Key West 2004 - Industry Partners

"We look at our involvement in the Key West event as a great way to support our owners. While there are hundreds of major sailing events worldwide to choose from, we feel that the professional management of Premiere Racing combined with the great Key West venue, is a no-brainer for us to be involved in.” Jeff Johnstone; President J/Boats

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PERFORMANCE SAILING INDUSTRY PARTNERS

"Making a Difference"

Please click on the Partner Logos to visit their sites

PLEASE Patronize thE Companies that Support your Sport and its Events

We encourage yacht owners, sailors and sailing enthusiasts to keep our Industry Partners and Sponsors on their personal lists of preferred companies and vendors. These are the companies that are truly ‘making a difference’.

Objective
The ultimate objective for initiating the Industry Partner Program was to enable the Key West regatta to continue. Creating and maintaining a revenue source from within the performance sailing industry is an integral part of the new business plan for the event. This revenue, coupled with entry fees and corporate sponsorship revenue, will ensure the long term viability of this international event at the high standards established in recent years.

Goal
The goal of the program is to achieve maximum participation from within the industry by offering affordable levels. Of the original 65 companies and organizations identified, 20 companies joined the program in the first year. In 2003 the number grew to 24. The program has reached 70% of the financial goal established in 2002.

Participation

Companies from the performance sailing industry that participate as Official Sponsors
are also designated Platinum Level Partners at no additional charge

Primary Benefit

Continuation of this major international event at the established high standards

Other Benefits and Value

Please refer to Program Benefits and Value for more information

Commitment
Participating companies are asked to make a three-year commitment to the program at the time they enroll. There is an 'out clause' enabling companies to withdraw from the program, providing they notify Premiere Racing in writing before April 1st prior to that year's event. Grounds for withdrawing would be either significant changes in the company's business position or dissatisfaction with the event.

Payment over three years, a total of six payments will be made - two installments each year- the first by August 1st and the second by December 1st prior to Race Week.

PROGRAM BACKGROUND
Performance Sailing Industry Partner Program

Premiere Racing's Industry Partner Program initiative came about because of decreasing corporate sponsorships which threatened the future of Key West Race Week. It also established an affordable way for the performance sailing industry to participate in Key West, thereby supporting the event and gaining recognition through that support. Based on a dramatic increase in Partner benefits, above and beyond those promised, the program has evolved into a legitimate value proposition for all participants.

As you may know, from both participation and stature standpoints, the Key West event is a solid success. During the past three years of economic recession and global uncertainty we have attracted an average of 310 entries - 40 more than any other previous fleet. This outstanding turnout, coupled with continuing positive regatta news such as next year's debut of the Grand Prix Nautor's Swan classes, bodes well for consistently strong numbers in 2004 and is a good story to tell. The caliber of international talent is unmatched with race week having firmly established itself as the premier event in America and one of the world's most important testing grounds.

The update on the event from a business perspective has been a different story. Sponsorships have always represented a very crucial revenue stream for professionally run events, however, corporate America has backed away from the sport of sailing. A quick look at the America's Cup, Volvo Race, The Race, Olympic sailing support, and other major regattas reinforces this fact. Attracting sponsors has always been a struggle in our sport. In recent years, Premiere Racing had greatly increased marketing efforts in this area, yet sponsor procurement continues to be a significant challenge.

Companies and organizations in the performance sailing industry, much like participating yacht owners, have a stake in this event. Throughout the years we have received extensive feedback from leaders in the sailing industry about the importance of this international event to the sport and their industry. At the same time, there has been minimal industry participation in our Sponsor programs, often times because traditional sponsor levels were beyond their means. Industry companies have benefited from the regatta without having to pay in.

At an industry meeting in Key West during Race Week 2001, the attendees corroborated the fact that Race Week is indeed very important to them and provided input for the current program. We are confident that we now have a very affordable program to offer, one with value above and beyond what has been promised.

Historically, our primary source of revenue was from our corporate sponsors. The other revenue source of consequence has been entry fees. After carefully evaluating a number of different scenarios, Premiere Racing radically adjusted the traditional business model that we had used for this event and our two other regional regattas. In 2002 we proceeded with a 3-part plan that was designed to produce the revenue required to create greater financial stability and allow for the event to continue. It called for:

For Race Week 2002 we raised entry fees 35% and succeeded in attracting an average of 300 boats in each of the past two years. This portion of the plan has been successful.

We are currently approximately 70% of the way to the stated financial goals with the Partner Program and have 23 companies aboard at this time. While we are shy of our goal, we are encouraged and continue to seek other companies' involvement for 2004 and beyond.

Concerning the third component of the new business plan, we were able to sign a Title Sponsor, Terra Nova Trading, to one-year deals in 2002 and 2003. It is undetermined whether we will be able to re-sign them, and if we do it will likely be another one year arrangement. Hence, we consider the third component of the new business plan a partial success at best.

A key to this model, and one that will directly effect the stability of the event and entry fee schedule in future years, will be the success of our Industry Partner Program. We fully realize that dramatically increasing entry fees would likely result in fewer entries and hence be counter productive.

We are confident that this program will play a critical role in the long term viability of this international event, enabling us to maintain the high standards established in recent years.