Fall

G&N Sports

Greg Armstrong and Nicole Birsner

Business plan for an Orlando-based sports agency

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Executive Summary
G&N Sports will be a sport agency located in Orlando, Florida. This agency will sign up and coming sport stars looking to
start their professional careers. G&N Sports is a company started by two people with over ten years experience in the sport business
world. G&N Sports will not only focus on athletes with undeniable talent but also athletes that are marketable outside of their
respective sport. This will allow the business to acquire mid-round to late-round athletes that are able to branch out beyond their sport
to improve their brand.
The founders of G&N Sports will contribute $15,000 to the venture while seeking a $100,000 bank loan. The loan they will be
receiving will be a 10-year loan with 9% fixed interest rate.

Objectives
G&N Sports will provide representation, consulting, counseling, and media relations to various types of aspiring pro and pro-athletes.
The objectives are as follows:

Receive a 10-year, $100,000 loan from the bank to start the business.
Rent out an office space where the business operations will be based.
Hire two agents with different sets of skills to fit the needs of various athletes.
Provide sponsorship opportunities to signed athletes.
Build G&N Sports reputation to increase brand awareness.

Business Structure

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G&N Sports will be a for-profit business structure like all other sport agencies. The two owners will have a general partnership where
the business is split 50%/50%.

Location
G&N Sports Agency
520 N. Semoran Blvd., Suite 230
Orlando, FL 32807

The office space is 1,045 square feet and would be $1,393 per month. A picture of the office can be seen in Appendix A.

Industry & Competitive Analysis

Market Analysis
The main target market will be mid-low round draft picks in professional football, basketball, and lacrosse. High round draft
picks of any sport is an unreasonable expectation for a brand new sport agency with no high profile agents. However, because G&N
Sports is a smaller agency they will be able to provide more attention to individual athletes. They also need to increase the reputation
of their company and will therefore be more dedicated to the success of each athlete.

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Additionally, G&N Sports is looking for uniquely talented athletes outside of their respective sport. Therefore, if a player were
only interested in playing their sport, the agency would not necessarily look at signing them to a contract. Players are looking for addon value, which include but is not limited to spots on a TV show, a rap CD, commercials, public appearances, speaking engagements,
online ventures, broadcasting and even producing (Ventre, 2006). The company will make sure to put the players in the best position
to acquire these business deals outside of their sport. These business deals/sponsorships are meant to last longer than the average
career in the National Football League, which is only three years.

Competitive Analysis
According to SportsAgentBlog.com, Florida has 25 different sport agencies. However, none are located in Orlando, Florida.
This can be seen on the map provided in Appendix B. Due to the amount of agencies located in Florida only Team One Management,
IMG Sports, and Paramount Sports & Entertainment will be focused on in the competitive analysis.
Firstly, being the one of the few sport agencies based in Orlando can be both beneficial and detrimental to a startup company.
Basing G&N Sports in Orlando allows for the company to establish itself as its own, established brand. If it were based in Miami with
the myriad of other sport agencies, it would be harder to be remembered because all the other agencies are established. Being based in
its own city allows G&N Sports to separate itself from its competitors and become the sport agency of Orlando.
Team One Management is a sport agency located in Tampa Bay, Florida. They represent athletes in all aspects of their careers.
They use affiliate companies to help athletes in any way they need. This company is similar to ours as their main office is located in

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Florida and is not like the many others who just have offices in the state but are based out of New York or Los Angeles. They sign
many female athletes to contracts, which should not be a problem for G&N Sports. G&N Sports plans to focus on signing male
football, basketball, and lacrosse athletes. Therefore, we will not have to directly compete with this company. They are still a sport
agency with a reputation that G&N Sports does not have, which will still be a problem.
IMG is one of the biggest talent agencies in the world. They not only represent sport stars but also broadcasters, fashion
figures, and other entertainment figures. Their wide range of expertise along with their strong financial position proves hard to
challenge. Agents at IMG will be looking to sign athletes projected to be drafted in the first few rounds. This will prove to be
beneficial to G&N Sports as they are looking to sign mid-low round draft picks. IMG will most likely not be trying to sign any college
athletes that are projected to go in the lower rounds.

Financial Analysis
Revenue/Expenses Sources
As with every other sports agency, our revenue will come from the athletes we represent. Since we
are a new agency in the area, it will be difficult to get the big-name athletes in the respective sports we
are planning on representing. As an agency, we are not looking to make quick cash and sign an athlete for
a one and done deal. Instead, we hope to acquire a variety of talent that will leave a lasting impression on

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G&N Sports. The opportunity for increased revenue will be greater once we have a brand identity and our
sustainability is not a question.
Our sources of revenue will come from a couple of places. For starters, it will come with the athletes
initial rookie contract. G&N Sports has the right intentions and goals as a business to keep the athletes
who initially sign with us. With that in mind, the next contract is where we will additionally generate
revenue. As with most agencies and agents, the majority of revenue comes from sponsorships. Once our
athletes make it to the professional level the opportunity for sponsorships becomes greater. It is all based
on where our athlete gets drafted, how well they play, likability, etc. which are unfortunately mostly out of
our control. The plan for the first year is to sign three different athletes, one for each of the sports that
G&N Sports represents: the NFL, NBA, and MLL, and to have each of these athletes sign at least one
endorsement deal. The revenue G&N Sports will receive from commission from player contracts and
endorsements for 2017 is $655,290 (TheFinanceResouce.com, n.d.). A further breakdown of the sales
forecast for 2017 is included under Short Term Forecasting.
Our expenses will come from a multitude of sources. They will mainly come from payroll, especially
with the direction we want the agency to head. That would be roughly $243,000 for the first year. Another
big expense will come from professional fees and licensure that are non-negotiable. That would run us
around $25,000 in the first year. Rent and utilities will also be a big expense. The area we picked is not the

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most expensive office space but it is at a reasonable price and enough to show others we are a legit
agency. That will run us $16,176 per year. The other expenses will come from marketing, insurance, travel
and vehicle costs, general and administrative as well as some miscellaneous costs that will inevitably
come up throughout the course of the business. The final total of operating expenses for the first year will
be $348,328. The final expense area will include an interest expense for the loan of $9,000 a year and an
income tax expense.

Financial Planning, Projections, Capital Needs

Since we are starting out from scratch, the initial $15,000 that we put up ourselves to go along with
the $100,000 bank loan will not be enough to cover all the startup expenses. Based on our expenses,
which will amount to $348,328 in the first year, we will need an additional $233,324 from our projected
profits to cover them.

Short-Term Forecasting

As shown in the graph above, these are the worst-case sales, the most likely sales, and the best-case sales for the first year. The
most-likely sales are the revenue numbers for G&N Sports. Endorsements are based off the 15% in commissions that agents get from
endorsement contracts and the fact that the MLL would give less in endorsements than the NFL and NBA Gentile, 2016). The
commission for the MLL contract is based off the average yearly salary for a MLL player with a 3% commission (Connors, 2012). The
NFL does not allow sport agents to make more than 3% in commission on player contracts and the rest of the sales were split among
the NFL and the NBA because those organizations tend to have more money to give to players (Sports Management Worldwide,
2016).
Long-Term Forecasting

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Long Term Sales Forecasting
900,000

820,000
778,550

Money

740,000

660,000

714,266

655,290

580,000

500,000

2017

2018

2019

Year

As shown in the graph above, it is forecasted that the amount of sales that happen at G&N Sports will increase through the first three
years.

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Budgeting for the Future
G&N Sports Future Net Income
200,000

178,000
164,129

Money

156,000

148,165

134,000

112,000

90,000

112,586

2017

2018
Year

Goals & Objectives

2019

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Sources of Capital
The $15,000 that we will split to initially invest in the business will primarily cover aspects such as licensure and professional
fees. The $100,000 we will get in a loan from the bank will cover everything else. Since we are just starting out, our payroll and taxes
associated with it will not be astronomical. The other expenses will initially be high compared to other agencies in the industry, but
will eventually level out over time. The revenue gained from signing more athletes will provide more sources of capital for G&N
Sports in order to pay for the initial start-up costs and to continue to expand the company.

Capital Growth
The investment G&N Sports has made into the organization and the unique approach in handling clients will result in good
word of mouth throughout the industry and will increase in brand identity as well as brand equity. Obtaining this foothold in the
market will increase the caliber of athletes that G&N Sports will be able to sign and the value of the organization allowing us to
compete with other agencies. Our innovative approach to advertising in todays digital landscape will also yield positive results for our
business moving forward.

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Pro Forma Budget

Balance Sheet

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Cash Flow Statement

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Income Statement

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Summary
G&N Sports will be a sport agency aiming to sign up and coming stars being drafted into the NFL, MLL, and NBA. G&N Sports will
be looking for athletes that have appeal outside of their sport. This will make them more marketable to increase their brand. In order to
start a successful business, G&N Sports will receive a 10-year loan of $100,000 with a fixed interest rate of 9%. They will also
contribute $15,000 of their own money to the business. G&N Sports plans on a net income of $218,487.02 the first year with it
gradually increasing over the next two years.

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References
Agencies By State. (n.d.). Retrieved November 25, 2016.

Connors, R. (2012, June 29). MLL: A League Unlike Any Other - Lacrosse All Stars. Retrieved November 25, 2016.

Fried, G., Shapiro, S. J., & DeSchriver, T. D. (2003). Sport Finance (Third ed.). Champaign, IL: Human Kinetics.

Gentile, M. (2016). The Average Sports Agent's Commission. Retrieved November 25, 2016.

Sport Management Worldwide. Sports Agent Salaries. (2016). Retrieved November 25, 2016.

TheFinanceResource.com. (n.d.). Free Sports Agency Business Plan. Retrieved November 25, 2016.

Ventre, M. (2006, July 6). Agents get their game on. Daily Variety. Retrieved November 21, 2016.

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Appendices
Appendix A

https://www.google.com/maps

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Appendix B

https://www.google.com/search?q=google+maps&oq=google+maps&aqs=chrome.0.0l2j69i60l3j0.1741j0j7&sourceid=chrome&ie=UTF8#q=florida+sports+agencies&rflfq=1&rlha=0&rllag=26903178,-81282066,164217&tbm=lcl&tbs=lf:1,lf_ui:2,lf_pqs:EAE

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