JD Sports Proposed Partnership Summary of Contents Partnership Goals Cycling Demographics and Sponsorship Benefit Customer/Employee VIP Race Programs Sponsor Exposure at Tour de Georgia and Other Multi-day International Events Community Involvement with Partner and Cycling Team Mentoring Network and Programs The Future of JD Sports The program is 3 years into a 10 year business plan in which the program is poised to reach new heights Years 4 and 5: the program will continue to grow into the dominant UCI Division III program in North America where it will become the top 3 US Based Team in its division Year 5: the Team will select specific overseas events in which it can support its sponsors needs in specific European markets Years 6 and 7: the program will execute a dual pronged approach and compete in both North America and Europe and expand to a UCI Division II program Year 7: the Team will look to be in the top five of the Division II ranked Teams in the world Years 8 and 9: the Team will build a UCI Division I program with the ability to compete in the worlds greatest professional events in both the US and Europe Year 10: the Team looks to compete in the most prestigious cycling event in the world, the Tour de France Become part of a program destined for success. The JD Sports program will both complement your companys Marketing and Community / PR goals with integrity and professionalism The Future of JD Sports Year 3 Top 8 US based Team, garnered 6 National Championships in three years along with 120 victories Year 4 Continue growth into dominant (top 2) UCI Division III US based Team Year 5 Program will contest specific overseas events to supports its sponsors marketing needs Year 6 Program will execute two pronged approach to compete in both North America and Europe and expand to a UCI Division II program Year 7 Team will be ranked Top 3 Division II Team in the world Years 8-10 Program will expand to Division I status and with goal to compete in the Tour De France by Year 10 Projected Budgetary Needs for Programs 2005 To accomplish business goals set forth Title Role -500,000 Projected ROI 6: rider Team, 5 Full Time Staff, 3 Part Time Staff Specific Marketing and PR Programs to assist in executing Partners Business Goals Top 3 US Based UCI Division III Program 2007 Total Budget-$1,000, rider Team, all programs include in 2005 business plan The Team will compete in select European Markets in order to maximize Partners Global Branding Strategies 8 Person Development Team Program 2006 Total Budget-$1,000, rider Team, all programs included in 2005 business plan The Team will compete in select European Markets in order to maximize Partners Global Branding Strategies 8 Person Development Team Program JD Sports Partnership with your Brand In 2005, JD Sports is poised for continued success and growth in the professional cycling arena. Corporate partnership with a respected, global company such as yours will strengthen our success and help us achieve joint community recognition, while also promoting the brand in the sport of cycling around the world. Cycling Sponsorship Benefits Build Your Brand Entertain Key Customers Reward Top Talent Increase Community Equity Increase Company Visibility According to Motorola, Sponsorship of professional cycling has provided [them] a unique opportunity for increased corporate identification, exposure and brand awareness. The program produced a 6:1 return on [their] investment. Target Preferred Customers By encouraging participation in races in select target markets, you can leverage team relationship and offerings. Merchandising and Sales Opportunities By licensing jerseys, caps, T-shirts and race related items you can advertise your brand and recoup a portion of investment. Entertain Clients, Employees, etc. Reward top talent by involving team members in employee events, give-always, etc. Also include community partnerships and customer activities. Create a Positive Image within the Community A study conducted by Georgia Tech showed that the Tour de Georgia (a target race by JD Sports) attracted 748,000 spectators and 120 pro cyclists to 23 Georgia cities and had $39 million of direct impact on the state economy. A True Year Long Promotion Professional cycling runs from January to December. Depending on budget, Be involved in the only professional sport in which Teams are 100% involved with its sponsors. (i.e., Team name, likeness) JD Sports could compete in up to 150 races in Europe, Asia, Africa, Canada, Australia and the US. Value Pro cycling is one of the best values in arena of International professional sports. Enter the world of professional sports marketing at a relatively low cost! Be the big fish in the small pond. Cycling sponsorship benefits JD Sports long history of clean racing and unyielding integrity closely matches its Partners business ideals Through ethical racing and our commitment to the community, JD Sports will uphold and reflect the Partners brand to potential consumers Your Company and JD Sports both seek to win by building global and diverse teams JD Sports employs innovative, educated, goal oriented riders with vision -- were building more than a team, were building future leaders Team members can be an integral part of your companys marketing strategy by promoting branded products and services on a one-on-one basis Matching the Brand Cycling Information Cycling Information and Demographics One of the most popular and fastest growing sports in the USA The second most popular recreational activity in the world There are more cyclists in the US than skiers, golfers and tennis players combined 65 million people attend professional cycling events annually U.S. Cycling Audience 90 million cyclists & enthusiasts in the U.S. Six million bicycle commuters in U.S. 250,000 competitive adult cyclists in U.S. One in every three Americans owns a bike U.S. Leisure Cyclist Demographics 85% are between the ages of % are between 25 and 44 55% are male 45% female 63% are professional managers 90% have attended college 39% have post-graduate degrees 52% rate their brand loyalty as high Median household income = $80,000 Community Focus JD Sports donates a portion of its winnings and time to help several charities across the U.S. Each rider volunteers to assist with community, hospital and school (i.e.: Boys and Girls Club) We can mold the organization to work in conjunction with partnership goals JD Sports will give the its Partners brand a powerful presence and personal feel in the community JD Sports has well educated Corporate Spokesman in the marketplace to educate and influence your customer base Community Programs On Site Product Programs Onsite kiosk and new product literature to your customers base, 5 million + spectators JD Sports will execute race day literature distribution and media schedules as well as hosting and clients relations during events. Your partners can experience first hand professional athletes in action. Riders will act as mobile sales and marketing staff executing programs across the entire US and Canada Marketing programs that are results driven for success, as a team we grow together Ofoto Exposure at Tour de Georgia and Other Major Races Your companys employees can meet / greet team before and after the Tour de Georgia (TdGa) and other International events, building business morale and awareness for incentive programs Media schedule planned prior to event with several high-impact charitable community events Strategize TdG race stages and cyclist for General Classification victory Team and your staff pre-ride stages with press to promote local fan base Maintain participation in TdG and other International events through team growth plan Televised Cycling Series * *A series is airing nationally on Fox Sports Net and is produced by representatives of JD Sports. The goal is to expose American cycling through the Board with the USCF and UCI, to advance cycling by improving scheduling and media exposure. Your Company will be offered 1-2 positions on board of the Cycling Series Airtime allocated to illustrate your brands involvement Networking opportunities in regional markets with government and local officials Onsite announcements and banners at premier races Your Companys employees can volunteer at race locations to be engaged and be part of the Team Sponsorship Programs Sponsorship Goals Your companys involvement will support the continued development of the team Team and its partners will work internally at improving race day kiosk and product related programs Effective long term plan to build team into international squad Your Brand name and logo on jersey, vehicles and website On-going reporting of campaign effectiveness and ability to constantly adapt programs to suit your current needs Employee rewards programs Team gear Health and Employee Clinic programs Camps Recognition in media and race announcements Sponsorship Benefits Title Sponsorship $ 350,000 Title Program Top 6 North American Based Professional Team 2 Top 10 Ranked US Based Rider 11 Rider Team 4 Full Time staff 4 Part Time staff 4 Fully branded vehicles 100 race schedule: North America 2 Potential Olympians Estimated impression value (based on historical documented values) over $2,300,000 1 st placement on all Team clothing, vehicles collateral All Team presence, colors and likeness will be that of the Title sponsors name and/or brand Weekly status report on impressions generated and effectiveness of particular programs executed Co-Branding opportunity with, Litespeed, Hansens Beverage Co and all team sponsors. Plus potential relationships with your strategic business partners Regionally based marketing programs for your satellite offices Race day on-site literature distribution: Sponsor tent, display banners 7 Race day Hosting opportunities: provided and scheduled with JD Sports Marketing kit managed by JD Sports and your company Title Sponsor contd Team logo branded clothing available world wide through web and retail based programs Employee discount on Team branded apparel and equipment 3 Corporate charity events 8 Youth mentoring and drug / charity awareness programs executed through-Boys Girls Clubs/Schools Wellness programs and training programs 1 Title Sponsored Branded national level race Your Brand Grand Prix 1 Team training camp for your employees 5 member Junior Development Cycling Team - find the next Lance Armstrong Sports Marketing contact internally at your company to oversee programs Co-Sponsor Minimum Commitment $175,000 Estimated impression value for 2005 (based on documented historical numbers) over $1,100,00 2 nd reference of Team in all media and collateral your company will always receive mention in Team name 2 nd placement on Team clothing and vehicles Team members available for Trade Events, Media and Company functions 2 Charity events executed by JD Sports in your companys name Co-Branding opportunity with, Litespeed, Hansens Beverage Co and all team sponsors. Plus potential relationships with strategic brand partners Race day on-site literature distribution: Your brand tent, display banners 5 Race day Hosting opportunities: provided and scheduled with JD Sports Marketing kit managed by JD Sports and your brand Bi-Weekly updated website provided by JD Sports Team logo branded clothing available world wide through web and retail based programs Employee discount on Team branded apparel and equipment 5 Youth mentoring and drug / charity awareness programs executed by Pros-Boys Girls Clubs/Schools Wellness programs and training programs 5 member Junior development Team in your companys name Sports Marketing contact internally at your brand to oversee programs Presenting Sponsor $ 85,000 Estimated impression over $550,000 (based on documented historical values) 3rd reference of Team in name Blank, Blank presented by Your brand Cycling Team 2 Race day Hosting opportunities Logo and Brand on all Team clothing, vehicles and media collateral Team members available for Corporate functions and trade shows and company Media events 1 Charity event executed by JD Sports in your companies name Monthly updates to program effectiveness and impression values Supporting Sponsor $20,000 Estimated Impression value over $100,000 (based on documented historical values) Logo and Brand placement on all Team vehicles, clothing, website 1 Race day hosting opportunity Team members for PR events, and Marketing promotions Team Background Team Members Erik Saunders Richmond, Va. - Team Capitan - US National Champion-Madison Dominique Perras Quebec, Canada - Canadian National Road Champion - 3 time World Championship Team member Team Members Jackson Stewart Los Gatos, Calif., U.S. - 4 time US Worlds Team member - Current US National Champion-Madison Andy Bajadali Sacramento, Calif., U.S. - 8 th place, 2004 US Olympic Trials Team Members Jason Bausch Huntington Beach, Calif. Nieko Biskner Santa Barbara, Calif. Jon Erdelyi Brick, N.J. Pete LaPinto Madison, N.J. Tim Larkin Phoenix, Ariz. Scott Zwizanski Spring City, Pa. Zac Walker Los Gatos, Calif. 2005 Racing Schedule-Geographical Highlights Downtown Grand Prix Merced, CA Ponoma Valley Stage Race San Dimas, CA Redlands Bicycle Classic & USCF Elite Road Nationals Redlands, CA Tour de Georgia Statewide, GA Athens Twilight Criterium Athens, GA CapTech Classic Richmond, VA Nature Valley Grand Prix Minneapolis, MN Charlottes International Invitational Charlotte, NC USPRO Criterium Championships Downers Grove, IL Chris Thater Memorial Criterium Binghamton, NY T-Mobile International San Francisco, CA Fitchburg Longsjo Classic Fitchburg, MA NYC Invitational New York, NY JD Sports Doping Policy JD Sports has a zero tolerance policy toward performance enhancing products Any rider who has not acted according to JD Sports anti-doping policy will be dismissed immediately without compensation All riders, pursuant to their contractual obligations with the team, must make themselves available for random testing administered by UCI and USA Cycling guidelines within four hours notice by Team Management Throughout the six years of existence and hundreds of medical control tests, no JD Sports rider has ever tested positive nor has any rider acquired from a previous team ever tested positive at any time All riders and staff are required to be intimately knowledgeable of any and all products banned by the governing bodies of professional cycling JD Sports Performance Enhancing Product Policies: The Clean Energy Team JD Sports has a zero tolerance policy towards performance enhancing products. Throughout the 6 years of existence and hundreds of medical control tests, no JD Sports rider has ever tested positive nor has any rider acquired from a previous team ever tested positive at any time. All riders, pursuant to their contractual obligations with the team, must make themselves available for random testing administered by UCI and USA Cycling guidelines within 4 hours notice by Team management. Any rider who has not acted within any of the guidelines above will be dismissed immediately without compensation. All riders and staff are required to be intimately knowledgeable of any and all products on the banned list, whether or not they where prescribed by medical personnel. JD Sports looks to incorporate its policies in an education program for young athletes in any sport, to mentoring about the dangers of performance enhancing products, and the they can win on Clean Energy. John Durso President 54 Burnham Road, Morris Plains, NJ Tim Chase Business Manager 3450 Sacramento St. #443 San Francisco, CA Contact Information Team Management JD Sports JD Sports and your Brand: Pulling Away From the Pack