Fantasy Sports Business
Email: [email protected] Tel: +1-310-872-6371, India: +91-731-4065257 www.vinfotech.com
San Francisco Indore
Fantasy Sports Business
The Core of Fantasy Sports Business is to leverage the potential technologies to offer Live fantasy Sports Tournaments.
Players compete against one another by buying and selling players online for fantasy dollars in real time. And just like a real stock or commodities market, the prices reflect what the buyers and the sellers believe about - what is actually happening in the game.
A whole new world of excitement, thrills, and non-stop action which provides fans a way to earn money using their considerable sports knowledge, skill, and expertise … while … they watch their favorite teams play.
Email: [email protected] Tel: +1-310-872-6371, India: +91-731-4065257 www.vinfotech.com
Fantasy Sports Business
Email: [email protected] Tel: +1-310-872-6371, India: +91-731-4065257 www.vinfotech.com
Business Assumptions
If….
Contestants are given with a fun way to make money during live games.
maintains a small entry fees with large cash prizes.
Contestants can demonstrate their sports knowledge and expertise about the game by competing in a 100% equal and transparent way.
Contestants can use their trading skills.
Contestants can create and run their own personal or private tournaments.
Compete against their friends.
Have lots of fun - trash talk. & Make Money in the process.
Then We have Good Chance of Success
Some Facts About Fantasy Sports
The Fantasy Sports Trade Association (FSTA) - 1999
Acts as Governing Body and provide forum for interaction between hundreds of existing and emerging companies in a unique and growing Fantasy Sports Industry.
Email: [email protected] Tel: +1-310-872-6371, India: +91-731-4065257 www.vinfotech.com
Why Fantasy Sports ???
Email: [email protected] Tel: +1-310-872-6371, India: +91-731-4065257 www.vinfotech.com
For Friendship / Social Awareness. For Fun / Hobby.
For competition and Challenge.
$ For Money $
Money Game !!!
Email: [email protected] Tel: +1-310-872-6371, India: +91-731-4065257 www.vinfotech.com
Large Investments Coming In…..1) Barry Diller’s IAC confirmed an investment made in Draftstreet.com2) The $7 million investment by Atlas Venture in DraftKings.com3) The $11 million funding from Comcast Ventures in FanDuel.com.
$15 billion in total playing out of which 11 billion flows toward football.
The NFL’s annual revenue falls just under $10 billion. “Derivative” market has Grown larger than the Foundational Market
The Fantasy Sports Trade Association reports roughly 10% of the U.S. population was involved in fantasy sports last year.
Per Player U.S. Market ShareLeague Fees $52 $1.71 Billion
Transaction Fees $8 $262 MillionWebsite Hosting Fees $9 $290 Million
Website Prize Fees $7 $230 MillionInformation Materials $20 $656 Million
Challenge Games $15 $492 MillionTotal $111 $ 3.64 Billion
Initial Capital Amount (in $) [onetime] Remarks
Website Development & Design 40,000 Depends on type of Work
Year-1 Amount (in $)
[Annual]Year-2 Amount (in $)
[Annual]Year-3 Amount (in $)
[Annual] Remarks
Marketing 5,000 4,000 3,000 Budget for Extensive Marketing efforts
Stats & Data License fees 8,000 8,000 8,000 Depends on Type of Data.
FSTA / League Registration 750 400 400 Optional(Average of 5 years)Maintenance & Miscellaneous 3,000 3,000 3,000 Aprox. Figure
Web Hosting Charges 5,000 5,000 5,000 Aprox. Figure
Total Annual Expenses 21,750 20,400 19,400
Capital Requirement 61,750 20,400 19,400
Income Remarks
Site Rake 25,253 40,404 55,556 (Players per year * 111) * 9.1 %Ads on your Website 0 12,000 15,000 no Ad revenue in 1st year
Total Annual Income 25,253 52,404 70,556
Annual Profits (Excluding initial
capital) 3,503 32,004 51,156
Average Annual Expenses for 3 years 20,517
Average Capital Expenses for 3 years 33,850
Average Profit for 3 years 28,887
Breakeven in Months 16.6
ROI Model of Fantasy Sports
Email: [email protected] Tel: +1-310-872-6371, India: +91-731-4065257 www.vinfotech.com
Assumptions1) 9.1 is the Site Rake of your website (industry Standard).
2) Players Traffic Increasing Every Year.
3) Yearly expenses by a fantasy player on game is taken as $111 (Source FSTA)
The End
Thank you
Hope you enjoyed the presentation
Email: [email protected] Tel: +1-310-872-6371, India: +91-731-4065257 www.vinfotech.com