If you google the term “fantasy sports” today, on the first and second page, you will get fantasy sites serving only U.S-based sports with initials starting with N or M (NFL, NBA, MLB, MLS). But where are the sites serving non-U.S based sports like globally popular football/soccer, cricket, rugby, UFC, F1 or even Olympics? Guess what? The top fantasy sports sites have left an UNTAPPED MARKET in fantasy sports. The untapped market is a ONE-STOP fantasy site that offers non-U.S sports.
We have developed a ONE-STOP fantasy sports platform that runs on ONE SINGLE ENGINE but accessible on MULTIPLE clients -web, Facebook app, iPhone, Android, Blackberry, WAP, J2ME, Nokia Widget, Maemo and soon Google TV and Yahoo! TV
We embrace 5 business models, which is already monetizing with partners, from Vodafone in UK to Domino’s Pizza
We have 2 markets to penetrate – B2B and B2C. On B2C market, we offer a ONE-STOP fantasy sports site for all sports. On B2B market, we sell white-label fantasy sports solutions to FIFA, Castrol or Goal.com.
What is our end customers’ problem?
Fantasy sports is a very addictive game. Even EHow.com published a guide on how to quit playing fantasy sports. And like sports, winning in fantasy sports is not everything, it’s the only thing!
What is our solution to the problem?
Sports fans need to get their fix for their fantasy sports addiction, thus we want to offer a ONE-STOP fantasy sports site that users can access their fantasy team anywhere they are -on web, Facebook app, iPhone, Android, Blackberry, WAP, J2ME, Nokia Widget, Maemo and soon Google TV and Yahoo! TV
And since winning is paramount, thus, our games are designed to offer more chances for users to win
What does the market look like?
Silent Manager, our competitor, managed to sell 50 white-label Fantasy World Cup applications with a MINIMUM price of USD4,363 each (£2,750) for FIFA World Cup. That is USD218,150 minimum for a service of only one-month long.
Silent Manager, plan to target 150 Fantasy World Cup for next World Cup on 2014. That’s 200% growth in 4 years. (http://www.silentmanager.com/press.aspx?id=10 )
Our Fantasy World Cup grew at 1,300 new users per day
PremierLeague.com has 2 million fantasy football users (http://fantasy.premierleague.com)
Fantasy football attracts 1.6 million players in UK, 2.5% of the total population. Fantasy cricket attracts 750,000 in India
Fantasy sports sites get 3 TIMES MORE pageviews than a news site like CNN.com (http://news.cnet.com/Study-Fantasy-sports-sites-addictive/2110-1026_3-5275663.html)
An estimated 27 million American adults play fantasy sports (http://www.entrepreneur.com/magazine/entrepreneur/2009/september/203140.html)
The average user is male, 18 -49 yrs old, boasts above-average income and education levels -a marketer’s dream (http://www.entrepreneur.com/magazine/entrepreneur/2009/september/203140.html)
Who are our current & potential customers?
For B2C market
We currently run a fantasy sports brand called FanXT (www.FanXT.com) and we have over 25,000 users
For B2B market -Existing customers & partners
• UK -Orange, O2, Vodafone
• Italy – A Tono
• Australia – Optus, 3
• Singapore – Starhub, Singtel
• Vietnam – Vietelle
• Malaysia – DiGi, Maxis, Samsung
• Global – Nokia, Apple
For B2B market -Potential customers & partners
• Sports governing bodies – IOC, FIFA, UEFA, ICC, ATP, PGA, International Rugby Board, Asian Football Confederation, Commonwealth Games New Delhi 2010
• Sports clubs – Manchester United, FC Barcelona, Inter Milan
• Brands – Castrol, Sprint, Domino’s, Visa, Rexona, Heineken, Guinness, Carlsberg, Budweiser
• Media -PremierLeague.com, Goal.com, TV, newspapers
• Mobile operators – Verizon, Sprint, Virgin Mobile
• Phone brands – Sony Ericsson, LG
• Sports betting companies – Way2Bet, bet365, 888.com
How do we plan to sale & market our products & services?
For Web: We sell white-label solutions via networking with sports associations. Sponsors of a sport club (like Aon sponsoring ManUtd) or sporting event (Champions League) are our high prospects
For Social Web: We use the power of viral marketing of social web like Facebook
For Mobile: We’ve signed agreement with mobile operators and phone manufacturers to distribute our mobile apps. Because mobile market is still segmentized by operators’ network and by devices
What is our 5 ways to make money (business models)?
1. White-label model: We sell our white-label fantasy sports apps to media, brands, sports associations & website owners, etc
2. Revenue sharing: We distribute our fantasy sports app to mobile operators (Verizon, Vodafone) and phone manufacturers (Apple App Store, Nokia Ovi, Samsung)
1. Ads funded: People play for fantasy sports for free
2. Pay to play: People pay to play and cash prizes
3. Freemium: People play for free but pays for extra items/perks
Who are our competitors?
Silent Manager (www.silentmanager.com) They mainly offer fantasy football and fantasy F1 games. They are our closest competitor.
ISM Fantasy Games (www.ismgames.com) They purely only offer fantasy football games. We’re already in talks with one of their client to use our solutions
Fantasy League Ltd (www.fantasyleague.com) They purely only offer fantasy football games and mostly focus in U.K market. Their clients are like Sky Sports, The Sun, Barclay. Most of their fantasy games are not free to play.
RotoHog (www.rotohog.com) Mainly offers U.S based fantasy sports like NFL, NBA and their products only works online
PremierLeague.com (http://fantasy.premierleague.com) They are the biggest player in fantasy football/soccer. They have over 2 million users across the world. They outsourced their fantasy football app to ISM Games, our competitor in B2B market.
ESPN is more focus on online platform and U.S market (NFL, NBA, etc).
Yahoo! Sports (http://sports.yahoo.com/fantasy)
Yahoo! is more focus on online platform and U.S market (NFL, NBA, etc)
They are focus on social web market like Facebook.
How do we beat our competitors?
We’re 50% cheaper than our competitors : We can steal our competitors’ customers because, we can offer 50% less than our competitors prices. This is because our operating costs in Malaysia are much lower than our competitors’ since they are based in U.K and U.S
Our fantasy sports games are multi-platforms : Our competitors are mainly online-based, but our fantasy games are already available on web, Facebook App, mobile WAP, mobile Java, iPhone, Nokia Widget, Nokia Maemo, Android, Blackberry and coming to Google TV and Yahoo! TV
We’re more feature packed : Our fantasy games have more features than theirs. Ours have medals and trophies, has the ability to invite friends from email accounts and Facebook, ranking status, experience level
These are the big 5 fantasy sports giants. We call them the Big 5.
2. Yahoo! Sports
5. Fanball Our mission is to fill the empty gaps left by the Big 5 fantasy sports giants. The gaps are,
These big 5 does not focus on sports where the sports’ initials do not start with N or M (NFL, NBA, MLB, MLS). The big 5 are focusing on U.S based sports that do not have much appeal outside the States (except for NBA in China, but read the next point below). The truth is there is no major player for non-U.S sports market and this shall be our gold mine
The Big 5 are not in China yet and NBA is big in over there. But we know gatekeepers in China market that are willing to open the doors for us
The Big 5’s fantasy products are not social network ready. But we already have 3 Facebook apps on fantasy sports
The Big 5’s products only work on Internet (or perhaps iPhone). But our fantasy products work on web, Facebook, mobile WAP, mobile Java, iPhone, Android, Blackberry, Nokia Widget. Only 2 out of 10 people outside U.S has Internet access, but 7 out of 10 of them has mobile phone (http://en.wikipedia.org/wiki/List_of_countries_by_number_of_mobile_phones_in_use) (http://www.internetworldstats.com/stats.htm).
How can we prevent people from entering our market (Barriers of Entry)?
1. Get endorsements from sport’s governing body to support our fantasy sports games
2. Obtain rights to use sports trademarks -FIFA World Cup, UEFA Champions League, AFC Asian Cup
How much money have we invested in?
Melvin Wong has invested USD130,000 and is the only shareholder of the company
How much more do we need?
Required funding : USD500,000
Current Monthly Burn Rate : USD5,000
Pre-money Valuation : USD1,500,000
• To hire sales executive to sell our white-label sports solutions and to partner with mobile operators
• To hire marketing executive to advertise our sports apps
• To hire developers to develop more apps for more sports
• To hire server administrators to maintain our servers
How do you make your money (Exit Strategies)?
Our exit strategy is to get acquired by the Big 5 or the Big 5’s enemies. Yahoo! acquired Citizensport, AOL acquired FleaFlicker, so acquisitions of fantasy sports companies are possible
Why would they want to acquire us? We shall own one of the largest database of sports fans from across the world and a multiple platform fantasy sports engine that could cater for all kinds of sports
Why should you invest in us?
• We’re cheap to operate. We’re one third of the operating costs in US
• We’re tax free for 5 years
• We got the talent to build apps from iPhone to Facebook apps
• We have 5 business models from white-label model to freemium models.
• We’re in Europe & Asia where the sports economy is growing like mushroom. Our partners range from Orange in UK to Singtel in Singapore.
Year Revenue (USD) Expenditure (USD) Profit/Loss (USD)
2009 69,020.30 113,463.13 (44,444.83)
2010 (so far) 26,901.53 25,809.38 1,092.15