Licensing Frequently Asked Questions

Will each market will have its own team of drivers/cars and that those drivers will travel from market to market to compete against other drivers in their arenas?

Each market has a maximum of 56 Race Teams or Drivers. As the league develops the slot will become a valuable license/Medallion to own. These Race Teams can be purchased (car and license to race) for $12.5 K currently (cost of a JetSki or snow machine). The sale of the Medallion is also a profit center for the Licensee/Operator which is intended to help offset first year start up cost. These drivers/teams are local to each licensed territory, they do NOT travel between markets to compete and typically reside within 20 Miles of the arena. Therefore, yes the licensee operator host a series of indoor events. In our experience talking to a lot of startup leagues, this factor reduces substantially league development risk because there is no Inter-League play, e.g., insulated risk from other team failures. In addition, operational expenses are much less than other league sports because there is NO inter-league travel cost, the Race Teams provide their own transportation to and from the arena.

Is there any skill requirement for the drivers, or can anyone race?

The wonderful thing about Arena Racing™ is almost anyone can drive. We require a person to be of 14 years old but we have persons racing at the age of 70 plus. The cars are one design or a spec series and the goal of the founder and what Joe Gibbs and Norm Miller liked about this product is it opened racing up to the masses from both a cost and skill requirement bases. The cars are over engineered from a safety perspective and are in fact much safer than full scale stock car racing due to many factors.

What is it that the investors see in this business investment?

This is obviously a strategic question but suffices to say our business plan calls for a substantial valuation with 27 arenas operating. That alone is reason enough for an investor, but ultimately our investors saw in this a new form of family entertainment and sport. Arenas need content in their buildings, national stock car racing has become quite pricey for many regional sponsors, fans and interested racers, and full scale stock car racing cannot very easily go to other countries due to obvious logistical reasons and cost. We believe Arena Racing can because it is obviously smaller and portable and many arenas overseas are looking for content too (look at the NBA league and AEG deal in China). Please keep in mind that conservatively there is over 70 Million plus domestic racing fans alone.

How are they planning to make their monies? And does their revenue stream impact the revenues the local owners can make?

We are a LLC and members share in profit. We ultimately believe there may well be many strategic options as we fulfill the market potential. It is our objective to help get many companies into the world of racing, driving their brand much more locally and cost effectively on this platform. We are ultimately a licensing company. Operators license the product from us, race teams are required to pay for membership and licensees/operators pay a minimum yearly assessment (like many other leagues, etc). There are substantially other revenue streams through cooperative sponsorship sales, merchandise, parts for cars, new car sales, and eventually media (TV, Mobile, etc). We believe the per event model breaks even at a lower point (attendance) than any other sports league. The players or drivers and teams pay the operator to race; just like most forms of racing.

What opportunites exist for the top drivers and champions in each market?

Ultimately we will tie the markets together as Arena Racing League at the end of each of the markets individual seasons with a national championship series, "the best of the best". After successfully launching eight to 10 markets, we have plans to develop this series during the month of April – June in a high profile market like a Las Vegas.

If I own a minor league sports team now, what advantages would it be for me to also own an Arena Racing license?

By adding a racing operations person and potentially one other sales person, the existing staff of receptionist, ticket agent, marketing/advertising staff could handle these duties since Arena Racing USA is only 15 dates per season and some sports operate in opposite times of the year so this could level the cash flow graph in a positive way. Some of the existing sales staff would just have more inventory to sell. Several hockey team owners have mentioned that when they make calls to sponsors and potential fans to get them involved in an event that they are told no for the reason that they are not hockey fans and this will allow them to ask if they like racing and feel that this could be a huge positive when connecting with those that they have never done business with. Also, by having local racers and team sponsors in Arena Racing USA, they feel that they will have the ability to up sell some of them to both sports.