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‘Motorsports Property of
Tomorrow…Today’
Total Reality Racing, LLC Copyright
180’150’
‘Motorsports Property of Tomorrow, Today’
‘Motorsports Property of Tomorrow’ by H.A. ‘Humpy’ Wheeler 1 Vision / Mission 2-3 Prelude: ‘NHRA POWERade Fan Nationals’ 4-7 Venture Design Strategy 8 Current Interactive Racing Experiences 9 ‘Model T’ Prototype 10 Application of Mobile Robotics Technology 11 ‘Race Car of Tomorrow, Today’ 12-15 ‘Motorsports Property of Tomorrow, Today’ 16-25 Business Model 26 Sponsor Value Proposition 27-28 Financial Projection: Year 1 29 Financial Projection: Year 2 30 Phase II 31-34 Phase III 35 Next Step 36 Supplement 37
– NASCAR Online Racing Series Vs. ‘Motorsports Property of Tomorrow, Today’
Table of Contents
…So foresees NASCAR’s best-known soothsayer, Howard Augustus ‘Humpy’ Wheeler…
…Much of it was Humpy-speak, which can be akin to reading Stephen Hawking on thenature of the universe. Sometimes I can quote him directly, but often I’ll have to translateInto 21st century English…
“The first thing we have to look at 50 years from now is, are there going to be drivers inthe cars?,” Wheeler said. “I often tell drivers that right now, for about $3,000, they can bereplaced by a combination of things from Radio Shack and the local hobby shop.”Translation: Wheeler for years has worried that NASCAR’s biggest threat is not otherpro sports but video gaming by young people that distracts them from spectator sports—and indeed, could divert them completely from careers as participants in spectator sports...
…Now to the racing itself: “There’ll be two winners of the race,” Wheeler said. “There’ll be the real winner and then there’s going to be the virtual winner…”
“…It’s going to be totally, totally entertainment,” Wheeler said.
* Excerpt from ‘Look Into Humpy’s Crystal Ball’ (ESPN.com 2/9/09) 1
‘Motorsports Property of Tomorrow’By H.A. ‘Humpy’ Wheeler*
Unparalleled Experiential Marketing ValueEngaging Consumer/Brand Interaction
Across Multiple Platforms:Video Games, Events, TV, Radio, Print, Online, Social Media, Retail
Measurable ResultsFor No Less Than Fourteen(14) Blue Chip Sponsors
Unparalleled Experiential Entertainment ValueCompletely Safe, Fully Interactive, Highly Competitive, Ultra Realistic
Live Championship Racing ‘Show’‘Dazzles Senses...Touches Heart …Stimulates Mind…Captures Imagination’
Kids & Adults AlikeRace Fans & Non-Race Fans Alike
…leverage to create…
Vision / Mission
…as the means to capture…
New Media Ad Dollar$*$88 Billion in ’09…$160 Billion by 2012
* PQ Media Forecast ‘Massive shift away from traditional advertising to alternative marketing strategies’ Emerging new media marketing platforms:
video games, sponsor events, product placement, online, cell phones, in-store 2
‘Motorsports Property of Tomorrow, Today’
Title $ 75k Presenting $ 75k ‘Powered by’ $ 75k Featuring $ 75k 10 Teams ( @ $75 k each) $ 750k
Event Total $1.05 Million*X 33 Events (12-15 months)
Total Sponsor Revenue $34.65 Million
Presents…
Powered by…
3
10 Team SponsorsFeaturing…
*Based on conservative average of $75k /per sponsor package /per event
4
5
6
ABC7 ‘POWERade Fan Nationals Challenge’
7
“THE TRACK IS AS REALCOMPETITION”
• Completely Safe• Fully Interactive• Extremely Competitive• ‘Suspension of Disbelief’
RACE CAR of
TOMORROW…TODAY
MOTORSPORTS PROPERTYof
TOMORROW…TODAY
as the
Unparalleled Experiential…Entertainment Value + Marketing Value
(Kids & Adults alike) (13 Blue Chip Sponsors)
Phase 1
Phase 2
8
2-Phase Design Strategy‘Motorsports Property of Tomorrow, Today’
Go-Carts* Driving Experiences*
Motion-Base Ride Film*
Motion-Base Racing Simulators*
In-Home Video Game & Online Racing* Arcade Games*
No current interactive racing ‘experience’meets all 4 design parameters
Conclusion*
1) Completely Safe2) Fully Interactive
3) Extremely Competitive4) ‘Suspension of Disbelief’
9
Current Interactive Racing Experiences
‘Model T’ Prototype
Design ObjectiveSeamlessly integraterealism of in-carcamera with a fullrange of…
• Interaction• Competition• Safety
10
Mobile robotic technology/engineering translates perfectly! Entertainment = exciting new revenue stream for industryWorld Class Mobile Robotic Project Design & Develop Team
Application of Mobile Robotics
US Army High Speed Robotic Ground Vehicle by RE2 ‘Race Car of Tomorrow, Today’ R&D
11
‘Race Car of Tomorrow, Today’ Carnegie Mellon NREC and RE2 Small Scale, High Speed, Military Grade ‘Robotic Race Cars’ Four(4) High-Res In-Car Cameras
– 360 TV Broadcast Quality Video Full Range of Rich Telemetry Data
– Motion, acceleration, sound, RPM’s…fuel mileage, ‘the draft’ etc. Fleet of 30 Robotic Race Cars (10 Car Competitive Field)
BridgeWave Communications Real Time Broadband Wireless Communication Network
Simuline 10 motion-base driver consoles Completely immersive with full range of multi-sensory special Fx
ThinkWell Design Group Ultra realistic race track for drivers and spectators alike Master timing, scoring, control system
0
Completely Safe (kids & adults) Fully Interactive
Extremely Competitive ‘Suspension of Disbelief’ 12
MainControl Computer
InertialMeasurement
Unit (IMU)Front
Camera
LeftCamera
RightCamera
RearCamera
¼ Scale CarInterface
Bump Sensors
Speaker and Microphone
Picture in PictureHardware
Tachometer
Acceleration data
Contact information
Car feedback information
Control commands
Car sound control and feedback
Speed feedback
Left camera video Right camera
videoRear camera video
High resolution front camera video displayed in windshield
Consolidated left, right, and rear video (displayed in left window, right window, and rear view mirror respectively at the driver console)
Complete car feedback
Control commands (gas, brake, etc.)
TO D
RIV
ER C
ON
SOLE
System Overview‘Robotic Race Car’
13
¼ scaleRobotic Race Cars
Fully ImmersiveMotion-Base
Driver Console
Interior of Driver Console
14
15
Robotic Race Cars Race Track Pit Row Simulator Row Spotter’s Row Race Control Announcer’s Tower
Motorsports EventsFairs / FestivalsTheme Parks
Fund RaisersCorporate CampusStand Alone
Credential Office Qualifying Garage (2) Driver’s Meeting Driver’s Lounge Garage Area Grandstands Jumbotron
MallsCollegeMilitary
16
‘Motorsports Property of Tomorrow, Today’Fully Mobile 30,000 sq. ft. Championship ‘Show’ Event
180’150’
‘Motorsports Property of Tomorrow, Today’
Note: Additional on-site satellite Qualifying Garage not shown
Credential Office /Driver VIP /Sponsor Marketing
18
Tractor Trailer
53’
20’awning
20’awning
Merchandise Display Counter
Hard Card Processing
Entrance (qualifying ticket only)
Exit
• Race point redemption only• Cheap swag to super premium
Hard Card activatedsponsor marketing
kiosks
Hard Card activatedsponsor marketing
kiosks
Credential Office
(Hard Card credential only)
Driver VIP/ Sponsor Marketing 50’
brainroom
‘Credential Office /Driver VIP /Sponsor Marketing
Entrance
—powered by Z
(X) presents…
OfficialHard CardJoe O’Grady
AAA16587167
Y Series
53’ Trailer
19
Qualifying Garages*
20
*Four(4) Qualifying Garages• Two(2) on-site event units• Two(2) off-site units dedicated exclusively to Walmart retail activation
3’ 20’ 13.5’ 16.5’
50’ x 10’ Elevated Stage(drop down trailer wall with 10’ awning)
7 8 9
10 11 12
16 17 18
13 14 15
1 2 3
4 5 6
22 23 24
19 20 21
4
3
2
1
5
6
7
8
1 2 3 4Brainroom
Que line
Pre-stage for Qualifying Series # 1
entrance
exit exit
10’ x 10pop-up
tent
50’
50’
(slide out)
(drop down trailer wall w/ 10’ awning)
Event Support
‘Qualifying Garage’
Series #3 QualSeries #2 Qual Series #1 Qual
10’
10’
5’
53’ Trailer
21
24 Racing Stations 4 rolling pit carts (7’ x 3.5’ each) 2 banks of 3 networked racing stations per pit cart Console racing game (Nintendo, Sony, X-Box)
Throughput 500+ Qualifiers /hour
– [24 drivers /cycle x 10 race cycles /hour] x 2 Qualifying Garages 160 Qualifiers /hour advance Series # 2 Qualifying
– [8 winners /cycle x 10 cycles] x 2 Qualifying Garages– Winners get Series 2 Qualifying Credentials + race points– Series #1 Qualifying losers go to Driver VIP to redeem race points
4-5,000 Qualifiers /day– [240 Series #1 Qualifiers /per hour x 8 hour event] x 2 Qualifying Garages
15,000 Series 1 Qualifiers per 3-day event Series 1 Qualifying Ticket Distribution
Not for sale! Guests secure qualifying tickets by participating in sponsor activation programs
Series 1 Qualifying Ticket Value Coveted opportunity to become a celebrated Championship race car driver Universal appeal (kids & adults…race fans & non-race fans alike)
Qualifying Garage: Series #1
22
8 Racing Stations 2 banks of 4 networked racing stations Arcade-style racing game (Sega)
Throughput 160 Qualifiers /hour
– [8 drivers /cycle x 10 race cycles /hour] x 2 Qualifying Garages 80 Qualifiers /hour advance to Series # 3 Qualifying
– [Top 4 drivers /cycle x 10 cycles] x 2 Qualifying Garages– Top 4 drivers get Series # 3 Qualifying credentials + race points– Series #2 Qualifying losers go to Driver VIP to redeem race points
Qualifying Garage: Series #2
23
4 Racing Stations 1 bank of 4 networked racing stations Motion-base simulators (I-Racing)
Throughput: 80 Qualifiers /hour
– [4 drivers /cycle x 10 cycles /hour] x 2 Qualifying Garages 20 Qualifiers/hour advance to Championship Racing ‘Show
– [Race Winner x 10 race cycles /hour] x 2 Qualifying Garages– 20 Race Winners /hour receive..
• ‘Show’ Driver Credential + Race Points• ‘Show’ ‘Crew Chief /Spotter’ Credential (i.e. for friend)
– Series #3 Qualifying losers go to Driver VIP to redeem race points
Qualifying Garage: Series #3
24
Heat ‘Show’ QualifyingHeat ‘Shows’
Championship ‘Shows’ Heat Show Qualifying
Objective: narrow top 20 Qualifiers per hour to top 10 Qualifiers in 40 minutes Single Car Qualifying: (35 minutes)
– All 20 drivers (along with ‘Crew Chief/Spotter’) get a single car qualifying run (2-3 laps)– 1.75 minute qualifying cycle per driver (next driver ready to go…no down time)– Top 10 qualifiers earn right to drive in Heat Race ‘Show’– Drivers choose team sponsors (selection based on qualifying order)
Heat ‘Shows’ 15 Minute ‘Show’ at top of each event hour Full 10 car field—driver, ‘crew chief/spotter’ and sponsor compete as a team ‘15 Minute Fully Interactive Sprint Cup Race’
– Race commentary, pit strategy, wrecks, pit reporter, caution flags, winner’s circle etc. Winning team from each ‘Heat Race’ competes in Championship ‘Show’
Championship ‘Show’ Options Daily Championship: Hourly ‘Heat Race’ winners Event Championship: Thurs VIP Champion + Daily Champions Series Championship: Event Champions from across the country
25
– Motorsports Events (14)– Theme Parks (7)– Fairs/Festivals (7)– College Campus (2)– Military Base (2)– Stand Alone (1)
Business Model
Create Unparalleled Experiential
Marketing Value
…for 14 Sponsors
…Over 33 Fully Integrated Events
– Highly Engaging Consumer/Brand Interaction– Leveraged Over All Media Platforms– Retail Activation– Measurable Results– No Learning Curve
– Title– Presenting– ‘Powered by’ Wireless– Featuring– 10 Team Sponsors
26
Leverage Unparalleled Experiential Entertainment Value to…
Category Exclusivity Unparalleled On-Site Activation (Fri-Sun)
Feature sponsor of ‘Hottest’ interactive attraction at any prestige event property!– Motorsports, fairs/festivals, theme parks, college, military, stand alone– Universal Appeal: Kids & adults…race fans & non-race fans alike
Highly engaging consumer / brand interaction– Every Event Hour = 45 Minutes of Top 10 Qualifying + 15 Minute Championship ‘Show’
Clutter busting event signage + ad rotation on ‘Show’ jumbotron Share of 15,000 qualifying tickets per event
– Leverage robust demand for qualifying tickets to drive sales & marketing objectives Full access to dynamic event ‘Hard Card’ database Sponsor branded merchandise & sampling
Extraordinary Walmart Retail Activation! Two(2) Qualifying Garage units dedicated exclusively to multi-store retail activation In-store purchases tied to opportunity to win Qualifying tickets, prizes, VIP…. Incremental product placement, in-store displays, circulars etc.
Exclusive Sponsor VIP / Media Event (Thurs evening—500 Guests) Traditional Media Activation (TV, radio, print) Social Media Activation PR Cause Marketing (Corporate MASCOT’s)
Event Sponsor Value Proposition*
14 Sponsor Packages are easily worth $75k each /per event27
Title* $ 0 Presenting $ 80k ‘Powered by’ $ 80k Featuring $ 80k 10 Teams ( @ $75 k each) $ 800k
Event Total $1.04 Million*X 33 Events (12-15 months)
Total Sponsor Revenue $34.32 Million
Presents…
Powered by…
28
10 Team SponsorsFeaturing…
* Power of Walmart brand + retail stores is far more valuable than cash!!* Lost sponsor revenue easily be made up with slight increase in 13 other sponsor packages
Total Tour Revenue……………..………………………. $34.32 Million*80,000 /average per sponsor x 13 sponsors /per event x 33 fully-integrated events
Total Development & Operation Cost……….……….. ($34.32 Million)1) Championship Racing ‘Show’ ……………………………................ ($13.3M)
Development: $9.5M– $3.0M: Fleet of Fully integrated Robotic Race Cars + Race Control– $3.5M: 10 fully integrated driver consoles + Spotter’s Row– $3.0M: Race Track + Announcer Tower
Operation: $3.8M– $115k per event x 33 events
2) Four(4) Qualifying Garages………………………………………….. ($7.3M)Development: $5M [$1M for custom trailer + $250k for gaming elements] x 4
Operation: $2.3M [$17,500 /event x 33 events] x 43) ‘Credential Office’/Driver VIP/Sponsor Marketing……………..…… ($2.3M)
Development: $1.5M custom trailer with hard card processing, merch counter, marketing kiosksOperation: $825k $25,000 /event x 33 events
4) Event Site Fees…………………………………………………………… ($6.6M)(30,000 sq. ft. ‘Show’ x $6.7 /sq.ft) x 33 events
5) Series Website Development & Maintenance…………………......... ($1.5M)6) Miscellaneous…………………………………………………………….. ($3.32M)
Year 1 Financials
Break Even* Does not include potential for additional revenue streams 29
Total Revenue…………………………….…. $45.5 Million*100k /average per sponsor x 13 sponsors /per show x 35 fully-integrated Events
Total Refurb & Operation Cost…….…… ($25.5 Million)Championship Racing ‘Show’…………………………….…………………... ($6.37M)
– Refurb: $2M– Operation: $4.37M
• $125k per event x 35 events
Qualifying Garages(4) ………………………………………………………..…. ($4.8M)– Refurb: $2M
• $500k for each Qualifying Garage– Operation: $2.8M
• ($20k per event x 35 events) x 4
‘Credential Office’ /Driver VIP /Sponsor Marketing ……………………… ($2.05M)– Refurb: $1M– Operation: $1.05M
• $30k per event x 35 events
Event Site Fees……………………………………………………………………. ($7M)(30,000 sq. ft. ‘Show’ x $6.7 /sq.ft) x 35 events
Series Website ………………….…..…………………………………….....…… ($2M)Miscellaneous ……………………………………………………………………. ($3.28M)
Year 2 Financials
Operating Income: $20 Million* Does not include potential for additional revenue streams 30
Championship Racing Show Larger robotic race cars (1/2 scale) Expanded field (20-30 cars) HD in-car cameras ‘Gyro-scopic’ motion-base HD driver consoles Elaborate downtown street course (2-3 city blocks) Expanded Team Sponsor Qualifying Garages
50,000+ Qualifying tickets/day Enhanced sponsor marketing, sampling, merchandise. etc
Festival atmosphere: bands, food, vendors, displays etc.
Fully Integrated Event Region-wide retail activation (via Team Sponsor Qualifying Garages) Thurs night: Exclusive Sponsor VIP /Media event Friday afternoon: Corp. Challenge for downtown business (morale & team building!) Friday night, Saturday, Sunday (Daily Champions + Overall Event Championship)
20-25 Major Metro Market Tour Package Tour events up into ‘Series Season Schedule’ $1 million Series Championship purse
Finance Development & Operation via ‘Corp. Sponsor Licenses’ (CSLs) aka ‘Personal Seat Licenses’ (PSLs) for blue chip sponsors
Phase II Development:‘Interactive ‘Speed Street Festival’
31
3 Year Contract includes… Three(3) $Million Dollar Championship Racing Series ‘Seasons’
– ‘Season’ = 20-25 Championship City Speed Street events + $Million Series Champion Event Dynamic brand marketing/exposure in major metro markets nationwide Highly Engaging Consumer/brand interaction Category Exclusivity ‘Official’ Series Sponsorship Entitlement Series Reality TV Show (opportunity to ‘watch one week…participate the next week’) Multimedia Series Web Site Exclusive access to Series’ ‘Hard Card’ Database Ownership of a fully customized, turn-key ‘Sponsor Qualifying Garage’ Series Promo Tour via 10 Car System (retail, fairs/festival, theme parks, tracks etc.) Extensive PR campaign (tech, entertainment, sports, business, charity) ‘Corporate MASCOT’s: Ambassadors of Hope & Goodwill’ (donate 10% sponsor rev)
Exclusive Sponsor VIP events in major metro markets nationwide One Event Title Sponsorship /Season (ex. ‘Home Depot 500’) One Corporate Campus Championship event per year (10-car system) Fully Integrated Region-Wide Retail Activation Ownership Equity in ‘Speed Street’ Championship Racing Series!
‘Corporate Sponsorship Licenses’ (CSLs)*
32
Schick
Total: $85-170 Million /year
Title: $5-10 M/yr*Wireless: $5-10 M/yr*Presenting: $5-10 M/yr*Teams(14): $5-10 M/yr*
Presents…
33
Powered by…
Schick
3 Year Total: $255-510 M– (Series Development: $ 40 M)– (3 Year Operation: $120 M)
3 Yr. Operating Income: $95-350 Million!!
Sub Total: $85-170 M/yrx (3 Year Contract)
Series: $5-10 M/yrWireless: $5-10 M/yrPresenting: $5-10 M/yrTeams(14): $5-10 M/yr
34
Presents…
Powered by…
Theme Parks Disney – Promote massive investment in motorsports programming– Experiential Entertainment & Marketing value far exceeds ‘American Idol’ attraction
http://www.usatoday.com/life/music/news/2009-02-15-disney-idol-experience-main_n.htm
Six Flags Location-Base Entertainment Centers ‘MASCOT’
Race Tracks Year round ‘Daytona USA-like’ attraction
Phase III DevelopmentFixed-Site Championship Racing Show Attraction
35
Total Reality Racing, LLC– Vision / Intellectual Property
Carnegie Mellon NREC www.rec.ri.cmu.edu/– Robotic Race Cars, Race Control
BridgeWave Communications www.bridgewave.com– Real Time, Broadband Wireless Communication Network
Simuline www.simuline.com– Fully Immersive, Motion-Base Driver Consoles
Thinkwell Design Group www.thinkwelldesign.com– Race Track, Race Control and Show Build-Out
Spevco www.spevco.com– Custom trailers
The Marketing Arm www.themarketingarm.com Full compliment of ‘Next Gen Agency’ services
Disney /ESPN Fox /SPEED Package Goods Sponsors
Capitalize on category competition Motorola/Nokia/Samsung Theme Park Executives EA Sports / LucasArts Select Venture Capitalists John Henry / Rick Hendrick Select Press / Media
WRS Summit will be PR Bonanza!
36
Next Step:‘Walmart Racing Series’
Design & Development…Sales & Marketing SummitWalmart plays host to a dynamic, highly engaging 2-day event at the Walt Disney World Speedway featuring...half day of the Richard Petty Driving Experience...hosted by a high profile NASCAR Sprint Cup driver (top choice: Dale Earnhardt Jr.)...as prelude to a day and a half of comprehensive venture design & development team planning...in concert with a dynamic, multi-media venture presentation(s) to select groupof industry executives, sponsors, venture capitalists and press/media...Summit budget: $760k
NASCAR Online Racing Series (NORS) Vs.
Motorsports Property of Tomorrow, Today (MPOTT)
Driving Experience• NORS: Makeshift desktop race car cockpit• MPOTT: Fully immersive, motion-base, special effects-laden race car cockpit with capacity
to effectively 'suspend disbelief'Competition
• NORS: Alone in a room, you become a virtual race car driver racing a virtual car against virtual drivers on a virtual track in front of virtual crowd with virtual announcers in a virtual competition that culminates in a virtual Championship race every 4-6 weeks.
• MPOTT: As part of a shared out-of-home social experience, you become a real race car driver racing a real car in a real race against other real drivers on a real track in front of a real crowd with real announcers...real competition culminates in real Championship Raceat the top of every event hour
Spectator Engagement• NORS: Zero• MPOTT: Event production values will produce exceptional spectator entertainment
Entertainment Value
37
NASCAR Online Racing Series (NORS) Vs.
Motorsports Property of Tomorrow, Today (MPOTT)
Consumer / Brand Engagement• NORS: One-dimensional• MPOTT: Multi-dimensional + high experiential impact
Media Platforms• NORS: Essentially limited to internet platform• MPOTT: Leveragable across all traditional media platforms + on-site + retail + social media
Retail Activation• NORS: Zero• MPOTT: Superb--two MPOTT Qualifying Garages dedicated exclusively to retail activation
to drive incremental product placement, in-store displays, circulars etc. for all 14 sponsorsVIP Entertainment
• NORS: Zero• MPOTT: exciting, one-of-a-kind, 3-hour Championship event for 500+ sponsor VIP's
PR• NORS: MMO gaming platform has limited PR value• MPOTT: Fresh, newsworthy story angles around groundbreaking sports entertainment,
marketing, technology and business
Sponsor Marketing Value
NASCAR Online Racing Series (NORS) Vs.
Motorsports Property of Tomorrow, Today (MPOTT)
NORS:• Faced with constant battle remain on the cutting edge of rapidly changing computer technology.• Forced to continuously update racing simulation software($) and hardware($) in effort to create an ever
more realistic racing experience.MPOTT:• Fully insulated against ravages of rapidly changing technology in that the racing experience effectivelyrealizes the Video Gaming Holy Grail (i.e. 'suspension of disbelief').
• No matter how advanced computer generated racing software/hardware becomes in the future, MPOTTwill always maintain the upper hand--'Total Reality' trumps 'Virtual Reality' every time!
NORS:• Primary revenue stream built around monthly subscriptions. In order to generate $34 million /year revenue, NORS must sell (and maintain) 4 million+ monthly subscriptions at most popular $8.25 /month price point
• 20,000+ monthly subscriptions to date http://www.iracing.com/membership/MPOTT:• Primary revenue stream built around capturing % of $88 billion+ in new media ad dollars.• In order to generate $34 million in yearly revenue, MPOTT needs to sell 14 fully integrated, value-packedevent sponsor packages--at an average of $75k /each--across 33 events held in conjunction with 33 prestige event properties (i.e. Motorsports Events, Fairs/Festivals, Theme Parks, Malls, College, Military etc.)
Technology
Business Model