TCU MBA winning presentation at the 2017 MIT Sloan Sports Analytics Case Competition.

1. : First Pitch
Case Competition
Jon Gulbransen
Mitch Howe
Paige Sabo

2. Intro – Our Problem
MIT needs to diversify to combat a changing marketplace
Media I Trust (MIT) losing television market
share to new forms of digital media
Vegas Golden Knights face significant local
entertainment competition for viewers
MIT must find new revenue streams to
supplement traditional TV revenue

3. OUR SOLUTION
MIT can blur the lines between the in-arena and at-home viewing experience
IN-GAME FAN
ENGAGEMENT APP
VIRTUAL REALITY
SUPPLEMENTAL
CONTENT

4. 1
2
3
4
SPECIAL CONSIDERATIONS

5. GOLDEN KNIGHTS VR PROJECT
Tickets
A la
carte
Season
pass
Scoring
Zones
$5.49
$199.99
Center
Ice
$4.99
$179.99
Goal
$4.49
$149.99
Upper
Deck
$2.99
$99.99
Goals of the Project
• Create an in-arena experience away from the arena
• Allow Golden Knights fans to be a part of every game
• Provide a premium digital Vegas experience to opposing
fan bases VR Seat Price Points

6. • Setup Costs (est.):
• VR camera cost: $200,000(12x)
• Installation cost: $250,000
• Annual staffing cost: $600,000
• Ann. maintenance cost: $100,000
• Partnerships Required:
• NHL and its TV affiliates
• Samsung Gear
• Google Daydream
• PlayStation VR
GOLDEN KNIGHTS VR
PROJECT IMPLEMENTATION

7. FAN ENGAGEMENT APP
App Features
• Partnership with WaitTime allows MIT to deliver real-
time promotions to fans in attendance, directing
them to concessions with the shortest lines
• Integration with Twitter provides lists of users such
for fans to interact with and follow the action on
their second screen from in the arena or on-the-go
• Instagram Stories integration allows users to submit
photos or videos directly from the app to arena
experience teams to be shared on the jumbotron
MIT can maximize its longevity by delivering value to teams and fans inside and outside the arena

8. C R E A T I V E C O N T E N T P R O M O T I O N B R A N D I N G M A R K E T I N G
OUTSIDE OF THE GAME
GENERATE EXCITEMENT AROUND PLAYERS AND VENUE
“A day in the life of….”
“Tour of my locker…”
“Inside the mind of ____ during the game against Chicago Blackhawks”
“What I do in Vegas…”
STRONG VIEWERSHIP
Interesting content with loyal follower base
Large number of places in Vegas constantly seeking to promote
Charge $25 per 1000 impressions

9. NPV ANALYSIS
• Current Adoption Rate of VR:
• 1% Smartphone Market
• 5% of PlayStation Ecosystem
• Current total VR units sold: 15 million
• Projected Growth: 15-20% YoY
• Revenue sharing breakdown:
• NHL
• NextVR
• Samsung, Google, PlayStation
• Las Vegas Golden Knights
Initial Start Up Costs
Item Quantity Cost Each Total Cost
Cameras 12 200,000.00$ 2,400,000.00$
VR Install 1 250,000.00$ 250,000.00$
WaitTime App 1 500,000.00$ 500,000.00$
Total 2,650,000.00$
Annual Costs
Item Quantity Cost Each Total Cost
VR Staff 10 60,000.00$ 600,000.00$
VR Maintenance 1 100,000.00$ 100,000.00$
WaitTime Contract 1 150,000.00$ 150,000.00$
Total 850,000.00$
NPV of Opportunity
7,856,698.90$

10. DIGITAL MARKETING STRATEGY – DCF ANALYSIS
• WACC for this opportunity from: http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/wacc.htm
• Additional 1.5% added to WACC due to implied additional risk of a new franchise
DCF Analysis Time 0 2017 2018 2019 2020 2021
Initial Cash Outflow 2,650,000.00$
Revenues 1,083,089.00$ 1,245,552.35$ 1,432,385.20$ 1,647,242.98$ 1,894,329.43$
(Assumption 15% YoY Growth) 15% 15% 15% 15%
Expenses 850,000.00$ 875,500.00$ 901,765.00$ 928,817.95$ 956,682.49$
(Assumption 3% YoY Growth) 3% 3% 3% 3%
Project Profit 233,089.00$ 370,052.35$ 530,620.20$ 718,425.03$ 937,646.94$
WACC
10.42% 211,093.10$ 303,506.28$ 394,130.96$ 483,270.72$ 571,216.35$
(NYU Stern Avg for Recreation/Sport Organizations)
Long Term Growth Rate
3.50%
Profit Flow 2022
970,464.58$
Terminal Value 2022
14,024,054.69$
Present Value of TV 2022 Total Value Minus Start Up Costs
8,543,481.49$ 1,963,217.41$ 10,506,698.90$ 2,650,000.00$
Present Value Calculations
Present Value of Projected Cash Flows
NPV of Opportunity
7,856,698.90$