Jul 20, 2009
SMDI is an owner and operator of live sports & entertainment events and businesses that include sports events, concerts and talent representation. SMDI receives revenues from corporate sponsorship, television broadcast fees, advertising, tickets, concession, merchandising and hospitality functions.
Stratus Media Group, Inc.
8439 Sunset Boulevard
2nd Floor
West Hollywood, CA 90069
Phone: 323-656-2222
Market Data
Price: $2.02
Out Shares: 57,690,000
Market Cap: 116.5 Million
Exchange: OTC BB
Stock Chart
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Overview
Stratus Media Group, Inc. seeks to: (1) fund acquisitions (2) expand operations and sales force (3) legal and accounting cost. SMDI is an owner, operator and marketer of live sports and entertainment events. SMDI is an emerging player in a $56.6 billion segment of the $354 billion Sports and Entertainment industries. The company is based in Los Angeles, California with office in New York, NY and Geneva Switzerland. Revenues are projected at $35.5 million for 2009 (based solely on existing owned properties) and $91,510 (based on existing owned properties combined with target acquisitions).
SMDI is an owner, operator and marketer of live sports and entertainment events. The company was founded in 1998. Headquartered in Los Angeles, California, SMDI currently owns live sports and entertainment events properties in the following areas:
1. Running Events- Track & Field
2. College Sports- College Football Bowl Games
3. Motor Events- Auto Shows, Racing, Auctions and Motor Cross
4. Concerts & Music Festivals- Jazz / Soft Rock Music
5. Trade Shows & Expos– Health/Sports Expos
6. Action Sports- Extreme Sports
7. Food Entertainment- Food Venues and Functions
8. Affiliate Marketing– Stratus Pro Sports &Rewards / Visa
SMDI owns 100% of all revenue sources and generates revenues from various sources including:
• Ticket / Admission / Entry Sales
• Corporate Sponsorship
• Television, Radio and Streaming Video Broadcast Rights Fees
• Event Merchandise
• Concessions & Parking (subject to negotiation with stadiums)
• Hospitality Activities
Stratus Media & Rewardsis a fully owned subsidiary of SMDI, providing a lifestyle concierge management and entertainment membership club, credit card and rewards system created expressly to support and enhance the affluent lifestyle. Pro Sports &Rewards offers the first credit card reward program built on private lifestyle entertainment. Pro Sports &Rewards is a reciprocating rewards program providing VIP access to premier events for commercial and consumer clientele driving value to corporate partners and sponsors of SMDI events. Corporate partners include Net Jets, Ferrari, Mercedes Benz, Molina Fine Jewelers, Abercrombie & Kent .
SMDI believes it can build a highly profitable business by leveraging operational efficiencies across a portfolio of events while increasing revenues from ticket & participant sales, corporate sponsorships, media broadcast fees, merchandise sales and talent management fees.
Business Strategy
SMDI is commencing a roll up of sports and live entertainment companies with the following criteria.
• Event or Company must be profitable or have a clear path to be profitability.
• Event or Company must own 100% of its revenue rights, i.e. Trademarks, Sponsorships, Tickets/
Entries, Merchandise, Broadcast Fees etc.
Their business provides economies of scale by sharing centralized resources to support multiple events creating greater cost efficiencies by utilizing expert operation, marketing and sales teams and diversifying cost over multiple events. In addition, companies appreciate the opportunity to associate themselves with a larger portfolio of events owned and operated by one professional company and are willing to pay a premium to secure sponsorship, hospitality and television rights in response to a preferred level of performance and to keep their competitors out. This premium provides SMDI an average 30% - 36% ROI on already profitable sports and live entertainment events.
By merging identified targets SMDI could achieve a dominant market share of the “live entertainment” business sector. The Company will utilize a part of this Private Placement to secure additional profitable and full owned North American live entertainment companies. SMDI intends to have considerable market share dominance before looking at global acquisition opportunities which may take up to 3-4 years.
The Sports and Entertainment businesses combined account for over $354 billion in annual revenues. This is a large and highly fragmented playing field with tens of thousands of event properties primarily owned and operated by local and regional entrepreneurs. In the late 1990’s, several companies launched consolidation efforts in the live entertainment business sector. One of the companies, SFX, was extremely successful in doing a $256 million IPO in 1998 and 14 months later was acquired by Clear Channel Communications for $4.4 billion. By 2000 there were three major companies – Clear Channel Communications (Owner of SFX), Interpublic Group (Owner of Octagon, Magna Global Entertainment), and International Management Group (IMG).
Leadership
Paul H. Feller, Chairman & Chief Executive Officer
Mr. Felleris a senior executive with 15 years of experience of management, marketing, operations, and strategic planning of sports and live entertainment events and companies. Mr. Feller has
successfully operated, marketed and promoted professional and amateur sports events and live concerts in Europe, Asia and the USA. Mr. Feller attended Purdue University for a B.S. in Mechanical Engineering and has taken a hiatus from completing his Jurist Doctorate from Columbus University
Law School while completing his MBA at Pepperdine University.
Andy Roundtree, Chief Operating Officer
Mr. Roundtree brings 33 years of live entertainment operations and finance expertise. Mr. Roundtree most recently held the position of CFO and Vice President of Operations and Administration of The Walt Disney Company / Disney Sports where he accomplished the unprecedented 6-month start-up of the Mighty Ducks of Anaheim (1993) and the Anaheim Angels (1996) $130 million acquisition plus a $118 million renovation of Anaheim Stadium, a new stadium naming rights contract (Edison International) and new sponsorship contracts. Mr Roundtree was the Controller at Euro Disney Theme Park and Resort, Paris, France (1990- 1992) in which he was selected by Disney U.S. Corporate
executive management to organize, staff and train and manage the financial and operational department. Mr. Roundtree holds a BS in Economics with Accounting Emphasis, Cum Laude;
Claremont Men’s College and is a Certified Public Accountant, State of California.
John Moynahan, Senior Vice President and Chief Financial Officer
Mr. Moynahan has been a treasurer for four years and CFO for 13 years of publicly traded companies ranging from development stage to a billion dollars in annual revenues. Mr. Moynahan received a B.A. from Colgate University, where he was elected to the Phi Beta Kappa honor society, an M.B.A from New York University and a C.P.A. from New York State. Mr. Moynahan is also a co-inventor on five issued U.S. patents and over 100 corresponding international patents.
Mark L. Livingston, Vice President, Sales and Marketing
Mr. Livingston has over 15 years in the sponsorship sales, sport and entertainment and media management fields. In addition to working on select real estate developments, Mr. Livingston launched the very success Brand Alliance/Partnership Marketing group at Westfield shopping
centers in the U.S. Prior to that he helped create the highly successful Vans Triple Crown series. Mr. Livingston holds a BA in Communications, Cum Laude, from Saint Mary’s College of California.
Billy Kelly, Vice President, Business Operations
Mr. Kelly has been Chief Operating Officer of Pro Elite Inc., since October 2006. Mr. Kelly serves as Chief Executive Officer of ProElite.com and served as its President until January 8, 2007. Mr. Kelly Co-founded Television Korea 24 Inc. (tvk24) in 2003. Mr. Kelly served as Chief Operating Officer of vK24. In 2001, Mr. Kelly joined the Extreme Sports Channel as Chief Operating Officer International. Mr. Kelly joined the newly formed CNBC Asia in 1999, was involved in the launches of Nikkei CNBC, CNBC TV 18 (India) and created numerous strategic alliances in markets such as Taiwan, Australia, China and Korea.
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