Fantasy Sports Social Network

January 12, 2016

OWNERSHIP

Business name: Maximum Fantasy Sports

Company URL: www.maximumfantasysports.com

Owner: Bill Parsons

Business Address: 3501 N. Southport Ave #104 Chicago, IL 60657

Telephone: (773) 531-4294

E-mail: bill@maximumfantasysports.com

INVESTMENT OPPORTUNITY Connecting fantasy sports players socially in

a focused environment over a common platform.

Our Mission To bring together fantasy sports players into one environment for education/exposure to the industry, collaboration and bonding to facilitate league assembly while providing a unique fantasy sports gaming environment as a source of entertainment to fulfill a gap in the industry. Introduction Since inception, Maximum Fantasy Sports (“MFS”) has strived to provide an innovative solution to the fantasy football community for creating unique fantasy leagues and pools. In an advertising arrangement, that has since ended, MFS developed a social network for connecting league players and fans for the Lingerie Football League. It is time to repurpose the social network for connecting fantasy sports participants and fantasy sports companies. MFS is solely owned and operated by me with a third party development company providing IT consulting services. Fantasy Sports and the Customer Base In 2015, there were 56.8 million people playing fantasy sports in the USA and Canada alone, as estimated by the Fantasy Sports Trade Association, though it is a worldwide obsession. This represents a 37% increase over 2014. 73% of those participants favor football as their preferred game over the other sports. The majority of the 2015 increase can be attributed to the rise in popularity of short-term leagues, often referred to as “DFS” leagues; Daily Fantasy Sports. This number is expected to continue to rise, especially when reviewing fantasy sports globally.

Competition Each individual offering from MFS has a behemoth or two to contend with but no direct competition as a whole. In the DFS space, FanDuel and DraftKings own the lion’s share of the market with Yahoo a distant third. In full-season leagues, CBS, Yahoo and ESPN have the majority of the customers. There is no true sports social network but, for fantasy sports discussions, Facebook and LinkedIn have Groups and numberFire.com has built-in message boards along with their fantasy leagues and FantasyFootballCafe.com and TheHuddle.com and are strictly forums. For pools, there are many small sites, but RunYourPool.com and OfficeFootballPools.com get mentioned often.

Competitive Advantage MFS offers Daily, Weekly, Monthly and full-season Public and Private fantasy football leagues as well as Survivor, Confidence, Pick em and Squares Pools. No other company offers all of those games. On top of that, each game has unique features that no other company that offers a similar game possesses. A few fantasy sports companies have Message Boards/Forums internal to their website but no full-fledged social network. Growth Strategy MFS has built its customer base organically for the most part. Very little has been invested in conventional advertising. I would like to change the design of the fantasy sports social network to cater to all fantasy players, regardless of what website they play on as we can position advertising focus throughout the site to tout MFS and increase membership indirectly. By bringing in the masses, the traffic will be substantially more so we will have the metrics to attract additional advertisers. Increased advertising revenue and increased fantasy league fee revenue will be the immediate return, but MFS can also be White-labeled so I would like to see that marketed as a product offering to others wanting to enter the space as well as national food and bar chains to help attract customers during games shown at their locations. Down the road, the current code base for the social network can be used as a product on its own for non-fantasy sites. Any type of league could license space for its teams and players.

INVESTMENT OPPORTUNITY Connecting fantasy sports players socially in

a focused environment over a common platform.

Social Network Hierarchy

Business Operations Site members would be able to be Fans of Sports, Fantasy Games, Writers and Companies. I see no reason to restrict information about other companies but to not build in any hooks without a fee, except for MFS. Being able to get information about how to play certain Fantasy Sports, where to play the games and having friends with similar interests to play with is a big void currently, especially for the 15 million people who recently entered the market to try out DFS and are looking to expand beyond DFS into other games. The network would provide a meeting place for folks looking to join leagues with others, challenge Friends to Head-to-Head DFS matchups, brag about their team, and overall information sharing. Unknown Risks DFS leagues are being heavily scrutinized right now but the expectation is that states are looking for a way to regulate websites that offer these leagues, not prohibit them. Early indications are that new regulations will be introduced for additional Truth In Advertising rules, segregation of DFS funds, fantasy contest fairness guidelines, and checks on winners’ external monetary obligations, such as child support or tax liens, before paying out prize money. New regulations could benefit the industry as there are five states that currently do not allow any form of fantasy sports with cash prizes and clarity in the industry could spur these states into relaxing their restriction and allowing their residents to play fantasy sports for cash prizes.

Advertising Opportunities I would prefer to have a resource available to put together an advertising plan as IT is my background, not advertising. SEO is also needed to help effectively drive search traffic. A few avenues that I have in the hopper already are that I have been asked to be a speaker at a Daily Fantasy Sports Expo in Miami in March and I could roll this project out there for the first time. I have had discussions with a few radio stations in major markets, including the iHeartRadio conglomeration, about having our own fantasy sports show, and I have a booth reserved for the National Fantasy Sports Convention (https://gonffc.com/) in LA in July 2016. This is Tony Romo’s convention that was stopped by the NFL at the last minute last season so it will receive a lot of press this season. Current MFS Metrics MFS has 74,000 registered users with 15,000 active this season. Many of the inactive members are active on competitor sites and could be reclaimed via the introduction of the social network. MFS Revenues jumped from $25k to $100k with minimal advertising in 2015 with the introduction of DFS leagues. Investment Opportunity I am looking for a $500k investment for 40% of the company to provide funds for development changes to the existing social network code base to focus on fantasy sports plus additional resources to perform customer service/moderator, SEO, sales and advertising. Ultimately, I would like to sell to a larger company with full-time resources that I could manage.