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2010 MSC The Premier Mountain Bike Championship Series in the United States partnership opportunity 2010

2010 Mountain States Cup Advertising and Sponsorship Proposal

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The 2010 Mountain States Cup series of 38 mountain bike events over 9 weekends will be broadcast on NBC Universal Sports Network and available as Video On Demand from www.universalsports.com. This event represents a high-value low-risk opportunity to advertise to a key 18-24 male demographic.

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Page 1: 2010 Mountain States Cup Advertising and Sponsorship Proposal

2 0 1 0 M S CThe Premier Mountain Bike Championship

Series in the United Statespartnership opportunity 2010

Page 2: 2010 Mountain States Cup Advertising and Sponsorship Proposal

VAST Action

Devon Balet Photography

VAST Action

VAST Action Devon Balet Photography

VAST ActionVAST Action

VAST Action

Yeti Cycles

Yeti Cycles

Devon Balet Photography

VAST Action

Page 3: 2010 Mountain States Cup Advertising and Sponsorship Proposal

Mountain biking is more than a sport – it is a lifestyle. The Mountain States Cup is more than the top regional mountain bike series in the country—it is a catalyst for celebrating the human spirit, of connecting people and nature, of green technology and responsible stewardship, and of athletes who push themselves to the limit surrounded by their friends and families.

This proposal is very comprehensive, and shows how event sponsorship and advertising of the Mountain States Cup can be a high-value, low-risk way of promoting your products and services.

The Mountain States Cup has been in existence for over 20 years, and we have worked for the past 18 months to ensure we have the right team in place to be able to expand the event to broadcast television with NBC Universal Sports, to Video On Demand over the Internet, and to a larger non-endemic market.

We know how to drive value, and we know that any program involving your brand needs to be properly managed. We are presenting three standard spon-sorship and advertising options in this proposal - but are very adept at creating custom components to help you leverage your investment.

Well-managed and experience = Low riskTargeted key marketFlexible and can be leveragedCan involve key stakeholders (employees, clients, distributors)High value, good investment

§

Dean Nelson Chris ConroyClear Creek Media LLC Bigfoot [email protected] [email protected] 303.278.6909

ADverTisiNg & sPoNsorsHiP CoNTACTs

Page 4: 2010 Mountain States Cup Advertising and Sponsorship Proposal

MSC ON-SITE EVENT DEMOGRAPHICSParticiPants & sPectators

at a glance . . . .8,000+ entries in 2009.

75 % are male.

the average bike in the Msc costs $4100.

the average lodging cost at our race venues is $200 per night.

47% have an average household income over $75,000.

they drive 4WD and aWD vehicles, but show early adopter signs of more economical and fuel-efficient cars and trucks.

Junior participation represented 15% of total participation in 2009.

Juniors prefer racing gravity over endurance 3:1.

100% of them race in the best mountain bike series in the United states as evidenced by a staggering amount of coverage in the vertical print and online media.

They are loyal to the brands that support their sport

Shawn Spomer

AGE

Under 18

18-25

26-35

35-45

45+

Racing Discipline

0% 10% 20% 30% 40% 50%

Super DGated

DownhillCross Country

Short Track

Disc

iplin

e

Percentage of Total Starts

PURPOSE FOR COMING

Racer

Spectator

Parent

Other

ADDITIONAL PEOPLE IN PARTY

1 to 2

3 to 4

5 to 6

6+

HOUSEHOLD INCOME

$0 - $25,000

$25,001 - $50,000

$50,001 - $75,000

$75,001 - $100,000

$100,001 - $125,000

$125,001+

GENDER

0% 10% 20% 30% 40% 50% 60% 70% 80%

Male

Female

Female

Male

Source: Actual 2009 MSC Series data and 2009 Participant Surveys

Page 5: 2010 Mountain States Cup Advertising and Sponsorship Proposal

What is a “Sports Lifestyler”?Core and casual athletes with a deep love for sports that is part of ♦

their identity

Participate in sports activities several times a week and consume ♦

sports media daily

Deeply connected to their sports, influencers and brand loyal ♦

Professionals, Enthusiasts and Super Fans ♦

this year 38 million americans will bike.That’s more than 2x the number of Americans who will ski or snowboard.Source – SGMA 2008 Sports & Fitness Participation Report

Viewers of nBc Universal sports have a passion for favorite sports and athletes.

89% are extremely passionate about favorite sports•90% follow favorite athletes closely• Source – NBC Universal Sports Site Intercept research 2009

compared to Versus, Discovery, speed, esPn2, esPn classic and Fuse television networks:

NBC Universal sports has the top viewership duration among 18-49 with •over $100K of household income.NBC Universal sports has higher viewership frequency at 25.4 times per •month- more than all the other networks listed combined!Source – Nielsen Media Research, Local NPOWER, New York DMA, July 2009

nBc Universal sports also has higher frequency of viewership compared to other established cable channels, with 25.4 times per month. That’s more than versus, Discovery, speed, esPN2, esPN Classic and Fuse combined. Source –Nielsen Media Research, Local NPOWER, New York DMA, July 2009

sports Lifestylers favor brands surrounding their interests.67% are more likely to think higher of brands that sponsor favorite sport-•ing events.64% are more likely to purchase brands that sponsor favorite sporting •events.Source –NBC Universal Sports Site Intercept research 2009

nBc Universal sports programming can be acessed “anywhere, anytime”.

on-Air— Universal sports is currently available in 62 million households, •and is projected to have 73 million households by February 2010.internet— www.universalsports.com attracts 5.2 million unique viewers •per month, representing over 50 million page views.Mobile— subscribers can sign up for Text & video alerts and participate •in mobile sweepstakes.Source –NBC Universal Sports Site Intercept research 2009

top national brands and leading sports endemic brands have already partnered with Universal sports on successful integrated, multi-platform campaigns: sprint, at&t, Ge, Visa, Us navy, Kleenex, nike, Gatorade, adidas, speedo and oakley – to name a few.

MSC MEDIA VIEWER DEMOGRAPHICS nBc UniVersaL sPorts attracts sPorts LiFestyLers

Yeti Cycles

freedigitalphotos.net

Yeti Cycles

Yeti Cycles

Page 6: 2010 Mountain States Cup Advertising and Sponsorship Proposal

EVENT & MEDIA VALUE a tarGeteD ProMotion to a Key aUDience

the Mountain states cup series is compromised of 32 mountain bike events over nine weekends during the summer of 2010 and attracts over 8,000 participants and 120,000 spectators. The MSC takes place at the top mountain bike venues in the Rocky Mountain Region, and consists of a number of disciplines: Cross Country (XC), Short Track (STXC), Downhill (DH), Mountain Cross (4X), Dual Slalom (DS) and Super D (SD). The events will be featured on 10 one-hour television programs broadcast on NBC Universal Sports Television Network with first airing one prime-time weekends, with at least two additional airings per program. With over 70 Million households able to received NBC Universal Sports Television Network through either their over-the-air digital broadcast signal or via cable television or DBS, the series is expected to deliver over 12 million advertising spot impressions and over 24 million brand impressions to Gold-level sponsors.

The series is expected to deliver over 12 million advertising spot impressions and over 24 million brand impressions. The programs will also be available on Video-On-Demand through the www.universalsports.com website - one of the top ten sports-related websites in the world - with over 5.2 million unique viewers every month and over 50 million page views. We expect that the Internet media property will generate at least 8 million additional brand impressions for Gold-level sponsors over the course of the four months the programming will be available for viewing. Based on the cost of a Gold sponsorship package, the cost per Impression is estimated to be less than $5.00 per thousand - a very effective media buy - especially when you consider that over 25% of the impressions are ‘lean forward’ impressions via the Internet or through on-site activities!

Better Value for Sponsors

A low risk business proposition Sponsoring a well-developed series rather than individual athletes or teams provides companies with insulation from bad publicity.

Direct access to core consumers with great demographics Video, dedicated and professional PR, consistent dialogue via direct email with our customers included with partnerships.

On-site exposure Free tech space for our partners with electricity provided at cost.

Premier locations MSC is centrally located in the Rocky mountains and attracts not only regional participants, but national and International participants who make it a “destination event” often building their vacations and business travel around it. In fact, the 2009 Series attracted participants from 22 states and 4 countries.

TV coverage Investment in series underwrites multiple broadcast dates and video capture in multiple mediums with unconditional pass-through rights.

Page 7: 2010 Mountain States Cup Advertising and Sponsorship Proposal

The series has grown over its 20-year history, to a point where it is considered the premiere mountain bike series in the nation. Under the management of Bigfoot Productions (an owned subsidiary of Yeti Cycles), the series has attracted virtually every company endemic in the cycling industry to become a sponsor. Each event in the series provides points for national ranking, so athletes and spectators come from all across the country to compete and watch the best in the world. In fact, last year an event even attracted Lance Armstrong – who was looking for a challenge a couple of weeks after his podium placement at the Tour de France. Clear Creek Media has been working for two years to prepare for television coverage, and we have engaged an experienced team who know how to balance the needs of athletes and spectators with those of camera crews and sponsors— to ensure that everyone gets value for their area of interest. We have shown in the first two sections how valuable the viewers of Universal Sports Television Network and participants and spectators of the Mountain States Cup Series

can be to a company looking for a quality connection to the “Sports Lifestyler” demographic. We are presenting three packages— with cat-egory exclusivity provided at no additional cost for the first five gold-level sponsors, provided their commitment is made prior to the end of 2009. We have provided exhaustive information about the demographics associated with the property in the first two sections, and in this section, we identify the specific components of each package, based on four categories:

On-site business related benefits1.

Off-site business-related benefits2.

On-site brand related benefits3.

Off-site brand related benefits4.

www.universalsports.com gets 50 million page views per month

VAST Action

Page 8: 2010 Mountain States Cup Advertising and Sponsorship Proposal

$25KsiLVer LeVeL eVent sPonsorsHiPBanners• 12- 3’x5’ coroplast, included in costexpo space• 10’x20’ included, power requires advanced notice and is provided at coststart/Finish towe• r primary medium sized logo placementPa announcements• 12 per event dayMsc series championship Jersey• 2 medium logo placementscolorado state championship Jersey • 2 medium logo placementsMsc Merchandise and event tees• exclusive logo presence at an additional $1,000 per eventWebsite• primary logo placement, linksVideo• logo placement, product placement and athlete endorsementemail newsletter• featured in all MSC press releasesViP credentials• 2 per eventopportunity to provide inserts• Athlete schwag bags, registration packets, direct mail

plus product

$50KGoLD LeVeL eVent sPonsorsHiPBanners• 24- 3’x5’ coroplast, included in costexpo space• 20’x30’ included, power requires advanced notice and is provided at coststart/Finish towe• r primary large sized logo placementPa announcements• 16 per event dayMsc series championship Jersey• 2 large logo placementscolorado state championship Jersey • 2 large logo placementsMsc Merchandise and event tees• exclusive logo presence at an additional $500 per eventWebsite• primary logo placement / banner, links Video• primary logo placement, product placement and athlete endorsementemail newsletter• prominently featured in all MSC press releasesrace number plates• primary logo placement ViP credentials• unlimitedsignage at ancilliary events• Angel Fire Burner, Fall Tilt in Telluride, Bear Creek Beti Bike Bashopportunity to provide inserts• Athlete schwag bags, registration packets, direct mail

plus product

$10KBronZe LeVeL eVent sPonsorsHiPBanners• 6- 3’x5’ coroplast, included in costexpo space• 10’x10’ included, power requires advanced notice and is provided at coststart/Finish towe• r primary small sized logo placementPa announcements• 6 per event dayMsc series championship Jersey• 2 small logo placementscolorado state championship Jersey • 2 small logo placementsWebsite• primary logo placement, linksemail newsletter• featured in all MSC press releasesViP credentials• 1 per eventopportunity to provide inserts• Athlete schwag bags, registration packets, direct mail

plus product

ON-SITE EVENT SPONSORSHIP DETAILS

A contract is required with Bigfoot Productions for the on-site event sponsorship component, but that category exclusivity is only available to sponsors who make a Gold level commitment for both on-site sponsorship and media advertising components.

Page 9: 2010 Mountain States Cup Advertising and Sponsorship Proposal

MEDIA PROPERTY ADVERTISING DETAILS

$120KGoLD LeVeL MeDia sPonsorsHiPcategory exclusivity • for the first 5 category sponsors (additional Terms and Conditions apply see page 12)sixty 30-second advertising spots • two 30-second ads per program times 10 programs on NBC Universal Sports Television Network, aired at least three times, including at least once during weekend prime-timesixty 5-second billboards with voice-over • two 5-second billboards at opening/closing times 10 programs on NBC Universal Sports Television Network, aired at least three times, including at least once during weekend prime-timethirty sponsor name mentions • at least one per program times 10 programs on NBC Universal Sports Television Network, aired at least three times, including at least once during weekend prime-time10 opening billboards on the Video-on-Demand programming on www.universalsports.com •one per program times 10 programs, available for up to four months. It is likely that programming will be segmented into 15-minute segments for a total of 40 programs, in which case you would receive 40 billboards - one at the beginning of each segmentBanner and/or listing with logo and link to advertiser website from www.universalsports.com •for a period of 4 months - which has over 50 million page views per month

plus product

$65KsiLVer LeVeL MeDia sPonsorsHiPthirty 30-second advertising spots • one 30-second ads per program times 10 programs on NBC Universal Sports Television Network, aired at least three times, including at least once during weekend prime-time)thirty 5-second billboards with voice-over • one 5-second billboards at opening or closing times 10 programs on NBC Universal Sports Television Network, aired at least three times, including at least once during weekend prime-timethirty sponsor name mentions • at least one per program times 10 programs on NBC Universal Sports Television Network, aired at least three times, including at least once during weekend prime-time10 opening billboards on the Video-on-Demand programming on www.universalsports.com •one per program times 10 programs, available for up to four months. It is likely that programming will be segmented into 15-minute segments for a total of 40 programs, in which case you would receive 40 billboards - one at the geginning of each segmentListing with logo and link to advertiser website from www.universalsports.com for a period of 4 months• which has over 50 million page views per month

plus product

$35KBronZe LeVeL MeDia sPonsorsHiPthirty 30-second advertising spots • one 30-second ads per program times 10 programs on NBC Universal Sports Television Network, aired at least three times, including at least once during weekend prime-timethirty sponsor name mentions• at least one per program times 10 programs on NBC Universal Sports Television Network, aired at least three times, including at least once during weekend prime-timListing with logo and link to advertiser website from www.universalsports.com for a period of 4 months• which has over 50 million page views per month

plus product

What does category exclusivity get my company or brand?The benefit of this type of sponsorship is a high level of exposure without the competition and clutter of traditional advertising. By establishing a link with our events, a company shares in the credibility of the event itself while delivering its message to a consumer who is apt to be relaxed and more receptive.

Page 10: 2010 Mountain States Cup Advertising and Sponsorship Proposal

aPPenDix 2

2010Proposed Race Schedule

april 23-25 MSC #1, Rabbit Valley Rally Fruita, CO TT, XC

May 14-16 MSC#2, Chalk Creek Stampede Nathrop, CO XC, 4X, STXC, DS

June 4-6 MSC #3, Chile Challenge Angel Fire, NM XC, 4X, DH, SD

June 25-27 MSC #4, Wildflower Rush Crested Butte, CO XC, 4X DH, SD

July 9-11 MSC #5, Keystone Climax Keystone, CO XC, DS, DH, SD

august 6-8 MSC #6, Blast the Mass Snowmass Village, CO XC, DH, DH, SD august 20-22 MSC #7, Full Tilt in Telluride Telluride, CO 4X, XC, DH, SD september 3-6 MSC #8, Winter Park Finale Winter Park, CO XC, DS, DH, SD september 10-12 MSC #9 Fall Classic Stage Race Breckenridge, CO XC, TT, STXC

aPPenDix 1

Page 11: 2010 Mountain States Cup Advertising and Sponsorship Proposal

MoUntain BiKe racinG (MtB)- the first mountain bike competitions were held in California, USA in the early eighties. Since then the discipline has grown very fast in all aspects. The first World Championships to be officially recognized by the UCI dates back to 1990. A World Cup was setup the following year and has continued into the present.

Union cycListe internationaLe (Uci)- a cycling association that oversees competitive cycling events internationally. It is the world governing body for jurisdiction in the sport of cycling. The UCI is based in Aigle, Switzerland, and man-ages the classification of races and the points ranking system in various cycling disciplines. It also oversees the World Championships, in which different countries compete instead of trade teams.

nationaL oFF-roaD BicycLe association (norBa)- the national governing body for the sport of mountain biking in the United States. NORBA creates the rules for the sport of mountain bike racing (USA Cycling Mountain Bike) as well as the rules for the USA Cycling Mountain Bike National Championship. USA Cycling Mountain Bike is a division of USA Cycling, which is itself a part of Union Cycliste Internationale or UCI.

Usa cycLinG (Usac)- the national governing body for bicycle racing in the United States. USAC is based in Colorado Springs, CO and covers the disciplines of road, track, mountain bike, cyclo-cross, BMX and collegiate racing. USAC is associated with the UCI, which governs international cycling. The organization is also a member of the continental body Confederacion Panamericana de Ciclismo (COPACI). USA Cycling is a membership organization of which over 50,000 members belonged to in 2008.

cross coUntry (xc)- Cross country is the most common discipline of mountain biking. Cross-country racing emphasizes endurance over technical prowess, and races vary from 30 minutes to 24 hours in length. Races can either be point-to-point or lap-based. Races traditionally feature a mass or interval start where riders are released in several large groups divided by age / ability. There are narrow tracks, paths through forests, rocky paths and through streams and small rivers.

sHort tracK (stxc)- a derivative of cross country racing, this event consist of many very short laps so as to be spectator friendly. Usually 25 to 60 minutes in duration.

DoWnHiLL (DH)- a gravity-assisted time trial mountain biking event. Riders race against the clock, usually starting at intervals of 30 seconds (seeded from slowest to fastest), on courses which typically take two to five minutes to complete. The pacing is determined by the fastest times to complete the courses; races are often won by margin of under a second. Downhill races are held on steep, down-hill terrain with no extended climbing sections, resulting in high speed descents with extended air time off jumps and other obstacles.

MoUntain cross (4x)- Mountain cross is a relatively new style of mountain bike racing where four bikers race downhill on a prepared, BMX-like track, simply trying to get down first. These bikes are generally full-suspension with 3-4 inches of travel, or hardtails, and have typically quite strong frames.

DUaL sLaLoM (Ds)- a gravity event which consists of two racers racing two almost identical tracks next to each other down a slope. The courses are usually short; one run lasting about 30 seconds. It is filled with tabletop jumps, double and bermed turns. Both riders’ times are taken and then they switch tracks for another round, whereafter the combined times are counted and the slowest rider is eliminated. The winner moves on to the next round until they have two riders left racing in the final.

sUPer-D (sD)- is a downhill, cross country race in its own category, that is a timed event and can have either individual start times, or a mass, Le Mans style start where everyone goes at the same time. Courses lack the technical danger-packed elements of downhill racing, and often have significant pedaling. Usually six to nine minutes in length.

GLOSSARY: MTB RACING TERMSaPPenDix 2

DoWnHiLL

MoUntain cross

cross coUntry

VAST Action VAST Action VAST Action

Page 12: 2010 Mountain States Cup Advertising and Sponsorship Proposal

aPPenDix 4

Bigfoot Productions (BFP), owned by yeti cycles, is the promoter of the Mountain states cup regional championship series (Msc), one of the premier mountain bike (xc, stxc, DH, Mx, Ds, sD) race series in the United states. BFP was started in 2006 by industry veterans and yeti cycles principals chris conroy and steve Hoogendoorn, who acquired the assets of Msc from cycle cyndicate.

Bigfoot Productions has created strategic partnerships with destination venues all across the Rocky Mountain Region including Keystone, Breckenridge, Aspen/Snowmass, Taos/Angel Fire, Crested Butte, Telluride, Buena Vista/Salida, Fruita/Grand Junction, SolVista Basin/Granby Ranch and more to put on MSC events. The MSC infrastructure allows Bigfoot to invest in and create events, not just races. We see more “tribe” type events – large gatherings of like-minded MTB’ers for get-togethers that step outside the formal boundaries of competition. We plan on embracing and celebrating riders, not just racers. Tapping into this market will provide Bigfoot with the diversification necessary to serve more of mountain biking’s interests than those involving a number plate and a start line.

Bigfoot Productions is also the promoter of USA Cycling Mountain Bike National Championships for 2009 and 2010, and other unique events such as the Angel Fire Burner and Fall Tilt in Tellruide— both 12 hour downhill races, and the Bear Creek Beti Bike Bash— the first women’s only mountain bike race coming June 2010.

WHy:To ensure the long-term viability of racing in the Rocky Mountain Region.•Continue to develop an atmosphere that pushes pros and develops juniors as potential World Cup competitors.•Provide larger purses for pros and groom athletes for international competition.•Continue to build and maintain the best courses in North America. •Nurture dialogue and involvement with our customers.•To enhance the culture of Colorado cycling for the Rocky Mountain athlete.•

WHo is BeHinD tHe scenes:

KeitH Darner has twenty-three years of experience in the mountain bike industry- mainly as a racer, both XC and gravity, coach, trainer, and now as a race director. In the early 90’s he coached the Fort Lewis College Mountain Bike Team to three national collegiate championships. Keith founded the RPM Yeti Developmental race program in 1997 and has continued to produce some of Colorado’s premier gravity racers. Keith runs the show at all MSC events. He does everything from course designing; managing the operations crew; tech/expo organization, to sponsor, venue and racer relations.

saraH raWLey is the central hub for all internal logistics for the Mountain States Cup. She manages the website; communication with media, sponsors, venues and racers; oversees the design and production of merchandise, awards and advertisements; takes care of the permitting of events through USA Cycling; manages online registration; designs and writes promotional materials; and races at each and every MSC event.

cHris conroy is the president of Yeti and has a very active role in the Mountain States Cup. He sets the strategy and has a single-minded goal to make the Mountain States Cup the strongest series in the national. A critical element to creating a successful race series is establishing long-term relationships with key sponsors to ensure the series has the financial strength and industry support to carry its weight. Chris handles sponsorship negotiations for on-site event sponsorship details.

Dean neLson Dean Nelson is the President and CEO of Clear Creek Media LLC. which is the TV rights holder of the Mountain States Cup. Dean has been involved in the media production, financing, sponsorship, client hosting and program distribution of sporting events such as the Tour de France, Calgary Olympics, Teleglobe Canada Triathlon Series, the 2nd World Mountain Bike Championships and Grand Prix Cyclist des Ameriques as well as a number of regional sporting events and festivals. Clear Creek Media is the producer of all MSC television programs, is responsible for distribution for Television and Internet with NBC Universal Sports, and negotiates all media property contracts with Sponsor/Advertisers.

COMPANY BACKGROUND aPPenDix 3

Keith Darner- the man in the big hat Dean Nelson- being interviewed for the 1991 Tour de France

Sarah Rawley- racing at MSC Eldora Escape cross country

Chris Conroy- riding epic terrain in Crested Butte, Colorado

Page 13: 2010 Mountain States Cup Advertising and Sponsorship Proposal

TESTIMONIALS FROM SPONSORS aPPenDix 4

“As a long time supporter of the MSC series as both a racer and a sponsor I can honestly say that I feel the MSC series is the most professional series in the country. It offers the best venues, courses, promoters/organizers and the highest level of competition you can find at the national level. I feel that other race promoters could learn a lot by using the MSC as an example of a successful race series.” - Justin Frey, Fox Racing Shox, Race Support Technician

“The Mountain States Cup Race Series is one of the most competitive race series in the United States. With the wide variety of courses and the top level talent it attracts, it has become the best venue for Colorado racers to test their skills.” - Mike Swafford, Maverick American Bicycle Company, Director of Operations

“MSC has been great to work with! You are all a very laid back crew with a great brand! Thanks for letting mix1 be a part of the family, and we are looking forward to participating in another one of your great events!” - Amy Daignault, Field Marketing Manager, mix1

“Mountain States Cup succeeds by taking a customer first approach and consistently nailing the most important aspects of racing from that perspective, delivering high event quality, service and respect for the competitors, sponsors and venues.” - Jasen Thorpe, Editor in Chief/Brand Director Mountain Bike Magazine, National Cycling Manager, Bicycling Magazines

“In our first year of participation with the MSC we are very pleased with the partnership and what it has done to help promote our brand. The MSC series is well recognized throughout the country as a premier series and is well organized. We look forward to the upcoming season and working with MSC.” - Henry Horrocks, North Americna OE Sales Manager, Schwalbe North America

Page 14: 2010 Mountain States Cup Advertising and Sponsorship Proposal

GENERAL CONTACT TERMS & CONDITIONS aPPenDix 5

We have had a lot of experience with event management, and our first goal in a sponsor partnership is to mitigate any surprises. We know that events have a high payback when they are properly managed, and are a sinkhole for resources when they are not. In an effort to be entirely predictable so you are making decisions with a full understanding of what is required from each party, we’ve indicated the main terms and conditions that will be in our contract. aGreeMent A contract for services identified in this proposal as “On-Site Sponsorship” will be required between Customer and Bigfoot Productions. A contract for services identified in this proposal as “Media Properties” will be required between Customer and Clear Creek Media LLC. BigFoot Productions and Clear Creek Media LLC will be identified as “Supplier” in the agreements.

cateGory excLUsiVity Up to five categories of exclusivity will exist for the 2010 MSC. These categories have not been defined, and are subject to negotiations between Customer and Supplier. All categories for “Media Properties” exclusivity (advertising spots, billboards, on-camera and voice-over mentions and graphic billboards on TV, VOD and Internet) are currently available. “On-site Sponsorship” category exclusivity (expo space, event signage, etc) may not be available since there are a number of long-term sponsors currently in multi-year contracts with Bigfoot Productions.

PayMent terMsa) For agreements that include category exclusivity, 50 percent of the total contract must be paid within 10 days of signing to guarantee category exclusivity. An additional 10 percent is due on or before March 1, 2010, an additional payment of 20 percent is due July 1st, 2010, and a final payment, equal to the 20 percent balance is due on September 15, 2010. b) For agreements that do not include category exclusivity, payment equivalent to 10 percent of the total client commitment for Gold, Silver and Bronze packages is due within 10 days of signing of a contract. An additional 50 percent is due on or before March 1, 2010, an additional payment of 20 percent is due July 1st, 2010, and a final payment, equal to the 20 percent balance is due on September 15, 2010.

Use oF LoGos anD BranDs Neither party shall use the other party’s names, marks or logos in any advertising, promotional efforts or any publicity of any kind without the prior approval of the other party. Such approvals will not be reasonably withheld or delayed. Customer and Supplier may state, without prior approval, in their promotional and advertising material that certain services are provided to Customer by Supplier.

aDVertisinG restrictions Customer’s advertising spots must conform to commercial insertion standards and practices. a) No false or unwarranted claims for any product or service. b) No ambiguous statements or representations that may be misleading to the audience. c) No infringement of another advertiser’s rights through plagiarism or unfair imitation of either program idea or copy, or any other unfair competition. d) No disparagement of competitors or competitive products, no testimonials that cannot be authenticated. e) No material constituting or relating to a lottery, no material constituting or relating to a contest of any kind in which the public is unfairly treated, no advertising for any gambling, wagering or game of chance (Advertising from the official state lottery of a state in which the advertising will air is acceptable, so long as such advertising is not for any game of chance in which in any way is dependent on the outcome of any sporting event). f ) No appeal for funds (other than for legitimate charities). g) No commercial or material that is in whole or part defamatory, obscene, profane, vulgar, repulsive or offensive, either in theme or treatment. h) No advertising or promotion of any habit-forming drugs, drugs or products relating to sexual performance or for sexual dysfunction, male or female enhancement products, or condoms or other prophylactics or birth-control drugs or devices. i) No advertising or promotion of tobacco products, handguns, or handgun ammunition or gentleman’s clubs (or other similar establishments).

Page 15: 2010 Mountain States Cup Advertising and Sponsorship Proposal

j) No commercial or material that promotes or markets adult telephone services, gambling touting services or other services that relate to the occult, sexual activities, or adults-only services, or that are directed toward children. k) No advertising or materials that may be injurious or prejudicial to the interests of the public, enterprises or honest advertising and reputable business in general. l) No advertising or message that disparages any other affiliate or distributor of the Network or any other multi-channel video programming distributor of distribution systems (either generically as satellite or cable technology or specifically as to any such other distributor’s brand).

reneWaLs anD First riGHt oF reFUsaLs All sponsors will have an automatic right of renewal for subsequent years provided that the Customer exercises that right in writing by October 1, 2010. Payment for any renewals will be subject to the terms and conditions covered under a separate contract, and none of the terms and conditions of the agreement for the 2010 MSC events and media will automatically transfer to subsequent years.

UncontroLLaBLe circUMstances Neither party will be in default or otherwise liable for any delay or failure in its performance under the agreement where such delay or failure arises by reason of any act of God, acts of the common enemy, other elements, storms, earthquakes, floods, fires, epidemics, quarantine restrictions, riots, strikes, sabotage, government authority, failure or delay in transportation, willful or criminal misconduct of third parties or other causes beyond its control.

terMination There will be no provision in the Agreement for termination for convenience. The parties will acknowledge that the Agreement will represent a commitment of Supplier resources that may not be refundable or resalable given the lead-time required by prospective Customers to adequately leverage event advertising and sponsorship.

inDeMniFication anD LiaBiLity Suppliers will not be liable to Customer, and Customer will not be liable to Suppliers for any amounts representing their or their customers respective loss of profits, loss of business, or indirect, special exemplary, consequential or punitive damages arising from the performance or nonperformance of the agreement or any acts or omissions associated therewith or related to services whether the basis of the liability is breach of contract, tort (including negligence and strict liability), statutes or any other legal theory.

coMPLiance WitH aPPLicaBLe LaWs & tHirD Party aUtHoriZations Bigfoot Productions and Clear Creek Media will prepare, apply for and maintain all governmental permits licenses and authorizations necessary to perform the Services.

GoVerninG LaW The Agreement will be construed and interpreted according to the laws of the State of Colorado.

entire aGreeMent The Agreement will constitute the entire agreement between the parties with respect to the Services to be provided. The Agreement will supersede all prior oral or written communications or agreements of the parties with respect to the Services.

Page 16: 2010 Mountain States Cup Advertising and Sponsorship Proposal

Dean Nelson Chris ConroyClear Creek Media LLC Bigfoot [email protected] [email protected] 303.278.6909

ADverTisiNg & sPoNsorsHiP CoNTACTs