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ELITE SKILLS ARENA

Elite Skills Arena is an innovative sports technology company, developing revolutionary training aids. Their main target market is the elite level of sport, but they have also adapted their pioneering technology for grass roots and intermediary sport. ESA use LED technology and vibration software to create an interactive and engrossing environment to reinvent football training. Their arenas focus on independent and small group training, enabling coaches to quantify and track improvement for players.

THE IDEA
Products & Services

Since ESA's first production level arena was finalised in April 2016, the growth of the company has been exceptional – turning over £236k between June & October 2016. This has been reflected within the company milestones. They are working with major European clubs such as Liverpool FC, have endorsement from pro's such as Adam Lallana and Jack Wilshere, whilst they have also featured in national news outlets. Additionally, they have a relationship with Tag Heuer for event purposes.

Problem Solved

When compared to other sports, football has been rather slow to react to the technology revolution in sport. ESA can bridge this gap with a training tool, specifically developed to aid match-specific attributes, fitness and rehabilitation. These arenas are a tool to develop players of all abilities in a concentrated environment, where improvement can be tracked and reviewed. Whilst challenging, crucially the arenas are competitive and enthusing to use, helping to create a practice culture at a club or academy where players attempt to beat their friends and heroes. All ESA's arena's are based around a mantra of repetition, the key to reaching the famed '10,000 hours' for mastering a skill.

Revenue Model

Initially, ESA's revenue model is direct sale & hire purchase of their state of the art training aids to elite clubs, academies, universities, and other facilities worldwide. Following success at this level, ESA will then diversify their revenue model to include rental (via franchises), sponsorship and event use, feeding off the publicity & credibility gained from their equipment being used by elite clubs. It is ESA's intention that within the next 12 months, they will have saleable products for a variety of other sports, building on the arena's already developed, which would create a further revenue stream. They are in discussions with professionals in shooting, hockey and basketball.

Exit Strategy

Our business model, coupled with this funding should allow us to scale significantly faster than our competitors. The peak of the company’s football operations is likely to come within the next 3-4 years, however, with the scope for further sports and commercial activities, the peak valuation of the company will occur in 5 years. We believe that a trade sale of ESA would be preferential at this point. The sale should be an attractive proposition for a sports brand or sports technology firm. Hawkeye Technologies was purchased by Sony in 2011, with profits of £1.8M for an estimated £20m, and we would expect to have significantly higher profits by this point.

Minimum Target £ 300,000 Maximum Target £ 500,640 Minimum Investment £ 1,000 Maximum Investment £ 500,640
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The Idea

Products & Services

Since ESA's first production level arena was finalised in April 2016, the growth of the company has been exceptional – turning over £236k between June & October 2016. This has been reflected within the company milestones. They are working with major European clubs such as Liverpool FC, have endorsement from pro's such as Adam Lallana and Jack Wilshere, whilst they have also featured in national news outlets. Additionally, they have a relationship with Tag Heuer for event purposes.

Problem Solved

When compared to other sports, football has been rather slow to react to the technology revolution in sport. ESA can bridge this gap with a training tool, specifically developed to aid match-specific attributes, fitness and rehabilitation. These arenas are a tool to develop players of all abilities in a concentrated environment, where improvement can be tracked and reviewed. Whilst challenging, crucially the arenas are competitive and enthusing to use, helping to create a practice culture at a club or academy where players attempt to beat their friends and heroes. All ESA's arena's are based around a mantra of repetition, the key to reaching the famed '10,000 hours' for mastering a skill.

Revenue Model

Initially, ESA's revenue model is direct sale & hire purchase of their state of the art training aids to elite clubs, academies, universities, and other facilities worldwide. Following success at this level, ESA will then diversify their revenue model to include rental (via franchises), sponsorship and event use, feeding off the publicity & credibility gained from their equipment being used by elite clubs. It is ESA's intention that within the next 12 months, they will have saleable products for a variety of other sports, building on the arena's already developed, which would create a further revenue stream. They are in discussions with professionals in shooting, hockey and basketball.

Exit Strategy

Our business model, coupled with this funding should allow us to scale significantly faster than our competitors. The peak of the company’s football operations is likely to come within the next 3-4 years, however, with the scope for further sports and commercial activities, the peak valuation of the company will occur in 5 years. We believe that a trade sale of ESA would be preferential at this point. The sale should be an attractive proposition for a sports brand or sports technology firm. Hawkeye Technologies was purchased by Sony in 2011, with profits of £1.8M for an estimated £20m, and we would expect to have significantly higher profits by this point.

The Market

Market & Competition

Expected global total revenues from football are nearing $30bn per annum, with over 75% of this revenue coming from Europe. Between 2016 and 2021, growth in the global football market is expected to be driven by emerging markets. These include the USA and China, two key markets for success. Alongside direct sales and rentals to clubs and facilities, there are several other avenues to be explored such as toys & alternative sports.
At present the competition comprises two large scale training devices, the Footbonaut and 360s. Both of which retail at well over £1m and are fixed structures installed at an estimated 4 clubs worldwide. Other than this, there is nothing as advanced on the market.

Funding Details

This investment will accelerate the upscaling of ESA's operations, with a particular focus on trackable marketing campaigns. This will enable them to capitalise on a variety of opportunities at the elite level of football. They will include promotional media releases, global events and further partnerships with agents and distributors to cover further territories. A small amount of the investment will be used to enhance their mobile application, allowing a player to see detailed graphs of their own improvement with downloadable analysis for coaches. As our financial forecasts reflect, we predict ESA will become self-sufficient after this round of funding.

This pitch will only be able to close if it hits its minimum target. If it does hit its minimum target, it will then fund until it hits its maximum target or until the pitch end date, whichever comes first.

Other Info

“At the elite level of professional football, the tiniest margins translate into multi-million sums being added to or subtracted from bottom line revenue figures and every possible advantage that can be gained needs to be exploited. It is as simple as that!”- Eamon McLoughlin. Fortitude Sports Management (2016) speaking about ESA.
Many clubs have cited how the use of the ICON is integral to promoting a practice culture among academy prospects. Edd Vahid, Head of Coaching, Southampton Football Club Academy, who are trialling the tool this season said “The involvement of the ICON is reflective of our efforts to be forward thinking in our approach to player development.”

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