UBsports Update, Feb. 2020

 Many people have heard about UBsports.com and our current $5 million Seed Round, and are asking questions about what's going on with us, and how they can be involved. I just put this update together over the past few weeks, so it's very current. (Note that investment in UBsports' and our $5 million seed round, are subject to FINRA / SEC rules of accreditation and other state requirements.)

                              UBsports Update, Q1 2020

          The State of the Company and our plans, as of January 2020

“Fundamentally, the Olympics and sports in general are about breaking down barriers and uniting people. The complexities of the system continue to expose challenges and the need for change.”

                                                                 Sarah Hirshland, CEO, US Olympic Committee

You couldn’t ask for a better preface to this note:  The sports world, even at the very top, is looking for a solution.  UBsports, I know, is that solution.  As we find investors who will provide us with the fuel we will need to get the company truly moving, we are also finding partners and new team members who give us greater belief that we will meet and more likely exceed our operating, revenue and profit goals for the short term, and the next five years.

RECENT INVESTORS:

Our most recent investors are a 7-time national champion croquet player and a serial angel investor and entrepreneur and his family:  All of these speak to the opportunity UBsports represents at this time, from first hand users and market participants.  Other potential future investors include NFL hall of famers and NBA players.  We expect more in the coming weeks:  Please stay tuned.  

The investors who are currently considering investment include an NHL hockey hall of famer (one of my boyhood idols, actually), a VC guy, an international entrepreneur, and a local lawyer. I'll keep you in touch as we receive the funds.

Next, let's talk about the current Seed Round:

CURRENT SEED ROUND:

At present, we are offering investors 1.6 million shares of common from our treasury at $3.00 per share, through a Seed Round, for a total of $5 million, with a “pre-money” value of the company of $10 million.  While we are confident of the results we forecast in our Jan. 2020 Pro Forma, our “worst case” growth scenario anticipates business results that would value the company at about $450MM million in five years:  We are currently speaking with investors who may want a convertible debt situation, which would sacrifice some upside for them in return for the relative safety of a debt situation.  We’ll see where those negotiations go…Assuming an “A Round” in a couple years, we anticipate a pro-rated return of at least 30 X for investors in this round during the IPO or buyout we anticipate in five years. 

POTENTIAL FUTURE INVESTORS:

We are in the midst of the most exciting funding opportunity we have had, with the family office for the Walton family, of Walmart fame.  They have 286 million customers, billions of dollars in sales, and a specific need for a company like UBsports.  The company’s founders are very interested in its place in the American culture, and its potential ability to influence its customers to pursue healthier lifestyle choices and live more active, healthy lives. 

You already know UBsports, our plans and our expected ability to provide the same influence on our members, and others as they find out about us.  Our environs, the Web and its virtual community, complement Walmart’s almost exclusively bricks and mortar footprint, with almost no overlap.  This new partner’s funds, but more importantly, access to its own customers and its own warehousing, fulfillment and logistics systems, provide us with an opportunity to grow almost limitlessly, with lower costs than we anticipated.  Their involvement in pro and amateur sports is immense, and they are committed to increasing their position in sports and a healthy lifestyle for their members.  They already own four pro sports teams, and have committed hundreds of millions to other sports facilities.  

Their most recent investment is $160 million to a mountain biking course in Arkansas.  So this partnership, if it does come to fruition, will give us access to sports entities and leagues we would have had to wait years and spent millions of dollars in licensing fees and associated expenses to accomplish.  

The Walton Family’s Center for Advancing Innovation runs an open competition for startups called The SCALE Challenge, in order to find worthy companies to invest in.  

You can read about this Challenge here:  www.scalechallenge.org

We are one of the finalists in this Challenge, and expect to be presenting to the heads of the company in Arkansas in April, or possibly even earlier:  

CURRENT MATERIALS AND INTRO VIDEO AVAILABLE

To support our Seed Round activities, we have put together a full suite of investment documents and an intro video:   I encourage you to check out the video.

https://youtu.be/0JjwZGEzC-w

The investment and corporate documents can be found in a Dropbox folder, here:

https://www.dropbox.com/sh/iu8ilxttmk7kz76/AAD61dRcBPynenbKBR23wt8ra?dl=0

We suggest you take some time to look at this material, and if you feel compelled, please take action.

COMPANY NEWS:

RECENT ACTIVITY:

Over the past year, we have brought in a small amount of funding as one-off investments, with lower valuations, and have done as much as possible with them:  Most importantly, we have been out working on funding the Seed Round above, with the assistance of two investment bankers.  This has cost us some money, but the larger part of the expenditure is the travel and associated costs with getting to the potential investors, joining investment meetings, etc.  

We also engaged our Head of Tech, Jon Daniels, to do updates to the current site, develop the specifications for the new site and apps, and lead the vetting for a new group of developers. We have also relaunched the eCommerce site,

www.TotalEquips.com,

and have begun selling on eBay and on our own site. 

Already, in two weeks, we have generated about $1,000 in sales, with only a couple dozen items for sale.  I am now building that inventory, beginning with just a couple of sports, but as soon as the first chunk of funds hits through the Seed Round, we will hire some data loaders who will load thousands of items quickly.  Beyond that, all funds we have received recently have been used for hosting and generally keeping the lights on while finding the investors.  And as you see below, this so far seems to have been successful.

NEW TEAM MEMBERS:

Over the past few months, we have continued to deepen our roster with world-class tech, business and sports pros.  I now excerpt the Executive Summary:

Management and Staff:  (See Proposed Staff Document for full bios)  

Greg Burton, CEO

Greg, is an ex-Wall St. vet (PaineWebber, Advest, Shields, BAM) who worked on the launch of iPhotoArt (sold in 2003) TotalEquips ($0-$600,000 in orders in 3 yrs.) and Zoosse.com (split to partners) before founding UBsports. Recruited by UPenn for fencing, played squash at Penn and Stony Brook, was a pro sailor, is nationally ranked in squash. No one could be better prepared or driven to build UBsports to web dominance 

*NEW*David Cooper, Business Development

            David was in the original team of ESPN, then worked on development of Rivals.com, Primedia Sports,     Wasserman Sports Ventures, and more family-owned ventures. 

*NEW*James Patten, Business Development

James Patten brings over 20 years of experience in private equity, venture capital, M&A, corporate restructurings and capital raising specific to the online and real-world sports markets.  James has held senior positions with Famer, Blueprint, Seneca Blue and other US and international sports properties and entities.  

*NEW* BT (Name withheld) Managing Editor

As Senior Editor for SI.com, Trisha managed the content development staff, all written content and most video content on SI.com.  This is an amazing team member, and we are honored to have her join us. 

*NEW*Astrid Daynia Fa-Force, Director of Basketball Operations:  

            Daynia has over 22 years of coaching experience, most recently as a coach and scout for the WNBA       Team, the Connecticut Sun.  Prior to this position, she was the Head Coach for URI Women’s Basketball.  With over 22 years of experience, and a son (Terance Mann) playing for the LA Clippers,           we expect Daynia to bring a significant chunk of the US Basketball community onto UBsports.  

*NEW*Ann Wells Cromwell:  Operations and Development Consultant 

Ann has 24 years of experience in operations and marketing roles with some of the biggest, most influential sports organizations in the nation, the Big East, Pac 12, NBA and the NY Road Runners.  Her connections and experience in building and managing the ad and marketing activities for these organizations makes her a brilliant fit for UBsports, and as we get larger, her organizational experience will be critical.

*NEW*Jon Daniels, Head of Tech Development 

Jon has been developing offline and online programs or about 30 years, and has experience with all relevant technologies, sports, ad revenue strategies and analytics:  In other words, he is the perfect tech head. 

Stephen E. Dietz, Corporate Attorney

Steve is every startup’s dream Attorney.  A Dartmouth BA, JD at Columbia Law School, then a career at Cravath Swayne & Moore, then as Deputy General Counsel for Citicorp, provided a springboard into the Startup world:  He was General Counsel to Sixth Gear Solutions and is also currently Deputy General Counsel for Encore Capital Group. Steve is also an avid squash player and hockey fan / dad. 

*NEW*Camilla Lundengard:  Regional Sales Lead, potential national school sales manager

She will be building the UBsports school and university sales system, school by school, on Long Island.  Once we have worked out the best practices for school and university sales, she will either head the national team, or work with the national sales manager to train new sales associates.  

*NEW*Deb Weinreich, Head of Pro Engagement and BD

Head of E-Commerce: TBA

Ad Sales:  Two-month search starts the day we get funded. 

Drew Marino, Baseball Consultant: recruiter, coach, facilities developer

Kim Donaldson, Marketing and Business Development consultant:  Ex Excelle.com Founder / CEO

Cat Osborne, Operations consultant: Ex Excelle.com COO

Lindsay Hoch Kist, Content / Community consultant: Ex Womens Sports Foundation Soc. Med. Mgr. 

Board of Directors: (Proposed)

Greg Burton, Chairman:  See Bio Above.  Greg has been on a number of Corporate, Club and Educational Boards, and has acted as Consultant for startups for the past 20 years.  

More to be added as investors come in.

Advisory Board:

*NEW* Matt Birk:  Retired NFL Center (Vikings, Ravens), Pro Bowl and Super Bowl Champion.  He graduated from Harvard (BA Economics), and is now a CEO,  entrepreneur, investor and internationally known speaker.

*NEW* David Meltzer:  American business executive, author, and humanitarian best known for his work in of sports marketing.  His early days as a sports agent were the inspiration for the movie Jerry McGuire: He has been featured, interviewed or quoted in the NY Times, Sporting News, the Int’l Business Times, Fox and Bloomberg

*NEW* Daynia Fa-Force:  Ex WNBA star, past URI womens b-ball coach, mother of Terence Mann

Andrew Denis:  Andrew is one of the most knowledgeable and experienced people in the world on the technology around Web delivered content, and especially video.  He will license to UBsports video technology that is about three generations ahead of the tech currently used to deliver Netflix video.

Jeffrion Aubry:  NBA D-League player, Five-time BSN All-Star, and Three-time Defensive Player of the Year 

Patrick McEnroe:  Former pro tennis player and 10 Year captain of the US Davis Cup Team.  He won one singles title and 16 doubles titles, many with his brother John, including the 1989 French Open Men's Doubles. 

Deborah Johnson, Pres., Sports Parents Network:  Deb founded and runs the Professional Football Players Mothers Assn, and has been an advocate for fairness in football recruiting for over a dozen years.  

Sports Advisory Board Members: (This list will grow quickly.)

·      *NEW* Todd Eldredge, 3 time Olympic Figure Skater

·      Elaine Krasne: NCAA Champion Vault/Gymnast, Coach of US Elite Gymnasts
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·      *NEW* Missy Marlowe: Olympic Gymnast, NCAA Champ, uneven bars, Utah & NCAA Hall of Fame

·      Al Bevilacqua – ex-Board member, USOC, past Director US Wrestling


·      *NEW* Daniel Huneycutt, 7 X national Champion US Six Wicket Croquet

·      Gary Waite, Five-Time Squash Doubles World Champion


·      Tracey Burton, past Olympic Fencing Team member 

·      Lydia Kopecky, hopeful Olympic Team Fencer
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·      Dan Schaefer, famed Sports Psychologist


·      Colin Coughlin, USA Bobsled
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·      Ashley Whitney, USA Track & Field: Olympic Discus
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In general, it is the Company’s expectation that many leaders in professional, amateur, scholastic and Olympic sports will join the various Boards over the coming years:  Success begets success.

SUMMARY:

If you are reading this Update, you already know that we feel that UBsports represents an immense opportunity for our company, its investors, and to the community of athletes, sports pros, and wellness participants, and possibly to the US population in general.  If we do work out a relationship with the Walmart people, we may have the opportunity to change our whole culture; to help change the tide of increasing obesity and associated health problems, and make us all a bit healthier.  That will lower our country’s medical costs, help us live better and longer, and will help our top athletes compete better in international competition.  And yes, our investors will also benefit….

Thank you for your interest in UBsports.  I remain available to speak with you at any time about UBsports, and to discuss any thoughts, ideas or connections that may help our progress, or any other opportunities you believe we should consider.

My very best,

Greg Burton, CEO

[email protected]

631-416-0003