The first 14 days of our Title III regulations Crowdfunding offer has been both exciting and successful. In the first week, our initiative had one of the most successful first weeks ever offered on StartEngine. Clearly, fans see the opportunity an AUDL investment provides and many more are doing their due diligence. As a part of that process, the following questions have surfaced.
The AUDL Reach and Culture
Over the last six years, the AUDL has successfully developed a substantial fan base and engaged online and social media audience. In addition to the hundreds of thousands of followers on our social media, nearly 100,000 fans enjoyed our exciting regular season, playoff and Championship Weekend games in 2017. They enjoyed unique access to players in pregame clinics and extensive post game interactions with fans – including various structured activities like autographing hats and discs for young kids excited to meet their idols. It’s a unique part of the culture.
Why is the AUDL Pursuing a Title III Regulation Crowdfunding Offer?
As a part of our ongoing business plan, the primary business goal of the league in 2018 is to now increase revenues. Our focus will be to do so by monetizing our digital content and attracting larger sponsors on both a national and regional basis now that we’ve achieved initial levels of critical mass. While millions of college, club and recreational players love and support our game, there are HUNDREDS of millions of sports fans in the US and abroad that have likely never heard of Ultimate. The opportunity to bring the game to more fans and potential sponsors who share our core values has arrived and we will commit a portion of the revenue generated to expand the game to this greater sports audience, specifically targeting the growing millennial audience we continue to work so hard to develop.
Use of Proceeds
As outlined in our Offering Memorandum under “Use of Proceeds”, approximately 2/3 of our maximum raise will be spent to increase the marketing of group ticket sales, national and regional sponsorship procurement. In addition to the direct revenue the league will attract from national sponsorships, it will also generate commission revenue on the regional sponsorships the league generates for the teams. The remainder will be used to increase working capital.
More Owners Creates a Powerful Multiplier Effect
Today, the ownership of the AUDL is highly concentrated. As detailed in the “Ownership” section of our Offering Memorandum, the top three investors in our Series A Common Units represent 93% of the ownership of the league. You can see how these major investors have continued to invest in the league’s development in the “Timeline” shown in our Investment Overview. There are also an average of 2-3 owners of the individual teams, approximately 75 total.
Now, imagine if we increase the size of this community by 10 times or more to 750 - 1,000 new league owners who become advocates of the league spreading the word to potential fans and sponsors. The reach becomes exponential as they share the opportunity this sport has to break away from the pack now.
While owners of Series B Units will not hold voting rights, we anticipate this group will be passionate about Ultimate and offer a tremendous amount of experience and input that will be beneficial to the future of the league. Accordingly, we plan regular interaction with the Series B Unit investors and intend to provide direct access to our marketing team, our ownership group and even our players. Stay tuned for more on this topic.
Join Our Community of Owners
As you can see, there are many benefits to offering a Title III Reg Crowdfunding initiative rather than raise more money from a small concentrated investor base. It allows us to grow a tremendous ownership base who are invested in our success and who become a legion of advocates for the league.
If you share in our passion for Ultimate and are interested in helping us on this incredible journey, we hope you chose to join us by investing in the American Ultimate Disc League!
We leave you with some some exciting highlights from Saturday's AUDL Game of the Week on Stadium!