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Interview
With Joe Krzys of "AmericasTeams"By Larry Hodges
The following is the first in a series of interviews introducing our
members to the Internet Collaborative agreement reached between USA Table Tennis
and AmericasTeams.
What
was the premise that you sought to promote in the initial stages of what was
then-called the Internet Collaborative Agreement? How did you anticipate
you could help NGBs like USA Table Tennis?
The premise for
the Internet Collaborative was that small NGBs would not have the resources,
staff, or expertise to build an Internet site that could raise funds for the NGB,
be constantly changing to attract high viewer activity, and would provide all
the business functions that would minimize labor costs for the NGBs. We
anticipated that the NGBs in a collaborative would have the potential for
becoming one of the most valuable sports websites on the Internet and could
attract significant funds to attain such a goal.
We
felt we could help the NGBs by facilitating a process in which the NGBs would
understand their worth on the Internet and would have options to select the most
beneficial NGB strategy possible on the Internet.
The
project has now taken on the formal name “AmericasTeams.” What phase
are you in regarding securing NGBs, investors and finalizing all legal
arrangements?
To
date, 32 of the original 33 NGBs have signed documents committing them to
establishing a for-profit company utilizing the Internet for marketing, revenue
creation, simplified business functions, NGB expansion, education, video
streaming of events, and numerous other benefits.
We
have secured an investor to put in $30 million in equity. They are
completing their due diligence on the signed NGB agreements. Their funds
are from a bond that must be sold. The sales process for the bonds is in
effect and it is anticipated that funds, by agreement, will be available in
about 60 days.
What
are the projected timelines over the course of the next year?
When
the funds arrive for AmericasTeams, there will be about 3-6 months of upgrading
of the NGB sites in partnership with the NGBs and with technical support
provided by AmericasTeams. The NGBs will also receive a minimum of
$100,000 at the time that the funds close.
How
does AmericasTeams relate to the sports expansion contract USA Table Tennis
previously signed with the Warren Company and what is the status of that
program?
AmericasTeams
is an independent company that is working with The Warren Company on the sports
expansion. The expansion of Table Tennis (and five other NGBs) has had
several positive milestones:
a. It has developed a
model for in-school and after-school programs that is highly desirable by school
districts and city/town recreation programs.
b. It has secured the
endorsements for the program by the New York State Association of Health,
Physical Education, Recreation and Dance and by the New York State Recreation
and Parks Society, and the American Alliance for Health, Physical Education,
Recreation and Dance.
c. It has created a
partnership with the National Association of Sports and Physical Education to
develop curriculum for schools that would give teachers academic credits for
training provided by The Warren Company/NGB.
d. It has created
age-appropriate equipment kits to be sold to schools by Sportstime, the largest
seller of Physical Education equipment to schools, with a royalty going to USATT.
e. It has programs in 13
school districts in New York State with about 1.5 million students.
f. It has been
invited to expand into Texas.
g. It has plans to
expand into California, Illinois and North Carolina in the next year.
From
the market research that was conducted as part of this effort, what are the
specific opportunities that USA Table Tennis will benefit from this alliance?
USATT
will benefit by increased membership, increased revenue, more instructors, more
information to members, more exciting website activity, events being video
streamed (in the future), less administrative costs over current costs, many
business functions being done on-line versus manually as now occurs, among
numerous other benefits.
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