INTRODUCTION My name is Rich Neher. With 26 years of experience in the business of tennis including 9 years as publisher of a very successful newsletter for tennis professionals and club owners (TENNIS CLUB BUSINESS), I obtained unique insights regarding the needs and wants of U.S. tennis players and the opportunities those are creating. Conga Sports is a membership-based racquet sports organization disrupting the U.S. tennis ecosystem by creating a win-win-win situation for all three stakeholders involved, clubs/facilities, players, and local sponsors. I identified an opportunity that will make my company Conga Sports Inc the leading provider of innovative racquet sports programs in North America. The opportunity has also potential to be expanded to Europe and every other country in the world. THE PROBLEM Tennis is facing several challenges today. Kids and young adults find it boring and too difficult to get into. Sitting on the couch and/or playing games is much more attractive to them. They don’t see a purpose in learning such a difficult sport. They don’t know about the health benefits of playing tennis or it’s not important to them. Most people also see it as a sport that is unwelcoming to beginners and not very accessible for low-income demographics. These are some of the reasons why people who still want to be involved in racquet sports are moving toward easier and cheaper sports like Pickleball. Key points summarizing the problems tennis faces Not accessible for everyone Too boring, not trendy and hip, lacks purpose Tough and taking too long to learn Unwelcome to beginners I’m a tennis player at heart. Played the sport for more than 30 years now. My involvement in the business of tennis has shown me that the existing organizations are not able to fire up more people to play our sport. The tennis playing demographic gets older and older since no one seems to be able to make the sport attractive to younger people. It needs a for-profit business with new ideas to affect changes. I decided to develop a way of getting many new people as well as existing players to join my program and starting to see the fun and the benefits of tennis. THE OPPORTUNITY Statistics published by the Tennis Industry Association say that there are currently 23 million tennis players in the U.S. creating a $5B industry. Another 10-15 million players are sitting on the fence wanting to try tennis or ready to jump but afraid of the known challenges they would face. If we add about 5 million kids that could be attracted to tennis, we are looking at an opportunity for potentially attracting millions of people into sport and into our programs. Another number to consider as opportunity is the 60 million Hispanics living in the United States. Very little effort is being made to get a significant number of them into tennis. My solution is designed to attract millions of new and existing tennis players and together with our outreach into Hispanic communities we will be on our way to potentially double the tennis playing population by radically changing the way tennis is delivered and monetized in this country. Recent results from Florida where the USTA section has made great inroads recruiting Hispanic kids and adults into tennis are very encouraging. We have reason to believe that if we make tennis accessible to them, they will come. See related article Champions of a Conga Sports Booster Tournament OUR COMPETITION The main competition for us in every state would be the local section of the USTA, World Team Tennis (new name now: Impact Team Tennis), other Leagues and Tournaments, plus many smaller league organizations. After working for 4 years on the so-called USTA Tennislink Team, a support and training function for coordinators and other staff of our governing body of tennis, I realized that this organization is unable to address the above key points. The words “fun” and “welcoming” are just not in their vocabulary. At the same time, they don’t see my aforementioned points as problems as long as they are able to grow the US Open tournament and pay their often very high salaries, they think that’s good enough. The industry itself is too fragmented to look for solutions or doesn’t have the funding to meaningfully affect change. Too many organizations, clubs, companies are working in silos and are not interested in collaboratively solving the problems tennis has. And then there is the aspect of tradition in tennis. Any attempt for change is facing strong opposition from people who would rather keep tennis as it has been played for fifty years or more. The USTA itself is not open to new ideas that don’t come from within the organization. WE ADDRESS EACH OF THE PROBLEMS TENNIS IS FACING Here’s how we are doing it: The Conga Sports Solution to "Tennis is not accessible for everyone." The Conga Sports Sponsorship Model We are adding local sponsors to the economic model. Example 1: When a player signs up for a tournament, instead of them paying the $75 registration fee, we’ll do our best to find a local sponsor to supplement that fee. Example 2: When a player signs up for Conga membership of e.g. $99 annually, industry titan HEAD Penn Racquet Sports will give that player a $50 coupon for their products. And Tennis fashion retailer Cruise Control Gear will also give each player a $50 coupon for their apparel. The Conga Sports Sponsorship Model is a new way of making tennis events more accessible for players. The model can be applied to many other programs, even clinics, bootcamps, and special events. City Slams Season 1 Pasadena team The Conga Sports Solutions to "Tennis is too boring, not trendy and hip, lacks purpose" The Conga Sports “City Slams” Program Our new flagship program will create so much attention through PR, social media, and word-of-mouth, we will become a magnet for all players that are bored with existing leagues and tournaments and for young people that need more excitement. Adult beginners will see a purpose for picking up the sport: competing for your community at various levels from novice to advanced. The series will, in its final iteration in 2025m be so entertaining, it will create a large fan base coming to watch the matches. City Slams SoCal Season 1 Champions: MountainGate Country Club playing for the city of Los Angeles. City Slams A series of tournaments for teams of players in doubles and mixed doubles tennis. Those teams play for their city. For bragging rights to be the best in their city. For competing statewide and, eventually, nationally for their own city, their community. When the program achieves the expected PR, cities will stand in line to get teams participating. When teams become successful for their city, the same cities will for sure offer to pay travel and other expenses for their teams. In the beginning, we'll do our best to find local sponsors that cover team fees. “Tour for the little guy” In its final iteration, City Slams series of tournaments will have the look and feel of the pro tour or of Davis Cup / Billie Jean King Cup. We will add elements of the pro tour like pre-and post-interviews, tournament host, prize money. Studio City Team (Season 1) Short video of the Studio City Team performing their team song Entertainment: The City Slams Tennis Show From 2025 on, every major CITY SLAMS final will feature what we call the Tennis Show. From Conga drums to exhibition games, challenges, face painting to kids courts, this will be key to help CITY SLAMS create a fan base of players and audience. The “Tour” together with the Tennis Show will make sure kids as well as adults will become fans, spread the word, and will say, “how can I sign up? I want to be part of that fun organization!” To get ideas for the City Slams Tennis Show, we will take elements from the East Coast baseball novelty team, the Savannah Bananas and will incorporate it into our program. Message from Savannah bananas owner Jesse Cole to Rich Neher. No one will ever say again that tennis is boring! City Slams Season 1 Champions (Los Angeles) at group level matches The Conga Sports Solution to "Tennis is tough to learn" Conga Sports Start/Restart Program We have designed that program for beginners (Start) and returners that have been away from tennis for a while (Restart). Both groups are excellent sources for new Conga members and participants in our programs. The typical Start/Restart clinics are 1 or 2 hours long and include topics like serving, volleys, and ground strokes. The most popular clinic in that program is called Booster where players get hitting and doubles match play experience with sideline coaching from experienced players or coaches. The Start/Restart program is designed as a friendly, no-pressure way to get people quickly into playing mode without the need for cutthroat competition and chasing ranking points. For Start/Restart we are putting a lot of emphasis on recruiting young female teaching pros and pros that are just out of college. Conga Sports Start/Restart teaching pro Tommy Hoffer. The Conga Sports Solution to "Tennis is unwelcome to beginners" Conga Sports Pathway to Tennis Fun We understand why adult beginners call our sport unwelcoming. Tennis is extremely cliquish and those cliques tend to shut themselves off to any newcomers and especially to beginners. Few people want to play with them or mentor them and no league captain wants them on their team. Our Pathway to Tennis Fun addresses this by providing practicing and match play practice opportunities to beginners early on. From the moment newcomers get into Start/Restart clinics, they will get the opportunity to practice with other beginners and with more experienced players. They will also be able to sign up for Booster clinics providing them with supervised doubles strategy practice with sideline coaching. When those novice players feel they are ready to take the next step, they can sign up for low-level tournaments and later for other team events like City Slams. That way we’ll make sure new players feel they are welcome as part of a tennis network that cares for their members, their development, and ultimately their happiness. Conga Sports Start/Restart teaching pro Samora Lawson THE REVENUE OPPORTUNITY After Conga Sport has succeeded to bring City Slams and other programs to every state in the union, which will take 4-5 years to accomplish, I consider the following numbers as our potential revenue opportunity in year 5: Membership fees $$3.5m Programming incl. special events $5.1m Fan Tickets $520K National Sponsorships and Advertising $550K Branded merchandise $600K Total $10.3m OUR PLAN TO GRAB MARKET SHARE THE WIN-WIN-WIN CONGA MODEL Conga Sports is a membership-based racquet sports organization disrupting the U.S. tennis ecosystem by creating a win-win-win situation for all three stakeholders involved, clubs/facilities, players, and local sponsors. CLUBS: For Conga events, we’ll pay court fees and book courts at non-prime time hours. We’ll also bring a lot of new prospective members to those facilities. ---- VALUE PROPOSITION FOR CLUBS: We’ll fill your courts when you need it most and we’re paying you for bringing potential members to your club. PLAYERS: By making tennis more accessible, we’re enabling more people to join the sport and stay in it. The players will also be happy to be part of a cool movement, a network of like-minded players that enjoy exciting programs, allows them to play in the same groups all over the country, and an organization that is always open to new ideas. Because of Conga’s plan of building a unique network of clubs and players, traveling/vacationing members will eventually always be able to find a game in most zip codes of the United States. ---- VALUE PROPOSITION FOR PLAYERS: We’ll make playing tennis and other racquet sports accessible for you and let you enjoy belonging to a cool organization with fun programs all over the country. LOCAL SPONSORS: We’re providing our local event/league sponsors with thousands of customers, many from a desirable demographic. They’ll be featured in all our promotions, website, social media, and we are sharing our player data with them. ---- VALUE PROPOSITION FOR LOCAL SPONSORS: We will bring new customers into your store with a potential annual value of many hundreds of dollars and a lifetime value of many thousands of dollars each. We’ll also advertise your business all over the local area and social media. HOW WE MAKE MONEY Conga Sports will develop several revenue verticals in the tennis space. By creating a large membership & fan base that will attract a lot of new and existing players, sponsors, media, and regular tennis fans. In the first year, we’ll be able to sign up 2,000 new members at an average of $120 per year. Within 5 years, we are planning to sign up 70,000 members memebrs resulting in approximately $3.5M in revenue. By providing a steady, sponsor-supported income stream through excellent programming, like City Slams, Drop-In events, Family Team Tennis, Corporate Team Tennis, and Start/Restart clinics. By creating a schedule of sponsor-supported special events for members, like tennis travel, member parties, pro exhibitions, wine tastings, and more. By selling national sponsorships like Title Sponsors and Presenting sponsors for all the City Slams tournaments. By generating sales from a catalogue of branded Conga Sports merchandise such as hats, t-shirts, sweaters, coffee mugs, and more. TRACTION The first City Slams “test season” in Southern California has been completed. When our “proof of concept year” 2023 is over, we’ll have completed 2 seasons in SoCal, 1 season in NorCal, and are well on our way of repeating all this in California and start expanding to 3 other western states. For all of 2024 we’ll be laser-focused on making City Slams scalable and profitable. Conga Sports Friday Night Tennis Drop-In group Four teams were playing for the cities of Pasadena, Los Angeles, Studio City, and Santa Monica. One team, Pasadena, were eliminated after the first round. The remaining three teams were battling it out April 22nd in Santa Monica for their tickets to the final round. The Santa Monica team was eliminated, and we therefore had Studio City play Los Angeles in the final on May 24th. Los Angeles became the first City Slams Champion in Southern California and 1980 Australian Open Singles Champion Brian Teacher handed out the trophies. All teams declared it was so much fun, they want to sign up again. Mid-May Rich traveled to Northern California to start the same City Slams round there. So toward the end of the year we can have a final NorCal vs SoCal championship to crown the California State City Slams Champion for the winning city. Membership We signed up 25 members at the $50 per year rate pretty easily. Until the end of 2023, we’ll be testing other price points with different membership benefits: Two tiers: Regular membership at $69 and Premium membership at $199 per year Start/Restart We conducted several clinics and created a thriving Meetup group for them. The response was very good, especially for our Booster Clinics for beginners and novices. After putting in a lot of sweat, we are working toward averaging a profit of $85 from every Start/Restart Clinic. In 5 years, we are planning to run 50 Start/Restart Clinics in 125 markets each year for a total of 6,250 clinics. City Slams In the past six months we have tested the waters for two more programs that look quite promising already! As soon as the City Slams program has reached critical mass and is easily duplicated in all other states, we will begin those programs. 1. Corporate Team Tennis Company teams play other company teams for trophies and bragging rights. Because of the proven health benefits of playing tennis, this should be an exclusive and winning program for Conga Sports. 2. Family Team Tennis We want families to learn and play tennis together. The program includes clinics for the entire family and then low-pressure tournaments where parents (and grandparents) play, kids play, and parents team up with kids. 3. Conga Leagues Early 2022 test team for Conga Sports programs OUR TEAM I am working with a number of (unpaid) professionals in both business and tennis. AJ Chabria, Dallas, Texas – experienced tennis teaching professional and podcaster, future Conga Sports Communications Director, member of Conga Sports Advisory Board Nikki Carlin, Northridge, California – experienced event organizer, and tennis player, future Conga Sports Director of Tennis Programs Bryan Baker, Mill Valley, California – small business owner, tennis player, and member of Conga Sports Advisory Board Lisa Stone, Atlanta, Georgia, tennis podcaster, founder of parentingaces.com, member of Conga Sports Advisory Board Ken DeHart, Portola Valley, California, master tennis professional, tennis director, speaker, author, hall-of-famer, member of Conga Sports Advisory Board Aruna Bernier, Austin, Texas, tennis teaching professional, one of Tennis Channel’s America’s Top 50 Coaches. member of Conga Sports Advisory Board Gary Horvath, Denver, Colorado, master tennis professional, market researcher, member of Conga Sports Advisory Board Tina Samara, Denver, Colorado, tennis professional, founder and owner of Transition Coach 4 Athletes, member of Conga Sports Advisory Board Steve Riggs, Irvine, California, tennis professional, consultant, President of the Orange County Community Tennis Association, member of Conga Sports Advisory Board Michele Krause, Sarasota, Florida, tennis professional, world’s foremost expert on Cardio tennis, member of Conga Sports Advisory Board As soon as we have the right kind of funds available, I’m planning to hire for the following positions: Manager, Strategic Alliances and Sponsorships (full-time) Conga Sports Director of Tennis Programs (full-time) Conga Sports Membership Director (full-time) Conga Sports Communications Director (part-time) I personally will not be on payroll until 2025. FUNDING FUNDS PREVIOUSLY RAISED The founder has so far invested $34,860 into the business. USE OF FUNDS When $50,000 minimum is raised, we will Hire a Conga Sports Director of Tennis programs on a part-time basis. Work with an experienced consultant to enhance and expand our search for national sponsors for our flagship program City Slams Enhance marketing/sales efforts to attract investors to Reg-CF raise Intensify efforts to expand City Slams to 6 western states (Oregon, Washington, Idaho, Utah, Nevada, and Arizona) Intensify efforts to sign up Conga members with a focused marketing campaign When $250,000 - $500,000 target is raised, we will Intensify efforts to develop the Conga Sports Start/Restart clinics program as a feeder for players into City Slams teams Continue and expand the marketing campaign for Conga membership and the expansion of the Conga Sports City Slams program throughout the Western U.S. RETURN ON INVESTMENT We are providing a combination of revenue share and other investor benefits LEVEL 1: INVESTOR BENEFITS For a $1,000 investment: 1-year membership in Conga Sports + 1 month ad in Tennis Club Business For a $2000 investment: 2x1-year Premium memberships in Conga Sports and 2 months ad in Tennis Club Business For a $5,000 investment: 4x1-year Premium memberships in Conga Sports and 1 year ad in Tennis Club Business For a $10,000 investment: 8x1-year Premium memberships in Conga Sports and 2 years ad in Tennis Club Business LEVEL 2: REVENUE SHARE For a capital investment of at least $15,000 we offer the benefits of a $10,000 investment plus a 3% revenue share. For a capital investment of at least $25,000 we offer the benefits of a $10,000 investment plus a 5% revenue share. For a capital investment of at least $50,000 we offer the benefits of a $10,000 investment plus a 7% revenue share. LEVEL 3: CORPORATE EQUITY For a capital investment of at least $100,000 we offer the benefits of a $10,000 investment plus a 2% equity in Conga Sports. For a capital investment of at least $200,000 we offer the benefits of a $10,000 investment plus a 4% equity in Conga Sports. For a capital investment of at least $300,000 we offer the benefits of a $10,000 investment plus a 6% equity in Conga Sports. For a capital investment of at least $500,000 we offer the benefits of a $10,000 investment plus a 10% equity in Conga Sports. Disclosure: this page represents Testing The Waters materials. No funds or other consideration is being solicited, and if money is sent, it will not be accepted by the company; No sales will be performed or commitments to purchase accepted until the offering statement is qualified; and A proposed purchaser’s indication of interest is non-binding.