SPONSORSHIP PROPOSAL

USA BASEBALL & DICK’S SPORTING GOODS Andrew Gosselin

Edward Stack Chief Executive Officer Dick’s Sporting Goods 345 Court St. Coraopolis, PA 15108 Dear Mr. Stack, I am contacting you today in hopes that you will sincerely review this proposal of sponsorship with Dick’s Sporting Goods. After conducting in depth research on the core values and beliefs about your company we, at USA Baseball, feel we could provide opportunities for your company to continue living out its fundamental driving beliefs. After you take the opportunity to read through the proposal and the collaborative efforts laid out we believe you will respect the price point of $1,000,000 to be an appropriate price. Throughout the proposal we will discuss the history of USA Baseball, venues, participation and attendance, media coverage, value of sponsorship, how the values at USA Baseball align well with Dick’s Sporting Goods, sponsorship package, and impact measurement. In our proposal, we recognized your company’s desire to become known as the number one sports and outdoor retail store company in the world and realize partnering with a brand such as USA Baseball could provide that critically important association of excellence and quality. We recognized also the significance your company places on the importance of sports in a community and how you utilize your Sports Matters foundation to help build community good will. We have outlined a platform for Dick’s Sporting Goods to take advantage of the foundation more fully through partnership with USA Baseball. Dick’s Sporting Good’s drive to be active in communities by providing opportunities for sport participation aligns exceptionally well with USA Baseball’s aim to promote and develop baseball at the grassroots level throughout the United States. We believe the alignment of USA Baseball and Dick’s Sporting Good’s core values is too strong to not take advantage of the mutual benefit that sponsorship would bring. The sponsorship could be extremely critically in helping Dick’s Sporting Goods fulfill company needs. We hope you can envision the increased good will, increased sales, and increased brand quality image that a sponsorship with USA Baseball could provide. We hope to be able to discuss the possibility of sponsorship with you further. Sincerely, Director of Sponsorships at USA Baseball

History & Overview Since 1978, USA Baseball has been the national governing body for amateur baseball. It represents the sport in the United States as a member of the U.S. Olympic Committee as well as internationally as a member federation of the World Baseball Softball Confederation. Nearly every major national amateur baseball organization in America is united as a USA Baseball national member organization. USA Baseball is responsible for promoting and developing the game of baseball on the grassroots level, both nationally and internationally. It is a non-profit organization designed to be a resource organization for its various member groups. USA Baseball has eighteen national member organizations including the NCAA, National Federation of State High School Associations State, Little League Baseball, Cal Ripken Baseball, and Babe Ruth Baseball among many others. USA Baseball As part of this growth plan USA Baseball has a series of national teams at multiple different age levels designed to keep the United States competitive on a global scale. Through this highly skilled competition the national teams are designed to both showcase and develop America’s elite baseball players. These teams go on to represent the USA in worldwide tournaments against other countries. USA Baseball’s national teams are often seen as very competitive and elite. From all the national teams only the best players from around the country are invited to participate on the teams at various age brackets. USA Baseball includes a long list of notable alum including current and former MLB all-stars. Along with an image of quality USA Baseball has an ability to use national pride as a motive for support of the organization and for the individual national teams. There is a tremendous amount of clout that can be related to being affiliated with a brand that is the sole representative of its respective sport for the entire United States. For these reasons aligning with USA Baseball can inherently perceive a brand as quality and supportive of American national pride. Along with the elite national teams USA Baseball also has oversight of an estimated 12 million amateur players throughout the country. USA Baseball allows the opportunity for organizations to joining forces and align beliefs as the governing body to grow the sport of baseball.

VENUE: USA Baseball has jurisdiction over an estimated 12 million amateur players in ballparks all throughout the country through its various membership organizations. Aside from these fields and leagues USA Baseball has access to a national training complex in Cary, North Carolina that plays host to all of the national teams. A 221 acre, 11 million dollar baseball facility that has four major league sized fields all being 330 feet down the right and left field foul lines and 400 feet to straight away center field. All fields are maintained at the same standard that Major League Baseball (MLB) requires of their fields. The Stadium Field has a press box that includes two suites, an official scorer’s room, a sound room, and press row. Spectator seating amounts to 1,754 people, including handicap accessible seating, and additional grass seating for approximately 250 additional patrons. While it is difficult to describe the different fields across the country that are under the direction of USA Baseball the bottom line is the environment at baseball games can get very intense. ATTENDANCE: USA Baseball governs more than 12 million amateur players in ballparks and playgrounds across the country. USA Baseball offers participation for the US National Teams at multiple different levels…

• USA National Team provides high quality play and opportunities for major brand exposure during competitive media viewing markets.

• College National Team which is comprised of the top collegiate baseball players in the country.

• 18U National team comprised of the nation’s best 16-18 year-old baseball players.

• 17U National Team Development Program started in 2012 is made up of players from the East and West National Team Championships and the National Team Identification Series. This team focus on player development through skill development sessions and top tier coaching.

• 15U National Team comprised of the best players throughout the country.

• 14U National Team Development Program which is similar to 17U development program designed to get players ready for the next stage of competition through skill intensive training and coaching.

• 12U National Team selects some of the best players throughout the country. The championship game in 2013 was played in Taiwan in front of 10,000 spectators.

• Women’s National Team launched in 2014 comprised of the best female baseball players in the country as they travel the world to compete in various tournaments representing the United States.

For many of the less competitive team attendance is largely made up of residents and the families of the players and coaches coming to support the team itself as well as the opposing team’s attendance draw. However, as the teams become more competitive spectator viewership increases drastically. For example, as mentioned before during the championship game of the 12U team for instance during their championship gold medal game there were over 10,000 spectators at that event. With many games being played abroad attendance is difficult to track. With seven of the eight teams being male only the demographics of the players and coaches at USA Baseball is primarily male dominated. However the families and potential spectators can be more of an even split. Often times USA Baseball National Teams bring in the family demographic as families come to support their child who was selected to play for the highly selective and competitive team. Families are often coming from outside the area of Cary. Overall though the majority of participants through USA Baseball is through the partnerships with multiple different baseball member groups which trickle down to guiding local leagues for cities and towns. As mentioned, this number of overall participants is roughly 12 million players. Along with the players are often times their families and even older or younger siblings. Often times, especially as younger children, youth sports participants often play more than just one sport which can be a large benefit for sport related organizations to capture the need for sports apparel and equipment needed not only for baseball but for the other sports these players and their siblings and families are participating as well. Some examples of demographics for baseball participation are listed below.

• In 2016 12.2 million individuals participated in the sport across all levels of competition.

• Of this total 47.7% we from the age range of 7-17.

• 19.6% of all boys aged 7-17 in the United States participated in baseball in 2016.

• 4.2% of all females aged 7-17 in the United States participated in baseball in 2016.

• 62% of all baseball participants come from a household with a family income of over $75,000 per year.

• The largest geographic region, 18.8% of all baseball participants are from the South Atlantic Region. The next highest is 15.3% from the Mid-Atlantic Region.

MEDIA COVERAGE: USA Baseball is tasked with organizing teams that represent the United States each year for the World Baseball Classic and every 4 years to represent the United States during the Olympic Games. With this responsibility comes enormous power to be associated with United States Baseball through USA Baseball. Whoever has the right to broadcast the Olympics would have the right to show the Olympic team, organized by USA Baseball. USA Baseball has a relatively large social media presence with over 120,000 followers on Twitter, 259,000 likes on Facebook, and 340,000 followers on Instagram. This could be a considerable benefit for an organization partnering with USA Baseball in order to get a message to a large audience. In addition to this online presence USA Baseball’s eighteen member organizations could also be utilized to spread a message to what would be well over a million additional individuals. ADDITIONAL EVIDENCE What makes USA Baseball a particularly unique sponsorship partner is the unrivaled luxury of being the organization responsible for representing the sport of baseball for the entire United States.

• USA Baseball has an inherent affiliation with national pride and being an organization that most of the US can root for collectively.

• USA Baseball’s national teams are extremely selective. Only the top tier talent throughout the entire country at the respective age brackets get an invitation to compete to represent the USA. Affiliating with a brand with this type of prestige can portray a quality of being luxury and high quality.

• The sheer number of participants under the USA Baseball umbrella is a particularly beneficial aspect towards becoming a sponsor of USA Baseball.

• At young ages children often participate in more than one sport. Reaching a child playing one sport about opportunities to get involved in and become more well equipped for the potential participation of additional sports could be a lucrative partnership.

• The simple need for sports equipment to play the game of baseball creates for participants a need to purchase those supplies. There are many different aspects to becoming equipped for baseball some more necessary than others. Ex. cleats, glove, baseballs, bat, batting glove, helmet, bat tape, pants, socks, belt, under shirts, protective apparel, bag to carry it all around, etc. In addition to the initial need for this equipment as children grow out of or wear out their equipment there is always a need for new equipment. Baseball equipment and apparel is not a one and done purchase.

• The sheer amount of communities that USA Baseball reaches provides a seemingly unending amount of opportunities for a sponsor to get involved with on a community level.

SPONSORSHIP COMPATABILITY One reason USA Baseball and Dick’s Sporting Goods is an appropriate marriage for a sponsorship is the collective desire between both organizations to increase opportunities for children to get involved in sports and in the case for USA Baseball that sport being baseball. USA Baseball has a mission to promote and develop baseball locally. This core value for USA Baseball aligns well with a foundation already established by Dick’s Sporting Goods called Sports Matter Foundation. Through the Sports Matter Foundation Dick’s Sporting Goods works in collaboration with local communities to provide sport opportunities for the community’s youth. USA Baseball could connect Dick’s Sporting Goods with national member organizations which operate the league play that are in need of financial assistance and help to keep leagues operating and to even expand or reduce costs for participants in order to grow the sport from the ground up.

A second reason a sponsorship between USA Baseball and Dick’s Sporting Goods would be appropriate is the connection between Dick’s desire to be the number one sports good retailer

and USA Baseball’s National Teams perception of excellence. Out of all the players in the country it takes the top talent to qualify to participate for one of the USA Baseball National Teams. In addition to the elite quality that the National Teams can portray the US Olympic baseball team is organized through USA Baseball. There is no higher level of elite than being crowned the best baseball team in the world which the Olympic team is always in the running for. Likewise, Dick’s has a mission “To be recognized by our customers as the #1 sports and fitness specialty omni-channel retailer that serves and inspires athletes and outdoor enthusiasts to achieve their personal best through the relentless improvement of everything we do.” The opportunity to be connected with a level of quality would serve Dick’s Sporting Goods well in their quest to establish themselves as the best sporting goods retailer. The Final reason why a USA Baseball and Dick’s Sporting Goods sponsorship would make sense is Dick’s commitment toward promoting sports in communities. The goes well again with USA Baseball’s commitment to grow the game of baseball at the grassroots level. Dick’s has a stance on community partnership through the following statement. “Dick’s Sporting Goods believes sports make communities stronger and is dedicated to supporting local athletes. That’s why we proudly offer sponsorships to teams, leagues and athletes in the communities we serve.” USA Baseball could provide Dick’s that platform to help communities gain the opportunity to more conveniently play the sport of baseball. This could be done through the sponsorship of additional teams in baseball organizations throughout the United States. By sponsoring additional teams Dick’s would be making available more opportunities for children to play the sport of baseball which is exactly one of the goals USA Baseball is trying to accomplish.

SPONSORSHIP PACKAGE

Based on the various reasons explained previously in the proposal it is clear that USA Baseball can offer a platform for Dick’s Sporting Goods to strive towards accomplish organizational goals. The following are the sponsorship offers available.

Increased Good Will • By assisting financially with USA Baseball’s national member organizations communities

will take notice that Dick’s Sporting Goods cares about children in the community and providing children opportunities to play baseball.

• Write ups and interviews on USA Baseball’s website detailing the resources given by Dick’s Sporting Goods.

• Recognition via participant email accounts. USA Baseball will send a thank you email detailing the work which will be electronically sent to all participants of USA Baseball sanction member leagues throughout the country.

Increased Brand Quality Image

• Dick’s Sporting Goods will have the opportunity to have their organization’s logo on all the USA Baseball National Team uniforms as well as the Olympic Uniform. By being associated with what are typically winning teams on a global scale Dick’s should reap the benefits of being classified as a winning organization and perceived as a high quality organization.

• Dick’s will have a logo on all four of the fields at the National Training Center in Cary, NC where the National and Olympic teams practice.

• All championship trophies assigned to be given out during tournaments or events at the Training Center that is being operated by USA Baseball will have “Presented by Dick’s Sporting Goods” written on the it. This should assist participants receiving the trophy and those who proceed to view it afterwards to associate championships and winning and being the best with Dick’s Sporting Goods.

• Dick’s will be allowed a tent to set up at the Training Center in Cary, NC during tournaments or practices.

Increased Sales

• Through sponsorship of additional teams in leagues throughout the country more children should be afforded the opportunity to play baseball. With this comes a need for baseball equipment. Dick’s will be able to distribute coupons which will be given via promo codes electronically as participants first sign up for teams.

• USA Baseball will send out an email containing a link to Dick’s website and a reminder that the season is right around the corner. This will be done around the time that participants are typically being signed up for teams.

• Any participant who shows verification of proof that they have signed up for a baseball team through one of USA Baseball’s league partners will receive a coupon for 10% off an order of $50 or more at their local Dick’s Sporting Goods store.

PACKAGE PRICE USA Baseball would need to see proof from Dick’s Sporting Goods with how much money they are spending sponsoring teams and donating to the member partner leagues to provide baseball opportunities. For the sponsorship to remain valid USA Baseball would require at least $500,000 be donated or spent in assistance to USA Baseball’s national members partners which provide baseball programming for communities. Ex. Babe Ruth, Cal Ripken League, etc. In addition to that total, Dick’s would also have to provide proof of team sponsorship of no less than $250,000. The cost for the logo, right to have a tent, and have logo represented on all USA Baseball National Teams as well as the Olympic Team uniforms would cost an additional $250,000. The total financial commitment from Dick’s Sporting Goods for the sponsorship package would be $1,000,000. A rough estimate of the value of the sponsorship is calculated to be $1,500,000.

IMPACT MEASUREMENT

Increased Good Will This aspect of the sponsorship could be measured through consumer survey’s. At the beginning of the year before any team sign ups we could have a survey for soon to be participants asking various questions related to the general perception of Dick’s Sporting Goods. These results from the initial survey would be documented and saved. Then as the season progressed and the steps that Dick’s does, as outlined in the proposal, becomes apparent to USA Baseball participants the image of good will associated with Dick’s should increase. At the end of the season we will have the participants take the survey once again. Once completed the survey results before and after the sponsorship requirements were fulfilled should show a change in overall perception of good will for Dick’s.

Increased Brand Quality Image This again would likely need to be measured through a survey. To be effective this would likely need to happen during a year where the Team USA Olympic team was playing. But the evaluation standards would be similar to the prior standards. Have spectators of both the Olympics and of those watching the USA National Teams play take a survey related to brand value perception of Dick’s Sporting Goods as an organization before the games compared to after viewing the obvious attempts at linking USA Baseball to Dick’s. After the tournaments have concluded have the respondents take the same survey and see if the brand is considered to better a higher quality after the fact.

Increased Sales An increase in sales can be evaluated much more tangible with a numerical figure for rate of return. Dick’s Sporting Goods could compare their sales figures from the previous year during the period of time the sponsorship would be in effect to the period of time the sponsorship is in effect during the current year. Assuming there are no other major variables the difference could be attributed to the sponsorship. Another tangible way to evaluate the success of the sponsorship regarding sales could be to look up the number of times the promo codes were used in stores, the number of times the registration discount was applied, and finally the number of times the store link was clicked to bring participants from USA Baseball to Dick’s online site to shop.