MARCH 29, 2002 Wayne Lloyd Ed Fussell Brandon Hartley Jay Moore Marshall Nicholson

MARCH 29, 2002 Wayne Lloyd Ed Fussell Brandon Hartley Jay Moore Marshall Nicholson

Agenda • Background • Alternatives • Assumptions • Stadium Comparisons • Market Info / Demographics • Recommendation

Background • Dome built in 1992, owned by Georgia World Congress Center Authority • Seats 71,228 for Falcons Games, On- site Parking for 3,260; Mostly in Contained Garages • Attendance Averages 54,845 per Game • Dome Contract was League Best in 1992, but the $4 Million Fixed is Paltry in Comparison with Newer Contracts, Which are Tens of Millions Richer. Hard to Stay Competitive

Background • Falcon’s Are Saddled with “Loser” Image, Fan Apathy • Lack of Tailgate Friendly Parking= Loss of “Experience” • NFL is Wholly in Control of Many Operational Issues like Licensing, Advertising Partnerships, and Broadcasting.

Alternatives • Vary Pricing Gradients to maximize revenue streams from most profitable customers and attract more marginal fans • Pursue new stadium contract; capitalize on “mad money” • Do nothing, hope charismatic new management is enough to generate renewed interest

Assumptions • Current Stadium Contract Cannot be Renegotiated • Economic Climate Will not Allow for New Stadium to be Built • Need to Strengthen Revenue Streams Before New, High Profile Players can be Brought In • There are Slack Demands for Mezzanine and Upper Level Tickets and Excess Demand for Luxury Boxes and Club Level Seating • Must Sellout Games to get Television Exposure Necessary to Advertise Product and Create/Develop Fan Base

Stadium Comparisons

Attendance Attended an NFL Game in past 12 months Source: Scarborough Research (Feb. 2000 – Jan. 2001)

Local Market Ratings 2000 Team Television Ratings - Local Market Averages Source: A.C. Nielsen

NFL Fan - Support Index(1991 - 2000) A study was conducted by American City Business Journal (ACBJ) which measures fan support on seven categories. This is an excerpt from the ACBJ Research Report: Score - Measure of each team’s fan support on a 100-point scale. Support factors account for 60% of each team’s overall score. Difficulty factors account for the other 40%. Teams less than 7 years old have their scores cut on a sliding scale. Rank - Overall rank of NFL teams with the best fans. Source: ACBJ Research Report/Street & Smith’s Sports Business Journal

What do NFL Fans Love About the NFL? • AVID FANS • Fierce Competition • Unifying Aspects of Game Day Experience • History and Tradition • Emotional Highs and Lows • CASUAL FANS • Pageantry and Entertainment • Social Aspects of Game Day Experience • Strength and Athleticism Source: Ross, Cooper, Lund, 1995

Market and Avid NFL FanProfile Summary Sheet Source: ESPN Sports Poll May 2000 - April 2001

Attended Falcons Summary Sheet 18+ Population Source: Scarborough Research (Feb. 2000 – Jan. 2001)

Atlanta Market Common Lifestyle Clusters Common Lifestyle Clusters between Watch any NFL and Attend any NFL: The lifestyle clusters that represent the best opportunities are bolded as they appear in both categories (watch & attend). Penetration - Of people who watch, 42% fall into the Cultural Aficionado lifestyle cluster. Index - Of people who watch, they are 64% more likely to fall into Sports Fanatic lifestyle cluster. See the Appendix for the definitions of each lifestyle cluster. Source: USA Data (August 1999 - July 2000)

Atlanta Market Attend any NFL Top 5 Lifestyle Clusters: • The Restaurant Goer cluster is the best opportunity if Atlanta is trying to target the largest segment of attendees. (by penetration) • The Movie Buff cluster represents the best leverage point to gain attendees. (by index) See the Appendix for the definitions of each lifestyle cluster. Source: USA Data (August 1999 - July 2000)

BLACKOUT FOR ADVERTISING

PRICING GRADIENT ADJUSTMENT

Ancillary Revenue-Concessions Assuming $18.56 per Seat Concession Revenues, the Proposed Pricing Schedule and Resulting Improved Attendance Would Contribute Approximately $1,920,000 to Concession Revenues Over the Season!

Recommendation-Pricing • Divide Current 3-tier Ticket Pricing to More Effectively Target Audience; Suggest 6 Levels of Ticket Pricing • $5 Markup on All Ticket Prices for New Orleans, Carolina, Tampa Bay, and Previous Year’s Conference Champion

Recommendation-Seating • Raise Prices of Boxes $10,000: Additional $203,000 per Game • Raise Prices of Club Level Seating $100: Additional $460,000 per Game • Lump In a Block of 30 Tickets in Least Desirable (Upper Level End Zone) Sections with Box Contract; Guarantees Sale of 6090 Hard-Sell Tickets • Block Out 6000 Seats (3000 in Each End Zone), Drops Capacity to 65,228.

Recommendation-Experience • Implement a Revenue Management Database to Track Customer Base. Particular Needs are Proximity of Gate Sales to Kickoff and Location of Purchaser’s Residence Relative to Downtown • Based on this Data, Explore Alternative Promotions/ Delivery Channels to Ensure Television Exposure, as Well as Customize “Experience” for Those Who Attend • Partner with Entities Around Perimeter for “Park and Ride” Opportunities to Drum Up Sense of Community and Heighten “Experience” • Lower Level End Zone Club (i.e. “Dirty Birds”) -Target Beer Drinking Demographic (Group Pricing?)

MARCH 29, 2002 Wayne Lloyd Ed Fussell Brandon Hartley Jay Moore Marshall Nicholson