Thermal - Global Business Funding Group

Transcription

o 60th Avenue Thermal, CA 92274 760‐272‐5606 www.Thermal122.com [email protected]
0 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. Business Plan / Investment Prospectus NonDisclosure Agreement By proceeding within this document (the “Plan”), you, any company, entity or organization that you are employed by or are otherwise the agent of, and all other employees thereof (collectively, “Recipient”), and Thermal Motorsports Track and Club (“TMTC”), agree that: · The plan has been submitted by TMTC to Recipient solely for the purpose of evaluating a potential investment by Recipient in TMTC. The plan is not for use by any other person(s) or for any other purpose, and may not be reproduced, disseminated or otherwise disclosed to any person(s), other than any employees or agents of Recipient, including, without limitation, any legal counsel or accountants of Recipient, who have a need to know the contents of the Plan in connection with the evaluation of a potential investment in TMTC (collectively, “Representatives”) who agree to the confidentiality provisions herein. Recipient shall be responsible for any and all acts of its Representatives. · Recipient agrees to hold in the strictest confidence, and not use or disclose to anyone other than the employees of Recipient, its Representatives and TMTC, the information contained in the Plan or supplied to the Recipient, orally or in writing, by TMTC (the “Confidential Information”). Confidential Information includes, without limitation, concepts, cost data, techniques, designs, work in progress, and other technical know‐how; the identity of customers, suppliers, and subcontractors of TMTC; financial, marketing and other business information; or any other trade secrets of TMTC disclosed by TMTC to Recipient or its Representatives; or any summaries, analyses or other documents bases thereon. Confidential Information further includes any information TMTC has received from others, which TMTC is obligated to treat as confidential or proprietary. If the Recipient has any questions as to what comprises Confidential Information, the Recipient agrees to consult with an officer of TMTC prior to making any disclosure thereof. · It is further agreed that any violation of this agreement by the Recipient or its Representatives will cause irreparable injury to TMTC and that TMTC shall be entitled to extraordinary relief in court, including, but not limited to, temporary restraining orders, preliminary injunctions, and permanent injunctions or other equitable relief. If court proceedings are required to enforce any provision or remedy any breach of this agreement, TMTC shall be entitled to an award of reasonable attorney’s fees incurred in connection therewith. The laws of the State of California shall govern this agreement. If any provision of this agreement is void or
1 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. is so declared, such provision shall be severed from this agreement, which shall otherwise remain in full force and effect. This business plan does not constitute an offering. Any offering will be made by a definitive offering agreement. This plan has been submitted on a confidential basis solely to determine whether selected individuals or organizations have an interest in making an equity investment.
2 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. Table of Contents EXECUTIVE SUMMARY .......................................................................................... 4 INTRODUCTION........................................................................................................ 6 CONCEPT ................................................................................................................... 6 LOCATION .................................................................................................................. 9 COMPANY ................................................................................................................ 10 OVERVIEW ............................................................................................................... 10 TMTC TRACK .......................................................................................................... 10 KART TRACK ........................................................................................................... 11 PADDOCK ................................................................................................................. 13 PIT AREAS................................................................................................................ 13 FUEL ISLAND ........................................................................................................... 14 THE TOWER ............................................................................................................. 15 COMPONENTS......................................................................................................... 16 MEMBERSHIPS ......................................................................................................... 16 MEMBER’S ENTERTAINMENT GARAGE LOTS ............................................................ 18 REVENUE MODEL..................................................................................................... 22 MARKET ................................................................................................................... 24 MARKET OPPORTUNITY ........................................................................................... 24 MARKET ASSESSMENT......................................................................................... 27 TARGET DEMOGRAPHICS ......................................................................................... 28 OVERALL MARKET ANALYSIS .................................................................................. 31 SPONSORSHIP ........................................................................................................... 32 MEMBERSHIPS ......................................................................................................... 34 COMPETITIVE LANDSCAPE ................................................................................ 35 RACE TRACKS .......................................................................................................... 35 RACE TRACKS (STATEWIDE)................................................................................. 35 COMPETITIVE OUTLOOK .......................................................................................... 38 TARGET MARKET CHARACTERISTICS ....................................................................... 39 MARKET DEMAND DRIVERS ..................................................................................... 39 STANDARD FORCES MODEL ..................................................................................... 42 MARKETING............................................................................................................ 43 TACTICAL COMPONENTS .......................................................................................... 43 SWOT ANALYSIS..................................................................................................... 46 PEST ANALYSIS ...................................................................................................... 50 PEST ANALYSIS ........................................................................................................ 50 MANAGEMENT AND OPERATIONS .................................................................... 53 MANAGEMENT TEAM ............................................................................................... 53 FINANCIAL SUMMARY ......................................................................................... 61
3 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. E X E C U T I V E S U M M A R Y 0B
Auto racing has become one of the most popular sporting attractions in the world. The past few decades have seen the industry skyrocket to produce a following of viewers and enthusiasts unlike any other sport. Auto racing attracts the highly desirable demographic of 18‐to‐45‐year‐olds with large disposable incomes. Live attendance for an auto race can be as high as 400,000, depending on the race. This does not take into account the fans watching the race via other formats such as television, Internet or mobile devices. In fact, auto racing’s total annual television viewership is exceeded only by those of the Olympics and World Cup Soccer. Auto racing is a sensational industry and its growth trend is not slowing. There are immediate opportunities to enter this market, especially with corporate sponsorships. Market research has shown that auto racing fans are very product‐ loyal. This is why numerous companies worldwide such as Rolex, Ferrari and Porsche spend millions of dollars each year on sponsorship for races and/or track advertising. But sponsorship is not limited to high‐end branding. From food manufacturers to oil companies, billions are spent to attract loyal auto racing fans. Thermal Motorsports Track and Club (further referred to as TMTC) will be located in Southern California, which is home to one of the nation’s biggest fan bases for high‐performance auto racing and sports car ownership. TMTC will have a top‐rated track that provides club members with luxurious amenities and services that will attract and support those who are interested in motorsports racing club membership. TMTC membership opportunities will be extremely competitive with other race tracks regarding membership fees. However, TMTC does not see much competition among others regarding luxuries, TMTC will simply be the best. With a kart racing track, member garages, driving school, a motorsports museum, a research facility, and more, the club will feature a unique blend of motorsports entertainment for area residents and worldwide visitors. The complex will be located in the affluent area of Coachella Valley, which boasts several championship golf courses, a major tennis stadium, casinos, and a wide range of upscale hotels, restaurants and spas. TMTC will establish reciprocal agreements with many of these venues to provide race goers and their guests with a travel ensemble that offers entertainment for guests who are not attending sanctioned races. The climate of Coachella Valley is very conducive for a racetrack. The mostly dry climate, with roughly 360 days of sunshine, would ensure a high number of racing days and one of the longest seasons of any
4 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. professional racing circuit. To ensure the success of TMTC, the business founders have engaged numerous professionals to assist with the track design and creation as well as many other well‐known industry experts. Industry experts engaged with the project include Anthony Renaud, vice president of New Business at ABC/ESPN, and Randy Bernard, CEO of the Indy Racing League (IRL), Tom Gloy, Alan Wilson, Darren Law and many more. These industry leaders will bring to TMTC their own expertise as well as their contacts with other key players in the racing world. The business model for TMTC has local support and the project is viewed by the community as a very positive future icon for Southern California. In a report on TMTC’s plans, John Husing, Ph.D., a respected local economist, projects up to $500m annually in positive economic impact to Coachella Valley once the facility reaches its growth phase. TMTC has endured the strenuous entitlement process, and succeeded. With environmental issues growing in importance each day, entitlement approvals are the biggest challenges that TMTC has had to face. With that, other competition engaging in this market is highly unlikely. Not only will there be a superior, first‐class motorsport track, there are also many other activities that draw in crowds from all over the globe. Coachella Valley provides unsurpassed entertainment and a way of life while Thermal Motorsports Track and Club provides a tempestuous ride and a prestigious lifestyle.
5 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. INTRODUCTION
1B
Concept 12B
The TMTC concept is based on a model similar to that of country clubs that typically offer golf and recreation memberships. In addition to serving as a potential venue for major sponsored auto and motorcycle races, TMTC will allow members, their families and guests to use its track to engage in auto racing activities. Each membership will provide abundant open track opportunities as well as full access to all club‐sponsored events, access to all amenities, and a host of other benefits. TMTC is also offering elevated trackside and off‐track garage lots with incredible viewing opportunities of racing cars and landing planes that simply can’t be matched and aren’t available on other tracks. Importantly, the garage lots provide significant revenue for building the facilities. TMTC will require an initial registration fee for membership. Only members and their guests will be allowed to use the facility unless it is open for a sanctioned public event. Since there are no racetrack clubs in this area of California we are using data from other country clubs to exhibit the average costs to join and maintain membership in upscale clubs. Some examples are included below. SHADY CANYON COUNTRY CLUB 39B
Irvine Opened: 2001 Membership: $300,000; monthly dues, $1,195. Prominent members: Tiger Woods, Mark McGwire, Jim Rome, Shawn Green, Garrett Anderson. Overview: Set on 300 acres overlooking the Shady Canyon nature preserve in the San Joaquin Hills, this Tom Fazio‐designed jewel is part of a 400‐home community, all of it surrounded by 16,000 acres of natural open space. Amenities: A 53,000‐square‐foot clubhouse, a state‐of‐the‐art 6,500‐square‐foot fitness center including personal training and exercise classes, junior Olympic‐ size pool, and a spa.
6 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. THE BRIDGES AT RANCHO SANTA FE 40B
Rancho Santa Fe Opened: 2000 Membership: $350,000; monthly dues, $1,445. Prominent members: Phil Mickelson, Scotty Cameron. Overview: Set on 450 lushly vegetated acres complete with cavernous canyons several hundred feet below the course, the Bridges feels as much like Italy as San Diego County, complete with groves of olive trees, adjacent vineyards and citrus orchards. A 285‐foot suspension bridge traversing a canyon between the 10th tee and fairway is the course's most distinctive feature. Amenities: A 36,000‐square‐foot Tuscany‐themed clubhouse with wine loft and spa, luxuriant 10,000‐square‐foot sports center with state‐of‐the‐art fitness area, swimming and massage. SHERWOOD COUNTRY CLUB 41B
Thousand Oaks Opened: 1989 Membership: estimated initiation fee of $300,000; monthly dues, $2,190. Prominent members: Wayne Gretzky, Sylvester Stallone, Kenny G. Overview: The course is located about 35 miles west of West Los Angeles and is part of a 1,900‐acre gated community. It features several stunning canyons set against the Santa Monica Mountains. It includes distinctive rock formations, a creek, elevation changes and groves of ancient oaks. Amenities: A 50,000‐square‐foot main clubhouse and 14,000‐square‐foot family‐ oriented second clubhouse, a wine cellar and fine dining restaurant, pub, two croquet courts, a wading pool, and numerous tennis courts.
7 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. THE MADISON CLUB 42B
Indio (about 5 minutes from TMTC site) Opened: 2007 Membership: estimated initiation fee of $200,000 plus you must buy a home site; monthly dues, $2,100. Prominent members: Fred Couples, Phil Mickelson, Sylvester Stallone, Jerry Weintraub, Mark McGwire, Clive Clark Overview: Invisible to the outside world, The Tom Fazio golf course at Madison Club echoes the design characteristics of the finest traditional private clubs. Madison Club is set in a 500 acre parkland featuring dense stands of mature trees, generous fairways and cascading water – all surrounded by La Quinta’s dramatic desert mountain vistas. Amenities: A 48,000‐square‐foot clubhouse, world‐class spa facilities, a resort style swimming facility, a fitness center, golf performance center, private movie theatre, game room, both fine and casual dining, and numerous tennis courts. TRADITION GOLF CLUB 43B
La Quinta (about 12 minutes from TMTC site) Opened: 1998 Membership: estimated initiation fee of $200,000; monthly dues, $1,950. Prominent members: Arnold Palmer, Charles Mechem, Clive Clark, Juli Inkster Overview: With its 450‐foot corridors and lush fairways surrounding a luxurious community reminiscent of 1920s Spanish Colonial architecture, Tradition is vastly different from other desert golf courses. Here, timeless details, exquisite materials and intimate courtyards with splashing fountains are just some of its charms. Amenities: An 18‐hole Arnold Palmer golf course, a 9‐hole par‐3 golf course, and a small clubhouse.
8 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. Location 13B
TMTC will be established in the affluent area of Coachella Valley, one of the most desired communities in the United States. The valley’s many luxury benefits – with something for everyone ‐‐ will draw people from all over the world. Coachella Valley is known for its exquisite 4‐star hotels and 5‐star restaurants along with its elite, high‐end shopping that is equivalent to Rodeo Drive. For a person who loves sports, the area provides world‐class tennis events, polo matches and even NBA basketball tournaments. This township is also noted for nightlife featuring Vegas‐style casinos, VIP clubs with celebrity guest lists, lounges and nightclubs. There are also beaches in every direction, just a quick drive away. TMTC is located at 60 th Avenue and Polk Street in the community of Thermal, California. Thermal is an unincorporated area of Riverside County and is immediately adjacent to the cities of La Quinta, Indio and Coachella. As Southern California’s first world‐class road course, TMTC will be built on the northeasterly 332 acres of Kohl Ranch at the southwest corner of Polk Street and Avenue 60 within three to five miles of many high‐end country clubs, including PGA West, the Quarry, the Tradition and the Madison Club. The site is 122 feet below sea level which, as any motorsports enthusiast can attest, increases an automobile’s performance. Unlike other motorsports clubs in the United States, Thermal will be open year‐round.
9 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. COMPANY
2B
Overview 14B
The TMTC facility covers some 332 acres and will be used for member race events, for corporate programs on a rental basis, for kart racing in personal karts or those rented from the track, and for sponsored motorsports events. TMTC Track 15B
The Grand Prix Loop (the entire course of the Thermal International Speedway) is 4.5 miles long and contains multiple track configurations varying in length. The track is 40 feet wide and has an asphaltic surface with a proprietary blend of materials custom‐designed for the desert’s heat and the track’s anticipated volume of usage. A 30‐foot‐wide area on each side of the track called the “verge,” planted with low‐growing material, is designed to slow down a car that leaves the track. Beyond the verge are other types of safety areas, including “runoff” areas, which vary in width but have a maximum slope of 1% to help the cars remain stable.
10 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. Runoff areas will be dirt, asphalt or a gravel pit, depending on the location and depth of the runoff, the anticipated speed of a car that may be in distress, and the proximity to buildings or other features outside the track. The track will also feature tire walls, barricades and railings for safety of the racers and spectators. Security fencing runs the entire length of the track, and only designated safety, emergency and trackside personnel are allowed inside the fence at any time. The majority of the Grand Prix Loop is surrounded by a 15‐foot earthen berm with a 10‐foot sound wall on top. These features serve to keep track noise within the property to the greatest extent possible. In addition to the berm and fence, buildings are strategically placed around the property to help block sound from neighboring properties. The Thermal International Speedway is an elite racing venue built to current industry standards for design, layout and safety. The speedway can be divided into sections for various activities. Thermal’s versatile track has three pit areas, which allows three groups to use the track simultaneously for different activities. Our kart track can also be divided to allow multiple uses. For example, one part of the Kart track can be used for racing while another can be used for kart driving training. Ultimately, our facility can accommodate large groups and multiple activities. Kart Track 16B
TMTC will incorporate one of the most spectacular kart road course facilities in North America. Karting features small, open, four‐wheeled vehicles called karts, go‐karts, or gearbox/shifter karts, depending on the design. Karting is commonly perceived as the stepping stone to the higher and more expensive ranks of motorsports, and many famous drivers such as Michael Schumacher and Darren Law got their start in karting. TMTC members can enjoy karting, using either track‐owned rental karts or their own race karts. At 0.9 miles, the Kart Track will feature a wide range of varied‐speed corners. The track’s multiple configurations will make it perfect for all classes of karting. Corporate and rental kart activities will be available for driver training and racing conditions. The TMTC Kart Track is located so that it can operate simultaneously with any road course activity; it also provides for additional options to break up groups during large corporate events. The flow of Kart Track customers will vary from day to day and will be strongest on weekends and during holiday periods. The facility will likely experience a constant rental use of 20 or so karts on the track at a time, for five hours a day, fewer the rest of the day. The Kart Track is open to the public and spectators are allowed, which helps sell track time. Kart racing series from all over the world will also provide additional revenue.
11 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. 12 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved.
Paddock 17B
The paddock is the central area of the track and is primarily for parking and staging. The paddock is approximately ten acres, and is a paved and striped asphalt surface with designated areas for vehicular travel. The striping has been designed not only for the anticipated demand of passenger cars that are using the structures inside the gates, but also for truck transports that will park for extended periods. On a day‐to‐day basis, here is a sample of activities that may happen in the paddock: A TMTC member visits the track in the racing car he drove from the Members’ Garage. The vehicle remains in the paddock while the member is in the queue for access to the track, or is visiting the Tower or Trackside Garage. The Porsche Race Teams and Porsche Club of America, Mercedes Club, Corvette and Viper Clubs will rent the track for the weekend; each member brings in a transport that houses his car, tools, tires and other accoutrements. The transport is parked in the paddock over the weekend; however, no one would sleep in the transport. A racing school contracts to use the track for a week. A student would park in the paddock and conduct classroom instruction in the briefing room of the Tower. The racing school would likely have its own fleet of vehicles which would be kept on‐site, but in a secured area such as the pit side garages or the Members’ Storage Garage. During class training, the fleet of instructional vehicles is brought into the paddock and staged there until they are used for driver’s training. Pit Areas 18B
The pit areas are the only points of entry to the track, and are within clear view
13 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. of the Tower, which houses track control personnel. The pit entry and exit are closely guarded and gated. There are two areas in the pits: the “hot” pit and the “cold” pit. The hot pit is where cars are driving under an enforced speed limit. A car can pull off for service or to stop in the hot pit. There are two cold pit areas – the first is a lane behind the hot pit that allows a smooth transition out of the pits and into the paddock. The other is a short area off the hot pit that provides access to the pit side garages. Fuel Island 19B
Directly behind the registration building will be a fuel island. The island will not have an attendant and fuel will be paid for with a card reader. We expect to dispense premium and Jet A grades of fuel. All tanks will be below grade. These fuels will be used for sanctioned events held by organizations such as: · · · · · · Indy Racing Series NASCAR Truck and Nationwide Series Grand American Road Racing Association American LeMans Series World Karting Association American Motorcycle Association The Thermal International Speedway is planned to be an elite racing venue — built to Formula One standards — that could host some of the most prestigious and popular car and motorcycle races in the world. The following is a potential list of these races: · · · · · · · · · · · The American Le Mans Series The Indy Racing League’s Indy Car Series The Rolex Grand Am Road Racing Series The A1 Grand Prix Championship Series The MotoGP International Championship Series The AMA Superbike Championship Series The International Motor Sports Atlantic Championship The Ferrari Challenge Series The Atlantic Championship The Porsche Challenge The Star Mazda Championship Series
14 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. The Tower 20B
The Tower houses various hospitality functions, food service preparation, driver instruction classroom, and racing control and timing operations. Also featured in the four‐story, steel‐framed tower are exterior observation decks and catwalks.
15 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. COMPONENTS
3B
Memberships 21B
There are three types of Corporate and Individual TMTC memberships. Each membership will include generous track access as well as access to club‐ sponsored events and a range of other amenities and benefits. Corporate Memberships · Corporate Founder Memberships · Corporate Charter Memberships · Corporate Premier Memberships Individual Memberships · Founder Memberships · Charter Memberships · Premier Memberships Corporate Founder Memberships 4B
There will a large interest from corporations for memberships and sponsorships. These memberships will be available beginning at a cost of $500,000. This membership also includes: · · · · Company use of the track for four members PGA WEST “Premiere Sport” Membership for four members Track advertising A corporate lot to build a corporate retreat TMTC estimates sales of 102 Corporate Founder Memberships.
16 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. Corporate Charter Memberships 45B
The Corporate Charter Membership is essentially the same as the Corporate Founder Membership except that the corporate lots would be off track. These memberships will be available beginning at a cost of $350,000. TMTC estimates sales of 30 Corporate Premiere Memberships. Corporate Premiere Memberships 46B
The Corporate Premiere Membership is essentially the same as the Corporate Founder Membership except that it does not include a garage lot. These memberships will be available beginning at a cost of $150,000. TMTC estimates sales of 20 Corporate Premiere Memberships. Founder Memberships 47B
TMTC estimates sales of 100 Founder Memberships. The cost for a Founder Membership with a trackside lot will start at $400,000. James Sofronas, co‐founder of GMG Racing (www.gmgracing.com) of Newport Beach, California, has committed to referring 15 Founder Memberships. GMG is a high‐end racing and performance shop for professional and amateur drivers. His clients include principals from Fletcher‐Jones Motorcars and PIMCO. U
UH U
UH
U Founder Memberships offer many amenities, including vertical membership rights, a trackside lot to build a private garage, also referred to as a Members Entertainment Facility, and a PGA WEST “Premiere Sport” Membership offering access to 6 golf courses, tennis, kids programs, swimming pools and a number of other amenities. Preliminary interest in Founder Memberships has been exceptional.
17 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. Charter Memberships 48B
TMTC estimates sales of 22 Charter Memberships. The cost for a Charter Membership with a non‐trackside lot will start at $250,000. Charter memberships offer many amenities, including a non‐trackside garage lot to build a Members Entertainment Facility. Premiere Memberships 49B
Premier, individual memberships will include use of all track facilities. The initial goal is to have 100 memberships sold prior to the launch of the facility. These initial memberships will be sold for $50,000 initially and eventually increase to $85,000 after the launch. While similar types of clubs in other sports can see membership fees that are substantially higher than what TMTC is proposing, management is highly intent on having a diverse atmosphere, and believes this more conservative pricing strategy is the best way to drastically improve the profile of the track and provide the best experience for its members. Member’s Entertainment Garage Lots 2B
TMTC knows that garages are a necessity in Southern California, and with each Founder and Charter membership TMTC offers a state‐of‐the‐art garage storage facility lot. The Member’s Entertainment and Garage Storage Facility lots will be located around the race track for outstanding viewing of activities on the track. Each facility is under top security and, at $800 a month, is generally more
18 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. affordable than many garages in the area. Around the track, 202 lots will be granted to Founder Members. Off the track, another 52 lots will be granted to Charter Members. A typical lot is 65 feet wide by 115 feet deep (7,475 square feet). The maximum slope is 1 percent. Of the 202 trackside lots, 136 back up to a 15‐foot berm designed for noise attenuation. The berm will have a 10‐foot sound wall on top; however, when a Founder’s Garage is constructed, a portion of the sound wall will be removed so that the upper floor of the garage will have a view of the track. These lots range from 6,406 to 20,701 square feet.
19 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. The Racing Schools 50B
The Thermal High Performance Driving School and the Thermal Professional Racing School will both be established to maximize the use of the speedway, especially on non‐race days. The driving school will attract owners of high‐ performance cars who have no place to experience their full capabilities. These students can take one‐on‐one or small group classes with factory‐licensed instructors. The racing school will be a premiere educational facility for those students who want to train to become professional race car drivers. The revenues from both of these schools will come from tuition, fees, licenses, books, software, car rentals, and sales of ancillary supplies, gear, and clothing. Racing schools have become increasingly popular in the United States. Ours will present the most advantageous benefits that driving schools provide (see graph below).
The Museum 51B
The Thermal Motorsports Auto Racing Museum will be a leading museum dedicated to auto racing in the western United States. Racing legend Parnelli Jones has already expressed interest in displaying his extensive car and memorabilia collection at the site. His participation will give credibility to the museum that will encourage other top collectors and professionals to display their collections. The museum revenue stream will be generated through: · Group and individual ticket sales · Educational licenses · Permits · Ancillary concession, clothing, and memorabilia sales One prominent auto racing museum, Riverside Racing Museum, has a strong inclination to relocate its museum to our facility. Ancillary Businesses 52B
TMTC will generate a variety of additional support and ancillary revenue streams. These will range from branding, licensing, and partnership opportunities, to event sponsorships, advertising and product placement, to television, radio, and interactive media opportunities. In addition, other auto‐related business owners will pursue business establishments with TMTC’s opening. Local car race teams, commercial businesses, corporate incentives, among other opportunities, will materialize in the area, increasing desire and demand for the motorsport lifestyle. Revenue Model 23B
The business model that will be used by TMTC is simple in nature in that it is based on capitalizing on the market interest in auto racing. Similar to a golf country club, the goal for the company is to create a luxurious racing experience that focuses on providing members with all of the high‐end amenities reserved for the wealthy while introducing a highly desirable track for racing enthusiasts. The primary goal is to make TMTC the ultimate attraction for racing enthusiasts in Southern California. Due to the lack of direct competition and the openness of the market, management is confident that this can be achieved; once it is, TMTC can move to its ultimate goal of becoming a national and international racing destination. Among previous competitive efforts, Fairmont Butte proposed a facility within three hours of our location but the founder withdrew his application in November 2010 due to lack of permit approval. TMTC nearly has the final approvals. This allows us to cultivate numerous strategic alliances and
22 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. to create a corporate profile that rivals the current market leaders, management believes that if it can create a unique experience from the start, it can eventually solidify the necessary relationships to create a national and international profile. As stated, revenue will be generated from numerous operating units, but as with everything associated with this business model, revenue will be primarily driven by the members of the club. For this reason it is vital for TMTC to establish the type of profile that entices those within the targeted market to become members; assuming the successful development of a member portfolio, management is confident of being able to achieve its remaining goals.
23 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. MARKET
4B
Market Opportunity 24B
California can be a very prosperous state but many areas are in need of economic development, including our site for TMTC. Southern California is a major driver of the state’s economy. Aside from being one of the world’s largest markets, it has one of the world’s largest sports car markets and a larger number of car clubs than almost any other region. Over 23 million people live within a 3‐hour drive of the Coachella Valley. This area is a haven for entertainment and recreation, as well as a global hub for tourists from around the world to take part in world‐class events such as: · · · · · The Palm Springs Film Festival The Pacific Life Open The Bob Hope Classic Coachella Music and Arts Festival Stagecoach Festival This area also provides some of the most hospitable weather and climate conditions in the world, which makes it a premiere location for an exclusive motorsports complex. The number of operational days in a year is as much as 40% higher than that experienced by other venues across the United States. With a hungry population in search of motorsports entertainment, there is currently a need for a racetrack built to the level of TMTC’s design. Management is confident that the hunger will manifest itself into demand and provide a lucrative launch point for TMTC. The Baltimore, Maryland, area offers an example of the increasing popularity of racing and the revenue it can generate for a given geographic region. Last year the Baltimore City Board of Estimates signed off on a five‐year contract with Baltimore Racing Development Corp., which is expected to land a deal with the Indy Racing League to be a stop on its circuit in August 2011. The race is expected to bring as much as $250 million to the city’s economy over the next five years as well as $11 million in direct tax revenue. As this is only one race in a market which is far less suitable for racing from a climate standpoint than the one TMTC is proposing, with a strong launch, the benefits to both TMTC and the Southern California market could be tremendous. What provides such a large market opportunity is the loyalty that auto racing fans impart to their sponsors’ products. Over half of auto racing fans say they buy a product because of the company’s involvement in auto racing. The second highest demographic for product loyalty are golfers, with 46% saying they would buy a product based on sponsorship. This important concept shows that if TMTC
24 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. is able to create strong relationships with well‐known (and well‐respected) companies in the racing industry it can create brand loyalty by association. The key to realizing the full potential of this opportunity is through the overall development of alliances, coupled with the presentation of a quality product. When auto racing sponsorship was gaining momentum years ago there was a saying, “Win on Sunday, sell on Monday.” That maxim still holds true. Fans are loyal to their sponsored brands, and companies want these fans as followers. As this is such a vital part of the market landscape of this overall industry, TMTC will work to establish these types of sponsorship relationships in its mission to establish a marketable profile of the company. Because they are such a potentially strong part of our business model, it is important to understand how these sponsorships can work. Within motorsports there are three main levels of sponsorship. · Associate · Major · Primary The amount of financial support for a team varies ‐‐ not only in the level of sponsorship agreed to but within that level to such perks as the number of driver appearances, advertising guarantees, and most important, where the companies’ logo or logos will appear on the cars. An example of the typical costs for each level and the logo placement possibilities is: · $100,000 to $500,000 for an associate sponsor – General logo placement on the racecar · $2 million to $5 million for a major sponsor – Main logo placement · $3 million to $10 million for a primary sponsor – Complete racecar sponsorship These amounts are only for car sponsorship. Track sponsorships vary. Since TMTC will be the only racetrack built in a dense area and to the latest industry design and safety standards in Southern California, corporate sponsorship will be
25 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. highly sought after.
26 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. M A R K E T A S S E S S M E N T 5B
The marketing mission is to make TMTC’s offering one of the world’s ultimate racing tracks and also to provide experiences packaged with various best‐in‐class offerings. The marketing objectives are: · To create a sanctioned track that is inviting to our members as well as to racing circuits · To create a unique motorsports country club · To maximize the revenue from ticket proceeds and tourism spin‐offs · To consistently gain strategic partnerships with more companies to co‐ sponsor the races and paid track advertising Our specified region offers an opportunity for economic development. TMTC is currently being endorsed by local county officials, state representatives and local businesses. The overall economy for all of Coachella Valley is trending up, but is still problematic; with the implementation of TMTC it is estimated that the financial impact on the market will be substantial. The first quarter of 2010 has put an end to the trend of the destination’s declining tourism activity. Through the end of March 2010, hotel occupancy had risen slightly, up from 2009’s historic lows. Indeed, many experts suspect that 2009 will endure as the most difficult year the valley’s tourism industry has ever faced. Economic conditions were incredibly unfavorable to travel ‐‐ the economy reset from its near meltdown, and consumers lost their jobs or saw their discretionary income plummet along with the value of their homes, retirement accounts and other investments. The uncertainty of the job market lent a new urgency to saving, shrinking the pool of leisure travelers. Businesses, meanwhile, confronted with reduced revenues and a frustrated public outraged over perceived waste, cut spending to the bone, impacting the desert’s critical meetings business. Hotel occupancy rate, one of the most important measures of tourism activity, was 50.9 percent for 2009, down 11.4 percent from 2008 levels. While this industry, so crucial to the desert’s economy, has begun to rise above 2009’s bottom, slow economic growth and increased demand for discounts and deals on both the leisure and meeting sides promise to make the recovery slow and arduous, with experts predicting more solid fundamentals to come in 2011 or possibly 2012. Travel is the lifeblood of the Coachella Valley economy, and is the number‐one industry, creating thousands of jobs and businesses that serve millions of vacationers, according to Riverside County Supervisor John J. Benoit, who presented a measure proclaiming May 11 as U.S. Travel Rally Day and the week
27 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. of May 8‐16, 2010, as Travel and Tourism Week. Travel and tourism is one of California’s largest industries, with $87.7 billion coming to the state in direct travel expenditures by domestic and international travelers in 2009, according to Benoit’s office. The travel industry also represents one of California’s largest employers, supporting 881,000 travel‐generated jobs and $29.8 billion in travel‐ generated payroll. In Riverside County alone, 2008 saw travelers spend $6 billion in the county, supporting 69,040 jobs, accounting for combined earnings of $1.74 billion, and generating $351.6 million in tax receipts. Using methodology created by the United States Travel Association during 2009, Wheeler’s Market Intelligence estimated 2008’s direct visitor spending in the Coachella Valley for 2008 to be $763.5 million, which supported roughly 23,000 local jobs with a total payroll of $668.2 million and produced more than $51.3 million in tax revenue for local cities. The industry’s vital importance to the region was recognized locally on May 11 at the second annual Travel Matters Rally, an event organized in recognition of National Travel and Tourism Week by the Palm Springs Desert Resort Communities Convention and Visitors Authority (CVA). In his speech at the event, which was held at The Show at the Agua Caliente Resort and Casino, Benoit dubbed the Coachella Valley the “capital of California’s tourism industry.” TMTC will bring in tourists and travelers from around the world. This market is a prime market for our offering for investors and for the local economy. Target Demographics 25B
The target demographic of car enthusiasts that will be interested in our services draws a specific profile. These individuals understand the offering and will find a club such as ours highly attractive.
28 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. Social Class: 53B
Auto racing is now mainstream, and the social acceptance of the sport has consistently grown over the past 50 years; as it currently stands auto racing is the largest spectator sport in the country, and these trends are still expected to grow. From this position, the sport no longer has to validate itself from a social standpoint. It is now the time to expand business opportunities within the sport and create a more lucrative private industry that expands beyond NASCAR and IndyCar. Such opportunities as TMTC’s club represents the promise and future of this sport and if properly implemented that future can be highly lucrative. Income: 54B
As with other similar interests (e.g., golf) the masses may not be the target of TMTC as the company’s first priority is the establishment of a strong membership portfolio. While there will be opportunities for everyone to enjoy the track, the initial goal is to target potential members who can afford the $50,000 and up membership fees. This means that the target demographic for TMTC is likely to be racing enthusiasts with high levels of disposable income and annual income levels that exceed $300,000. Personality: 5B
Motorsport generally appeals to males and females who love racing and high‐ octane action. Their profile includes personality types that are adventurous, risk takers and highly passionate for style, speed and performance. They are also fascinated with racing and have a strong interest in the cutting edge of automotive technologies. Lifestyle: 56B
Being sanctioned as the highest class of motor racing, IndyCar racing is a multi‐ million dollar industry. The sport has come to be associated not only with sporting distinction but also with glamour and prestige, as attested by the existence of big names in Formula One, such as Tony Fernandes, CEO of AirAsia Airlines; Richard Branson, CEO of Virgin Group; and F1 Supremo Bernie Ecclestone. The nature of racing and exotic sports car ownership is attractive to those with the following lifestyles categorized by the Cross Cultural Consumer Characterization model: · Aspirers: Status conscious, acquisitive, oriented to extrinsic image, glamour, appearance, charisma, persona and fashion · Explorers: Risk‐takers, bold, daring, fun‐loving, and love to be different with own class and style
29 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. · Success‐Oriented: Strong goal orientation, confidence, support status quo, stability and brand choice based on reward and prestige ‐‐ i.e., the very best The charts below establish a general profile of individuals who are racing enthusiasts, and while TMTC won’t be able to target all of them (the income levels of our members will likely represent less than 10% of the overall market), the following information does underline the fact that this is a substantially diverse market which represents opportunities for companies like TMTC not only today but also going into the future. Beyond individual characteristics our demographic group can also be defined by age and generation groups in the chart below.
30 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved.
Overall Market Analysis 26B
One of the best market indicators is simply to measure attendance at relevant events. Listed below are some 2010 races that are of a similar caliber to the types of sanctioned races TMTC could host. These sanctioned events are not just about the racing. For many they are social events that bring in racing celebrities, stars and fans of all ages. They come for the race but also want to experience the area, explore dining venues, purchase souvenirs and be a part of the social scene. The attendance for some races in 2010 proves that people love to attend these types of racing offerings. 2010 Attendance Examples · Sao Paulo Indy 300. 46,000 (race day only) · Honda Grand Prix of St. Petersburg: 160,000 (total event) · Indy Grand Prix of Alabama: 55,000 (race day only) · Toyota Grand Prix of Long Beach: 65,000 (race day), 170,000 (total event) · Firestone 550: 73,000 (race day only)
31 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. Sponsorship 27B
TMTC has support from many influential people and celebrities. The track has been in the eyes of the public and is only revving up for more of the spotlight. TMTC has co‐hosted at the Pebble Beach Concours with Lugano Diamonds and Aston Martin, featuring Carroll Shelby as event speaker. Another significant individual who participates in many of TMTC’s planned events is Bill Patterson, the official painter for Laguna Seca and Mazda Raceway, who is known globally for his masterpieces of race tracks. Other celebrities, such as Will Ferrell, Penelope Cruz and Tatum O’Neal, have dropped by to take a look at the stimulating Ferrari provided by Ferrari Newport Beach outside our showroom floor. TMTC has a long line of major corporations as supporters – listed in no particular order, these include Aston Martin, Bugatti, Ketel One, Lugano Diamonds, Source Interlink, Chubb Insurance, Desert Lifestyles, Guy Dreier Designs, ESPN, Tower Energy, IRL, La Quinta Resort, PGA WEST, Ferrari of Newport Beach, Rancho Santa Fe Insurance, TKD Designs, Penta Building Group. With this kind of support from such powerful companies, TMTC is more than ready to break ground. In April, Shell and Penske Corporation announced a multi‐year cross‐business alliance to begin with the 2011 racing season. Shell and Pennzoil announced their return to the Indianapolis 500 as they unveiled the No. 3 Shell V‐Power‐ Pennzoil Ultra Dallara/ Honda that champion driver Helio Castroneves will guide in the centennial celebration of the Memorial Day weekend classic. Economic Impact To evaluate the positive aspects of the project for the communities surrounding TMTC, we contracted the expertise of John E. Husing, Ph.D., to perform an economic impact study. The results of the report were astounding. Looking only at the annual impact of a full‐scale operation including races from multiple circuits, sanctioned events and other publicity races, the analysis shows that TMTC could produce direct spending of $60,233,715 by visitors from outside the area to the track. Another $325,414,048 would be spent directly in the local economy by students, drivers, crews, and spectators at such businesses as local hotels, restaurants, retailers, other entertainment venues and staple businesses such as gasoline stations and convenience stores. The full impact of this influx of money on the Inland Empire and Coachella Valley economy would include: · $385.6 million in economic activity that otherwise would not occur · $127.8 million in household earnings that otherwise would not occur
32 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. · $513.4 million in total economic impact that otherwise would not occur · 5,080 jobs that otherwise would not exist These estimates are based on a combination of basic track offerings and popular, sanctioned events. Sanctioned event estimates include: · 100,000 people are assumed attend to these races each event/each year · 15% or 15,000 would arrive by air and all stay in hotels · 16.8% or 16,800 would arrive after long‐distance drives and stay in hotels · 45.6% or 45,618 would drive from elsewhere in Southern California with 31.6% or 14,414 staying in hotels and 31,204 making day trips · 22.6% or 22,582 would come from within the Inland Empire, given the extra weighting for the inland counties. The other 77.4% are from outside the Inland Empire. Basic track events are estimated to produce: · 11,665 people would come to these activities in a year · 10% or 1,167 would arrive by air and all stay in hotels · 10% or 1,167 would arrive after long‐distance drives and stay in hotels · 64.1% or 7,483 would drive from elsewhere in Southern California with 31.6% or 2,364 staying in hotels and 5,119 making day trips · 15.9% or 1,849 would come from within the Inland Empire, given the extra weighting for Riverside County. The other 84.1% are from outside the Inland Empire.
Memberships 28B
The Motorsports Club 57B
Thermal Motorsports Club will be the premier club dedicated to motorsports in the state and one of the top clubs of its kind in the nation. Like the race track, the club will also be designed and built to the highest standards, in order to meet the demanding tastes and preferences of the high net worth community. Besides memberships and dues, revenue will be generated by the restaurant, spa, and other amenities, luxuries, and services. It is important to note that memberships are the primary revenue focus of TMTC, and while management is hopeful that it will be able to secure a strong network of strategic alliances such as those within the Formula One and IndyCar networks, the backbone of this operation will be the development of a strong member portfolio. This will be a constant as it relates to operations, as the primary focus will be to create a luxurious experience for our members in a manner that is equivalent with the highest standards in the industry. With membership, TMTC’s relationship with the world‐renowned La Quinta Resort has potential to be a beneficial asset. La Quinta Resort is a Waldorf Astoria property that offers commissions on its luxury room stays as well as providing prime sales office space on their site. There are also other discounts such as 20 percent abatement at the lavish Spa La Quinta, all four of their elegant restaurants, as well as and not limited to, their high‐end retail shops. TMTC also has an arrangement with the prestigious PGA West Golf Course. This course was rated among Golf Magazine’s “Top 100 Courses You Can Play in the United States.” TMTC members can enjoy access to six legendary golf courses, impressive tennis courts that furnish a breathtaking view of the mountains, marvelous swimming pools, extraordinary clubhouses and exciting membership activities.
34 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. COMPETITIVE LANDSCAPE
6B
Race Tracks 29B
Though there currently are other venues and opportunities for enthusiasts to enjoy professional auto racing in California, nothing will compare to the size, scope, economic impact, or worldwide prestige of TMTC. In fact, no other track in the United States offers the unique combination of a certified and sanctioned international speedway with a world‐class motorsports club. The following is a list of California race tracks and motorsports clubs around the nation. RACE TRACKS (Statewide) 30B
Mazda Raceway Laguna Seca 58B
Formerly known as the Laguna Seca Raceway, the Mazda Raceway Laguna Seca is a 2.238‐mile track located near Monterey, California. It hosts both auto and motorcycle racing events, including the American Le Mans, which makes it an internationally sanctioned course. Its track was built over 50 years ago and has no world‐class motorsports club attached. The following races take place at MRLS:
· · · · · Red Bull US Grand Prix Rolex Monterey Historic Automobile Races Grand‐Am Rolex Sports Car Series Ferrari Challenge American Le Mans Series Monterey Presented by Patron Infineon Raceway 59B
Formerly known as the Sears Point Raceway, the Infineon Raceway is a 2.52‐mile track located near Sonoma, California. It hosts both auto and motorcycle racing events as well as a drag strip. It was built over 40 years ago and has no world‐ class motorsports club attached. Auto Club Speedway 60B
Formerly known as the California Speedway, the Auto Club Speedway is a 2‐mile track located in Fontana, California. It hosts both auto and motorcycle racing events as well as a drag strip. It was built in 1997 and has no world‐class motorsports club attached to the track. The following races take place at the Auto Club Speedway:
35 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. · Pepsi 500 Weekend · Auto Club 500 Weekend · AMA Superbike Weekend Historic Sports Car Willow Springs International Motorsports Park 61B
The Willow Springs International Motorsports Park, an officially designated historic race track, is a 2.5‐mile track located near Lancaster, California. It hosts both auto and motorcycle racing events, mostly through sanctioned clubs. Built over 50 years ago, it has had limited upgrades, has no world‐class motorsports club attached and is perceived as dangerous by many. The following racing clubs use the track: · · · · · · Willow Springs Motorcycle Club Fastlane Racing School Porsche Owners Club Alfa Romeo Club Streetmasters Vintage Auto Racing BMW Club New Jersey Motorsports Park 62B
New Jersey Motorsports Park is a 700 acre complex located close to the Philadelphia, New York and Washington D.C areas. The complex features two road courses, garage storage facilities, trackside and trackside Villa homes. Other proposed offerings include: · · · · Karting Tracks VIP Suites ATV, MX, BX and Offroad Courses Hotel with Conference Center RACE TRACKS (National) 31B
Spring Mountain Motorsports Ranch 63B
The Spring Mountain Motorsports Ranch is a 3.5‐mile track located near Pahrump, Nevada. It hosts both auto and motorcycle racing exclusively through schools. It has a motorsports clubhouse for members, but nothing like a world‐ class motorsports club. The following driving and racing schools use the track: · Radical Racings School · Lotus Performance School · SCCA Licensing School
The Monticello Motor Club 64B
The Monticello Motor Club is a race resort club with a private 4.1‐mile race track located in Monticello, New York. It offers all the privileges and amenities of a motorsports club, but does not offer internationally sanctioned races. The club’s high‐end services include: · · · · · · Exclusive Racing Privileges 5‐Star Restaurant Private Members Lounge Technical Briefing Room Spa and Fitness Facilities Massage Services The Motorsport Country Club of Colorado (Concept) 65B
The Motorsport Country Club of Colorado is a race resort country club with 8 miles of premium racing surface located in Denver, Colorado. It offers all the privileges and amenities of a motorsports club, but does not offer internationally sanctioned races. The country club offers a list of high‐end services, including: · Exclusive Racing Privileges · Gourmet Restaurant · Wine Tasting Bar · Cigar Lounge · Spa, Pool, and Fitness Facilities · Trackside Residences and Garages MSR Houston 6B The MSR Houston is a private 2.38‐mile race track located in Angleton, Texas. It offers all the membership privileges of a private track, but does not offer internationally sanctioned races nor does it offer any exclusive club amenities. The privileges and services they do offer include: · · · · · · · · Exclusive Racing Privileges Registration Space Hospitality and Meeting Areas Sporting Clays Shooting Range Catch and Release Bass Fishing Pond Ride in a car Drive a race car Race car rentals Schools include teen safety, performance, three‐day race, driving instruction and law enforcement safety.
37 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. Autobahn Country Club 67B
The Autobahn Country Club is a private race track located in Joliet, Illinois. It offers all the membership privileges of a private track, but does not offer internationally sanctioned races or any country club amenities. The privileges and services they do offer include: · · · · · Exclusive Racing Privileges Free Food, Drink, and Entertainment Professional Driving Instruction Trap Shooting Range Auto Maintenance Services Autobahn Country has something for everyone and every skill of driving from pedal to the medal professional driving to kid karting. The tracks are unlimited to members and are encouraged to drive as fast and as often as they would like. There are 3.56 miles of track and 22 turns for action pack excitement. Members also have other privileges. For starters, all memberships include immediate family, meaning kids and significant others are welcome to enjoy the activities. Also available are a guest driver program, a half‐mile kart circuit and touring sessions along with racing schools that can be purchased separately. Other perks for members include a 6,100‐square‐foot clubhouse that offers not only a cozy lounge and bar area, but can be used for hospitality services as well. Members are also greeted with a reciprocal membership at Joliet Country Club. The Autobahn Country Club also features: • Generous Paddock Areas • Clean Modern Facilities • Computerized Track Timing System • Wireless Broadband • Award‐Winning Catering • Meeting & Event Rooms Competitive Outlook 32B
Simply stated, the market that TMTC is entering is highly underserved, with no other quality facilities to serve the millions of people in the region. There is no substantial competitive pressure at this time. While there are challenges in terms of forming the necessary alliances to create a national presence for the company, the local market doesn’t produce the type of competitive pressure that would make it a challenge to move into the market. On a national level there is considerable competition to generate the necessary interest from the elite companies that govern the sport, and management will differentiate itself from other venues by creating a unique experience through its amenities and
38 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. most importantly through the quality racing that will occur on the track (of course, we’re already differentiated by the weather – you can plan any event here without concern over weather as it rains only a few times each year). Locally, the goal of TMTC will be to provide the market with something that doesn’t exist: a premier racing club that is geared to grow through the development of membership and through the creation of exposure from racing fans to this region. Target Market Characteristics 3B
The primary membership target group is the local middle‐ to upper‐income class of white‐collar corporate professionals, especially within the 20‐to‐50 age group, with an income that exceeds $300,000 annually. Our market includes individuals in the San Diego, Santa Fe, Rancho, Newport Beach and Los Angeles areas as well as neighboring cities such as Las Vegas and Phoenix. The emphasis will be on male professionals as males were identified to have more passion toward motorsports and automotive technology as compared to females. Nevertheless, both genders constitute the primary target. Our target market consists of entrepreneurs, business professionals and retirees. These people generally have high disposable income, strong goal orientation, consciousness of social status and prestige, always searching for the best, plus are keen about competitions, high performances and winnings. The second target group is the high net worth individuals and corporations. While the race is the personification of money and glamour, the sport provides a unique opportunity for corporate and high net worth individuals to promote themselves and their corporations. The sport provides high net worth entertainment for corporate client entertainment. For affluent individuals, the sport provides a sense of high class, style and glamour. This target group has the highest spending power. The third target group consists of race attendees who love traveling and want a racing experience. They not only seek the thrill of the race, but also are fun lovers and explorers who seek places to relax and enjoy other local venues. They desire a vacation trip coupled with racing spectatorship. Market Demand Drivers 34B
Through an analysis of the current motorsports industry both globally and in Southern California, we have defined the following market drivers.
39 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. · Track Quality: Quite frankly there is no opportunity for success without the proper construction of a quality track. A track that is driver friendly, fun to drive on and diverse enough to entice casual drivers and professionals alike is a major component of overall demand. This places added pressure on management to construct a track with these qualities, and is the primary reason why management is working with world‐renowned track designers and professional drivers to make sure that the driving experience is superb. · Track and Club Notoriety: As with most other sports the long‐term success of this track will be tied to the quality of the track and to its notoriety. The motorsport enthusiast market is a very tight group in which word of mouth will be paramount to overall success. To succeed we have to provide an experience that will lead individuals to speak highly of TMTC to other racing enthusiasts. · Exclusivity: At the end of the day our members are at the top of the income spectrum in the market, and they will be paying a considerable cost to frequent our track; by doing so, they will expect the luxury and exclusiveness that accompany paying these fees on an annual basis. While TMTC will be open to creating an experience that brings in a diverse member base, management is well aware that it must focus on developing a sense of exclusiveness similar to other country clubs in the area in order to succeed. · Strategic Alliance: Another driver of demand will be the development and cultivation of strong strategic alliances, both current and new. The ability of management to develop relationships with racing organizations, industry insiders, drivers, and the corporate sponsors who make this industry go will be vital to the overall success of the company from the standpoint of building its member portfolio and creating a national profile as an elite racing facility.
TMTC has already established associations with leading motorsports figures such as Anthony Renaud, Randy Bernard, Parnelli Jones, Darren Law, Carroll Shelby, Lee Iacocca, Alan Wilson, RJ Valentine and Tom Gloy, as well as those on the management team. These relationships open doors to numerous other vital alliances, and the contacts brought to the table by each key figure can lead to an ever‐widening network throughout the racing world.
41 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. Standard Forces Model 35B
Supplier Advantage Supplier Concentration Importance of Volume to Supplier Differentiation of Inputs Switching costs of industry firms Presence of substitute inputs Threat of forward integration Buyer Power Bargaining Leverage Buyer Volume Buyer Information Brand Identity Price Sensitivity Product Differentiation Brand Exclusivity Degree of Rivalry Threat of Substitutes Barriers to Entry Exit Barriers Industry Concentration Fixed Costs/Value Added Industry Growth Brand Identity Diversity of Rivals Switching Costs Buyer inclination to Substitutes Price Performance Tradeoff of Substitutes Absolute Cost Advantages Proprietary Learning Curve Access to Inputs Capital Requirements Brand Identity Access to Distribution Proprietary Products
42 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. M A R K E T I N G 7B
This marketing plan is comprised of a series of descriptions of tactical methods and specific recommendations. Taken together, they represent a comprehensive marketing plan designed to maximize both ROI and market exposure, as well as to provide the penetration necessary to bring the proposed venture successfully to market. The marketing concept of building an organization around the profitable satisfaction of customer needs has helped firms to achieve success in high‐ growth, moderately competitive markets. It is in this that TMTC will focus its attention from a marketing standpoint. While management understands that traditional marketing methods aren’t applicable to this particular venture, it also realizes that the basic tenets of promotions and marketing do apply, and it will use this understanding as the basis of its promotions plan. Tactical Components 36B
The purpose of this subsection is to set forth the dynamic tactical elements of the marketing strategy that will be employed by TMTC. These are the building blocks of the final, coordinated marketing effort. Direct Marketing 68B
As the targeted market from a membership standpoint is comprised primarily of high‐income individuals, generic indirect marketing programs are insufficient and not useful for TMTC. To create a strong promotional presence the company will seek to directly market to individuals who are identified as meeting the income characteristics of this business model and who have a noted interest in auto racing. This will include working with other companies in California in an attempt to build a mailing list and will also include using the fruits of TMTC’s promotional programs to add to this mailing list. TMTC will market directly to these identified individuals through invitations to track events, direct mailing
43 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. programs, and exclusive gifts and offerings in an attempt to pique their interest. Promotional Events 69B
To work directly with the company's direct marketing strategy, TMTC will host a series of events both during the track construction phase of operations and the initial Grand Opening. These events may include a hosted tour of the track, the club, and the amenities for potential members; it may also include “meet & greet” opportunities with professional drivers and other prominent figures in the auto racing world; and it will also include a major Grand Opening that will provide a series of events for racing enthusiasts such as amateur races, a party for potential members, etc. The promotional plan will continuously evolve as management gets closer to launch, and will continue throughout the operational process. Online Media 70B
As with all businesses seeking success in the 21 st century, TMTC will have a prominent online presence that will not only include the website but will include working with other important companies in the racing world to promote the track and the club. More importantly, TMTC’s online presence will represent the initial presentation of the track to those who aren’t in Southern California, and thus it will serve as the initial driver of TMTC’s national and international profile. Strategic Alliances 71B
As stated, management understands the need for strategic alliances in the development of this business model, and the development and cultivation of these alliances will be a prominent part of the company’s promotional strategy. Management already has the connections in the racing world to begin the formation of these alliances, and as the company gets closer to launch it expects to leverage these alliances in an attempt to drastically improve the company’s overall profile. While these alliances will obviously include working with major racing organizations in an attempt to boost the exposure of TMTC and generate overall interest (through sponsored events, hosted races, international/national exposure, etc.), these alliances will also include local businesses. In an attempt to cultivate its local profile, TMTC management will seek alliances with local country clubs (and other exclusive establishments) whose targeted markets are similar to TMTC’s (especially from an income perspective). Working with these companies, management expects to be able to offer joint memberships and discounted memberships as many of TMTC’s members may also be interested in alternative leisure opportunities.
44 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. Public Relations 72B
TMTC’s management will focus on the development of a highly useful public relations campaign. The company will seek outside experts to implement a public relations campaign that focuses initially on promoting the company in the local market, while simultaneously promoting the company on a national level. The public relations campaign will emphasize online promotions, print promotions, and strategic news placements through a multitude of sources that are all aimed toward increasing the profile of TMTC. Viral Marketing 73B
Viral marketing is an established and proven means of distributing information on a product or service. It is called “viral” because it spreads from one person to other individuals in his or her personal network. Whenever a company is targeting high net worth individuals, viral marketing will be prominent in the marketing plan. More than any other income group, these individuals are highly sensitive to the effects of “word of mouth” and because of that TMTC will seek to provide an experience that allows the company to positively use the effects of viral marketing. TMTC’s marketing plan will be constantly evolving; while the above‐mentioned methods are going to be a part of that plan, management also understands that it must remain flexible enough to take advantage of any other opportunities that may be presented.
45 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. SWOT ANALYSIS
8B
Strengths 74B
· Management Team and Advisors – The team that will be running this company has the proven business acumen to provide a steady hand in guiding this company through its development and implementation stages. · Local Market – As stated, this market is highly underserved and presents a significant direct opportunity for TMTC to grow and develop. Furthermore, through the projected local prominence of TMTC in its local market, there is significant opportunity. · Targeted Consumers – The targeted market for TMTC is not only underserved but is also highly liquid, with the type of disposable income to provide a significant boost to the revenue prospects of the company and thus represent a significant strength. · Political Backing – Local government officials have all reacted positively to the presentation of this project and have provided a direct opportunity to move into the market; this will be of extreme benefit as it relates to zoning, real estate, and the overall implementation of the business. · Year‐Round Access – Simply stated, “It never rains in Southern California.” While this isn’t literally true, there is simply no better climate in the United States. The area’s desirable weather will provide TMTC with the advantage of being able to be open on more days throughout the year. As the major investment in this type of business goes into fixed assets, there is a significant advantage to a company that is open for business 300‐365 days a year over one open 200‐250 days per year. · Access to Powerful Alliances – Aside from a strong management team and a strong network of advisors, TMTC has direct access to many of the major entities that are featured prominently in this industry. Moreover, this access should allow for the construction of an optimal facility, and will make it easier to access major power players in the industry for the purpose of business development. · Location – TMTC is located adjacent to Jacqueline Cochran Regional Airport and is within 29 miles of Palm Springs International. This provides individuals and corporations with convenient access to TMTC.
46 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. Weaknesses 75B
· Capitalization – If TMTC is not capitalized according to the schedule set forth herein, management will not be able to take advantage of the opportunity presenting itself at this time which includes meeting sales goals and expansion efforts. Opportunities 76B
· Business Growth – Motorsports is an ever‐increasing revenue industry. · First of Its Kind – The TMTC offering is unique and no other opportunity of this type exists in the specified market. · Access to a Highly Motivated, High‐Income Target Market – TMTC doesn’t have to create a market for its product; the market is already there and is hungry for this type of offering. Couple this with the fact that the market consists of individuals with high levels of disposable income and the opportunities are sizable. · Potential National/International Prominence – At its most basic level, racing is a grassroots commodity; and as such the development of a successful track in one of the largest markets in the country (and the world) presents TMTC with the unique opportunity to build something that will bring in millions of people. From that standpoint management can leverage its local prominence into national and international dominance within this highly lucrative market by becoming a major auto racing destination for fans across the country and around the world. Threats 7B
· Lack of Memberships – We consider this a minor threat as our contacts and industry insight provide opportunity to meet our membership goals. · Competition Among Motorsports – Other racing circuits may try to compete for sanctioned races.
Criteria Strength Risk Market Presence TMTC will seek status as the Competitors may attempt to premier company offering this follow the basic structure of particular opportunity in this market TMTC’s model once it reaches and eventually on a national level higher market presence but the complexity of our model and TMTC has already begun creating the requirements for approval key strategic relationships. will limit competitive risk as it will be extremely difficult and expensive to initiate a direct competitor in this market. Strategic Alliances Being early in the market provides ample opportunity for growth. The company must rapidly develop client relationships. The company is currently working to increase the number of its alliances and has the access to do so through its management team and its network of advisors. TMTC must establish and protect its market share by building a network of client organizations. Capitalization The business model is in place and TMTC is in position to begin the implementation process and gain market share with its ongoing operations. Undercapitalization will thwart management’s efforts to bring this highpotential operation to market. Demand There is a significant portion of the population which wants this type of entity in the market and there simply is no current local alternative. Competitive pressure, while it doesn’t exist in the direct local market, does exist in the country, and will pose a threat until TMTC can establish itself. TMTC is fully prepared to tap into this segment of the market. Growth TMTC is uniquely positioned to take advantage of the target market opportunities. Regulatory TMTC faces minimal to moderate TMTC must secure its regulatory pressure, as it is prepared relationships and convert them to comply with current law and has into market access. already received the blessing of the local governments.. Cost Structure TMTC will use a pricing strategy designed to generate diverse interest in the opportunity that is being presented. The offering is structured so as to offer a significant value advantage to clients. None As an exclusive offering in the market, TMTC’s product doesn’t face much risk associated with pricing; those who are interested will pay the fair fees established by management.
49 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. PEST ANALYSIS
9B
Pest Analysis 37B
A scan of the external macro‐environment in which the firm operates can be expressed in terms of the following factors: · · · · Political Economic Social Technological The acronym PEST (sometimes rearranged as "STEP") is used to describe a framework for the analysis of these macro‐environmental factors. A PEST analysis fits into an overall environmental scan as shown in the following diagram:
50 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. Political Factors 78B
Political factors include government regulations and legal issues and define both formal and informal rules under which the firm must operate. Some examples include: · Licensing and Regulatory · Government Compliance · Environmental Regulations Since we have local and community support we do not see political factors being a negative force but rather a positive force. Economic Factors 79B
Economic factors affect the purchasing power of potential customers and the track’s cost of capital. The following are examples of factors in the macro‐ economy: · Economic Growth and Stability · Recessionary Climate · Inflation Rate TMTC will bolster the area’s economic growth so this is a positive factor. The U.S. economy is considered to be in recessionary times but our target demographic includes affluent individuals who have not been subjected to losses as have other groups. Social Factors 80B
Social factors include the demographic and cultural aspects of the external macro‐environment. These factors affect customer needs and the size of potential markets. Some social factors include: · Passion for Racing · Consumer Lifestyle · Age Distribution TMTC is a socially friendly company. The apparent quality of the company in terms of providing a world‐class motorsports complex is undeniable. TMTC provides a diversified concept that addresses many social factors for the benefit of the community. 81B
51 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. Technological Factors Technological factors can lower barriers to entry, reduce minimum efficient production levels, and influence outsourcing decisions. Some technological factors include: · E‐Commerce · Rate of Technological Change Due to the nature of our business we do not feel technological factors are an issue nor will they be in the future. The TMTC research facility will actually help develop new technologies so this is another positive factor.
52 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. M A N A G E M E NT A ND O P E R A T I O N S
10B
Management Team 38B
PARTNERS Anthony Renaud Partner Anthony Renaud is the Vice President of New Business at ABC/ESPN. Currently, he manages their made‐for‐TV golf programs, the ESPN owned‐and‐operated bowl games, Big 12 basketball games, and corporate partner programs. Prior to joining ABC/ESPN, he was the Executive Vice President of the NBA Charlotte Hornets, and before that was the General Manager of radio properties for Jefferson Pilot in Charlotte, North Carolina. He has served in a variety of positions in promotions and sales management, and brings many years of experience in broadcasting and sports entertainment. Paul G. Clayton Partner Paul Clayton has been involved as a founder, partner, and/or developer in many successful ventures in the Thermal area, including Tradition Aviation, a fixed‐ base operation for high‐end aircraft; Boulders West, a 36‐acre industrial park; Horse Shows in the Sun, a 230‐acre equestrian park; and Fluid Images, a six‐time Emmy‐winning film and video company that has worked on Titanic, Seabiscuit, and over 700 other feature films. Previously, Mr. Clayton was the owner of El Paseo Wealth Management, a private boutique investment firm, where he managed over $100m of assets for a select group of high net worth families in the Coachella Valley and earned one of LPL Financial’s highest honors, the prestigious Patriots Club Award. Blake Miraglia Partner Blake Miraglia is an entrepreneur who has founded many successful ventures. In 1989, Mr. Miraglia founded Answers, a computer company that provided solutions, hardware and software, to more than 2,000 retail locations in North America including many banks and casinos. In 1990, Mr. Miraglia acquired a single location retail financial services business that he grew to more than 90 locations in five states. In 1998, Mr. Miraglia founded a real estate development company that has acquired or developed and now operates commercial retail properties in 5 states. In 2003, Mr. Miraglia founded a financial services business
53 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. that has grown to 20 locations in southern California. In 2007, Mr. Miraglia founded Links Nursery in Thermal, CA, and now has more than 250,000 trees on about 90 acres (www.linksnursery.com ). HU
UH
Mr. Miraglia was honored in California as the Financial Service Provider of the Decade in 2002 primarily for contributions in managing government affairs and passing industry supported legislation. CIVIL ENGINEER AND ENTITLEMENT TEAM Hersel Zahab, P.E. Land Development Consultants – Civil Engineer Mr. Zahab has over 30 years of experience in the civil engineering, land surveying, and land planning industries. He has been involved with residential, commercial, industrial, and mixed‐use land improvement projects throughout Southern and Central California, and is versed in the latest engineering and regulatory permit requirements. Mr. Zahab’s experience includes serving as lead civil engineer with various master‐planned communities, public agencies, brown and oil field projects. As project civil engineer, Mr. Zahab takes the lead on reviewing and analyzing opportunities and constraints, establishing boundary and easement establishments, assessing and aiding with project land planning, and creating conceptual grading, drainage, street and utility studies and plans. His expertise in the technical engineering aspects, as well as his knowledge of land use and planning, brings him and his company, Land Development Consultants, much success in the industry. Richard Lichtenstein, Founder and President Marathon Communications Mr. Lichtenstein received a Bachelor of Arts degree from Connecticut College, a Juris Doctor degree from Loyola University, Los Angeles, and a Masters’ degree in Urban Studies at Occidental College. In 1982, after more than a decade of directing and counseling successful electoral campaigns in New England, Colorado and California, Mr. Lichtenstein formed Marathon Communications in Los Angeles and engineered dozens of electoral wins throughout Southern California, including landmark campaigns involving ethics, election policy and police reform in the City of Los Angeles. Marathon has provided communications and public affairs consulting services to Bechtel Corp.; Twentieth Century Fox; Apollo Real Estate Advisors; Capitol Records; The William Morris Agency; Aeroterm, LLC; Regent Properties; and the cities of Pasadena, Burbank, Glendale, Santa Monica, Santa Clarita and Los Angeles.
54 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. Mr. Lichtenstein serves on the Board of Directors of the Beverly Hills Cultural Center; is former chairman of Coro Foundation; is a member of the Executive Circle of the Greater Los Angeles Zoo Association (GLAZA); and serves on the Advisory Committee of the Fraternity of Friends. Philip L. Clayton Development Phil Clayton is a senior real estate development professional with over nine years of experience in shopping center and land development, and an additional ten years in asset management. He’s generated $20m for owners and equity partners by developing several shopping centers and drugstores in Southern California, with an end value of over $75m and major tenants such as Sav‐On Drug, Walgreens, and Stater Brothers Markets. He’s also managed a $20m construction project that included oil well capping, remediation, in‐tract grading, and street improvements in Carson, California. Mr. Clayton is a licensed real estate broker and has been a member of the International Council of Shopping Centers (ICSC), the Association of Commercial Real Estate (ACRE), and the California Redevelopment Association (CRA). PENTA Building Group General Contractor Founded in 2000, the PENTA Building Group has established itself as one of the leading private commercial general builders in the nation, with annual revenues exceeding $600 million. PENTA is headquartered in Las Vegas, Nevada, with operations in Reno, Nevada, and Palm Desert, California. Since the company's inception, PENTA has been honored with many prestigious awards including Contractor of the Year by the Las Vegas Chapter of the Associated General Contractors of America (AGC) and Entrepreneur of the Year by In Business Las Vegas. Randy Jackson The Planning Center Throughout his more than 38 years of experience in planning and design, Randy Jackson has conceived and developed unique land use and community concepts for award‐winning communities. He continues to focus his expertise on communities built around and integrating transportation, open space, and park and recreation systems. He has directed projects throughout California and in Arizona, New Mexico, Washington, Texas, South Carolina, Florida, Nevada, and Colorado.
55 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. Emily Hemphill Ealy, Hemphill and Blasdel, LLP Emily Hemphill is a managing partner of a law firm specializing in real estate, business and civil litigation. Her work focuses primarily on land use and entitlement law, environmental and sustainability law, and she has substantial experience in this area. She has worked on the Ritz Carlton project in Rancho Mirage, the I‐10 Auto Mall in Indio, and the Indian Wells Tennis Garden. Scott Kiner Kiner Communications Son of baseball Hall‐of‐Famer, Ralph Kiner, Scott grew up in the sports radio broadcasting world, and began his career with the major radio networks and ESPN. As the founder of Kiner Communications in 1994, Scott has over 25 years experience in the industry, and brings that knowledge to every client in the agency. Over the years, he has been actively involved with the Coachella Valley Economic Partnership (CVEP), and is past Board Chairman of the Riverside County Chapter of the American Red Cross. Mohammed A. Faghihi, PE/LS Webb & Associates, Senior Vice President Mr. Faghihi is a Senior Vice President of Albert A. Webb Associates and a market leader for our residential developers. Mr. Faghihi is a registered civil engineer and a registered land surveyor in the state of California, with over 25 years of experience in the civil engineering field. He was instrumental in developing, and is now Principal‐in‐Charge of, our Traffic and Transportation Department and our Survey Department. He currently supervises a staff of more than twenty civil engineers, transportation engineers, surveyors, land planners, designers, mapping specialists, engineering technicians, and coordinators. Scott R. Hildebrandt Webb & Associates, Vice President Mr. Hildebrandt is a vice president and a market leader for regional and county agencies. He is a recognized expert in the disciplines of drainage, hydrologic, and hydraulic services. Scott has a well‐rounded knowledge of the engineering industry, which allows him to oversee our educational facility, recreational facility, and commercial/industrial projects, and to contribute his expertise to our health care projects. This experience has led to his reputation as a trusted advisor for the design of multi‐discipline projects that intersect multiple market sectors.
56 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. CONSULTANTS Emma Gwyther Branding and Motorsports Consultant Emma Gwyther is the President and Founder of Interluxe Group, an international lifestyle marketing firm, specializing in luxury goods with headquarters in La Jolla, California and offices in the UK. Her marketing expertise includes over ten years of agency experience working with a wide variety of clients in the automotive and financial services business sectors. Ms. Gwyther and her team have recently developed and executed a series of award‐winning campaigns including the worldwide launch of the Bentley Mulsanne, the design preview for the Bugatti Galibier and a nationwide performance tour with Jaguar. Previously she was a consultant for Volkswagen as they moved into the luxury sector with the launch of their highly successful Touareg and was instrumental in the design process for Audi‘s highly successful dealer CRM program. She has particular expertise in strategy and corporate communications, experiential marketing, and customer relationship management. Her category specialties are automotive and travel —specifically brand experiences and product launches. John Husing, Ph.D. Economic Impact Consultant Dr. John Husing is a leading authority on the Inland Empire economy, an area he has been studying since he wrote his doctoral thesis on the region in the 1960s. His influence on the business and political landscape has been so extensive that the Los Angeles Times named him one of the 100 most powerful people in Southern California in 2006. He is the writer of the Quarterly Economic Report, an economic newsletter now in its 20 th year. His company, Economics & Politics, provides consulting services for municipalities and counties with economic strategies, statistical data packages, recommendations for public policy, and briefing presentations to business and political leaders about the nature, growth, and economic trends of Southern California. In 2009, he conducted an Economic Impact Report on TMTC, which is currently on file with the Riverside County Economic Development Agency. Parnelli Jones Motorsports Consultant Parnelli Jones is one of the most recognizable names in auto racing, having won nearly every major racing event in the United States, including the Indianapolis 500, the SCCA Trans Am Series, the USAC Stock Car Championship, the famous Pike Peak Hill Climb, and the rugged Baja 500 and Baja 1000. In 1967, Jones and long‐time partner Vel Miletich established one of the most successful racing
57 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. teams in the history of the sport, hiring top guns such as Al Unser, Mario Andretti, and Joe Leonard. The Vel’s Parnelli Jones Racing Team with Al Unser won the Indy 500 in 1970 and 1971, and three consecutive national championships. Jones’ success as a driver carried over to the team, as they competed in every type of race imaginable — from the rigorous off‐road races of Baja to the elite, world‐class Formula One events around the globe—and won a total of 53 Indy Car races. Jones has expressed interest in displaying his extensive collection of cars and career memorabilia in the Thermal Motorsports Auto Racing Museum at the TMTC site. James Sofronas Global Motorsports Group James Sofronas is intended to oversee the club’s performance tuning shop. Mr. Sofronas co‐founded Global Motorsports Group (GMG) in 2001 and currently manages GMG. GMG has quickly established itself as North America's premier performance tuning facility. What began as a small 1200‐square‐foot shop, maintaining two race cars, has grown into a 15,000‐square‐foot state‐of‐the‐art performance tuning, racing and service facility located in (Orange County) Santa Ana, California. The staff’s attention to detail and passion are what make GMG the choice of professionals and enthusiasts worldwide. GMG is located directly across from Porsche Motorsport North America (PMNA). This close proximity offers GMG a clear advantage when upgrading performance and developing racing products for these outstanding automobiles. Since 1994, Mr. Sofronas has also been a race car driver, participating in many well‐known and highly competitive auto races, such as the Speed GT and Touring Car Series and BMW Club Racing. Guy Dreier Guy Dreier Designs Guy Dreier has been engaged as the architect for the clubhouse, the Member storage garages and certain construction elements of the other club facilities. Mr. Dreier, the son of noted Swiss architect Eduard Dreier, has over 35 years of professional experience. Mr. Dreier has designed some of the most sculptural and unique homes in America's most distinctive cities: Boca Raton, Vail, Salt Lake City, Las Vegas, Rancho Santa Fe, La Jolla, Malibu, Wailea, and most notably, the private resort communities surrounding Palm Springs, California ‐‐ including inside the walls of such renowned clubs such as Bighorn Golf Club, The Vintage Club The Reserve, and The Quarry. Featured in the pages of Architectural Digest, Palm Springs Life Magazine and The Robb Report, as well as on Home & Garden Television, Guy Dreier's designs have become synonymous with dramatic
58 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. innovation and sculptural elegance. Alan Wilson Wilson Motorsport Mr. Wilson has been engaged by the company to assist with the design, safety development and construction of the race track. The company also intends to engage him as a consultant with respect to its operations of the club. With extensive experience gained at more than 175 race tracks in 16 countries over a period of 40 years, Alan Wilson brings a unique perspective to the business of motor sport at all levels of the industry. He has worked on all sides of auto racing. He was a national level competitor in car and motorcycle racing, a racing columnist for a national daily newspaper and a team owner prior to his entry into motor sport operations, management and design. He has operated major international racing events. He is also a Safety Consultant and Track Safety Inspector for the Sports Car Club of America and sat on the Board of Directors for SCCA Pro‐Racing. He was the general manager for the world‐renowned Miller Motorsports Track and Club. Richard J. Valentine Mr. Valentine is an entrepreneur who has been building businesses since 1969. He has built category leaders in a broad range of industries – while developing an impressive 20‐plus year resume as a racecar driver. His passion and talent for combining business and racing drove him to kart racing. For more for than a decade, he has dedicated substantial resources to building not just his own karting businesses, but also the industry itself. As founder of the RJV Enterprises, Valentine owns and operates a variety of highly successful performance kart racing enterprises. He operates two track facilities: F1 Boston, a 103,000 sq. ft. facility featuring two European‐style indoor kart tracks, and F1 Outdoors, an outdoor kart racing and event complex featuring a 1.4 mile track. In 2008 Valentine opened F1 New Jersey, as part of the 700‐acre New Jersey Motorsports Park racing and lifestyle complex, Valentine is also a principal of the complex. He also operates SSC East, an importer and distributor of the world’s leading kart products. Tom Gloy Tom Gloy Racing Tom is a former championship driver with championships in North American Formula Atlantic (1979) and Trans Am series (1984). He competed in and also owned teams in all types of racing including Formula Atlantic, Trans Am, Indy Car (including Indianapolis), NASCAR, F/2, and all forms of Sports Car Endurance
59 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. racing for 35 years. Mr. Gloy and his teams have competed and won literally all over the world. He was a factory Ford driver and team owner for over 15 years. Darren Law Brumos Racing / Flying Lizard Motorsports Mr. Law's career as a competitive driver has spanned 28 years since age 11, when he began racing in the highly competitive karting scene of southern California. After winning several karting championships, he graduated to the world of full‐fledged racecars, where he again proved himself capable and determined. His first experience with racecars was in the formula car category, and he spent time in Europe competing with some of the best drivers in the world. In the years since his first formula car races, Mr. Law has found himself competing in a wide range of vehicles and race series, and during his career he has accumulated a mass of top ten and top five finishes, as well as three separate driving championships. Popular among his peers, with a confident and charismatic personality, Mr. Law is widely recognized as a top level driver with exceptional race savvy, car control, and technical feedback, and is comfortable with competitors and sponsors alike.
60 Prepared by Global Business Funding Group (www.GlobalBFG.com) at the direction of the company. All rights reserved. F I N A N CI A L S U M M A R Y
1B

Thermal - Global Business Funding Group

Transcription

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