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WORLD HEAVYWEIGHT FIGHTERS


EXTRAORDINARY GROWTH POTENTIAL




Revolutionary Virtual Reality and Matchmaking Technology
Greatly Expand Career Income for New Free Agent Fighters


The boxing markets are growing rapidly around the globe. There are hundreds of boxing promoters all over the world who have in their area dozens of great boxing prospects with championship potential. Many of these promoters are prominent in their own area or country. They create extraordinary boxing entertainment for local fans. They seldom get their fights on television. Las Vegas boxing 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.

We will enable promoters to easily promote or co-promote with a local businessman, opening up the market to boxing in new areas using new boxing prospects. Fan polling, boxers' power and speed performance, and fan base tracking data in the Fighters Online system will reveal strong markets in cities and countries new to boxing.

Local businessmen or a civic center event manager may want to promote a local star. Accessing a variety of opponents for a 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 and a number of ways to evaluate fan preference.

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 revenue shares from a variety of sources, especially royalties in today's digital market. 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 Free Agent Fighters, Fighters Online Promoters,
and Extraordinary Heavyweight Athletes from Other Sports


INTRODUCTION

ESPN, FOX, SpikeTV, HBO, Showtime, and NBC's PBC, are broadcasting Premier Boxing Champions cards. The PBC promotion has reached deals with an array of broadcasters, with cards scheduled across all three of the United States' major television networks (ABC, CBS, and NBC) and their affiliated sports-oriented cable networks (ESPN, CBS Sports Network, and NBCSN, respectively), as well as Spike and Bounce TV. They are the leaders in sports television to a tremendously diverse, affluent, mostly male audience, whose appetite for fights, especially involving fighters from their country, is growing. This is a relatively new and fast growing international fan market for our plans for providing our free agent fighters with a digital fight channel, independently or through an affiliation partnership deal

Eventually we believe that each country will evolve toward a National Boxing 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 Boxing Championships which would be a highly popular annual "Super Bowl of Boxing Champions" event with strong appeal to an international audience of boxing fans.

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


The Potential of Virtual Reality Broadcast Technology

There's a steadily growing number that believe virtual reality will be the next revolution in entertainment. There's a growing number of leaders of major investment companies who believe the business opportunity is substantial.

For example, in 2012, Oculus VR, a technology firm was founded and in March 2014, Facebook acquired the firm for $2 billion.

In May, 2014, AT&T acquired DirecTV for 47.1 billion, $32.7 billion in AT&T stock and $14.4 billion in cash. This merger will make them the largest pay TV provider in the United States and the world. This will offer DirecTV's 20.4 million customers more choices for video entertainment on any screen from almost anywhere, any time. There will be many fight fans in that additional 20.4 million DirecTV fans who will register to use and be entertained by Fighters Online fan page features. The fans who register will be rewarded with an unprecedented VR experience of our free agent fighters' discovery, recruiting, training and fights. Fighters Online free agent fighters and our extraordinary heavyweights from other sports will enjoy tremendous financial benefits of being free from the current system.

AT&T will also be able to offer much better video. They will also enjoy the great increase in their cash flow. A year before the 2014 acquisition, DirecTV had revenue of $32 billion and profits of $8 billion.

This looks very good for free agent fighters of Fighters Online. Virtual reality has presented an unprecedented number and amount of financial opportunities.

DirecTV and Big Knockout Boxing (BKB)

Founded in 1997, Reality Check Systems is a multifaceted technology provider uniquely positioned to boost fan engagement for live broadcasts of fights. Its customized software and hardware solutions infuse real-time data with graphics to facilitate dynamic on-air experiences. Reality Check Systems’ clients include corporations such as beIN Sports, Bundesliga, CBS Sports, DirecTV, Eredivisie, ESPN, NFL, NHL, Microsoft, MLB, Riot Games, SKY Germany, SKY Italy, Twitter and Univision.

NextVR

Founded in 2009, NextVR raised $5.5 million. In November, 2015, NextVR raised $30.5 million led by Formation 8, a firm with a proven track record of successful investments in virtual reality. Brian Koo, a founding member of Formation 8 and an early investor, technical advisor and board member of Oculus prior to its sale to Facebook for $2 billion in March, 2014, will join NextVR's board of directors. "For virtual reality to really start taking off, and we expect it will in 2016, there must be great content delivered through great technology," said Formation 8's Koo. "Experiencing an NBA game in virtual reality is like sitting in floor seats at center court. You feel as if you are there."

"This first-class group of investors is a major validation of our virtual reality technology platform," said Brad Allen, Executive Chairman, NextVR. "We are focused on delivering a great virtual reality experience and the key is great content. These investments reflect the relationships we are building to provide marquee content."

NextVR, the current leader in live-action virtual reality broadcast technology raised $30.5 million in November, 2015, to expand its platform for live virtual reality broadcasts with participation from the biggest names in sports and entertainment. These strategic relationships will help NextVR introduce a range of live virtual reality programs, including professional sports, concerts, award shows and other events.

Investors in NextVR included Time Warner Investments, the strategic investing arm of Time Warner Inc., a global leader in media and entertainment with businesses in television networks and film and TV entertainment, including Turner, HBO and Warner Bros.; Comcast Ventures, the venture capital affiliate of Comcast Corporation; Peter Guber, Chairman and CEO of Mandalay Entertainment, co-owner of the Golden State Warriors, Los Angeles Dodgers and Los Angeles FC, and Chairman of Dick Clark Productions; RSE Ventures, a sports and entertainment venture firm co-founded by Stephen M. Ross and Matt Higgins operating and investing in new technologies and companies such as the International Champions Cup and the Miami Dolphins; The Madison Square Garden Company, a world leader in live sports and entertainment with a portfolio of legendary sports teams, exclusive entertainment productions and celebrated venues; and Dick Clark Productions, the world's largest producer and proprietor of televised live event entertainment programming.

NextVR's VR platform will be accessible on every major virtual reality head-mounted display, including those by Oculus, Samsung, Sony, and HTC, delivering unprecedented live and on-demand experiences in virtual reality. NextVR has proven its live broadcast platform with the NBA, NHL, NASCAR, CNN (the Democratic Presidential Debates) and Coldplay's Ghost Stories Virtual Reality Concert Experience. NextVR partnered with the NBA and Turner Sports to present live, in virtual reality, the opening night match-up between the 2015 NBA Champion Golden State Warriors and the New Orleans Pelicans.

Fighters Online believes that free agent fighters are at the forefront of a transformative technology that is revolutionizing how their live-action fight content will be consumed by a high growth fan base. NextVR enables the transmission of live, long-form virtual reality content in broadcast quality – leading the way for live and on-demand VR to become a mainstream experience for sporting events, concerts, cinematic productions and more. Launched in 2009, NextVR has more than 26 patents granted or pending for the capture, compression, transmission, and display of virtual reality content. NextVR's platform allows the fully immersive content to be streamed with pristine quality using current home and mobile Internet connections. NextVR was founded by veterans in stereoscopic imaging technology, software development and an award-winning filmmaker.

Facebook and Facebook Live

Premier Boxing Champions (PBC), the #1 boxing series on broadcast TV and cable created by Haymon Boxing, is finding a successful way to grow and engage a digital generation of boxing fans with Facebook and Facebook Live. Facebook released a case study, crediting PBC with providing and creating a new home for a video savvy audience.

"Premier Boxing Champions' innovative, data-driven content strategy has allowed them to connect more boxing fans with the content they love, by taking fans deep into the sport," said Patrick Chapman, Facebook Sports Partnerships. "That comprehensive approach is driving exciting growth metrics across the board - a sure sign that fans like what they're seeing."

VR technology will provide the potential, in addition to the math advantages of our matchmaking of internet broadcasting to open up larger international markets. It is best summarized by legendary boxing promoter Bob Arum, speaking at a WBC Annual Convention:

Bob Arum said, "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 handheld mobile devices and headsets, which will be their VR 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."

Digital Rights to Fights

Since the technology is here, the rights issue becomes important. How can licensee-promoters and free agent fighters profit from this new technology?

GreatFightsOnline.com will offer all of each boxer's live and past fights at a price to boxing fans. Many boxers have millions of fans locally and some have millions more in many neighboring countries in their part of the world. Every time one of their fans in any country hits their mobile keyboard, they will be able to watch a fight live. Depending on the hour and their time zone, they may prefer watching it at a more convenient time. They can also watch again any of the past fights of their favorite boxers . Many countries already have a majority of the homes using home computers.

Who Owns the Rights?

The question of rights becomes very important to our free agent boxers and licensee-promoters. Because of pointcasting and new advertising technology, we will see that our free agent subscribers restore and retain their digital rights, including but not limited to broadcasting and satellite and cable television.

Every time a fan hits the keyboard, someone is making money. It should be the originators -- our free agent boxers and licensee-promoters.

Digital rights becomes very important for boxers and promoters. Licensing and having access to Fighters Online will bring millions and millions of additional dollars to free agent boxers and licensee-promoters.

Advertising Targeted by Country

By targeting foreign countries Fighters Online will create several additional revenue streams for fighters, and monetizing digital rights through advertising on television will play a big role.

There will be advertising at all the fights on the corner pads and mats, electronic signs and other advertising seen by the TV and live audience, and hanging banners at the venue in view of the live audience.

Advertisements can now be inserted electronically into the screen and targeted to regional audiences -- different ads for different countries. It's called pixel plasticity. This has an enormous advantage to local promoters. Pointcasting and targeting increases the advertising revenue dramatically at both big and small events.

More on Targeted Foreign Television Advertising

At large events like a Fighters Online World Boxing Championship fight, the international companies will still have an interest in reaching the whole world by placing their advertising at the venue. In the future, 70% of these signs may still be sold to international companies. But, 30% of the signs may now be sold on a local basis -- a huge additional revenue stream which can and should be shared with fighters and franchisee-promoters.

For example, a beer company in a New Zealand fighter's home country will not be interested in advertising to the worldwide viewing audience, but advertising to its regional market in New Zealand and Australia would have great value.

With permission and revenue sharing with holders of the digital rights to the fights (the boxers and promoters), the new technology will enable the fans in the targeted areas watching the fight to see their country's local beer company advertisement on the mats and corner pads on their screens.

Who currently gets this revenue? Television. How much is it? Television companies will say it's impossible to determine because of their accounting system and foreign exchange rates and that, in any event, it's included is the boxer's purse. Sure. Ask for an audit. If you do, you may not fight or promote for them again.

Huge Added Royalties and Advertising Revenue for Free Agent Boxers

Assume each ad sign costs an average of only $10,000 per title fight, times 150 countries, times 12 title fights per year, the revenue stream from advertising quickly adds up. This is for the big events.

The smaller shows with boxers from different countries can benefit even more. Boxing fans watching a show with boxers on the card from Mexico, Brazil, and the U.S. will all watch the same picture, but the advertising signs will be in different languages for different countries.

Think about shows with boxers from the U.S., Mexico, and different countries in Europe and the Far East. One fight venue reaching 40 languages can create a very significant revenue stream from advertising, not to mention pay-per-view.

Creating New International Markets

U.S. Boxing Championships and the World Boxing Championships

Targeted advertising by country presents a strong case for reforming competition models of professional boxing. ABC-TV attempted in 1976 to create a U.S. Boxing Championships which they envisioned would lead to international competition between teams of national champions in each weight class from each country and a super bowl of boxing -- The World Boxing Championships. With the growth of the market in the world due to the development of broadband digital technology, a World Boxing Championships makes more sense. Maybe both.

This "Boxing Super Bowl" would be comprised of champions from scores of countries drawing millions of viewers from each country -- and with today's technology, would provide an advertising revenue stream inconceivable to ABC-TV in 1976.




FightersOnline, Inc. Email: john@fightersonline.com
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