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Class Project for Business Development

Class Project for Business Development

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BD Class Project Presentation Transcript

  • 1. John Cho, Joshua Sutaria, Gabriel Jung, Wesley Wong
  • 2. 1. Conceptualization San Juan Hurricanes, Hurricane Stadium, GoRae Hotel 2. Capitalization Private investment, Government funding, Sponsorship 3. Deal Acquisition Meetings with politicians, zoning and planning board 4. Formation of business entities GoRae Group, LLC Formation 5. Operation & management Stadium, Hotel, Fractional housing, Suites, Leasing
  • 3. 1. User Oriented - Thinking from the customer’s perspective GoRae will not forget that the most important customer is the consumer 2. Originality - Our ongoing search for creative ideas GoRae searches for creative and new ideas in a variety of business areas. Challenges and new engagements provide new opportunities that allow us to contribute to world. 3. Highest Quality - Pursuing the highest quality in all we do GoRae strives to be the best. Our quality is a promise that the product will provide the customer with fun and enjoyment.
  • 4. GoRae Group Executive team Hotel Division Sports Division • • • • • • State of the art field Suites Retractable roofs Team shops Stadium parking Concession stands • • • • • • Fractional Housing Suites Restaurants Sports Facilities Car park Bars, Lounges, Clubs Formation of LLC • Articles of Organization • Operating agreement Advantages of LLC • Reduces personal liability • Prevent partner disputes
  • 5. Wesley Wong Chief Executive Officer  Stadium Operations  Hotel Operations  Human Resource Gabriel Jung Director of Legal Affairs     Risk Management Planning & Zoning Boards Hotel Associations Leasing & Permits John Cho Director of Marketing     Research & Development Sponsorship Acquisition Advertising & Promotions Social Media & Mobile Joshua Sutaria Director of Finance     Budgetary Control Projections & Analysis Balance Sheets & Cash Flow Raising Capital
  • 6. 300 total guest rooms • Number of VIP suites Beachfront property • Outdoor pool • Spa and fitness center • Rentals of beach chairs, jet skis, etc Retail shops • Gift shops features Hurricanes memorabilia Leasing Space (Additional Revenue Stream) • Expertise • Restaurants • Nightclubs • Bars
  • 7. 100 total fractional housing units • Reserved for stakeholders of SJ Hurricanes (e.g. coaches, players, trainers) • Ease players transition to living abroad in San Juan • No hassle and close to stadium • Affordable and accessible housing compared to market value • Different pricing levels depending on size of unit
  • 8. 40,000 max capacity • Corporate and personal suites State of the art grass field Concessions • Standard ball park fare and local cuisine Team Merchandise • Team Stores and kiosks throughout stadium Retractable roof • Summer is rainy season in San Juan • Limit # of postponed games Leasing • Space leased out to restaurants • Guaranteed revenue stream • Fans have a number of dining choices
  • 9. 1. Meetings - Politicians - Zoning and Planning Boards - Site plans 2. Bulk and use variance 3. Local, State, and Federal Permits
  • 10. 1. Sports Stadium - Environmental risks (hurricane season) - Duty of care 2. Hotel - Master Deed - Covenants, Conditions, and Restrictions
  • 11. 1. Stadium - Wheelchair accessible - At least 2% of seats are accessible - Line of sight is similar to general seats 2. Hotel - Exterior routes to accessible guestrooms - Bathrooms, Rooms, Hallways, Interior signs
  • 12. #1: Families with Young Children • • • • Primarily local residents Long-term fan development Family Friendly Stadium Environment Game rooms in stadium #2: College Students • Concerts and Entertainment events • Legal drinking age of 18 • Top Music Festival
  • 13. Current Sponsorship deals per year • Citi Field: $20 million • Bank of America Stadium: $7 million • FedEx Field: $7.6 million Potential Sponsors • Delta Airlines • Costco • McDonalds • 24 Hour Fitness • Estimate: $10 - $20 million per annum • Change name to “BRAND” Stadium or Field • Logo on Stadium roof Source: http://espn.go.com/sportsbusiness/s/stadiumnames.html
  • 14. 75 acres of oceanfront property at $133,333/acre $10 Million GoRae Hotel construction costs • GoRae Group and Private investors • Investment Opportunities $250 Million $210 Million $40 Million Hurricane Stadium construction costs • GoRae Group and Private investors • Government funding $600 Million $500 Million $100 Million Tampa Bay Rays costs • GoRae Group • Investment Opportunity $450 Million $325 Million $125 Million Overall Project cost • Total Debt • Total Equity • Debt to Ratio $1,310 Million $265 Million (20%) $1,045 Million (80%) 0.25
  • 15. GoRae Hotel Financial Projections • We expect occupancy to be around 90% year-round. • Hotel will return profits of $12.5 million a year. • Debt will be paid off within 3-5 years
  • 16. SJ Hurricanes Financial Projections • The new stadium is projected to sell out the first year with continued success. • Increase in team payroll will reap benefits on and off the field. • Hurricanes will return profits of $34 million a year.
  • 17. Entity Annual Profit GoRae Hotel $12.5 million dollars San Juan Hurricanes $34 million dollars • Our entities are projected to be highly profitable in their respective fields. • $265 Million in debt is expected to be paid off within 6 - 8 years. • Low risk of loss within GoRae Hotel because debt is only 16% of entire cost • Low risk of loss within San Juan Hurricanes because debt is only 21% of entire cost. • GoRae Group is open to negotiating for more or less ownership of the team, however we want to retain majority ownership at all times.