024 $2,155,000
2023 (8) 98,585 $2,415,000
2024 (8) 109,424 $2,680,000
2025 (8) 121,465 $2,975,000


revenue streams:
ticket-driven business
7-Year Revenue Projections
$1,830,744**
$1,750,000.00
* 14-game seasons
$1,592,008**
** 16-game seasons
$1,500,000.00
$1,414,325**

$1,250,000.00

$1,009,804*
$1,000,000.00
Camps & Clinics $854,065*
= 16%
Corporate Partnerships $750,000.00
$654,301
Merchandise Sales $551,157
= 14%
Concessions & Parking $500,000.00

Group Sales
= 70% Non-Premium Season Tickets $250,000.00

Luxury/Premium Seating
$0
Single Game Tickets ’10/’11 ’11/‘12 ’12/‘13 ’13/‘14 ’14/’15 ’15/’16 ’16/’17


Creating value:
Long-term view
The MLS launched in 1996 with 10 teams. They had six tough years and then started growing
through a series of youth development initiatives. 15 years and an estimated $350M later (in team/
league losses), the MLS is expected to become profitable this season. Expansion teams are now
selling in the $50M range.

Team Value to Revs Value Revenue Operating Income
Los Angeles Galaxy 2.8x $100 million $36 million $4 million
Toronto FC 2.6x $44 million $17 million $2.1 million
Chicago Fire 2.6x $41 million $16 million -$3.1 million
FC Dallas 2.6x $39 million $15 million $.5 million
New York 3.6x $36 million $10 million -$4.5 million
DC United 2.7x $35 million $13 million -$3 million
Houston Dynamo 3.3x $33 million $10 million -$1.8 million
Colorado Rapids 2.8x $31 million $11 million -$2.2 million
Real Salt Lake 4.2x $30 million $7 million -$2.1 million
New England 2.7x $27 million $10 million -$1.5 million
Chivas USA 2.4x $24 million $10 million -$1 million
Columbus Crew 3.8x $23 million $6 million -$4.5 million
Kansas City 4.4x $22 million $5 million -$2.9 million

(c)charlotteprolacrosse.com Team Avgs 29 3.1x (2.8 med) $37m ($33m) $13 million -$1.5 million

Long-term valuation
Proposed Schedule
15-years Out
$250K
$3,000,000
$250K
$2,500,000
$3.5M-$4.5M $2,000,000
$250K
$250K
$500K

$1.5M in Annual Revenues
$1,500,000

$1,000,000

$ 500,000
$10M - $12 M $0
2010 2011 2012 2013 2014 2015
Valuation

MY COMMITMENT
Proposed Schedule
20% of franchise fee
$200,000 or 20% of the negotiated franchise fee

$250K
$3,000,000
REINVEST IN THE TEAM BY FORGOING TEAM $250K
$2,500,000
PRESIDENT’S SALARY FOR the first THREE YEARS
$250K
$250K
$2,000,000
Team Presidents for minor/secondary league sports don’t make much but this will still save a lot in relation
$500K
to the entire budget. I will forgo the President’s salary of $250,000 a year for the ﬁrst three years reducing
required capital costs $750,000.
$1.5M
$1,500,000

$1,000,000

$ 500,000

$0
2010 2011 2012 2013 2014 2015


10-year value projections
vs. invested capital
Title
$8,000,000.00

$7,000,000.00

$6,000,000.00

$5,000,000.00

$4,000,000.00
Invested Capital $3,000,000.00
Team Valuation $2,000,000.00
(Valuation based on 2.8x Revenues)
$1,000,000.00

$0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020


OVERview of team
financials
Revenue Projections
approach
5-year Revenue detail
Ticket Sales & Pricing
Sponsorship Sales
Merchandise Sales
Camps & Misc

USES OF CAPITAL
FRANCHISE FEE
Start-Up Costs
Business Operations overview SportSummit2009
Sales, General & Administrative
LAX Operations
Game Operations
Marketing & Promotions

financial projections approach

Conservative revenue approach
- Estimate what I really think on sales (and I’m a pessimist) - sales goals will exceed
these estimates

Fully fund all cost centers regardless of trade or in-kind
expectations
- Budget for all expense items even if I think they are obtainable at a discount and/or
through in-kind trade

Better to under-promise and over-deliver


Revenue Projections
Overview
Conservative Projected Revenues
’10/’11 ’11/’12 ’12/’13 ’13/’14 ’14/’15 ’15/’16 ’16/’17
REVENUES
Single Game Tickets $99,000 $108,900 $139,755 $153,731 $232,792 $256,071 $281,678
Luxury/Premium Seats $126,120 $126,120 $147,140 $170,100 $194,400 $194,400 $220,800
Non-Premium Season Tickets $111,000 $133,200 $186,480 $223,776 $368,271 $441,926 $530,311
Group Sales $45,360 $56,700 $82,688 $103,359 $157,500 $160,000 $168,000
Corporate Partnership $72,000 $114,000 $143,760 $175,168 $221,097 $268,896 $320,223
Merchandise Sales $20,520 $23,854 $32,496 $38,177 $50,578 $55,300 $61,457
Concessions & Parking $56,186 $65,313 $88,978 $104,533 $138,487 $151,416 $168,275
Camps & Clinics $20,972 $26,214 $32,768 $40,960 $51,200 $64,000 $80,000
TOTAL REVENUES $551,157 $654,301 $854,065 $1,009,804 $1,414,325 $1,592,008 $1,830,744

EXPENSES
Sales, General & Admin
LAX Operations
Game Operations
Optimistic Projected Revenues
$413,294
$393,250
$148,050
$469,635
$394,210
$159,690
$502,706
$429,624
$186,122
$844,377
$431,704
$204,435
$909,389
$469,195
$240,692
$963,463
$473,354
$247,921
$1,028,177
$477,513
$256,704
Marketing & Promotions ’10/’11
$100,050 ’11/’12
$106,765 ’12/’13
$126,606 ’13/’14
$134,220 ’14/’15
$171,702 ’15/’16
$158,144 ’16/’17
$170,730
REVENUES
Misc, Camps & Clinics $19,923 $23,593 $27,853 $32,768 $38,400 $44,800 $52,000
Single Game Tickets $120,000 $130,000 $165,000 $185,000 $280,000 $305,000 $340,000
TOTAL EXPENSES $1,074,567 $1,153,893 $1,272,911 $1,647,504 $1,829,378 $1,887,683 $1,985,124
Luxury/Premium Seats $171,000 $171,000 $199,500 $223,860 $255,840 $255,840 $281,600
Non-Premium Season Tickets $133,000 $160,000 $225,000 $270,000 $440,000 $530,000 $635,000
OPERATING PROFIT/LOSS
Group Sales -$523,409 -$499,592 -$418,846 -$637,700
$45,360 $56,700 $82,688 $103,359 -$415,053
$157,500 -$295,675
$160,000 -$154,381
$168,000
Corporate Partnership $96,000 $151,200 $198,100 $234,670 $289,219 $345,755 $385,787
Merchandise Sales $24,000 $28,000 $33,000 $40,000 $45,000 $50,000 $55,000
Camps & Clinics $20,972 $26,214 $32,768 $40,960 $51,200 $64,000 $80,000
TEAM VALUATION
TOTAL REVENUES $1,543,240.26 $1,832,044.00 $2,391,380.71 $2,827,450.02
$610,332 $723,114 $936,056 $1,097,849 $3,960,110.38
$1,518,759 $4,457,622.78
$1,710,595 $5,126,082.18
$1,945,387
$28,800 $33,600 $39,600 $48,000 $54,000 $60,000 $66,000
EXPENSES
Sales, General & Admin $663,294 $719,635 $752,706 $844,377 $909,389 $963,463 $1,028,177
LAX Operations $355,250 $356,210 $388,457 $390,537 $424,862 $429,021 $433,180
Game Operations $148,050 $159,690 $186,122 $204,435 $240,692 $247,921 $256,704
(c)charlotteprolacrosse.com 35 $100,050 $106,765 $126,606 $134,220 $171,702 $158,144 $170,730
Misc, Camps & Clinics $19,923 $23,593 $27,853 $32,768 $38,400 $44,800 $52,000
TOTAL EXPENSES $1,286,567 $1,365,893 $1,481,744 $1,606,337 $1,785,045 $1,843,350 $1,940,791

Ticket Sales:
ticket sales by type

Tickets By Type (per game)
Charlotte
Denver Boston Washington Toronto Long Island
(projected)

4
Season Tickets 1,685 1,485 1,111 487 245 960

3
Group Tickets 1,185 1,547 113 310 173 840

Paid Attendance 5,168 3,912 1,720 1,346 1,450 2,850 3

1
Comp Tickets 3,263 753 1,480 1,250 1,955 450

2
Avg. Ticket Price $14.90 $16.40 $13.89 $27.72 $13.91 $22.31

Avg. Revenue/ $76,981 $64,151 $23,894 $37,304 $20,160 $63,580
3

Game
* rank in league


Ticket Sales Projections

(Annual Growth Rate)


Sponsorship Overview
As with most sports leagues, there are rules on restricted and non-
restricted commercial partnership categories. Restricted categories
are non-sellable at the local level as the league reserves those rights on
a national basis. This is because they believe the rights are worth more
collectively. The following categories are currently restricted at the
MLL league level thought there is some give-and-take depending on
circumstances:

Tourism Financial services
Airline
Personal Care Internet services
Apparel/Footwear
Products Lacrosse equipment
Beverages
OTC Medications Overnight delivery
QSR Restaurants
Anti-smoking/Drug services
Ice Cream
Organizations Personal
Credit cards
Computer games accessories
Insurance
(c)charlotteprolacrosse.com 38 Automobiles Telecommunications

Sponsorship Overview

Given league restrictions, initial sponsorship sales will rely on
established relationships with local clientele

Once a demographic profile of our audience is established, we will
leverage access to our core audience to garner new high-end
accounts

We will consciously position our brand to attract the city’s
emerging energy sector


Sponsorship Annual Projections

2011 2012 2013 2014 2015 2016 2017
# of Games 6 6 7 7 8 8 8
Renewals 0 4 6 7 8 9 10
Renewal $$$/game $12000 $12667 $14376 $15924 $18425 $20684
Renewal Revenues $48000 $76000 $100632 $127395 $165823 $206843
New Sales 6 5 4 4 4 4 4
New Sale $$$/game $2,000 $2,200 $2,420 $2,662 $2,928 $3,221 $3,543
New Sales Revenue $72000 $66000 $67760 $74536 $93702 $103073 $113380
Total Accounts 6 9 10 11 12 13 14
Total Revenue $72000 $114000 $143760 $175168 $221097 $268896 $320223
Revs per Account $12000 $12667 $14376 $15924 $18425 $20684 $22873

Assumptions
- Renewal Percentage 75%
- Escalator per year 10%


Merchandise
Merchandise represents a small but important part of the Charlotte Pro
Lacrosse budget. Although insignificant financially, the more people
wearing our gear - the more free marketing we receive. The following
represents sales estimates and assumptions for merchandise:

Based on a $3 per cap (Boston’s 2009 per caps) and 50% margin on
goods sold

2011 2012 2013 2014 2015 2016 2017
Paid Attendance/Yr 17,100 19.878 27,083 31,815 42,152 46,080 51,216

Show Rate 80% 80% 80% 80% 80% 80% 80%

$1.50/Attendee $20,520 $23,854 $32,496 $38,177 $50,578 $55,300 $61,457


Camps & Clinics

Camps & Clinics can be divisive within a city’s lacrosse community since
it can easily be perceived as infringing upon others livelihoods. More
research on how to best approach camps & clinics in the Charlotte
market must be done prior to any type financial analysis. That said,
margins are about 20% for daytime/commuter camps/clinics and 30%
for overnight camps. Entry strategy may be to “endorse” existing
camps and provide players in return for a percentage of the revenues.
This is an income/expense item that requires more exploration and may
take time to grow into.


Use of capital:
Four primary expenditures
7-Year Cost Projections
$1,985,045** $1,940,791**
$2,000,000.00
$1,843,350**
$1,806,337*
$1,750,000.00
$1,431,744*
$1,500,000.00
$1,315,893
$1,236,567
$1,250,000.00

$1,000,000.00

$750,000.00
= .5% Start-Up Costs
= 2% Misc, Camps & Clinics $500,000.00
= 8.5% Franchise Fee
= 53%
Sales, General & Admin $250,000.00
= 36%
Game Presentation $0
Lacrosse Operations ’10/’11 ’11/’12 ’12/’13 ’13/’14 ’14/’15 ’15/’16 ’16/’17
* 14-game seasons
(c)charlotteprolacrosse.com **43
16-game seasons

Franchise fee:
Timing is right

The league is “officially” asking for $1.5 for new franchises. They are
also interested in upgrading the current state of ownership in the
league in three ways:

Bring in people who have pro sports management backgrounds/
EXPECTED experience
ACTUAL
Bring in groups that will conduct the proper due diligence and
FRANCHISE FEE: properly capitalize their franchise

Bring in groups that show interest in participating in Lax United
$1,000,000
Marketing (the league’s broadcast arm)


additional consideration

LAX United Marketing

LUM has been spun off and granted to rights to produce and deliver all MLL games and to
market and produce certain national and international events that would be associated with
MLL. This is a similar structure to the MLS where broadcast rights are housed under the
Soccer United Marketing banner.

As a team owner, we have the right to purchase ownership units in LUM. LUM is expected to
lose about $1M this season and will probably lose similar sums in the future. Jim Davis and New
Balance are currently covering all these costs. In my opinion, the upside is at least a decade
away. That said, a reduction in the franchise fee is worth some due diligence some serious
consideration with LUM.

The League offices are preparing financial information for Charlotte Pro Lacrosse to review.


STart-up costs:
$40,000
This business does not require large fixed-cost start-up expenditures
and as such most of the first-year expenses that could be considered
“start-up” are covered in the Sales, General & Administrative annual
budget. Several exceptions:

Legal Fees associated with forming the business ($15,000)
SALES, GENERAL & ADMINISTRATIVE

Salaries & Benefits
President/GM
$413,294

2011
$300,094
$0
$469,635

2012
$359,319
$0
$502,706

2013
$389,296
$0
$844,377

2014
$726,581
$275,000
$909,389

2015
$781,589
$285,000
$963,463

2016
$839,382
$300,000
$1,028,177

2017
$900,625
$315,000
Graphic Design for team logo, uniforms and business ($15,000)
VP, Business Development $100,000 $108,000 $116,640 $125,971 $136,049 $146,933 $158,687
Sr. Director Marketing $55,000 $59,400 $64,152 $69,284 $74,827 $80,813 $87,278
Director Operations $35,000 $36,750 $38,588 $40,517 $42,543 $44,670 $46,903
Sales Manager $30,000 $31,800 $33,708 $35,730 $37,874 $40,147 $42,556
Sales Associate $19,000 $20,140 $21,348 $22,629

Printing of stationary, business cards, and other business related
Sales Associate $18,000 $19,080 $20,225 $21,438 $22,725 $24,088
Intern $9,000 $9,000 $9,000 $10,000 $10,000 $12,000 $12,000
Sales Commissions & Bonus Pool (avg. 5% of sales) $17,750 $30,525 $36,880 $45,406 $60,448 $69,674 $81,981
Payroll Taxes, Workers Comp, etc.) $30,844 $36,684 $39,756 $45,767 $50,415 $54,789 $59,515
Health Insurance $22,500 $29,160 $31,493 $39,681 $42,855 $46,284 $49,987
- # of people covered 5 6 6 7 7 7 7

stationary ($2,500)
- cost/person per year $4,500 $4,860 $5,249 $5,669 $6,122 $6,612 $7,141

Operational Expenses $59,200 $54,696 $56,121 $58,789 $67,022 $61,481 $63,073
Rent $18,000 $18,540 $19,096 $19,669 $20,259 $20,867 $21,493
Computers & Copiers $10,000 $3,000 $3,090 $3,183 $10,000 $3,000 $3,090
Office Supplies $6,000 $6,180 $6,365 $6,556 $6,753 $6,956 $7,164
Postage/Shipping $1,800 $1,854 $1,910 $1,967 $2,026 $2,087 $2,149
Cel Phones $6,000 $7,200 $7,200 $8,400 $8,400 $8,400 $8,400
Telephone $3,600 $3,708 $3,819 $3,934 $4,052 $4,173 $4,299
Travel $9,000 $9,270 $9,548 $9,835 $10,130 $10,433 $10,746
Meals & Entertainment $1,800 $1,854 $1,910 $1,967 $2,026 $2,087 $2,149

One-time set-up/purchase charges for technology, phones,
Meetings $3,000 $3,090 $3,183 $3,278 $3,377 $3,478 $3,582

Other Operational Expenses $54,000 $55,620 $57,289 $59,007 $60,777 $62,601 $64,479
Insurance $18,000 $18,540 $19,096 $19,669 $20,259 $20,867 $21,493
Accounting Fees $12,000 $12,360 $12,731 $13,113 $13,506 $13,911 $14,329
Legal Fees $15,000 $15,450 $15,914 $16,391 $16,883 $17,389 $17,911
IT Fees $3,000 $3,090 $3,183 $3,278 $3,377 $3,478 $3,582

printers, etc. ($5,000)
Misc. $6,000 $6,180 $6,365 $6,556 $6,753 $6,956 $7,164

Miscellaneous deposits and expenses ($2,500)

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