BY

WILL

AND

EVAN

PHOENIX HAWKS

Phoenix Statistics

Population 1,513,367

Per Capita yearly income $24,110

Median household income $47,866

Number of Firms 112,202

Retail Sales 21,859,505

Land Area in Square miles 516.7

Table of Contents

Executive Summary……………………………………………………………………………………………………………….…………2

Description of Business…………………………………………………………………………………………………………...……3-7

Market…………………………………………………………………………………………..……………………………………………..…8

Competition……………………………………..……………………………………..………………………………..…………………….9

Location……………………………………..……………………………………..……………………………………..….……………10-11

Management……………………………………..……………………………………..………………………………….…..………12-13

Advertising and Promotion……………………………………..……………………………………..………….………………14-15

Player Personnel……………………………………..……………………………………..…………………………….………..………16

Financial Data……………………………………..……………………………………..………………………………….………….……17

Appendix A…………………………………………………………………………………………………………………….………………18

Executive Summary The Hawks will be established as an NFL Franchise partnership in Phoenix, Arizona. It will be owned and

operated by Team Owner Evan Shipman and CEO William Pulliam, highly respected business

professionals trained in entrepreneurship through Richmond County Schools. The city of Phoenix will

reach a total market of 457,345 men and 299,995 women who are NFL fans. The head coach is Bill

Belichick with top franchise players Aaron Rodgers, DeMarco Murray, Julio Jones, Rob Gronkowski,

Jason Peters, Mario Addison, John Abraham, Hussain Abdullah, Richard Sherman, Mason Crosby, and

Johnny Hekker and top draft prospects Marcus Mariota, Leonard Williams, Cedric Ogbuehi, Jameis

Winston, Andrus Peat. 3739

The Hawks Franchise is being established in response to the growing demand for pro sports in Phoenix,

Arizona. Our main competitors are the Arizona Cardinals, the Diamondbacks, Suns, and local parks,

serving a total population of 1,513,367. Our new stadium will seat 80,000 and is located near the center

of town with an average ticket price of $81.54 per ticket. The main sponsors in Phoenix are GoDaddy,

International Cruise & Excursions, Avella Specialty Pharmacy, Isagenix, and Auction Systems. The

strengths over our competitors include cheaper parking and ticket prices than competing sports teams.

Our first year season profit estimate is $51,154,200 with $303,686,200 of estimated revenue and

$252,532,000 estimated expenses. Estimated revenue will come from $20,000,000 in local sponsorship

deals, $2,446,200 in equally shared gate receipts, $75,000,000 in premium seat revenue, and

$26,240,000 in concessions. Estimated expenses include $130,000,000 for player costs, $2,532,000 for

total promotions, and $ in other expenses. TO finance the stadium at a total cost of $, we are seeking

28.6% in or $343,200,000 public financing. The franchise will create a positive impact on our community

is that the stadium will create about 3,739 jobs and is expected to boost the local economy by more

than $27,000,000 in revenue annually.

Public Financing of Football Stadiums (2014). From blogs.mprnews.org. Found on October 24, 2014 in

http://blogs.mprnews.org/newscut/2010/05/cleveland_browns_1999_stadium/

NFL team would bring money and unity to LA (2009). From dailytrojan.com. Found on October 24, 2014

in http://dailytrojan.com/2009/10/28/nfl-team-would-bring-money-and-unity-to-la/

Description of Business

NFL franchise and how it works

Corporate Structure

The National Football League is an unincorporated nonprofit 501(c)(6) association and considers

itself a trade association made up of and financed by its 32 member teams. The league has three

defined officers: the commissioner, secretary, and treasurer. Each conference has one officer, the

president. The commissioner appoints the secretary and treasurer and has broad authority in disputes

between clubs, players, coaches, and employees.

Media Coverage

In the United States, the National Football League has television contracts with four networks:

CBS, ESPN, Fox, and NBC. CBS televises all Sunday afternoon AFC intraconference games, while Fox does

likewise for the NFC. If a game is interconference, the conference affiliation of the visiting team

determines which network will host the game. The NFL has a blackout policy in which games are

'blacked out' on local television in the home team's area if the home stadium is not sold out. Clubs can

elect to set this requirement at only 85%, but they would have to give more ticket revenue to the

visiting team; teams can also request a specific exemption from the NFL for the game. In addition to

radio networks run by each NFL team, select NFL games are broadcast nationally by Westwood One.

These games are broadcast on over 500 networks, giving all NFL markets access to each primetime

game.

Licensing

The NFL takes aggressive measures to insure its copyrights and trademarks are protected. It also

charges a considerable fee to use the league’s intellectual property. Additionally, advertisers that wish

to promote products using NFL terms must license trademarks, which increases the cost of an already

very expensive ad or marketing effort.

Charities

The tenure of former commissioner Pete Rozelle, who led the league from 1960 to 1989,

marked the creation of NFL Charities and a national partnership with United Way. The United Way

Worldwide, based in Alexandria, Virginia, is a non-profit organization that works with more than 1,200

local United Way offices throughout the country in a coalition of charitable organizations to pool efforts

in fundraising and support.

NFL Home Territory & Member Advertising

Each NFL club is granted a franchise, the league's authorization for the team to operate in their

city. This franchise covers 'Home Territory' (the 75 miles surrounding the city limits, or, if the team is

within 100 miles of another league city, half the distance between the two cities) and 'Home Marketing

Area' (Home Territory plus the rest of the state the club operates in, as well as the area the team

operates their training camp in for the duration of the camp). Each NFL member has the exclusive right

to host professional football games inside their Home Territory and the exclusive right to advertise,

promote, and host events in their Home Marketing Area.

Draft

Each April (though the draft will be moved to May in 2014), the NFL holds a draft of college

players. The draft consists of seven rounds, with each of the 32 clubs getting one pick in each round. The

draft order for non-playoff teams is determined by regular season record; among playoff teams, teams

are first ranked by the furthest round of the playoffs they reached, and then are ranked by regular

season record.

Free Agency

Free agents in the National Football League are divided into restricted free agents, who have

three accrued seasons and whose current contract has expired, and unrestricted free agents, who have

four or more accrued seasons and whose contract has expired. An accrued season is defined as "six or

more regular-season games on a club's active/inactive, reserved/injured or reserve/physically unable to

perform lists". Restricted free agents are allowed to negotiate with other clubs besides their former

club, but the former club has the right to match any offer. If they choose not to, they are compensated

with draft picks. Unrestricted free agents are free to sign with any club, and no compensation is owed if

they sign with a different club.

Product

Description of NFL

The National Football League (NFL) is a professional American football league that constitutes

one of the four major professional sports leagues in North America. It is composed of 32 teams divided

equally between the National Football Conference (NFC) and the American Football Conference (AFC).

Popularity

Annual Attendance

Today, the NFL is considered the most popular sports league in North America; much of its

growth is attributed to former Commissioner Pete Rozelle, who led the league from 1960 to 1989.

Overall annual attendance increased from three million at the beginning of his tenure to seventeen

million by the end of his tenure. and 400 million viewers watched 1989's Super Bowl XXIII.

Viewers of the Super Bowl

Super Bowls account for the 22 most-watched programs (based on total audience) in US history,

including a record 167 million people that watched Super Bowl XLVIII, the conclusion to the 2014

season.

Number of Divisions, Clubs, and players on the roster

The NFL consists of thirty-two clubs divided into two conferences of sixteen teams each. Each

conference is divided into four divisions of four clubs each. During the regular season, each team is

allowed a maximum of fifty-three players on their roster.

Conferences

Up until the 1960s, the NFL was the dominant professional football league and faced little

competition. Rival leagues included three separate American Football Leagues and the All-America

Football Conference (AAFC), none of which lasted for more than four seasons. A new professional

league, the fourth American Football League (AFL), began play in 1960. The upstart AFL began to

challenge the established NFL in popularity, gaining lucrative television contracts and engaging in a

bidding war with the NFL for free agents and draft picks. The two leagues announced a merger on June

8, 1966, to take full effect in 1970. In the meantime, the leagues would hold a common draft and

championship game. The game, the Super Bowl, was held four times before the merger, with the NFL

winning Super Bowl I and Super Bowl II, and the AFL winning Super Bowl III and Super Bowl IV. After the

league merged, it was split into two conferences: the National Football Conference (NFC), consisting of

most of the pre-merger NFL teams, and the American Football Conference (AFC), consisting of all of the

AFL teams as well as three pre-merger NFL teams.

Division Champions and Wild Card Teams

Following the addition of the former AFL teams into the NFL in 1970, the NFL split into two

conferences with three divisions each. The expanded league, now with twenty-six teams,[17] would also

feature an expanded eight-team eight playoff, the participants being the three division champions from

each conference as well as one 'wild card' team (the team with the best win percentage) from each

conference.

Trophies and Awards

The National Football League has used three different trophies to honor its champion over its

existence. The first trophy, the Brunswick-Balke Collender Cup, was donated to the NFL (then APFA) in

1920 by the Brunswick-Balke Collender Corporation. The trophy, the appearance of which is only known

by its description as a "silver loving cup", was intended to be a traveling trophy and not to become

permanent until a team had won at least three titles.

A second trophy, the Ed Thorp Memorial Trophy, was issued by the NFL from 1934 to 1969. The

trophy's namesake, Ed Thorp, was a referee in the league and a friend to many early league owners;

upon his death in 1934, the league created the trophy to honor him. In addition to the main trophy,

which would be in the possession of the current league champion, the league issued a smaller replica

trophy to each champion, who would maintain permanent control over it.

The current trophy of the NFL is the Vince Lombardi Trophy. Unlike the previous trophies, a new

Vince Lombardi Trophy is issued to each year's champion, who maintains permanent control of it.

Lombardi Trophies are made by Tiffany & Co. out of sterling silver and are worth anywhere from

$25,000 to $300,000. Additionally, each player on the winning team as well as coaches and personnel

are awarded Super Bowl rings to commemorate their victory. The winning team chooses the company

that makes the rings; each ring design varies, with the NFL mandating certain ring specifications, in

addition to requiring the Super Bowl logo be on at least one side of the ring. The losing team are also

awarded rings, which must be no more than half as valuable as the winners' rings, but those are almost

never worn.

Size of the Stadium The Phoenix Hawks’ stadium seats 80,000 people.

Number and Types of Games Per season

There are 16 games per season

Preseason

The NFL preseason begins with the Pro Football Hall of Fame Game, played at Fawcett Stadium

in Canton. Each NFL team is required to schedule four preseason games, two of which must be at their

home stadium, but the teams involved in the Hall of Fame game, as well as any teams playing in an

American Bowl game, play five preseason games. Preseason games are exhibition matches and do not

count towards regular-season totals. Because the preseason does not count towards standings, teams

do not focus on winning games; instead, they are used by coaches to evaluate their teams and by

players to show their performance, both to their current team and to other teams if they get cut.

Regular Season

National Football League runs a seventeen-week, 256-game regular season. Most NFL games are

played on Sundays, with a Monday night game typically held at least once a week and Thursday night

games occurring on most weeks as well. NFL regular season matchups are determined according to a

scheduling formula. Within a division, all four teams play fourteen out of their sixteen games against

common opponents.

Postseason

Following the conclusion of the regular season, a twelve-team single elimination tournament,

the NFL Playoffs, is held. Six teams are selected from each conference: the winners of each of the four

divisions as well as two wild card teams. These teams are seeded according to overall record, with the

division champions always ranking higher than either of the wild card teams. The winners of the Wild

Card round advance to the Divisional Round, which matches the lower seeded team against the first

seed and the higher seeded team against the second seed. The winners of those games then compete in

the Conference Championships, with the higher remaining seed hosting the lower remaining seed. The

AFC and NFC champions then compete in the Super Bowl to determine the league champion.

Sources of Revenue

Ticket Sales

Ticket sales provide a great resource of revenue for the NFL, with each team generating

approximately $51 Million per year. With stadium seating ranging from capacities of 65,000 to 85,000,

and with ticket prices at a near average of $80, ticket sales add up. And we can’t forget the Super Bowl

because Super Bowl ticket prices rise tremendously in comparison with regular season tickets. For Super

Bowl XLVII, average ticket prices were $3,100!

Licensing

The NFL takes aggressive measures to insure its copyrights and trademarks are protected. It also

charges a considerable fee to use the league’s intellectual property. In fact, at the end of December

2011, it was announced that the league was expected to increase its rights fees by 63 percent. One

source indicates that television networks will pay almost $28 billion over a nine-year period to air NFL

games! Additionally, advertisers that wish to promote products using NFL terms must license

trademarks, which increase the cost of an already very expensive ad or marketing effort.

Sponsorship

Sponsorship revenue for the National Football League and its 32 teams totaled $1.07 billion for

the 2013 season, up 5.7 percent from the previous year, according to the latest projections from IEG.

Demonstrating the popularity of the sport among corporate marketers, the increase exceeds the 4.5

percent increase in the overall sponsorship industry and the 5.1 percent increase in the sports category.

The revenue is driven in part by the NFL’s five-year, reported $400 million partnership with Microsoft

Corp., a groundbreaking, multi-faceted deal that includes sideline rights for Surface tablets and other

technology integration.

Concessions Concessions are a much smaller revenue stream for NFL teams due to only eight regular season

home games, but the disparity in pricing exists there as well. Each year, Chicago-based Team Marketing

Report surveys NFL teams to track ticket and concession prices as part of their Fan Cost Index. The graphic

below illustrates the highest and lowest prices across the league last season for select items using TMR data.

The Cleveland Browns are an interesting anomaly with the cheapest ticket (excluding club seats) and beer

prices, but the most expensive hot dogs in the NFL.

Broadcasting Rights

The television rights to broadcast National Football League games are the most lucrative and

expensive rights of any American sport. But NFL commissioner, Roger Goodell, wants more. Much more. He

has stated that he wants to reach $25 billion in annual revenues for the league by the year 2027. It’s an

incredibly ambitious goal, especially for a league that many in the media believe is in decline. But it is also a

very achievable one when considering what the league has in store for the future.

Market a. Demographics

1. Population - 1,513,367

2. Population of Men - 759,710

3. Population of Women - 753,657

4. Per capita yearly income - $24,110

5. Median household income - $47,866

6. Number of firms - 112,202

7. Retail sales - 21,859,505

8. Land area in square miles - 516.70

9. 60.2% men are NFL fans. - 457,345

10. 39.8% women are NFL fans. - 299,955

2. How will you price your product? (Include a stadium image with a price plan for seating.)

a. Assume your average ticket price will be the NFL average of $81.54.

b. What is your stadium seating capacity? 80,000

c. Assuming a sold out stadium, what is your estimated revenue from ticket sales based on the

average ticket price? $6,523,200

d. How does this compare to other NFL teams? Arizona Cardinals have a seating capacity of 72,200.

Competition

Competitors Direct Competitors

- Arizona Cardinals

Indirect Competitors

- Parks – Lake Pleasant Regional Park, Big Surf Water Park

- Sports – Phoenix diamondbacks, Phoenix Suns

Weaknesses - Parking tickets for Lake Pleasant Regional Park are only $6 and the park has lots of activities that

can be done.

Strengths - Our ticket pricing is cheaper than that of the Arizona Cardinals which range from $80 to $235

and about $10 for parking.

- The Phoenix Diamondback tickets have a higher average price from $16 to $166

- The Phoenix Suns have a higher average ticket price ranging from $10 to $524

Sources:

Arizona Cardinals vs San Fransisco 49ers Tickets (2014). From www.stubhub.com Found on September

18, 2014 in http://www.stubhub.com/arizona-cardinals-tickets/arizona-cardinals-glendale-

university-of-phoenix-stadium-9-21-2014-9037763/

Phoenix Diamondback Tickets (2014). From arizona.diamondbacks.mlb.com Found on September 18,

2014 in

http://arizona.diamondbacks.mlb.com/ticketing/singlegame.jsp?c_id=ari&game=382937&affilia

teId=2014-HotTix-ari

Phoenix Suns vs Flamengo Brazil (2014). From www.ticketmaster.com Found on September 18, 2014 in

http://www.ticketmaster.com/phoenix-suns-v-flamengo-brazil-phoenix-arizona-10-08-

2014/event/19004D0BE8DE1F57?artistid=806004&brand=suns&extcmp=gw504420&wt.mc_id=

NBATEAM_PHX_SINGLE_GAME_TIX_PRI&camefrom=CFC_SUNS_SINGLEGAME

Lake Pleasant Regional Park Parking Tickets (2014). From www.maricopa.gov Found on September 18,

2014 in http://www.maricopa.gov/parks/fees.aspx

Location 1. City – Phoenix Arizona

Why we chose this city:

2. Population - 1,513,367

3. Market –

60.2% of men are NFL fans. 911,046 male NFL fans live in Phoenix

39.8% of women are NFL fans. 602,320 women NFL fans live in Phoenix

4. Potential Sponsors

Company Name Headquarters Location

Yearly Revenue Industry

Scottsdale $1.1 billion IT Services

International Cruise & Excursions

Scottsdale $675.1 million Travel & Hospitality

Phoenix $570 million Health

Phoenix $448.1 million Health

Auction Systems Phoenix $165.4 million Business Products & Services

5. Infrastructure of the city

a. Over 500 hotels and 40 resorts in Phoenix, AZ

b. Transportation

i. Phoenix Sky Harbor International Airport

ii. Amtrak Rail

iii. Valley Metro

iv. Ranked 15th most bicycle friendly city of fifty cities in the US with a population

greater than 100,000

6. Map of proposed location and surrounding area.

Top Companies in Arizona (2014) From www.inc.com Found on September 22, 2014 in

www.inc.com/inc5000/list/2014/state/az

Infrastructure in Phoenix Arizona (2014) From en.wikipedia.org Found on September 22, 2014 in

en.wikipedia.org/wiki/Phoenix_Arizona

Management - Owner – Evan Shipman $10,000,000 salary

o Provide financial backing to the team

o Provide proper management to his employees and players

o Set high standards

o Provide guidance to the members of his administration, coaches and players

o Provide the personnel and facilities to make the game experience as entertaining and

fun as possible for the fans

o Have a lasting effect on the sport whether it is positive or negative

- CEO – Will Pulliam $9,500,000 salary

o Negotiates stadium naming rights with potential sponsors

o Handles enormous finances for the team

o Seeks advertisers

o Oversees all the business-related departments and hires the heads of each.

o Markets the team’s brand

o Sets ticket prices

o Coordinates the team’s travel logistics, stadium maintenance, payroll and other similar

tasks

o Head honcho of the business side of the NFL team.

- General Manager – John Schneider, Seattle Seahawks $2,000,000 salary

o Holds final veto power on all player-related decisions the team makes.

o Hires the head coach

o Builds the remainder of the personnel department staff

o Coordinates the rubric for scouting college prospects

o Compiles the team’s roster in accordance to the NFL’s salary cap

o Accountable for all of the team’s personnel decisions

o Highest standing employee in the team’s personnel department

- Director of Pro Personnel – Tom Telesco, San Diego Chargers

o Deals primarily with the players already in the NFL

o Negotiates contracts with free agents

o Negotiates contract extensions with current players

o Scouting the other 31 NFL teams’ rosters

- Director of College Scouting – Dru Grigson, Arizona Cardinals $150,000 salary

o Organizes the team’s draft board

o Delegates the scouting duties amongst a small staff responsible for certain regions of

the country

o Evaluates physical talents of college players

o Do background checks on players to gauge their work ethic

o Prognosticates any non-football issues that could arise with players

o Maintains relationships with college coaches throughout the country

o Makes the selection of a player as informed as possible

- Head Coach – Bill Belichick, New England Patriots

- Offensive Coordinator – Greg Roman, San Francisco 49ers

- Defensive Coordinator – Dick LeBeau, Pittsburgh Steelers

- Head Strength and Conditioning Coach – Darren Krein, Miami Dolphins

List of current National Football League staffs (2014). In Wikipedia.org. Found on September 26, 2014

from http://en.wikipedia.org/wiki/List_of_current_National_Football_League_staffs

What Exactly Does Each Member of an NFL Team’s Front Office Do (2013)? In bleacherreport.com.

Found on September 26, 2014 from http://bleacherreport.com/articles/1666258-what-exactly-

does-each-member-of-a-teams-front-office-do

Advertising and Promotion

Promotion NFC West

Total Promotional Budget = $2,560,000

Home Game

Opponent Promotional Item

Price Per Item

Stadium Capacity

80% of Capacity

Total Cost

1

$0.87 80,000 64,000 $55,680

2

$2.98 80,000 64,000 $190,720

3

$0.75 80,000 64,000 $48,000

4

$0.37 80,000 64,000 $29,600

5

$13.69 80,000 64,000 $876,160

6

$8.00 80,000 64,000 $512,000

7

$9.50 80,000 64,000 $608,000

8

$3.31$ 80,000 64,000 $211,840

$2,532,000

Advertising

Media coverage

TV contracts

In the United States, the National Football League has television contracts with four networks:

CBS, ESPN, Fox, and NBC. CBS televises all Sunday afternoon AFC intraconference games, while

Fox does likewise for the NFC.

Blackout policy

The NFL has a blackout policy in which games are 'blacked out' on local television in the home

team's area if the home stadium is not sold out.

National Radio Broadcasts

In addition to radio networks run by each NFL team, select NFL games are broadcast nationally

by Westwood One

NFL Networks

These games are broadcast on over 500 networks, giving all NFL markets access to each

primetime game.

Player Personnel Each team is allowed to have up to 53 players during the regular season, but only 46 can be active

(eligible to play) on game days. Teams are given exclusive rights to sign free agents that have three or

fewer seasons in the league, but free agents that have been in the league at least four years can sign

with any team of their choosing. Each team is subject to a salary cap of $133,000,000 per season.

Franchise Players

QB Aaron Rodgers

RB DeMarco Murray

WR Julio Jones

TE Rob Gronkowski

OL Jason Peters

DL Mario Addison

LB John Abraham

DB Hussain Abdullah

CB Richard Sherman

K Mason Crosby

P Johnny Hekker

NFL Draft Prospects

1. Marcus Mariota – QB, Oregon

2. Leonard Williams – DE, USC

3. Cedric Ogbuehi – OT, Texas A&M

4. Jameis Winston – QB, Florida State

5. Andrus Peat – OT, Stanford

Financials

Income Statement – Season 2014-15

Revenue

NFL National Media Sponsorship and Licensing Deals $180,000,000

Local Sponsorship Deals $20,000,000

Equally Shared Gate Receipts $2,446,200

Premium Seat Revenue $75,000,000

Concessions $26,240,000

Total Revenue $303,686,200

Expenses

Player Costs $130,000,000

Total Promotions $2,532,000

Other Expenses $120,000,000

Total Expenses $252,532,000

Total Profit $51,154,200

*Concessions assume 50% of stadium capacity purchasing one hotdog for %5.00, one beverage for

$7.00, one cap for $20.00, one program for $10.00, and paying for parking for $40.00

*Gate receipts assume 32 teams, 16 games per season per team, NFL average ticket price of $81.54,

average attendance of 60,000 fans. Total gate receipts are divided equally among NFL teams.

NFL Stadiums: By the Numbers (2013). In www.forbes.com. Retrieved October 2, 2014 from

http://www.forbes.com/sites/kurtbadenhausen/2013/08/14/nfl-stadiums-by-the -numbers/

Packers Bottom Line (2013). In jsonline.com. Retrieved October 2, 2014 from

http://www.jsonline.com/sports/packers/packers-bottom-line-shows-record-net-income-

revenue-profit-b9955411z1-215722451.html

Appendix A

Parking

Parking