Beacon on the Hill Sports Marketing

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Why Buy an NFL Team?

Beacon on the Hill Sports Marketing answers the question!

Answer Outline

  1. To purchase a $600 million diamond filled gold mine that will double in value in 1-5 years (depending on whether it stays put or moves) while generating $3.5 billion in revenue in 10 years.
  2. To develop and market the premier "product" of sports-entertainment: NFL Football, an industry that includes communications, hospitality, tourism, business incubation, and real estate development.
  3. To turn the five keys of success in the NFL:
    1. Be in contention by focusing on winning the Super Bowl
    2. Be creating and expanding by focusing on winning the “profit bowl”
    3. Be a major contributor to the “spirit” of community
    4. Be a provider of positive role models for kids and young people
    5. Be an economic magnet and community development prosperity zone for the area in which the team’s stadium and training facility are located.

Answer Outline

There are 5 Reasons (Summary p. 2, Details p. 3ff): for “Why?” to Buy an NFL team: BECAUSE:

  1. It is like purchasing a rare diamond worth $600 million that will double in value in 5 years while generating $3.5 billion in ten years. but generate $300 million/year in the process. Diamond available: Vikings, 49ers.
  2. For little out of pocket money it can create greater wealth, as it will generate $100 million/year guaranteed through NFL sharing (Source: Forbes, NFL); $100 million/year in local revenues with a new stadium (Source: Merrill Lynch); $200 – 400 million from the NFL for a new ($200 million) or shared ($400 million) stadium (Source: NFL); $100 million or more/year through the identified 40 ways in 26 categories for generating revenue with an NFL franchise, using the stadium as the anchor of a sports-entertainment-communications-hospitality-tourism-real estate/business incubator-investment industry complex. (Source: Beacon on the Hill Sports Marketing)
  3. It’s “The The New Piggy Banks for Financial Wizards” (Source: San Antonio Express-News, 8-8-02).
  4. The financing works Source: (Forbes)
  5. Beacon on the Hill Sports Marketing is available to help make it happen.

The goal is to support a prospective buyer(s) in developing and marketing the premier “product” of the sports-entertainment-communications-development business, NFL football, doing so while being (1) in contention and focusing on being competitive for the Super Bowl; (2) being competitive in the “profit bowl,” (3) standing out as a major contributor to the “spirit” of community; (4) providing positive role models to kids and young people, and (5) serving as an economic magnet, tax revenue generator, and community developer partner for the area in which the team’s stadium is or will be located.

Executive Summary: Why Buy an NFL Team?

To Generate $300 Million Year, $3.25 Billion the first decadeSummary for the 5 “Because” Reasons

  1. Why buy and NFL team? Because the rare, once in a lifetime opportunity of purchasing an NFL team is like purchasing a rare diamond worth $600 million that will not only double in value in 5 years but generate $300 million/year in the process: they are seldom for sale, and so the excitement today: at least two teams are for sale: The Minnesota Vikings and the San Francisco 49ers. Buying a team places the buyer (or buying group) into the elite pantheon of sports and the #1 draw and revenue generator in this unique, one-of-a-kind sports-entertainment-communications industry.
  2. Why buy and NFL team? Because purchasing an NFL team provides an unusual opportunity to generate even greater wealth for little out of pocket money (see #4 below). The revenue yield is simply fantastic: $300 million/year, and growing. There is also a potential additional bonus of $250 million every decade from a Super Bowl with an almost sure thing for a Super Bowl during at least the first decade. In the first decade, that means $3.25 Billion in revenue, and growing. The five part revenue yield is as follows:
    1. $100 million guaranteed through NFL sharing (Source: Forbes, NFL)
    2. $100 million in local revenues with a new stadium (Source: Merrill Lynch)
    3. $100 million or more/year through the identified 40 ways in 26 categories for generating revenue with an NFL franchise, using the stadium as the anchor of a sports-entertainment-communications-hospitality-tourism-real estate/business incubator-investment industry complex. As an added “bonus,” the deal can be structured with minimal actual cash down. (Source: Beacon on the Hill Sports Marketing)
    4. $200 – 400 million from the NFL for a new ($200 million) or shared ($400 million) stadium (Source: NFL)
    5. The team value will double in value over the next 5 years (Source: Forbes)
  3. Why buy and NFL team? Because purchasing an NFL team is like purchasing a “gold mine with diamonds in the Mother Lode: The New Piggy Banks for Financial Wizards” (Source: San Antonio Express-News, August 8, 2002)
  4. Why buy and NFL team? Because the financing “works” (Source: Forbes)
  5. Why buy and NFL team? Because Beacon on the Hill Sports Marketing is available to help make it happen.

Detailed Answers to the Question: Why Buy an NFL Team?

Here are five reasons why!

Reason# 1: Why buy an NFL Team? BECAUSE the rare, once in a lifetime opportunity of purchasing an NFL team is like purchasing a rare diamond worth $600 million that will not only double in value in 5 years but generate $300 million/year in the process: they are seldom for sale, and so the excitement today: at least two teams are for sale: The Minnesota Vikings and the San Francisco 49ers.. Buying a team places the buyer (or buying group) into the elite pantheon of sports and the #1 draw and revenue generator in this one-of-kind sports-entertainment-communications-hospitality-tourism-real estate/business incubator-investment industry.

Reason# 2: Why buy an NFL Team? BECAUSE purchasing an NFL team provides an unusual opportunity to generate even greater wealth. The revenue yield is simply fantastic: $300 million/year, and growing. There is also the bonus of $250 million every decade from a Super Bowl. In the first decade, that means $3.25 Billion in revenue, and growing. The five-part revenue yield is as follows:

Reason# 3: Why buy an NFL Team? Because purchasing an NFL team is like purchasing A “GOLD MINE WITH DIAMONDS IN THE MOTHER LODE: The New Piggy Banks for Financial Wizards” (Source: San Antonio Express-News, August 8, 2002)

Reason# 4: Why buy an NFL team? Because purchasing an NFL team works because the financing “works” (Source: Forbes)

Reason# 5: Why buy an NFL team? Because Beacon on the Hill Sports Marketing is available to help make it happen. Beacon on the Hill Sports Marketing stand “at the ready!” Beacon On The Hill Sports Marketing has a consulting team available to help guide and physically man the transition, initial operations, new stadium funding, and, as needed, work with any site, whether for new building or for renovation.

Investment Analysis Assumptions

Assumption #1: All participants will be exercising a desire or dream that transcends traditional business models and traditional ways of doing business. It is assumed that investors (as business partners) will have a passion for a great football team and for business profitability.

Assumption #2: The business is “sports-entertainment,” not just a football business (avoiding the mistake of the train industry that didn’t realize it was in the transportation business). The NFL has a business model that works differently from other business models as the sports-entertainment models includes numerous additional revenue streams to build on top of the guaranteed revenue stream (NFL shared TV revenue money plus local retained stadium revenue from suites, sponsorships, tickets, parking, concessions, etc.), and allows for creative application of business sense to create additional revenue streams in the additional areas of communications, hospitality/tourism, business incubating, and investing.

Assumption #3: That the key is to create a super brand name out of the team’s name, to use the team as an umbrella brand for other emerging brands of the multiple revenue streams for the mixed-use sports-entertainment-communications-hospitality-tourism-real estate-business incubation-investment development model.

Assumption #4: Beacon on the Hill Sports Marketing proposes to act as a catalyst for the new owner and the investments garnered, taking the initial lead in the charge to success.

Assumption #5: There are financial funding and operational tools models galore to choose from to find the appropriate ones to help ensure profitable success.

Assumption #6: On the revenue side, using the team and stadium as an anchor means using a business growth model rather than a government subsidy model. We have identified at least 40 different ways in 26 different categories to generate significant local revenue.

Assumption #7: The project will generate hundreds of millions in the government jurisdictions as well as for other corporations who become part of the development and investment aspects of the stadium complex, as part of a “smart growth” policy generating jobs for people, revenue and profits for companies, economic growth and tax revenue for city and state.

Chronology Leading to this Proposal

  1. Founded Peter Jessen GPA, 1999
  2. Proposal to S.F. 49ers for off field entertainment products to generate revenue, July 2000
  3. Stadium Complex Proposal to S.F. 49ers, July 2000
  4. Stadium Complex Proposal to MN Vikings (& shown to Twins & MN Leg), August 2000
  5. Ways to work with the legislature, August 2000
  6. Generic Model for Stadium Complex, derived from #s 3&4, April 2001
  7. Launch www.peterjessen-gpa.com, September 2001
  8. Place Generic Model on site, October 2001
  9. Launch Stadium complex web example: www.chargersstadium.com, June 2002
  10. Launch Stadium complex web example: www.lacoliseumstadium.com, June 2002
  11. Team Purchase Proposal, November 2002, followed by presentations
  12. Team Purchase/Move to L.A. Proposal, Nov. 2003, followed by presentations
  13. Founded Beacon On The Hill Sports Marketing, August 2004
  14. Launch www.BeaconSportsMarketing.com, August 2004
  15. “Why Buy an NFL Team?” November 2004
  16. “Why Buy the Minnesota Vikings and Move Them to L.A.?”, December 2004

Closing Comments

(Former Introduction)

In 2002, I attempted to demonstrate to the San Franciso 49ers and the Minnesota Vikings (and the Minnesota Twins), how they could build new stadiums without having to raise new city or state taxes. Minnesota wanted three stadiums (Vikings, Twins, and the University of Minnesota’s Gophers). Twelve ways were presented, each with 3rd party validation and verification. No takers. No interest. No phone calls or Emails returned. No legislator, businessman or other officials responded. No one.

Upon further research and interviews with legislators, businessmen, and other officials and leaders, I found out why: a consensus existed with the leaders of the community – legislators, businessmen, and city officials, that not only were no monies going to be spent on the Vikings for a stadium, but that the consensus view was that only three teams could be supported by business (purchase of corporate suites) instead of four and so one had to leave, and that the odd team out was the one with the fewest games: the Vikings. This conclusion is also supported by two recent books by local writers, Jay Weiner (Star Tribune reporter), in his 2000 book “Stadium Games,” published in 2000, and by community advocate Ron Edwards, “The Minneapolis Story, Through My Eyes,” 2002.

Several who have crunched the numbers as they explored purchasing the Vikings have come to the same conclusion, stadiums in the Twin Cities are not economically viable. It has remained our view since 2000 that three stadiums (Vikings, Twins, Gophers) could be built without adding new taxes. But it has become clear that no one will take up the challenge, and that unless someone does, the team will move. Then the Twins will get a renovated Metrodome and the Gophers a new on campus stadium. Doesn’t matter. The team is for sale. I’m here to support a bidder either way, stay or leave.

The purpose of this Why buy an NFL team? paper is to demonstrate to the reader/investor that whether the team stays in Minneapolis or moves (e.g., to Los Angeles), it can be purchased and operated more than adequately from a profit standpoint, especially if the “40 ways to generate revenue in 26 categories are followed, even though the full revenue potential can’t be reached until a new stadium is built. A separate piece has been written for why and how to effect a move to Los Angeles, regardless of what team it is.

This is written with seven points in mind: The first deals directly with the Vikings: purchase them now and, if no stadium becomes viable or possible, move to a city where a new stadium will be declared viable and possible. The second: accept the inevitability now and purchase the team and immediately negotiate for a move to another city. The third: approach a second team, the San Francisco 49ers, regarding purchasing them. The fourth: simultaneously bid on the Vikings while also negotiating with Los Angeles to move there and to play in the Memorial Coliseum. The fifth is, like Thomas Edison, to cause the light to go on with an investor(s) who then says, “let’s go!” Presentations have been made. We are still waiting to hear those words and be put on retainer. Needed is a lead buyer (the General Partner) who either wants to purchase it himself or do so as the head of a buying group (putting up a third of the sale price and splitting the rest with limited partners). The sixth is to apply this packet to any professional team of any sport in any league. Finally, the seventh is to seek retainers for Beacon on the Hill Sports Marketing for other tasks unrelated to the NFL but still related to projects geared to developing new business and to generate new profits. Beacon on the Hill Sports Marketing stands at the ready to serve any client to help them prepare for discussions on project goals & project revenues/profits.

Beacon on the Hill Sports Marketing seeks retainers to to serve as consultant to any project in general and, in particular, projects related to the purchase of teams and the building of their stadiums.


Page content written / posted: 11/2002, 11/2003, 11/2004, 10-15-13

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