Investing in a Baseball Facility/Academy

RR23-

I think I may be able to be of some assistance with this. Shoot me a PM so we can talk in detail. Hope all is well.

~Josh

Are you interested because you want to:

1. Make lots of money, or
2. Have something to do - or, you have a passion for instruction, or
3. Use the facility to synergize a related business

I have seen guys do #2 and/or #3, but never #1. (I guess some make money, I just haven't seen them)

Say goodbye to all future weekends.

No need to respond, just points to ponder.

The deals that I have seen were for the price of the used equipment, nothing more. The existing customer base doesn't know you, and could easily walk. (If seller wants more than the price of the equipment, then you need to see his books, so you will have an idea of seasonality, payrolls, headcount, and profits by season/sport.)

Compare the price the seller wants, to the price for you to open a competing facility in a better/different location.

How long is the lease? Will you be guaranteeing the lease?

If the venture goes belly up, who gets the used equipment? If you make this investment, make sure the contract reads like divorce papers, not marriage vows.

Talk to a lawyer to see what kind of LLC/corp to form to shield you from personal liabilities from lawsuits (injuries, discrimination, wrongful discharge, etc.), loan guarantees, etc.

Here's a sample due diligence checklist. (Much of that relates to buying the company, not just the assets/equipment)

JH..

Sent you a PM.

RR23

quote:

Originally posted by SultanofSwat:
Are you interested because you want to:

1. Make lots of money
2. Have something to do
3. Use the facility to synergize a related business

I have seen guys do #2 and #3, but never #1.

Say goodbye to all future weekends.

Sultan..Modified #3..Use the facility to synergize an unrelated business. Just trying to see if I could help a friend out starting out his first business and maybe just have a secondary investment/income source as well. The main instruction will be provided by the owner. Indirectly, also feel that providing young athletes a quality facility for their training,conditioning and injury prevention will help in their development.

Thanks for the advise Sultan! APpreciate it!

Just my 2 cents worth.....

Review the turnover - coaches, trainers, staff seem to leave at better opportunities very quickly. If there is something better out there - they are gone.

Look at the market in the area. What new facilities are planned? We have had a surge of these in our area and that has diluted the talent across the organizations. Because the talent is diluted, name recognition is gone and marketing went with it.

Watch out for 'Branders'....These are organizations that want to place all the names under one name brand. Again dilution of the name.

Look at the connections. Most of these owners have connections to colleges, scouts, etc. They have established themselves by either name or past history. Customers are going to want this as the goal would be scholarships / drafted kids. Teacvhing a kid how to be a better player only goes so far - you need a history and track record of proving it. With 100's of kids needed to keep the facility open more will not continue than those that will. Need to make sure you can show end results.

Owner may make money but huge liability for insurance and as soneone else said - expect to give up weekends year round.

Now with all that said - if the timing is right and the conditions favorable, at least consider it. These are cropping up all over the place here cause some see the big bucks a few are raking in. However be one of the first and have an exit strategy if the flood gates open and everyone opens one up. Know when to get out vs being one of the crowd.

Good Luck!

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That's all very good advice so far. Keep us posted Ryanrod23. Much success to you and your partner should you decide to get involved.



.

Gotta be better than working at T-Mobile . Good Luck

BE CAREFUL

I agree with TR. (twice now this week)

I am very suspect in these types of ventures. The market is limited to the surrounding area, the cost of building and maintaining fixed facilities are high, the competition for these services are high and the price consumers are willing to pay are low. Your competition will be able to offer the same service by using public fields at no cost to them and charge on a cash basis and have zero overhead and taxes, (coaches, former pro’s, pro’s in the off season) To me it all adds up to a lot of risk and limited reward. If you are talking about doing this in Arizona where you really need to have an indoor facility for 1/3 of the year you are talking about a disaster waiting to happen. It may be possible, but I would be doing a lot of homework on this one.

Feel free to PM me as well. I currently own one of these facilties so I can provide great insight.

Ryan;

as a former Real Estate developer of 350 restaurants and shopping centers, I always look for the "motivation" of the seller.

Are you in Tucson?

Is this a previous MLB Spring Training facility. Check the zoning.

Baseball facilities are like "Drive in" theaters. They are land "holders" until they can be converted to a "higher" and better use.

The key words are ROI [return on investment].

Bob

quote:

Originally posted by Bob Williams:
Ryan;

as a former Real Estate developer of 350 restaurants and shopping centers, I always look for the "motivation" of the seller.

Are you in Tucson?

Is this a previous MLB Spring Training facility. Check the zoning.

Baseball facilities are like "Drive in" theaters. They are land "holders" until they can be converted to a "higher" and better use.
The key words are ROI [return on investment].

Bob

Bob is correct.

RR,

You have a PM

I think those folks on Shark Tank are looking for some good investments.

i've noticed,around here anyway. the money seems to be in the AAU/travel teams that operate or are run by the facility. amazeing what parents spend to have lil johnny play.(not everywhere.everyone).

it's like going to the ponderosa for the $4.99 ribeye, by the time you get to your table it's $20.00

In my area, many team organizations are creating their own private facilities. They can get more bang for their buck and share among several age levels. Thus, it leaves the potential customer base to individuals - a tough way to make a buck. Good luck.

quote:

Originally posted by Bob Williams:
Ryan;

as a former Real Estate developer of 350 restaurants and shopping centers, I always look for the "motivation" of the seller.

Are you in Tucson?

Is this a previous MLB Spring Training facility. Check the zoning.

Baseball facilities are like "Drive in" theaters. They are land "holders" until they can be converted to a "higher" and better use.

The key words are ROI [return on investment].

Bob

Thanks for all your input. Will study everything over the weekend.

daveccpa...I sent you a PM.

Bob...Yes, I am in Tucson but the business is in Tempe. I will send you a PM.

Hope PG Staff can chime in...

RR23

Ryan; you are the "magic" 90 minutes from the business in Tempe.

When it needs your attention you can drive 90 minutes but not any longer.

Maybe, we can develop a International event at your facility.

Three days ago our three teams returned from Australia. The 40 played played 33 games in 2 weeks. Our players were from USA and Mexico.

Please visit our web site <www.goodwillseries.org> [30 years of International Baseball].

Bob

Bob..

Thank you...Once we make a decision, I will give the information to my friend so he can contact you.

RR23