Hiya TokyoMex:
Hasn't been any hype here.USBL has a small float and some of answers to your questions are posted below from the "sleeper" thread.
Good Trading,
Jimbo
USBL - Value Analysis
USBL Value Analysis
The following value analysis was prepared by USBL management.
Management of the United States Basketball League, Inc.
(OTC BB: USBL) has spent the past few months planning for
the 1997 USBL season and preparing the basic materials for a
detailed business plan for our Investment Banker.
The Company plans to sign and announce an Investment
Banker who recognizes the value and special growth
opportunity the USBL represents. This past year, Management
has been analyzing the entire scope of the USBL business and
the tremendous strides the USBL has made in the past eleven
years. A special focus was placed on the cost in dollars and
time it would take to reproduce or duplicate a professional
sports league like the USBL. The plan will also address the
continued growth in sales and earnings similar to what the
Company has recently been experiencing.
During this analytic process, Management has prepared the
following material detailing the overwhelming task of
successfully creating another publicly owned league while
comparing it to the $50 million loss expected in Major League
Soccer, the new soccer league in its first few years. This
process illustrates the tremendous value of the USBL.
This information describes the devoted effort and capital
required to create an eleven year old sports league starting with
no teams, no history and no relationships in sports or in the
media.
It would cost millions, the following is a rough example:
YEARLY EXPENSES
Commissioner
$200,000
Chief Financial Officer
100,000
Staff
100,000
Consulting (public relations, sales,
marketing, Directors)
120,000
Accounting
50,000
Legal
50,000
Television
100,000
Referees
50,000
Rent
20,000
Insurance
20,000
Miscellaneous
50,000
Printing
75,000
-------------
Annual Corporate Office Subtotal
935,000
========
x 11 years--Corporate Office Subtotal
10,285,000
========
The USBL has averaged seven teams for the past 11 years.
Each team represents approximately a
$200,000 budget.
$200,000/team
This approximates $1,400,000 per year
$1,400,000/7 teams
For an average of 7 teams per year over
11 years this equates to an investment of
$15,400,000 for all the teams.
$15,400,000
Plus 11 years of corporate office
expenses (from above)
$10,285,000
Total Cost of Investment
$25,685,000
This $25,685,000 cost of investment is 5 times the $5,000,000
current market cap for the USBL.
INTANGIBLES OF THE USBL:
1.The USBL is 12 years old, 104 USBL players have
"graduated" onto NBA rosters.
2.Acceptance of the USBL as a professional sports league
Nationally and Internationally.
3.Twenty USBL logo license opportunities (expanding every
year).
4.The USBL has domestic and International contracts in all
levels of basketball and the media (NBA, Europe, South
America, etc.)
5.The USBL has operating models and a firm grasp of the inner
dynamics of creating a long lasting profitable sports enterprise.
6.The USBL has become an accepted investment in
professional sports with an 12 year track record and
appreciation in team values and overall growth of the League.
7.The USBL has increasing interest from television networks
(cable) as the league grows and because of its 11 year history.
8.The USBL has increasing interest from corporate sponsors
because of continued growth in attendance.
9.Over 1,000,000 fans have watched USBL games building a
loyalty base throughout the eastern United States.
Currently the USBL is selling expansion teams for $300,000.
This price represents a start-up and does not include the capital
necessary to operate a team. The additional funds necessary to
properly capitalize a USBL team would be approximately
$200,000.
This would compare to the purchase of a potential ongoing
USBL team, which might sell approximately $400,000 to
$500,000. |
