2005 to 2008 Growth Review - race

2005 to 2008
Growth Review
Championship Off Road Racing
Championship Off Road Racing™ (“CORR”) brings high action, four-wheel motorsports, including two-wheel drive
trucks and buggies and four-wheel drive trucks to the closed course off road arena. The 2008 Championship Off
Road Racing race season includes eight events at tracks located in Los Angeles, San Diego, and Las Vegas.
The season is televised nationally on NBC Sports and SPEED TV.
Two wheel drive Pro 2’s
4WD Pro 4’s
Chula Vista Int’l Off Road Raceway 2005
In an economic environment where many motorsports, including NASCAR and Supercross, have experienced a
decrease in attendance and television viewership, Championship Off Road Racing has consistently seen tripledigit growth rates in six key areas: 1) Track attendance, 2) Team registrations, 3) Television viewerships, 4)
Television exposure value, 5) Marketing reach, and 6) Sponsorship growth.
Track Attendance up 170%
From 2006 to 2008, annual in-person spectator gate sales increased 170%, from 55,400 to 149,000.
Track Spectators
2006 Race Season
2007 Race Season
2008 Race Season
55,400 attendees
103,534 attendees 87% growth from 2006
149,400 attendees 44% growth from 2007
170% spectator growth from 2006 to 2008
Track Attendance
2006 - 2008
(Attendance of final tw o events in 2008 estimated based upon prior attendance)
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
2006 TOTAL
2007 TOTAL
EST. 2008 TOTALS
Most of this growth can be attributed to CORR’s expansion into highly populated geographical markets, including
Los Angeles, Las Vegas and San Diego. Over the next five years, CORR will continue to expand into new
markets from California to Florida. In 2007, CORR conducted one race at the Texas Motor Speedway in Dallas.
While the race action and television programming were superb, spectator attendance did not meet CORR’s
standards, so the Texas location was excluded from CORR’s 2008 schedule.
CORR will continue to study the Texas market to determine what location, date and venue will maximize both
television production quality and event attendance. CORR is also reviewing tracks in Charlotte NC, Phoenix AZ,
Florida and Wisconsin.
Team Growth 2005 - 2008
Team Growth 2005 - 2008
Separated by Class
Cumulative
120
# o f T e a m s R e g i s te re d
# o f T e a m s R e g is te re d
Team Growth up 165%
From 2005 to 2008, the number of race teams registered and racing with CORR increased 165%, from 118 teams
in 2005 to 313 race teams in 2008.
100
80
60
40
20
0
2005
Pro 4
2006
Pro 2
Pro Lite
Single Buggy
2007
Super Buggy
2008
UTV's
Karts
350
300
250
200
150
100
50
0
2005
Pro 4
2006
Pro 2
Pro Lite
Single Buggy
2007
Super Buggy
2008
UTV's
Karts
A good gauge of CORR’s growth potential, and an accurate forecasting tool to estimate the number of
professional teams in future years, is CORR’s newest and fastest growing class of vehicles: Karts. Karts are
professionally built race vehicles, driven by children ages 8 to 15. The Karts are designed to appear and operate
like mini-versions of Pro 2 and Pro 4 trucks.
Karts were first introduced to CORR in 2007, when 75 Karts registered and raced. In 2008, the class has grown
to 109 Karts, a 45% growth rate in one year. The young Kart drivers of today are being groomed to become the
professional Pro truck racers of tomorrow, making CORR’s long-term growth outlook very favorable.
Kart drivers, currently 8 to 15 years old, are the future Pro racers of CORR
Equally as impressive as CORR’s rapid team growth and Kart growth, is the high caliber of professional drivers
and popular celebrity drivers who are joining the series. In 2007, the series attracted several professional crossover and celebrity drivers, including Ricky Johnson, Robby Gordon, Paul Tracy, Mike Metzger and Jeremy
McGrath. In 2008, Jeremy McGrath joined CORR full-time, as did X-Games legends Brian Deegan and Tara
Dakidas.
Next year, these professional celebrity drivers will be joined by Carey Hart and Cameron Steele, both of whom
have already signed on for the entire 2009 season.
Cameron Steele
Jeremy McGrath
Carl Renezeder
Paul Tracy
Brian Deegan
Rob MacCachren
Carey Hart
Ricky Johnson
Mike Metzger
Jerry Whelchel
Tara Dakides
Robby Gordon
Television Viewing Audience up 759%
From 2005, when Jim Baldwin acquired Championship Off Road Racing, until the present (September 2008), the
television viewing audience of CORR has grown 759%. During 2008, CORR will air over 56 hours of race
programming on NBC Sports and SPEED TV.
On NBC, CORR is scheduled to air three live shows and six tape-delayed shows in 2008, for a
total of eight 90-minute shows, or 12 hours of network programming.
On SPEED TV, CORR is scheduled to air six live shows, two tape-delayed shows, and 14
reruns, for a total of 22 two-hour shows, or 44 hours of motorsports programming.
In 2005, CORR reached 975,000 viewers on several small regional networks and on SPEED Channel. In 2007,
CORR added NBC to the series’ television line-up, boosting the exposure to over 5 million viewers nationally. By
the end of the 2008 race season, based upon current Nielsen ratings and data provided by NBC, and with three
live shows on NBC Sports, over 8,375,000 viewers will have watched Championship Off Road Racing on national
network television.
Television Viewers
2005
2006
2007
2008
975,000
2,260,000
5,443,000
8,375,000
viewers
viewers 132% growth from 2005
viewers 141% growth from 2006
viewers 54% growth from 2007
759% television viewer growth from 2005 to 2008
Te le v ision v ie we rs 2005 - 2008
Championship Off Road Racing
9,000,000
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
2005
2006
2007
2008
1000’ aerial camera operators
Pro 2
Tape room in HD mobile unit
Television Exposure Value up 223%
With the increased number of viewers from 2005 to 2008, the television exposure value of CORR has also grown
at triple-digits. According to third-party valuation agency, Joyce Julius & Associates, Inc., the year-end total value
for all CORR sponsors has increased 223% from 2005 to 2008.
Television Value – per Joyce Julius
2005
2006
2007
First 56% 2008
Est. total 2008
$ 5,691,840
$ 7,334,180
$11,784,445
$10,333,395
$18,370,480
Total for all series sponsors
Total for all series sponsors
Total for all series sponsors
For 9 out of 16 shows/all sponsors
Estimate for all series sponsors
223% television value growth from 2005 to 2008
Adding to the increased dollar-exposure value of CORR has been the enhanced production quality of the series’
programming. In 2008, CORR reached several new milestones with its programming.
1) In 2008, CORR brought the TV viewing audience even closer to the action with crystal clear images
filmed and broadcast in high definition.
2) In 2008, CORR brought the action home with three live shows on NBC and six live shows on SPEED.
3) In 2008, CORR retained popular NASCAR commentator, Bill Weber to join CORR’s Ken Stout in the booth
on SPEED, bringing a new view to the show. The well-known duo, Weber, and legendary race car driver,
Wally Dallenbach Jr., continue to call the action on NBC Sports.
CORR’s fully equipped high definition Veteran broadcaster Bill Weber
mobile unit
and racing legend Wally Dallenbach
10 high definition cameras
CORR has seen consistent ratings growth, from a 0.4 National Rating at the beginning of the season, to a 0.7 as
of September 2008. The NBC shows continue to receive ratings as high as 2.7 in some regional markets. CORR
continues to invest in its television broadcasting, with the goal of becoming a nationally recognized household
name.
Marketing Reach – up over 3000%
From the beginning of 2005, when Jim Baldwin acquired CORR, to the beginning of the 2008 race season, the onsite, print, radio and television marketing of Championship Off Road increased over 3000%.
Where CORR’s prior ownership only advertised locally before each event, Jim Baldwin began an extensive
magazine, radio, television and third-party event marketing campaign, spending an average of $300,000 per event
– over $2 million annually - from 2006 to 2008. While the 2008 race season is still underway so the year-end data
is not yet available, during the 2007 race season, CORR conducted the following marketing campaign to promote
the series:
2007 Media Buy
57 full-page advertisements in 16 different motorsports & racing magazines
39 pre-event newspaper advertisements
5,704 total @ 0:15 second, 0:30 second, and 0:60 second radio commercials
16,982 @ 0:30 second television commercials on local television
18,000 @ 0:30 second video commercials on Tijuana border billboards
In addition to the above media-buy, CORR promoted on-site at the following 3rd party events:
2007
Off-site Event
January
January
January
January
January
January
January
February
February
February
February
February
February
March
April
May
May
June
June
August
September
September
September
October
October
October
November
November
Off-Road Impact
Las Vegas, NV
AZ Off-Road and Truck Expo
Phoenix, AZ
Monster Jam Monster Trucks 1 Anaheim, CA
Supercross (Anaheim 1)
Anaheim, CA
Supercross (Anaheim 2)
Ahaheim, CA
Supercross (San Diego 1)
San Diego, CA
Monster Trucks -Angel Stadium Anaheim, CA
Monster Trucks - Qualcomm
San Diego, CA
Monster Jam Monster Trucks
Oakland, CA
Supercross (Anaheim 3)
Anaheim, CA
Supercross (San Diego 2)
San Diego, CA
Monster Jam Monster Trucks
Phoenix, AZ
Nellis Air Show
Las Vegas, NV
Monster Jam Monster Trucks
Las Vegas, NV
4 Wheel Parts Truck Fest
San Diego, CA
Glen Helen Outdoor Nationals Glen Helen, CA
Supercross Finals
Las Vegas, NV
4 Wheel Parts Truck Fest
Ontario, CA
San Diego County Fair
Del Mar, CA
So Cal Dirt & San Expo
Pomona, CA
Thunderboat Regatta
San Diego, CA
UCSD Skyshow at Qualcomm
San Diego, CA
Antelope Valley Fair (10 days)Lancaster, CA
Jeremy McGrath Invitational
Los Angeles, CA
Rockstar U.S. Open Motocross Las Vegas, NV
MIRAMAR AIR SHOW
San Diego, CA
S.E.M.A.
Las Vegas, NV
Glamis Thanksgiving Weekend
Imperial Valley, CA
Location
Attendance
15,000
5,000
55,000
55,000
55,000
62,000
55,000
50,000
45,000
55,000
62,000
40,000
50,000
45,000
5,000
25,000
48,000
8,000
36,000
20,000
80,000
34,000
100,000
10,000
27,500
250,000
211,000
50,000
I
In pits @ Monster Truck Jam
Vegas Supercross
Supercross @ Anaheim Stadium
Monster Trucks @ Qualcomm
Series Sponsorship Growth – up 275%
From the end of 2005 to the beginning of the 2008 race season, sponsorships of Championship Off Road Racing
grew from primarily middle-market endemic companies to include large, non-endemic national household brands.
The total dollar value of sponsorships has grown 275% in three years and continues to grow as virtually all prior
sponsors renew and several new companies are negotiating sponsorships for 2009 and beyond.
2007 and 2008 race season sponsors include:
Team Sponsorship
In addition to the above series sponsors, there are currently 310 additional companies, up from 196 at the end of
2005, that provide cash or product sponsorship to race teams. Some of the 2008 team sponsors include:
Ford
Chevrolet
BFGoodrich Tires
Lucas Oil
Mechanix Wear
Sunoco
Red Bull
Nissan
Puma
Rockstar Energy Drink
Tecate Beer
Ogio
Suzuki
Mobile One
Valvoline
Oakley
DC Shoes
U.S. Marines
Craftsman
Mastercraft
Alpinestars
Auto Meter
Ironclad
Mazda
MSD Ignition
K&N Filters
Papa’s & Beer
Wahoo’s Fish Taco
TRD (Toyota)
Terrible Herbst
Yamaha
Mountain Dew
Vitamin Water
Ringer Gloves
Shoei
Edelbrock
Boss Snow Plows
Nitto
Bosch Power Tools
Dirt Logic
Fox
Volkswagon
O’Reilly Auto Parts
Ready Lift
Maxxis Tires
Snugtop
Precision Gear
Target
U.S. Navy
Progressive Insurance
Royal Purple
Thor
Sycuan Casino
Bell Helmets
Team Sponsor Growth
2005 to 2007
350
310
300
250
250
200
196
150
100
50
0
2005
2006
2007
Summary
With consistent triple-digit growth in spectators, sponsors, teams and television exposure, CORR is rapidly
becoming a household name among more than just the racing community. Leading national publications, such
as USA Today and Car & Driver Magazine have begun reporting on CORR’s events, while off-road and endemic
publications continue reporting on CORR every month.
USA TODAY
5-page spread in Car & Driver, the largest automotive magazine in the world
With national NBC Sports coverage of each CORR event, local NBC affiliates are now also reporting on races in
their areas. This mainstream media influence is also seen in the weekend Sports sections of regional
newspapers, including Los Angeles, San Diego and Las Vegas.
Finally, as a testament to CORR’s rapid growth and national success, the Spring 2008 issue of Off-Road Business
magazine featured Jim Baldwin, the owner of CORR, on the cover as one of “The Top Five Most Influential
People in the Off-Road Industry”.
Spring 2008