UNIVERSITY OF CENTRAL FLORIDA INVITATION TO NEGOTIATE (ITN) NUMBER 1400ZCSA FOR CONSULTING SERVICES FOR NAMING RIGHTS AND SPONSORSHIPS OF UNIVERSITY ASSETS September 10, 2014
Executive Summary Navigate Research is honored to be considered in the process to assist the University of Central Florida in researching and analyzing opportunities for naming rights and sponsorships for the university. Navigate is the industry leader in conducting analyses on facility naming rights and has worked with a number of universities on similar engagements to assist in driving revenue through their sales of facility naming rights and sponsorships. Navigate strongly believes that we will add value to the University of Central Florida due to the following: Expertise and Knowledge: Navigate s staff is comprised of individuals with over 50 years of experience working with universities on behalf of both brands who market on campuses and universities. Navigate has unprecedented experience working with university facility naming rights, having played an instrumental part in the implementation of programs at Ohio State University, Arizona State University, University of Oregon, Washington University, University of California Berkeley, and the University of California System. Insights and Analytics: Navigate s appraisals are a deep-dive look at what the market will actually pay for partnership marketing assets. Navigate will provide asset identification and valuation services in addition to developing sales support materials. Navigate prides itself on equipping clients with data and insights to help secure long-term partnerships. University Familiarity: Due to Navigate s extensive work with University of Central Florida athletics, Navigate has an understanding of the assets available on campus, as well as potential partners in the area. In addition, Navigate has intimimate knowledge of the UCF culture and how to align internal stakeholders. Navigate will be able to utilize this background to more efficiently implement naming rights and sponsorship opportunities in multiple categories. 2
Executive Summary Navigate Research is honored to be a part of the ITN process with the University of Central Florida. We are excited to assist UCF in leveraging assets, rights, and purchasing power across campus to produce incremental revenue. Our objective is to work with the school to: Determine the value of naming rights and sponsorship opportunities for the university in order to maximize potential benefit Conduct a strategic review of existing and potential opportunities for specific areas/assets Develop a master inventory of the University s facilities, programs, services, events, existing contract termination dates, and other assets Create and award any solicitation the university deems necessary to accomplish the efforts recommended by the awardee We believe our proven experience executing similar programs plus our intimate knowledge of the UCF culture, history and challenges will provide a powerful combination to best position the school in the marketplace. 3
Table of Contents EXPERIENCE + QUALIFICATIONS Overview and History of Navigate Research Navigate s Organizational Chart Client List Staff Qualifications and Experience PROPOSED SERVICES Navigate s Approach Our Proposed Plan and Methodology Navigate s Competitive Advantage OVERALL PRICING 4
Experience and Qualifications CAMPUS-WIDE PARTNERSHIP UNIVERSITY RECEIVES PARTNER RECEIVES 5
Navigate Research Overview Navigate Research is the industry leader in evaluating and measuring marketing investments. Based in Chicago, Navigate helps clients determine the value of their partnerships and creates sales strategies to maximize revenue. Navigate has valued over $2 Billion of sponsorship agreements on behalf of brands, properties, universities, and agencies. In the University space, Navigate researches and analyzes opportunities for universities to secure naming rights and other sponsorship opportunities across the university. These agreements leverage assets, rights, and purchasing power across campus to produce incremental revenue. Navigate determines the value of those partnerships in order to maximize potential benefit for the university... 6
History with University-Wide Naming Rights and Sponsorships Navigate Research has extensive experience working with Universities, with over 50 years of collective experience consulting and evaluating partnerships (including Athletics). Navigate has provided similar valuations on naming rights and university-wide sponsorships most recently to UC Berkeley, Ohio State University, the UCOP system, the University of Oregon, and Arizona State. Navigate currently has over 3 years of experience working with a variety of university-wide agreements. 7
Institutions of Higher Learning Experience Navigate has worked with over 30 universities in various capacities and valued over $2 billion in sponsorships which has led to billions in revenue for our clients. 8
Brand Experience Navigate has worked with over 30 brands who invest in a variety of different sponsorships (universities, sports, entertainment, community, etc.) and are in key categories for university-wide partnerships (Telecom, Carbonated Beverage, Electronics, Travel, Auto, Healthcare, etc.). Our experience gives us an understanding of what potential sponsors want from a university-wide sponsorship opportunity. Our unique positioning in the marketplace, allows us to construct sales messaging, packaging, and strategy in a way that will enable UCF to secure sponsors and maximize revenue. 9
Navigate s Organizational Chart Navigate is an independently owned and operated company. Navigate is a minority-owned business. AJ Maestas President Beau Stephens SVP of University Business Matt Balvanz VP of Analytics Jeff Nelson VP of Client Strategy Collegiate Consulting Team PR & Marketing Teams Analytics Team Client Services and Strategy Team 10
CLIENT REFERENCES Client Company Name Contact Person Company Address Telephone Number Length of Service University of California Office of the President Nathan Brostrom, Executive Vice President of Business Operations Office of the President University of California 1111 Franklin St., 12 th Floor Oakland, CA 94607 510-643-1430 2012 - Current University of California, Berkeley Solly Fulp, Chief Operating Officer & Deputy Director of Athletics University of California, Berkeley Athletics Haas Pavillion #44422 Berkeley, CA 94720 510-642-0580 2013 - Current The Ohio State University Geoff Chatas, Chief Financial Officer Ohio State University 205 Bricker Hall 190 North Oval Mall Columbus, OH 43210 614-292-9232 2012 2013 Syracuse University Jeff Kaplan, Special Advisor to the President, Syracuse University Syracuse University 900 S. Crouse Avenue Crouse-Hinds Hall, Suite 600 Syracuse, NY 13244 614-202-4033 Currently in Negotiations 11
Navigate s Key Professionals Involved Navigate s service model that is used for all of our University accounts is listed below. Navigate would utilize a similar model in work with UCF. Beau Stephens SVP of University Business Collegiate Consulting Team PR & Marketing Teams Analytics Team Client Services and Strategy Team Navigate s Collegiate Consulting team is comprised of university category experts ranging from financial services to Telecom. Our collegiate consulting team has over 40 years of experience and has overseen both university-wide sponsorships from the brand side to the selling and servicing side. Our collegiate consulting team will ensure that UCF is building programs that will interest potential sponsors and will drive sponsorship agreements to the finish line. 12
NON-RENEWALS Client Company Name Contact Person Company Address Telephone Number Length of Service Arizona State University Steve Hank, Former Associate Athletic Director Carson Center PO Box 972505 Tempe, AZ 85287 480-965-3482 2012-2013 Reason for Loss: Arizona State University was unable to align stakeholders internally in order to prepare a university-wide sponsorship program. Therefore, they terminated our contractual agreement, until internal stakeholders could be aligned (still TBD). 13
The Account Team Beau Stephens, Senior Vice President of University Business, will be the main point of contact for Navigate and the services outlined in the ITN. AJ Maestas, President, Navigate s Collegiate Consulting Team, and Jeff Nelson, VP of Client Strategy, will also be key in servicing the account. AJ Maestas, President AJ Maestas is the Founder and President of Navigate Research, the industry leader in valuing and consulting for University-Wide sponsorships. With over 8 years of experience in various marketing roles on the brand and agency side, Maestas has pioneered the use of valuation and market research to assess sponsorships. Since the company s inception, he has made a name for himself as an expert in the collegiate space. Maestas has helped Ohio State University, the University of California System, UC Berkeley, and Arizona State University directly increase revenue across campus. He has also helped over 25 universities drive revenue through their athletics department in a variety of different ways. Beau Stephens, Senior Vice President of University Business Beau has extensive experience managing similar programs with the UCOP system and UC Berkeley on Financial Services and University-Wide Sponsorships. He also brings over 12 years of experience building out college sports properties, helping drive revenue, and building marketing programs with universities at Learfield Sports. During his tenure at Learfield, Beau oversaw the acquisition and development of nearly 50 sports properties and sales staffs. He held several positions during his time at Learfield including Sr. Director of National Sales, Director of Digital Media, Director of Marketing and Director of Client Services. Beau was Director of Athletics for the Jewish Community Center of Dallas prior to Learfield after launching his own sports camp company with his roommate while still in college. 14
The Account Team Collegiate Consulting Team Navigate s Collegiate Consulting team is comprised of university category experts ranging from financial services to Telecom. Our collegiate consulting team has over 40 years of experience and has overseen both university-wide sponsorships from the brand side and the selling and servicing side. Our collegiate consulting team will ensure that UCF is building programs that will interest potential sponsors and will drive sponsorship agreements to the finish line. Jeff Nelson, Vice President of Client Strategy Jeff has personally valued over $500 million of partnership assets for properties, brands and agencies, and now leads the consulting division of Navigate s business. Within the collegiate space, Jeff has worked on multimedia rights deals for schools that include Indiana University, Arizona State University and Florida Atlantic University. He has also worked on university-wide sponsorships for Ohio State University, Arizona State University, University of California, Berkeley, and the UC system via the University of California Office of the President. Within each of these projects, Jeff assists the campus in determining current assets available to partners and potential new assets that could be provided to partners. This is followed by a valuation of those assets and strategic planning for how to maximize that value through a direct sales or Request for Proposal process. Navigate s approach to this project will emphasize teaming with key resources to successfully meet and exceed the expectations and goals of the University of Central Florida. 15
Navigate s Approach CAMPUS-WIDE PARTNERSHIP UNIVERSITY RECEIVES PARTNER RECEIVES 16
University-Wide Sponsorships Opportunity Navigate understands the University s commitment to brand development and marketing. As such, Navigate s goals are two-fold: 1. Leverage assets, rights, and purchasing power across campus to produce incremental revenue 2. To build mutually beneficial partnerships with the university and brand partners In order to accomplish these goals, Navigate proposes a three-phased approach: 1) Asset Inventory and Valuation 2) Analysis and Execution 3) Development of University Sales Office
Phase 1: Asset Inventory and Valuation Navigate will identify sponsorship assets and provide the fair market value of those assets. Navigate will provide a report that includes an explanation of the methodology used to determine the value of the assets as well as identify sponsorship properties that could be readily targeted for sponsorship in the short-term. Navigate will do a deep-dive analysis for the following assets (including, but not limited to): Facilities appropriate for naming rights and sponsorship Specific or bundled programs that could be targeted for naming rights and sponsorship University events that could be targeted for naming rights and sponsorship Publications that could be marketed for additional advertisement revenues Virtual assets that could be used to promote sponsors (website, social media, mobile app s, etc.) Other opportunities which should be marketed to make full use of the University s assets 18
Phase 1: Asset Inventory and Valuation Navigate will provide a Valuation Report to the University of Central Florida based on its findings which will include revenue potential for each strategic opportunity. Navigate s Valuation Reports are a quantitative analysis of the potential partnership s market value based on the following equation: 1 2 3 4 5 Impressions Visibility CPM Premium Category Total number of people that can potentially view and experience different marketing elements on campus. Discounting of impressions to determine exactly how many people notice and experience specific elements, as observed by Navigate s Appraisal and market research. CPM values based on true market transactions in the university space, and adjusted for effectiveness, as observed by Navigate s Appraisal and market research. Navigate s proprietary formula to account for qualitative factors, such as passion levels of alumni and students, prestige of university, demographics and category exclusivity. Navigate takes into account B2B spending levels, category trends and competitiveness. = Fair market value Final number is a dependable and accurate representation of the true value of sponsorship assets. 19
Phase 1: Navigate s Need From UCF In order to appropriately assess all opportunities available on the University of Central Florida s campus, we will need the following: Regularly scheduled meetings with key constituents on campus List of decision makers and influencers University financial statements that outline expenditures Existing contracts and agreements with partners at all levels List of sponsorship elements and opportunities from different groups on campus (i.e. athletics, student union, alumni association, rec sports, theater, arts, student housing) Rate card for current sponsorship inventory and elements Current sponsorship/partnership proposals Costs of fulfillment and other expenses UCF guidelines for B2B agreements 20
Phase 1 Deliverables Phase 1: Asset Inventory + Valuation Benchmarking Information on Similar Sponsorship Agreements Program Advisory Board of Directors Development Master Inventory Development Across Departments/Functions Determine Fair Market Value of All Sponsorship Assets Identify Sponsorship Properties on Campus that could be ready for sponsorship 21
Phase 1 Timeline* Navigate Proposal Delivered September 10, 2014 October 1, 2014 UCF Selects Vendor Master Inventory Sheet Developed December 1, 2014 January 1, 2015 Advisory Board Of Directors Developed Valuation Conducted on All Inventory + Benchmarking February 1, 2015 March 1, 2015 Properties Ready for Sponsorship Identified October December March 10 1 1 UCF Selects Vendor Master Inventory Developed Properties Ready for Sponsorship Identified *Timeline is based on UCF being able to provide all necessary information and access outlined on page 20. 22
Phase 2: Analysis and Execution Navigate will analyze and assist in executing the sales/marketing strategies to support a successful university-wide naming rights and sponsorship program. Navigate will drive the program forward by: Recommending overall positioning of the program and a 3 to 5 year sales strategy Identifying associated risks and potential limitations (legal or otherwise) that would impact the marketability of assets and benefits of the naming rights and sponsorships to the University Identifying top prospects for naming rights and sponsorship opportunities Assisting with consulting services for the implementation, marketing, sales and servicing of one or more of the naming rights and sponsorship opportunities Assisting in the development of sponsorship and benefits packages for one or more of the naming rights and sponsorship properties Developing a clear, easy to understand sponsorship and advertising agreement template that could be used between a sponsor and/or advertising proponent and University 23
Phase 2 Deliverables Phase 2: Analysis and Execution Identify Top Prospects for Naming Rights and Sponsorship Prospect Definition and Contracts Prospect Sponsorship Analysis Prospect Demographic Behavior Sponsorship Packaging Develop a Sponsorship Agreement Template Identify Associated Risks and Potentials Limitations with a Program Consult on the Implementation, Marketing, Sales and Servicing for the Program Recommend Overall Positioning of the Program for a 3-5 Years Sales Strategy 24
Phase 2 Timeline* Risks Associated with Program Identified April 1, 2015 April 1, 2015 Sponsorship Packaging Completed Secondary Analysis Conducted on Prospects and Categories May 1, 2015 June 1, 2015 Top Prospects for Sponsorships Identified Sponsorship Agreement Template Developed July 1, 2015 September 30, 2015 Overall Positioning and Vision of 3-5 Years Sales Strategy April June July 1 1 1 Sponsorship Packaging Identify Top Prospects for Sponsorships Sponsorship Agreement Template *Timeline is based on UCF being able to provide all necessary information and access outlined on page 20. 25
Other Services Offered By Navigate Phase 3: Develop University Sales Office Navigate will develop an internal sales and service team for the University of Central Florida to support the University-Wide sponsorship program. Navigate will: Lead the oversight and development of the University Sales Office Identify, interview and hire an Activation Manager and Activation Services representatives, in conjunction with a sales team Assist in the construction of the budgeting, sales goals, and compensation structure for all employees Conduct initial start-up sales training, as well as refresher training on an ongoing basis Research and identify appropriate sponsors and C-Level decision makers, as needed Assist in the negotiation of sponsorship agreements, as desired 26
Phase 3 Timeline* Lead the oversight and development of the University Sales Office Start October 1, 2014 Construction of budgeting, sales goals, and compensation structure for new sales office completed February 1, 2015 Research and Identify appropriate sponsors and decision makers Ongoing February 1, 2015 Sales Director and Partnership Activation Managers Identified, Interviewed, and Hired March 2015 Initial start-up sales training conducted, as well as refresher training on an ongoing basis Ongoing Assist in the negotiation of sponsorship agreements February February March 1 1 1 Hire Sales and Activation Staff Construction of Budgeting + Goals Conduct Initial Sales Start- *Timeline is based on UCF being able to provide all necessary information and access outlined on page 20. 27
Other Services Offered By Navigate Phase 4: Consult Athletics to Bring Multimedia Rights In-House Navigate will develop an internal sales and service team for the University of Central Florida to support the University-Wide sponsorship program. Navigate will: Finalize internal staffing plan Hire and train UCF s sales and service staff Provide access to Navigate s Sponsorship Navigator Identify new sponsorship opportunities and assets (in conjunction with UCF) Determine sponsorship categories and targets for UCF s sales team Provide expert recommendations on what to include in sponsorship packages Develop sales support materials (rate card, proposals, sponsor agreements, etc.) 28
Phase 4 Timeline* Internal Staffing Plan Finalized September 1, 2015 January 1, 2016 Sales and Service Staff Hired and Trained + In Market Selling Expert Recommendations Provided on Sponsorship Packaging January 1, 2016 January 1, 2016 Sales Support Materials Developed Ongoing: Provide access to Navigate s Sponsorship Navigator Identify new sponsorship opportunities (in conjunction with UCF) Determine sponsorship categories and targets for UCF January January January 1 1 1 Sales and Service Staff Hired and Trained Sponsorship Packaging Completed Sales Support Materials Developed *Timeline is based on UCF being able to provide all necessary information and access outlined on page 20. 29
Navigate s Competitive Advantage 30
Overall Pricing CAMPUS-WIDE PARTNERSHIP UNIVERSITY RECEIVES PARTNER RECEIVES 31
Overall Pricing Phase 1 + 2: $20,000 Per month + 10% of net revenue to the University* Phase 3 +4*: $10,000 Per month + 10% of net revenue to the University* *Minimum of 1-year commitment, with an option to renew on September 30, 2015. *University-wide sales projected to begin July 1, 2015. Athletics internal expected to begin with the 2016-17 athletics season. *Personnel Billing Rates: Based on our business model, we don t charge by the hour, we work until projects are completed in full. 32
Thank You AJ Maestas AJ.Maestas@NavigateResearch.com 312.343.7134 Beau Stephens Beau.Stephens@NavigateResearch.com 469.222.5443 33