INTERVIEW WITH DAN MEISENHEIMER...USBL CEO
I spoke w/Dan Meisenheimer, the CEO and Commissioner of the USBL to ask some questions about the company that I thought might be of interest to shareholders. I hope that most of you find his comments worthwhile:
1. How long before the audited financials get filed? Will they show a profit?
We had anticipated that the audit would be in the hands of the public by now. However, due to a death in my immediate family, I put it on the back burner for a couple of months. At this point, all work by the auditors is complete. I expect to have the final results in my hands within a week or two and the form 10 to be filed with SEC during January. And yes, I do expect that the company will show a small profit, probably in the area of a couple of cents.
2. How many teams are currently set to open the upcoming season?
There are currently 11 teams ready to start the season next year. At this time it is likely that one team from last year, the NH Thunderloons, will not be active for the season. We are currently in communication with other potential owners that could be interested in assuming control of this established franchise.
3. Any new teams on the horizon?
We are in serious discussion with 3 other potential franchisees. We have been talking with a group in the Bahamas, one in the Bronx, NY, and one in Dodge City, Kansas. We are confident that we will be successful with at least the Bahamas franchise and are very encouraged by talks with all three.
4. Has the franchise fee increased for the current season?
No. At this point in time, we felt it best to leave the fee at $300,000. We expect to increase it to about $350k - $400k for the 2001 season.
5. Have any NBA teams ever expressed an interest in a USBL franchise?
In the past, we have had discussions with an NBA team that was interested in owning a franchise, but that never came to fruition.
6. Is it possible to use the USBL to establish a ?minor league? system similar to that utilized by Major League Baseball?
There has been much discussion on this very topic. The USBL is in constant dialogue, probably on at least a monthly basis, with management of the CBA and the IBL. Discussions center on ways to enhance the status of all three independent leagues. While enactment of a minor league system, similar to that heavily relied on by Major League Baseball is not currently imminent, all of us agree that it is an idea worth considering. We?d need the NBA to ?buy in? in order for it to be successfully implemented.
Where we have been successful with regard to being a ?farm? to the NBA is with referees. The USBL, CBA and IBL are all considered very positive stepping stones to an NBA career for officials.
7. Do any former USBL players own any of the current franchises? Have any of those players been contacted?
While there aren?t currently any former USBL players that own one of our franchises, we recognize it as a viable opportunity for some of our former players. We have been in contact with some of them in this regard. Hopefully they will recognize that ownership in a USBL team will allow them to give others the same chance to showcase their talents that they had as well as the potential to profit as the value of their franchise increases. Several have expressed an interest. Don?t be surprised if that happens in the near future.
8. What type of promotions can we expect from USBL before the new season starts, that investors might not be aware of?
Most USBL promotions will take place in towns where our teams are located at the discretion of our franchisees. Advance planning for the upcoming season would dictate that these start in the January/February time frame. Investors not living in these areas may not be aware of these events.
9. How many USBL players made NBA lineups this season? Have any of them made an impact on their teams?
There are several. For a complete list check out our site at www.USBL.com. Certainly Daryl Armstrong, point guard for the Magic, who spent 3 years with us has made a significant impact on his team as has Adrian Griffin, last years Most Valuable player. Adrian is currently leading the Celtics in minutes played per game. I find it particularly interesting to see a guy go from our league to a vital starter in the NBA. I think it shows the caliber of play our fans have grown accustomed to.
10. How many USBL games will be televised this year? And how much revenue is derived from this?
Not all USBL teams will have their games televised. About half our teams will have five or six games available for public broadcast. Most of these games are shown in local markets. Any revenue derived is kept mainly by the franchise. ICN will televise the ?USBL Game of the Week? in a national broadcast. While USBL will receive these revenues, the actual amount remains to be seen.
11. When does the season start and end in the year 2000?
While the exact dates are not set in stone, the season should run from approximately 5/1/2000 to 7/15/2000. The exact schedule should be ready sometime in January.
12. Many investors feel that the limited float available in USBL stock (estimated to be around 400,000) is one of the things holding it back. Do you see this as an issue? If so, how do you plan on addressing it?
The small float in USBL is not as bad a thing as some investors make it out to be. The low volume does not phase management; we don?t want daytraders involved with USBL stock. While the volume has been low, it should be noted that over the past several months, the price has held up very well. One could suggest that the low volume shows that few people are buying. I?d counter that it also shows that few are selling.
If you reviewed the investor lists thata I get, I think you?d find that this is because most of our stockholders including management are here for the long-term. Because the price has held so well, it will only take a nibble to cause the price to rise. Management has no plans to increase the float unless the price was to move up. At that time its possible we would consider a stock split. One thing that is being given serious consideration is a stock dividend. Something in the range of 5 or 10% is possible for sometime next year.
Fans and investors are continuing to discover us. Hits on our website have doubled over the same time last year. Most recently, I?ve notice a huge increase in requests for information by investors. (self serving editorial comment: We?d like to think that this fact is a direct result of the hard work put in by ddinvestor.com)
Investors should realize that USBL is not a short-term play. We feel that investors will be handsomely rewarded if our long-term plan of 60 teams across the country is realized. We?re looking at a plan that could take from 3 ? 8 years to realize, but would most certainly lead to a strong valuation of their company.
One last comment. I would be happy to discuss USBL with anyone. Feel free to call me or send an email to USBL96@USBL.com. Note that DDInvestor.com has a special email address for USBL questions. Feel free to send questions to them at USBL@DDInvestor.com.
Again...I hope you all found this to be as interesting as I did.
?bandit
of ddinvestor.com
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