FightersOnline logo

 

A NEW MODEL FOR THE FIGHT BUSINESS
 

· Online Matchmaking and Marketing for Free Agents ·
· Promotional Tools for Fighters and Promoters ·
· Equal Access to Worldwide Internet Broadcasting ·
· New PPV Revenue Sharing Model ·

 

An Opportunity to Transform the Fight Business

Fighters Online is a startup focused on providing Mixed Martial Arts (MMA) and Boxing fighters with the financial advantages of free agency and new business and competitive models. Fighters Online's proprietary system enables fighters to make and auction their own fights to promoters and venues, who can then broadcast those fights to fans worldwide, all from the same web-based system. Fighters Online's model is a vertically integrated fight business network.

· Self-matchmaking to the fighters and their agents or managers
· A flow of made fight content to an online fight auction, selling a great variety of fights to promoters and venues
· A web-based digital fight channel devoted to showing these fights to fans in different time zones all over the world

Fighters Online has a patent on online matchmaking.

In addition, Fighters Online's application of optical measurement technology (also patented) will measure and show to fans the speed and acceleration (force) of fighters' punches during a broadcast fight. The Fighters Online platform will provide a unique Web experience to fans, and an Internet-enabled 21st century market to fighters.

Fighters Online, Inc. seeks to align itself with a strategic partner that has a passion for MMA and a business model which complements our free agency model for fighters. The desired partner will have, or have access to, complementary technology, development, marketing and management skills, and product offerings that will complement Fighters Online, Inc.'s development of its proprietary model.

Phase 1 - Online Matchmaking and Fight Auctioning
Fighters Online will develop the web-based application for fighters to challenge and accept challenges online, and make and auction fights to promoters. We will begin with an all heavyweight (MMA and boxing) database, and expand from there. Although we will eventually offer our system to all classes of fighters, enabling both a "top down" and "bottom up" approach to revenue, the MMA heavyweights currently have and heavyweight boxers have historically had the largest universe of fans, and all-heavyweight cards will have the highest live gate and pay-per-view value on our digital fight channel.

Phase 2 - New Tools for Promoters
Promoters will find our database extremely useful for filling out fight cards, with its proprietary software for database sorting, matchmaking, promotional research and marketing. Promoters will be able to make fights for fighters they have under contract by challenging and accepting challenges of opponents, and be able to buy and show fights made by free agent fighters. In addition, the Fighters Online website will have a place for fans to connect with fighters, follow challenges, and vote on prospective cards, all information both fighters and promoters will find useful. To bring more fighters into the system, there will be tools for gyms and dojos as well.

Phase 3 - Worldwide Internet Fight Channel
Next, we will offer qualified promoters the ability to promote their fights on the Fighters Online digital fight channel. We anticipate an increased number of made fights due to our online matchmaking system (Phase 1), and with the addition of more accessible promotional tools (Phase 2), we anticipate that there will be a demand for more broadcasts than traditional television can accommodate. Our digital fight channel will provide this crucial outlet for fans worldwide, and become an additional source of revenue.

Phase 4 - Fighters Online Television Technology
Fighters Online Television Technology will develop its patented method of using optical sensor and motion analysis technology to provide information on each fighter's punch speed and force before and during the telecast of a fight to enhance the fans' experience and enjoyment of a fight on our digital fight channel.


THE FIGHTERS ONLINE FREE AGENCY MODEL

An amazing but subtle transformation has taken place in the fight business -- a wireless infrastructure has developed in all the MMA and boxing gyms, dojos, and promoters' offices. Every fighter, trainer, agent, manager, and promoter has a cell or smartphone -- some have two -- and they surf the Internet every day to read the fight news.

But paradoxically, those in control of the fight business are still operating under an outdated model where access to opportunity and useful information is tightly controlled, and free agency for fighters is rare. In the age of the Internet, this is a situation ripe for change.

The Industry Status Quo
On November 1, 2008, George Willis wrote in the New York Post, "If this were baseball or football or even boxing, Faber would be earning close to seven figures each time he steps into the cage. He's smart, personable and the ladies like his golden blond hair. But Zuffa dictates who fights who, and for how much. With the absence of any type of free agency among fighters, purses will remain limited as long as there is no real competition among promoters. Faber has earned about $40,000 for each of his past three fights."

Another prominent writer on promoters' fear of free agency: "Of course they're afraid of it. With free agency a promoter has no control over the athlete. The way things are now, they sign a fighter up and even if he's put in a tough fight that he could lose, they get options on the opponent so they always have control of the winner. And with the promoters holding TV dates, they can freeze out anyone they want to who doesn't want to sign on the dotted line."

The few prominent fighters who have tried to operate as free agents have found themselves auctioning their contract to a narrow market of one or two promoters. They're unable to get the best paying fights until they sign up. As free agents, they don't get fights with fighters who have marquee value. They either play ball by giving options to the major promoter, take what they say is their best offer, or they don't fight fighters under contract to them. There are many examples of a World Champion or top contender who promoted himself but had to partner with a major promoter in order to fight the top contender or a World Champion (a huge fight), because the major promoter had the top contender's or World Champion's promotional contract. When the top contender signed with the promoter of the World Champion, the promoter marketed them as a made fight to venues and the media. That's the way it is.

Fighters currently have no other options. The most prominent MMA and boxing promoter, the UFC, has said publicly currently control directly or indirectly through controlled corporations over 500 fighters, virtually all of the prominent MMA fighters and their marketable opponents. Promoters have tremendous leverage over the fighters. Top Rank and Golden Boy each reportedly control between 200 and 300 boxers,

The Fighters Online Solution
Fighters Online will provide every registered fighter and his manager with access to a database of prospective opponents. He will be able to sort them by gender, weight class, geography, record and many other criteria. Grouping all the fighters in his weight class in any state or country with a similar record will be easy. Fighters Online will also offer each segment of the fight community geographically sortable databases of promoters, venues, trainers, and fans.

A fighter or his manager will be able to offer terms and challenges to any number of fighters online, with cell phone, e-mail and Twitter alerts going out to any fighter, manager or promoter registered with the system. As challenges are accepted, they will be transferred to a database of made fights and auctioned with a minimum bid to promoters and venues. Like eBay, there will also be a “Buy It Now” option for promoters who need to quickly fill out cards. Once their fight is purchased, free agent fighters will receive even more revenue if the fight is carried exclusively on our digital fight channel via our new partnershipmodel with venues and promoters. All sources and amounts of revenue will be open and transparent.

Fighters Online's patented matchmaking and fight auction model will enable fighters to develop their careers as free agents. Fighters currently under contract will let their contracts expire when they discover they have an option to make their own fights, sell their fights to the highest bidder, and share revenue under a new revenue-sharing model. They will have direct access to a broad and deep market of the world's promoters and venues who will buy their fights under this new incentive-based revenue sharing model.

Marquee fighters' earnings from percentages of advertising, live gate, and pay-per-view revenue will skyrocket just like the baseball players' salaries did when they got free agency.

Due to the democratizing trajectory of Internet technology as well as hugely popular fighters that are accelerating market trends, we believe this movement toward free agency is inevitable, and that all fighters will eventually choose to become free agents. Fighters Online's goal is to dramatically accelerate this process.


ADVANTAGES FOR FIGHTERS AND MANAGERS

Picking Opponents
For a manager, the toughest and most time-consuming part of the job is getting a fighter the right opponents. The manager's fighter must be challenged, he must win, and the opponent must have a style that enables the fighter to look good and put on an exciting fight. To accomplish this, the manager must first develop an understanding of the fighter's strengths and weaknesses and a sensitivity to his proper competitive gradient, reviewing records and videos of his past fights.

The manager must analyze all prospective opponents for whether they have the right experience and style. Other managers and promoters frequently use time as leverage in negotiating agreements. The manager must have the judgment and financial wherewithal to turn down a bad match and continue negotiating with others for the best purse and the right opponent. All this requires enormous telephone time and cost. The time element is why managers are so limited in the number of fighters they can manage and why fight markets go untapped.

FIghters Online seeks to change this. The system we are developing will enable managers to:

· Challenge and accept challenges on behalf of their fighters
· Receive email alerts when one of their fighters is challenged or one of their challenges is accepted
· Access a searchable, sortable database of fighters to challenge
· Access a library of past fights via Fighters Online's Internet Fight Channel

Large Database of Potential Opponents
The Fighters Online database is at the heart of the new system. The database will eventually contain detailed information on every fighter in the industry, beginning with the heavyweights. Using the Fighters Online database to challenge on behalf of his fighter, the manager can sort the list of prospective opponents by location, weight class, record, purses, dates, and fan polling data to find the best possible opponents. The system will allow easy grouping and review of each prospective opponent's record and fight videos in deciding who to challenge. Challenges can then be made or accepted from within the Fighters Online system.

Fighter's Page
Each Fighter will have a profile page with biography, fight history, record, photos, links to fight videos, list of current challenges, upcoming fights, number of fans within the system with stats on page and video views, links to merchandise, and more.

Manager's Page
Each manager who signs up with Fighters Online will also get his own page that will aggregate information on each of the manager's fighters in an easily accessible dashboard style interface.

Instant Notice of Challenges and Accepted Challenges
Managers can elect to receive an email or Twitter alert or voice mail on their cell phone as soon as another fighter or his manager or promoter challenges one of the fighters under their management. If they have researched the opponent, they can instantly accept the challenge and it will be added to their page of Accepted Challenges and transferred to a database of made fights available for sale to promoters in the Fight Auction section. Managers can check the action on other new fights made and transferred to the Fight Auction page.

Fan Data
Fans will express fight preferences involving the manager's fighters. Prospective opponents will be assigned a polling value to indicate the most marketable fights and location of each fighter's fan base. The cumulative results of fan polling of favorite fighters, fights they'd like to see, and fan location (zip codes from their registration) will be summarized as market data for managers. This will assist managers in making the most profitable fight and the best location for the fighter.

Fighter Page: Scrapbook/Newsfeed
Each of his fighters will have a scrapbook/newsfeed with all of each day's articles which mention the fighter, linked from his Fighter Page. This will have enormous value to each fighter, his fans, manager, and promoter — even his family. He will also have a searchable archive of past articles about himself. Managers will be able to thoroughly research the news and fight analysis using this tool.

Review Other Fighters' Purses
Every manager will know the market value and asking prices for all of the fighters with his fighter's experience and comparable record in his weight class and in his geographical area. With this information available to him, he will know whether he should ask more or less for an opponent.

Fighter Merchandising Strategy
Fighter-specific apparel will be offered to fight fans all over the world. As they visit their favorite fighter's page to watch his interview or recent fight, they can also purchase a T-shirt or cap without ever leaving his page. If a fighter has a great fight and his fan polling suddenly surges, a customized item online can be quickly offered on his page, or even directly on the Fighters Online Fight Channel page where the fight is being viewed live. The chance of a fan seeing the item and clicking through to order is almost double if merchandise is offered in this kind of timely and compelling context.

Residuals from Videos of Past Fights
Fighters are popular as opponents for many reasons. Every time a video clip is viewed by one of his fans, another fighter, manager, or anyone in the system, Fighters Online will provide residuals to the fighter. This will be a source of revenue for those who put on exciting, memorable fights, or fights that other fighters can use as learning tools.

Relocation for Better Sparring and More Fights
When a manager can sort thousands of fighters by weight class and location, he may consider locating his fighter closer to more fighters in his weight class for free sparring, more fights, and better purses. For example, a bantamweight might get better sparring and more fights in southern California where a larger percentage of his opponent base lives. More data sortable in valuable ways will lead to better career decisions and many more opportunities. Managers may discover better places for their fighter to fight, and in some cases, realize opportunities to be paid for sparring between fights.

Size and Location of Fan Base
Managers will get market data for choosing the best opponents to challenge and arriving at an asking purse. Fan polling and tracking data will provide information about the fighter's popularity, the location of their fan base, who their fans want to see him fight, and the best locations. They can fight closer to their fan base for greater purses. They may decide to ask for a percentage of the live gate, co-promote their own fight, or choose to be an opponent for a local hero. With market and fan location data, fighters may be surprised that they and selected opponents have fan bases in certain cities. They can discover their best markets.

More Fights for Hard-to-Match Fighters
Difficult-to-match punchers and undefeated fighters can get on a faster career track through a direct connection to other fighters and their managers and promoters. Fighters who have a high percentage of wins by KO have a hard time getting offers for fights from opponents with exciting styles and credible records. They will now have an abundance of options for challenging opponents and will be able to quickly evaluate challenges, the purses asked, and compare each opponent's potential draw at the gate using the fan polling and tracking data.

Interaction with Fans
Interaction with fans at their personal Fan Page and e-commerce sales of fighter-specific merchandise will further satisfy the passions of the fans of popular fighters. Their fans will want to wear their apparel and watch tapes of their favorite past fights (more residuals), or comment online about a fighter they would like to see him challenge.


ADVANTAGES FOR PROMOTERS

Making Fights
For a promoter, the most difficult and time consuming part of the job is making the fights. There is enormous telephone time and cost required to locate twenty-two fighters for a 10 fight card and a standby for the main event. Promoters must also expend enormous time and cost in finding good opponents for fighters they have under contract, negotiating the purses. Like managers, they often must go through the process of having fighters leverage them in getting agreements to fight each other. The time it takes to do all this is why promoters are so limited in the number of shows they can put on and why so many strong fight markets go untapped.

The large promoters overcome the shortcomings of the current system by signing multi-fight contracts with 100 to 500 fighters to assure themselves of fight content with fighters who have great earning potential. And they don't have to negotiate with another promoter. HBO and Showtime have been known to do the same. They often have their "content" under contract fight each other later because it is their best option. Similarly, promoters who promote weekly or monthly shows under contract with television or a hotel venue often have to make long-term financial commitments to fighters to lock up "fight content" and take away the fighters' negotiating leverage.

By contrast, the Fighters Online system will enable promoters to easily fill out a fight card. Using Fighters Online, they will be able to buy and/or bid on fights from a list of made fights (accepted challenges), go to the page of each of their fighters under contract and choose an opponent from a list of fighters who have challenged them, or choose from those who have accepted the challenges they have made on behalf of their fighters.

These options will save promoters time and allow them to reduce their financial commitments by assuring them of an abundance of fight content for their shows without having to lock fighters into long-term contracts. They will also result in the selection of better opponents for their fighters, leading to higher quality fights.

Large Database of Ready Made Fights
Fighters Online will offer its highly sortable database of possible fights to promoters large and small, as well as broadcast companies. The potential combinations of fighters is astounding; each of the hundreds of fighters who are in high demand as opponents will likely accept dozens of challenges, which will be listed in the Made Fights section of Fighters Online.

As with fighters and managers, promoters will be able to sort the made fights by location, weight class, record, purses, dates, and fan polling data. Fights will be assigned a polling value to indicate the most marketable fights and location of the fighter's fan base.

Our system will open the process, offering a greater selection of the best fights to more promoters. Promoters will have the benefit of free-market forces and access to more fighters and their managers, other promoters for co-promoting of certain fights, casinos-hotels and other host properties, sports television programmers, and a chance for promoters to evaluate early new prospects.

Instant Notice of Challenges and Accepted Challenges
A high level of competition exists between promoters for marketable opponents with credible records. Fighters Online email alerts are immediately sent to promoters when a marketable opponent either challenges or accepts a challenge by one of their fighters. The service lets promoters bid for matches as soon as they are made with fighters they have flagged. Promoters can also elect to receive email alerts about venues which have bids in for particular dates, fights, or fighters. This feature will have great value to most promoters.

Best Matches
The Best Matches feature will encourage the making of quality fights and quicker turnover of made fight inventory. It will be an automatic sorting feature and the easiest way to make challenges for fights with high marketability. It will simplify the process and save search time.

Each fighters template homepage with their record will have a link titled "Best Matches" which will take them to a page with a specially preselected, sortable database of Best Matches. This database will list fighters with identical win-loss records first, followed by those with the most similar record.

Making fights between fighters with similar records will appeal to fans and be quickly approved by state athletic commissions as a competitive match.

Promoter-Specific Options for Sorting the Database
The matches at Fighters Online can be easily sorted in a number of additional ways for promoters:

· Specialty Shows - It will be easy to put together a series of all-heavyweight cards, or cards between fighters from one country or ethnicity which could lead to a national championship series. Cards with all undefeated fighters would be a great tool for discovering potential champions early.

· Regional Shows - Fights can be selected to match fighters by city or country. It will be easy to find a Main Event fighter who has a large and centralized fan base in a specific place and who consistently puts on an exciting fight.

· Total Purses - Database sorting by total purses makes promoting within budgets quick and easy.

Additional Features for Promoters:

Style Evaluation
After the promoter has sorted and reviewed the list, he can also choose to watch video clips of selected fighter's past fights.

Financial Projections
Projections for the entire card, sponsors revenue, advertising and promotion costs, and polling and tracking data are valuable and reliable marketing tools to use in negotiating site fees, estimating live gates, television ratings, and pay-per-view buys.

Standardized Contracts
The promoter may then choose to send downloaded email contracts to the fighters and managers for final signatures on approved forms.

Venue Information
Promoters often start by securing a venue before putting together a card. Fighters Online will have venue information all in one place.

Rating System to Avoid Hold Ups and No Shows
When eBay started, it had to figure out a way that strangers from different parts of the country could trust each other enough to conduct transactions online. It came up with its member rating system. Fighters Online could create a similar system to protect promoters from dealing with fighters that have a bad reputation (and vice versa) as hold ups or no shows. Using this system, the promoter and fighter will be able to check how past promoters and fighters rated their dealings with him. This will minimize problems for fighters and the new promoter when putting together a card with lesser known fighters from different parts of the country.

Market Information Useful to Promoters
The cumulative results of fan polling of favorite fighters, fights they'd like to see, and fan location (zip codes from their registration) will be summarized as marketing data and will be available to Managers and Promoters.

Another source of market data is the fighter’s Fan Pages. Fan Pages will be customizable pages that will enable fans to watch videos and bookmark their favorite fights and fighters, create their own library of fight videos, and choose and rank opponent preferences for their favorite fighters. Aggregated, anonymized fan data from these pages will be made available to Managers and Promoters, and will be useful in determining best matches and locations for shows.


ADVANTAGES FOR FANS

Fan Pages
Fan Pages will be customizable pages that will enable fans to bookmark their favorite fights and fighters, watch videos, create their own library of fight videos, and choose and rank opponent preferences for their favorite fighters.

Fan Polling and Location Data
There is an opportunity to offer matchmaking leverage to the millions of fight fans. Interactive fan polling for fight preferences will influence their favorite fighters to make (and promoters to buy) fights their fans want to see -- a win-win-win for fans, fighters, and promoters.

Fan polling will reveal the most marketable fight options for fighters and increase the revenue potential of the world market afforded by Internet technology. Great matchups that fans choose are highly marketable and will be a powerful incentive for fans, fighters, promoters, and venues to participate in a well-designed interactive polling system.

Fan base location garnered through the registration of zip codes of fans who visit the fighter's website has advantages for determining the best venues based upon the location of fan bases for different fighters.

Fans are currently frustrated by the bottlenecks they perceive in getting their favorite fighters into a fight against the opponents they would like to see. A new free agency model for making, marketing, and showing of fights online, controlled by the fighters and heavily influenced by the fans, will level the playing field. No longer will the promoter's continued financial interest in both fighters be a factor in who fights who and when.

Interactive fan polling will open the opportunity for all-heavyweight tournaments determining national, continental, and world champions, ensuring that MMA fights and boxing have the same competitive and financial integrity of all other professional sports.


POTENTIAL FOR GROWTH

Technology Expands Ability to Tap Markets
The MMA market is growing rapidly around the globe, not surprising for a sport that combines fighting traditions from every continent. There are hundreds of fight promoters all over the world who have in their area scores of great MMA fighters with championship potential. While many of these promoters are prominent in their own local area or country, they create extraordinary fight entertainment only for local fans -- most never get their fights on television. Las Vegas boxing and MMA gyms frequently receive calls from these promoters from cities all over the world, and from venues with local fighters and a strong local fan base. Major U.S. promoters have them waiting in line.

The technology behind Fighters Online will enable promoters to easily promote or co-promote with a local businessman, opening up the market to fights in new areas using new fighters. Fan polling and tracking data in the Fighters Online system will reveal strong markets in cities and countries new to boxing and MMA fighting. Local businessmen or a civic center event manager may want to promote a local star. Accessing a variety of opponents for an MMA or boxing show will for them be especially critical. They will need firm budget information and choices from regional opponents. Fighters Online will meet these needs. Foreign promoters would welcome an easy-to-use, highly functional system providing them with access to an online database of made fights sortable geographically.

Like domestic promoters, promoters in foreign countries will have the option to market the digital rights to their fights directly to the 24/7 Fighters Online Fight Channel. Revenue from producing and managing digital rights to fights could be huge for local promoters and local fighters who now have no competing options. We will offer fighters and promoters a new revenue sharing model and access to a highly lucrative worldwide distribution channel. Access to online broadcast, selling their fights directly to the fans, will result in larger purse shares. High-speed communications will allow promoters to choose digital technologists and producers based on their skill sets, not their geographic location.

A New World for MMA
ESPN is the leader in sports television to a tremendously diverse, affluent, mostly male audience, whose appetite for MMA fights, especially involving fighters from their country, is growing. This is a huge MMA fan market for our plans for a digital fight channel. Eventually we believe that each country will evolve toward a National MMA Championship model, and that those crowned as the country's champions could advance to regionals between countries. Regional champions could advance to the (Corporate sponsor's name) World MMA Championships which would be a highly popular annual "Super Bowl of MMA" event with strong appeal to an international audience of fight fans.

International sponsors could gain television value by sponsoring and attaching their corporate name using pixel plasticity technology to the World MMA Championships. This would be a highly popular event with strong international television audience appeal and advertising value.

The Potential of Internet Broadcasting
The potential of internet broadcasting to open up international markets is best summarized by legendary promoter Bob Arum, speaking at the WBC Annual Convention:

"I just want to digress, just briefly. I've been in this business since the mid-1960s and when I first started, there were no satellites. When Muhammad Ali fought a championship fight, a tape was made in a studio in New York and rushed to a plane to be shown the next day in the United Kingdom. And, God forbid, if the tape missed the plane, the rights fee was cut by fifty-percent.

"And then we had satellites that proliferated all over the world so boxing matches could be shown, taking place in Las Vegas, shown in Japan and Thailand, in England, in Europe. And domestic satellites, which made it possible to have pay-per-view in the United States and other countries, so fighters, like Mr. Sulaiman has said, could make 25 or 30 million dollars in one fight.

"But you know something? All that technology that has driven the sport is going to be obsolete. We are now entering a new age where communications will be over the internet, where people will be able to purchase a fight on pay-per-view on their computers, which will be their television sets, so that the audience will be hundreds and hundreds of millions of people, so that the riches that will come to this sport will be enormous."


NEW MODELS AND REVENUE STREAMS

There is no precedent for an online fight business network. The potential for new revenue models and revenue streams are numerous. The prices and percentages of markets that we use below are necessarily educated guesses. Unfortunately, our access to significant data has been until recently limited by Nevada statute NRS 467.137 which prohibits the public disclosure of financial information between fight promoters and television. Annual television revenue (cable and pay-per-view) is likely to be at least several hundred million dollars annually worldwide.

Fighters Online's model is a vertically integrated fight business network offering (1) self-matchmaking to the fighters and their agents or managers, which creates (2) a flow of made fight content to an online fight auction selling a great variety of fights to promoters and venues for showing on (3) a digital fight channel devoted to showing their fights to fans in different time zones all over the world.

We believe this to be potentially a very big business and a very profitable model, with many options for revenue, including subscriptions, transaction fees, pay per view fees, and advertising.

Revenue Option 1: A Tiered Subscription Model
Tier 1 - Free Services. To attract the most fighters, industry professionals and fans, Fighters Online will offer much of its basic information for free, including basic (simplified) access to our database of fighters and their records, information on current challenges, fighter profile pages, and all social networking tools. In the internet age it is very hard to be a gatekeeper of this kind of information, because so much is already freely available. Offering information for free is also a proven way to grow a customer base. Since videos from the Fight Channel will be part of each fighter’s Fighter Page, it is likely that our free services will include some basic quality video as a way of enticing subscribers to our paid Tier 2 video offering.

Tier 2 - Premium Services (Online Fight Channel). The main Premium Service will be the full Fighters Online Digital Fight Channel. Subscribers will automatically be shown higher quality video wherever it appears in the system, such as on the Fighter Pages, and have access to our entire video library. Live broadcast of fights, in partnership with promoters, could either be included in Premium Services or charged separately as Pay-Per-View (see below).

Premium Services could also include some specialized software tailored to hardcore fans who do not need the rest of the Tier 3 Professional Services package. Since fans are already used to paying for video via cable and Pay-Per-View, it is reasonable to charge a small monthly fee for this high-quality video service.

Revenue Sharing: For viewing of past fights, our Fight Channel revenue model will include two ways of sharing revenue with fighters: 1) by paying residuals to fighters on a per view basis, and 2) by donating a percentage of fan subscription revenue to a Professional Fighters Association, a tax-exempt foundation organized under IRS Code Sec. 501(c)(3) that will administer unprecedented retirement fund and insurance benefits.

Because this model is beneficial to them, the incentive for free agent fighters to pressure promoters to use the Fighters Online Fight Channel to promote their fights will be strong. Fighters will have incentive to put on entertaining fights to win more online views. In addition to benefiting fighters, there will be excellent public relations value with fans who will know the fighters are getting residuals when they use our site.

While free video services like YouTube will always be our competition on the low end, and cable on the high end, revenue sharing will be one way to ensure that we get exclusive broadcast of the best quality fights.

The Fighters Online Fight Channel has a current estimated fight fan subscriber universe of 15% of a total satellite subscriber universe of 800,000,000. A monthly $4.95 premiere Fight Channel subscription fee applied to 15% of the market who are avid fight fans (120,000,000) will result in an annual gross of $594,000,000.

Tier 3 - Professional Services. Unless we decide to use transaction fees only (the eBay model, see below) we may choose to offer subscriptions to the matchmaking and fight auctioning features of the website. This service will be used exclusively by fighters and industry professionals — trainers, managers, advisors, attorneys, booking agents, matchmakers, promoters, venues, and television fight producers. This is our unique, patented service, and as a valuable business tool it is reasonable to charge a subscription fee for it. As part of a Professional Services package, we will offer access to all of our data sorting features and research and analysis tools, to help fight professionals use the matchmaking and auctioning services effectively. Fighters Online will use Web 2.0 technologies to create a software like experience in using these services.

The estimated universe is 50,000 subscribers worldwide, 10,000 in the U. S. The subscription rate might be $19.95 per month. Realizing 75% of world market over a three year period will result in an annual gross of $16,458,750.

Revenue Option 2: Transaction Fees
Fighters Online could charge transaction fees from promoters, venues or Pay-Per-View and cable television companies who purchase fixed-price fights or win fight auctions via the Fighters Online system.T his is the already accepted and proven eBay model.

Revenue Option 3: Digital Fight Channel Pay-Per-View Fees
When promoters and venue managers broadcast fights live on the Fighters Online Fight Channel, Fighters Online could follow the established pay-per-view model of the cable companies. While past fights will automatically become part of the Fighters Online video library, integrated into our larger system, live events have a special draw. It may be advantageous to offer these events as Pay-Per-View, separately from the Fighters Online Premium subscription, or it may work better to bundle live viewing with the Premium subscription's normal video access.

If Fighters Online offers Pay-Per-View, it will share revenue with the promoter and the fighters, based on the number of viewers. This will add incentive for promoters to use our system, especially for fights that would not be broadcast any other way.

With an open, worldwide internet broadcast system providing additional revenue, the number of fights held and broadcast could skyrocket. Many fight markets are underserved, many smaller promoters would like to put on more events, many venues have "dark nights" where the venue is available, and many fans around the world would like to watch more fights live online.

Some venues will see the rationale of having their Director of Special Events promote their own shows with Fighters Online as their broadcast partner. Others will look for a fight promoter to work with us.

The annual gross income from boxing and MMA shows worldwide is not available, although some information can be found in sports writers' articles which often contain data on gross revenue from live gates, pay-per-view, and televised fights. Never published are the gross revenues from thousands of foreign shows each year and the advertising and sponsorship revenue and sales of concessions, clothing, boxing and MMA equipment, and memorabilia.

Revenue Option 4: Advertising
This may be very significant in view of the attraction advertisers and sponsors have for the MMA fight demographic of 18 to 35 year old males. The Fighters Online Digital Fight Channel will use country specific targeted foreign advertising and pixel plasticity technology for enhanced signage revenue from fights telecast in foreign countries, and traditional commercials.




Contact:
· John W. Black, President
· Fighters Online, Inc.
· 118 130th Ave. NE
· Bellevue, WA 98005
· Ph 425-502-8919
· E-mail john@fightersonline.com





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