The Jock Market Has Arrived

The Jock MarketHas Arrived : 

The Jock MarketHas Arrived Will you be a part of the future? www.littleyim.com

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2 Types of Sports for Investors Get Tournament Prize Money Only Get Tournament Prize Money and Endorsements Boxing Golf Tennis Cycling Car Racing Gymnastics Ice Skating Skiing Swimming Track & Field

Sport Type 1 : 

Sport Type 1 Pr I ze Money On Iy Boxing Golf Tennis These sports offer prize money for every tournament participant. The amount of prize money that athletes receive depends on their performance at the tournament.

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5 Points A Simple Market Design Sport Type 1

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Sponsorship contract includes an athlete’s upcoming tournaments 1. 1 Athlete

We determine the expected round that the athlete will reach : 

We determine the expected round that the athlete will reach 2. 1 Athlete Little Yim “Given my past performance and the tournament level, I will most likely reach this round in the tournament.” Based on an analysis of past performance and on discussions with the athlete

Investor Group will get 10% of the athlete’s tournament prize money : 

Investor Group will get 10% of the athlete’s tournament prize money 3. Investor Group “As a group, we receive a total of 10% of the athlete’s tournament prize money.” Receives part of an athlete’s prize money for those tournaments included in the sponsorship contract

We discount the amount that the investor is likely to receive to provide investors with a 9% rate of return : 

We discount the amount that the investor is likely to receive to provide investors with a 9% rate of return 4. Discounting a future cash flow is like subtracting a little from that amount This tells us how much the investor group should pay now to buy an athlete’s sponsorship contract EXAMPLE PRESENT FUTURE 9% Discount Rate Pay $91.74 Now Get $100 Later Investor (Future Value) = Present Value (1+r) (100) = Present Value (1+0.09) $91.74 = Present Value

The sponsorship contract is divided into 100 pieces : 

The sponsorship contract is divided into 100 pieces 5. 1 Investor 1 Investor 100 Investors Investor Group gets… 1 piece out of the total 100 pieces (1/100 * 10% ) = 0.1% of the athlete’s prize money A total of 10% of the athlete’s prize money gets… buys…

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The points 5 1. 2. 3. 4. 5. Sponsorship contract includes an athlete’s upcoming tournaments We determine the expected round that the athlete will reach Investor Group will get 10% of the athlete’s tournament prize money We discount the amount that the investor is likely to receive to provide investors with a 9% rate of return The sponsorship contract is divided into 100 pieces

Sport Type 2 : 

Sport Type 2 Pr I ze Money & Endorsements Car Racing Cycling Gymnastics Ice Skating These sports tend to offer prize money for only the top 3 or top 5 finishers in a tournament. Athletes earn a significant portion of their earnings from endorsements. Skiing Swimming Track & Field

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5 Points A Simple Market Design Sport Type 2

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Every athlete has 100 investors 1 Athlete Plans on competing on the pro tour for the next 2 years 1.

There are 2 groups of athletes : 

There are 2 groups of athletes GROUP 1 Athletes 2. GROUP 2 Athletes Each investor pays $100 Funds raised: $10,000 Each investor pays $50 Funds raised: $5,000

Athletes get $10,000 or $5,000 from investors : 

Athletes get $10,000 or $5,000 from investors 3. GROUP 1 Athlete 1 Athlete GROUP 2 Athlete 1 Athlete “I get $5,000 from investors.” “I get $10,000 from investors.”

Each investor gets $2 for every $1,000 of the athlete’s earnings : 

Each investor gets $2 for every $1,000 of the athlete’s earnings 4. 1 Investor “I get $2 for every $1,000 of the athlete’s tournament prize money and endorsements.” What athletes give Athletes give $200 in total to the investor group for every $1,000 they earn in prize money and endorsements Each investor will get $100 for every $50,000 that the athlete earns How investors will earn money

Investors only get money from theathlete’s next $100,000 in earnings : 

Investors only get money from theathlete’s next $100,000 in earnings 5. 1 Investor WHAT DOES THIS MEAN? The investor group receives 20% of the athletes’ earnings for her next $100,000 in earnings The investor does not get any of the athlete’s money after the athlete earns that target amount

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The points 5 1. 2. 3. 4. 5. Every athlete has 100 investors There are 2 groups of athletes Athletes get $10,000 or $5,000 from investors Each investor gets $2 for every $1,000 of the athlete’s earnings Investors get money only from an athlete’s next $100,000 in earnings

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The Jock Market