DealBox | Rugby Stars

Rugby Stars

The Rugby Stars experience will go beyond the play on the pitch. Our curated and dynamic sports-entertainment experience is designed to blend competition with fan influence and behind the scenes access to the action.

  • Company Type
    Sports, Entertainment
  • Company Location
    Orange, CA, USA
  • Company Website
    https://www.rugbystars.com
  • Company Contact
    lars.havens@gmail.com

  • Offering Type
    Digital Securities
  • Round Classification
    Bridge
  • Raise Amount
    $500,000
  • Maximum Offering
    $500,000
  • Minimum Investment
    $25,000
  • Price Per Lot
    $1.00
  • Offering Exemption
    Reg D Rule 506(c) - Accredited Investors Only
  • Terms
    50% Discount to Series A
  • Conversion
    1 Digital Security : 1 Share Common Stock
  • Campaign Run
    09/23/2019 - 07/31/2021
Overview Our Vision Market Opportunity Competitive Landscape Strategy Corporate Governance Investor Presentations

Rugby Stars (the “Company” or the “League”) is being developed to provide sports fans and enthusiasts with a more engaging and entertaining sports experience with the fastest and hardest hitting style of rugby being played today.

The initial format for the League will feature 11 festival-style events that will be played both in the United States and internationally. Events will be live streamed to viewers in 4k movie quality video. And our FanZone platform application will provide consumers and fans an unparalleledlevel of access to the teams, players and community that collectively make up the Rugby Stars ecosystem.

In the last decade we have seen the value of successful sports leagues, and related franchises skyrocket, and generally outperform conventional investment markets.

In 1981, Former Los Angeles Clippers owner Donald Sterling purchased the San Diego Clippers (now Los Angeles) for $12.5 million. In 2014, he sold the team to Microsoft executive Steve Ballmer for $2 billion. Fortunes can be made investing in successful sports leagues and franchises.

As in any league and/or franchise system, the value comes down to a number of key elements:

  • Structured brands carefully protect the integrity of the overall association with NFL, Major League Baseball, NBA, etc.
  • Training and processes which provide high levels of performance and also consistent customer experience.
  • Strong value-add from a strategic standpoint, all leagues provide TV, digital, branding and revenue sharing opportunities and royalty sharing from ongoing market growth.
  • A never-ending focus on the end consumer – making sure that the customer interest in the product is increasing and maintained in order to keep the franchisee’s business increasing and strong demand for the product.
  • Supply and Demand – each of the professional sports franchises have a limited amount of opportunities for people to join the franchise brand, this drives up market value.

Rugby has claimed the title as the fastest growing sport in America. More than a hundred thousand players are registered with the governing body, USA Rugby, and there are nearly 800 college teams. The Collegiate Rugby Championship attracts an estimated 30,000 attendeesn each spring and the Varsity Cup is broadcast nationally by NBCSN.

We believe the timing is right for the introduction of a professional rugby league in the U.S. which, from the very start, is catering to an international fan base, delivering a better product and a better fan experience than any competitive rugby product in the market to date.

We have identified the following components to successfully achieving this goal:

  • Putting a better product on the field, and in the living room
  • A large and global addressable fan base
  • A compelling strategy to deliver content and engage with that fan base
  • A model that takes the best of conventional sports & entertainment leagues in the market today and combines that with the most compelling aspects of the burgeoning
    esports market

We are offering qualified investors the opportunity to own a share of the next great sports league catering to one of the largest fan bases in the world.

Estimates for the global sports market value are approximately $480 billion in 2018 and expected to grow at a CAGR of 5.9% to approximately $614 billion by 2022. 2 North America accounts for 30.5% of the global market, followed by Western Europe and Asia-Pacific.

Key Drivers include increasing sports sponsorships, growing popularity of eSports, economic growth, an increase in the number of internet accessible devices and the emergence of multiple sports channels to capture viewership.

According to World Rugby, more than 9.6 million players compete in rugby’s member unions around the world, Women participation is helping to fuel growth with a 28% increase in the number of registered players.

More fans are engaging as well, with 534 million online views of world rugby tournaments in 2018. In key tournaments, 100,000 fans attended three days of Rugby World Cup Sevens at AT&T Park in San Francisco while an average of 1.365 million viewers watched final day coverage on NBC. 3

Rugby Fan Demographics According to a recent global web index survey:

  • The average rugby fan is 35 years old and 1.7x more likely to be in the top 10% income bracket
  • TV sets dominate their viewing habits, but nearly half watch rugby online; They are social media savvy and engaged
  • 47% visit / use What’s App more than once a day, 38% use Facebook more than once a day, 35% use YouTube more than once a day and 28% use Instagram more than once a day
  • 3 in 10 say watching / following sports events is a main reason for using social media
  • 34% follow sports stars on social media
  • 30% watched a sports video on YouTube in the last month
  • 18% commented on Facebook about a sports event while watching in the last month
  • 14% Tweeted about a sports event while watching in the last month
  • 1.7x more likely to have posted a sports-related opinion online. These fans are also fans of esports
  • 33% watched a live gaming stream in the last month
  • 28% watch an esports tournament in the last month
  • They’re also 1.8x more likely to have played a sports video game in the last 12 months (42% have).

In the U.S. rugby is building momentum. Since the last World Cup in England in 2015, the U.S. men’s 15-a-side team, the “Eagles” has reached as high as No. 12 in the world, after winning nine international “test’ matches in a row. In “sevens”, the seven-on-seven form of rugby played in the Olympics, the U.S. men are joint-best in the world with the New Zealand All Blacks. The U.S. women are No. 2.

Despite the budding success competitively on an international scale, and the rise in participation and interest, rugby has been unable, as a professional sport, to gain any traction in the U.S.

The first attempt, PRO Rugby, failed in its first season. Major League Rugby began its first season in 2018. The league currently consists of 12 teams, with three additional clubs are slated to join the league in 2020. The league operates as a single entity, similar to Major League Soccer, with each team or “franchise” owned by the league and the franchise operators owning a share of the league.

Attendance is modest. With the all-time high of 9,186 at Rio Tinto Stadium being hit in a pre- season game between the Utah Warriors and the Glendale Raptors. Since then, in season play, the highest game attendance of 6,000 was reached in June 2019 at the Final event in San Diego between the San Diego Legion and the Seattle Seawolves.

Despite the soft numbers, MLR has been able to sign media deals with CBS Sports Network, ESPN, AT&T and COX which provide the league with access to national and international audiences.

Due to the current COVID-19 environment, sports leagues on a global basis are adopting, and many are offering their products in the form of compressed seasons and business models that rely less on game day attendance. We intend to follow a similar strategy in 2021, with a mini-season format, compressed into 12-weeks, which will be held in Las Vegas and streamed live globally every Saturday. The advantages to this approach is that it will enable us to prove our value proposition, and the quality of entertainment that we put on the field with a reduced budget, while our business model caters to online and social media engagement that is insulated against risks related to game-day attendance and requirements for social distancing. In addition, because we are hosting the entire season in Las Vegas, we will be able to insulate our players, coaches, trainers and related league employees from exposure to COVID-19. The NBA has proven that this ‘bubble’ environment can be extremely effective.

Coming Soon.