Rusporti Limited is a start-up commercial company trading as Rusporti with the objective of encouraging individuals to not only undertake, but to help secure improved achievement from, sporting and physical activities.
This is a personal but also an increasingly political policy issue for countries around the world. A report published inThe Lancet in July 2012 suggests a lack of exercise is now causing as many deaths as smoking across the world with the UK among the worst, as nearly two-thirds of adults were judged not to be doing enough. Researchers said the problem was now so bad it should be treated as a pandemic. The government’s Foresight Programme report estimates that by as soon as 2015 36% of males and 28% of females (aged between 21 and 60) will be obese.
This is occurring within a context of a market growing 138% in real terms between 1985 and 2008 with consumer spending on sport at over £17 billion in 2008 according to research conducted by Sport England. Over 14.7 million people now play sport at least once a week with per capita spending peaking at £404 in the east of the country.
Rusporti’s strategy is to provide a unique web and mobile based platform that is a fully interactive tool that helps users pursue their sporting dreams. The Rusporti platform allows users to set their own goals and follow the path they want to take. It is a complete system in itself and not comparable to any existing web or mobile platform.
The difference between the service that Rusporti will provide and the services provided by other companies is that Rusporti.com will be not only a multi sport site but also a multi user site utilising technology, social networks, state of the art 3D graphics the fusion of offline and online activity.
The Site will allow four different types of sign-ups based on different user categories: Individual, Business,Educational Institution and Teams/Clubs. Each sign-up will cater to the specific requirements of the defined user category. The site, therefore, has a broad customer base that has functionality built into it allowing it to respond to different customers’ needs. For example, this functionality is of value for schools in meeting National Curriculum targets where the educational sign-up allows the PE Co-ordinator to goal-set, track, report and communicate for and between the whole class/group and parents/care-givers within a secure environment.
For Rusporti Limited the platform delivers a number of distinct income opportunities. All, except the individual sign-up, will be subscription based. Thereafter there will be advertising revenue, ecommerce, app sales, premium content subscription, ‘gamification’ and micro-commerce.
Rusporti Limited aim to build the brand through substantial marketing effort which will include advertising, PR, trade shows, sponsorship and direct marketing tools. Of particular importance within the subscription based categories will be direct field sales supported by the above and other collateral materials.
In the short and medium term the most important user category will be schools. The developmental Phase 1 for the platform reflects this and is currently in production. This plays to a number of the strengths of the management team; two of whom are teachers/ex-teachers covering both primary and secondary level and one has a Physical Education degree. Other skill sets include information technology to specify, oversee production and deliver up the unique Rusporti.com platform and its ongoing development. The team hold various coaching qualifications and have a wide and active network of sporting organisations and decision-makers throughout South Yorkshire. As well as many years experience of direct sales to call upon.
Rusporti Limited anticipates registered users across all categories will be in the order of 680,000 by the end of year 1 rising to almost 4.5 million in the UK by the end of year 4. The financial forecasts indicate breakeven achieved by the end of month 4 with a positive cash position (excluding funding)by month 8. Profit before tax for the first year is forecast at £1.5m rising to over £14m by the end of year 4.
Sport, like music, is a global language. Rusporti’s management team firmly believe that there are significant opportunities to offer the platform in international markets after its delivery in the UK, starting with other English speaking nations. The financial effects of which have not been addressed in the forecasts.
Rusporti Limited is seeking an investment of £500k over a maximum two year term to meet short term funding requirements. The other shareholders believe the financial forecasts demonstrate the company would be in a robust position by this stage (or a phased programme earlier) to buy back the investor shares offering an attractive return. The owner-managers are not seeking a short or medium term exit, preferring to steer the company to meet its undoubted potential. However, the nature of the market being as it is they do not discount the possibility of accepting an appropriate offer for the company.