Raymond Entertainment Group, LLC (“REG”) with the collaboration of Victus Advisors, LLC (“Victus”) is pleased to present to the City of Whiting (“City”) this Preliminary Analysis and Evaluation of the proposed Mascot Hall of Fame (“MHOF”). Please find attached a preliminary summary of our research. We will provide further market analysis during our visit to Whiting on September 9th. We have attempted to organize the materials in a manner that is useful to the goal of evaluating the establishment of a MHOF in Whiting, Indiana. This report is intended only as a preliminary analysis and evaluation of the prospect of establishing a MHOF in Whiting, and is not a detailed business plan for doing so. Thank you for giving us this opportunity and we look forward to presenting this review and subsequent steps that may be appropriate. Sincerely, 
David Raymond
Emperor of Fun and Games (CEO)
Raymond Entertainment Group, LLC
PO Box 328
West Grove, PA 19390
Raymond Entertainment Group, LLC (“REG”) with the collaboration of Victus Advisors, LLC (“Victus Advisors”) is pleased to present to the City of Whiting (“City”) this Market Analysis and Evaluation of the proposed Mascot Hall of Fame (“MHOF”). We have organized the materials in the following manner in order to comprehensively evaluate the establishment of a MHOF in Whiting, Indiana: EXECUTIVE SUMMARY MARKET ANALYSIS ELEMENTS OF SUCCESSFUL MHOF MHOF PROGRAMMING SUGGESTED NEXT STEPS
This report is intended only as a preliminary analysis of the proposed MHOF in Whiting, and is not a detailed business plan. We have suggested several next steps should the City elect to proceed with this MHOF project.
EXECUTIVE SUMMARY In conducting our research and preparing this report, we have studied other Halls of Fame and a variety of applicable entertainment venues. This extensive research process has allowed us to determine whether and how to move forward with the proposed MHOF. While market size, demographics, funding, infrastructure, product, popularity and program content are unique to each venue, certain attributes of a successful Hall of Fame are worthy of note, namely: The size, diversity and financial wherewithal of residents within Whiting’s metropolitan statistical area (the “Chicago MSA”), as well as within convenient drive time ranges of Whiting, are favorable elements to support and sustain a successful MHOF. Prospective MHOF patrons, however, have a host of high-quality entertainment options within the Chicago MSA from which to choose. The MHOF will need to compete with and/or complement an array of quality entertainment options in the Chicago MSA. Revenue generated from corporate sponsorship, admissions, novelty sales, food and beverage, various programming and donations to the MHOF will not be sufficient to pay for the cost of developing and constructing the MHOF. Revenue from the MHOF will be able to offset certain of the operating costs, but likely very little, if any, of the cost of constructing or equipping the MHOF can be covered from operations. The physical structure, facility assets and programming within the MHOF must be done correctly and thoughtfully. A fabulous facility with dry, static programming will not be sustainable long term. Wonderful programming with interactive elements in a bland shell will also not succeed. Both elements are important in order to compete for visitors within the Chicago MSA, and both require the appropriate expertise. The MHOF will stand a greater chance of success and sustainability if it is developed in concert with other family-friendly entertainment options. If Whiting is to become a family entertainment destination, the venue for the MHOF will need to offer more entertainment options than just a stand-alone Hall of Fame museum. The City will need to measure the MHOF’s success by what the venue does for the community and the City’s goals for developing the downtown area, not the direct financial “return” from the operation of the MHOF. Done well, the MHOF will make a significant contribution to the development of Whiting as a family‑friendly entertainment destination. As it can be difficult to operate any Hall of Fame at a consistent profit, measurement of the MHOF’s success should focus on its ability to attract new visitors rather than revenues/costs per visitor. Mascots have become a staple for the sports and family entertainment industry. For young children in particular, they are perhaps the most important part of an event. Mascot entertainment is one of the few options that families with children of differing age and maturity can choose to satisfy everyone in the family. Using mascots as the core focus for a Hall of Fame would be a strong motivation for family visits to Whiting. In the billion dollar media business, “good news” is a staple that is covered in both good and bad times. If the development of a new entertainment/museum venue for Whiting, IN could inherently and regularly deliver “good news” it could be just more valuable to the local economy and community than the potential for just revenue. The MHOF has been a lightning rod for national “good news” segments since its inception. For example, over 12 million media impressions were tracked in the inaugural MHOF induction ceremony. By extension, a permanent MHOF in Whiting IN, could receive regular positive national media attention covering the development, build out, roll out and operation of the MHOF.
MARKET ANALYSIS A detailed market analysis of Whiting and the surrounding Chicago MSA was completed by Victus Advisors. As noted in the market analysis, the size, diversity and financial capabilities of the market are impressive and an important element for the potential success of the MHOF if executed correctly. Whiting’s local market compares favorably to most any other Hall of Fame. The Chicago MSA is comprised of over 9.5 million people in 14 counties and is the third largest Metro Area in the United States. Nearly 6 million people live within a 30-mile radius of Whiting, with a median age of 36 and annual household income of nearly $50,000. Within a 30 minute drive of Whiting, there are nearly 2.5 million residents with a median age of 34 and annual household income of $42,600. Additionally, the corporate base is very strong. Nearly 5,200 businesses (that could be targeted for corporate support for the MHOF) are located within a 30-mile radius of Whiting. Contained within the Market Analysis is a comparison of other Halls of Fame. We have provided a summary of the MSA population, a brief description of each facility, and the reported annual visitors. Markets, visitor experiences and facilities vary significantly among Halls of Fame. The development cost of the facility in which the Hall is located also varies dramatically. Cost alone does not guarantee success and neither does a large market location. For example, in Charlotte, North Carolina (1.8 million population), the NASCAR Hall of Fame was completed in 2010 and cost $195 million to construct, yet it loses approximately $2 million dollars per year. There is a balance which needs to be struck between the size and cost of the facility, revenues needed to break even, and the pool of likely patrons. The College Football Hall of Fame has also had a checkered past. At one time, the College Football Hall of Fame was located adjacent to the King’s Island Amusement Park in Cincinnati, Ohio. In 1995, it was relocated to South Bend, Indiana, where there is a market population of just over 300,000 people. The cost of the College Football Hall of Fame in South Bend was $18 million and reported an annual attendance of 60,000 patrons per year. Eighty seven percent (87%) of the revenues necessary to operate the College Football Hall of Fame came from membership and donations. The South Bend market was simply too small, and too inconvenient for travelers, to sustain the Hall of Fame. While the facility was more than adequate (especially in 1995), the programming was static and the pool of likely attendees was relatively small. The College Football Hall of Fame was never positioned as a regional/national entertainment attraction and lacked a sufficient local population within the South Bend MSA to remain viable. Visitors from outside the South Bend MSA did not make a meaningful difference in the financial performance of the Hall of Fame. The College Football Hall of Fame is being relocated to Atlanta, Georgia, and is scheduled to open in the fall of 2014 in a new 94,000 square foot facility estimated to cost $50 million dollars. The Whiting market, with its metro area population of over 9.5 million residents, is significantly larger than the South Bend MSA (318,000 people) and even the Atlanta MSA (5.5 million people).
ELEMENTS OF A SUCCESSFUL MHOF A careful review of the Halls of Fame noted in the attached Market Analysis, together with a review of market conditions, supports a number of recommendations regarding the design, structure, target market and development of the MHOF. In particular, we would recommend the following: COMPETITIVELY POSITIONED WITH THE MARKET. The MHOF must be competitively positioned within the Chicago MSA. We have provided in our market analysis a list of 15 major family entertainment attractions within the Chicago market. These are representative of the kind of attractions with which the MHOF would need to be competitive. The Chicagoland consumer is a relatively sophisticated purchaser of entertainment services. A sub-standard facility with strong programming will fail just as readily as a tremendous facility with poor entertainment programming. In order to compete, the MHOF may need to focus more on becoming an entertainment venue rather than what may be considered a traditional hall of fame/museum. The subject matter of the MHOF naturally lends itself to the concept of family fun and entertainment. In addition, the presence of competitive Chicagoland-based entertainment venues may actually be viewed as a benefit to Whiting, as many consumers are within close enough driving range wherein they will be able to visit more than one entertainment venue in a day (e.g., a family outing to both the Shedd Aquarium and the MHOF). FACILITIES MATTER. The bricks and mortar of the MHOF will matter. An example of a recent experience within Minor League Professional Baseball may help illustrate this point. The professional baseball team in Fort Wayne, Indiana, is a Class A affiliate of the San Diego Padres and was originally relocated from Kenosha, Wisconsin, to Fort Wayne to commence play in the spring of 1993. The original Fort Wayne stadium, which cost $6.2 million, was a spartan, modest design, but adequate at the time. The team achieved success by 1993 standards but, over time, attendance began to level off and ultimately drop. The original ballpark lacked a number of the revenue sources and entertainment options that had become more standard within modern Minor League professional ballparks (such as a video board, professional sound system, luxury skyboxes, gift store, expanded menu, multiple seating options, etc.). Fort Wayne is an exceptional Minor League market, annually ranked in the top 10 by Street & Smith’s Sports Business Journal. In the summer of 2010, the City of Fort Wayne constructed a new $30 million ballpark. The new ballpark (“Parkview Field”) has achieved national acclaim and helped produce tremendous attendance results. In the last six years (end of 2006 season thru 2012 season), attendance has increased 67% in the Fort Wayne market as a result of this new ballpark, even though the team management and the on-field “product” were unchanged. In an identical market with identical product and the same management, a new “best in class” venue has helped the team achieve a substantial increase in attendance and driven tremendous attention to the City’s downtown core (which was previously under-utilized). The venue matters and it will matter in Whiting as well. DYNAMIC ENTERTAINMENT. The programming offered within the MHOF must be compelling. A static, sterile artifact museum will not work. Entertainment must be interactive, exciting, and evolve over time in order to attract repeat visitors. This was one of the challenges of the College Football Hall of Fame located in South Bend, Indiana. After an initial visit, patrons had little reason to come back. Diehard football fans might have enjoyed multiple visits, but families with children, in particular, did not make multiple visits. People return to a movie theater on multiple occasions because the movie (and therefore the experience) changes. A venue which features the greatest movie theatre with the best snacks will fail without a steady stream of quality new movies. The programming at the MHOF must offer patrons a reason to come back for a new experience. COMPREHENSIVE DEVELOPMENT. A stand-alone Hall of Fame facility in Whiting will not have the same effect as a comprehensive, mixed-use development. Attracting families to Whiting as an entertainment destination (which requires effort from families in order to get there) will be more successful if families have a wide variety of complementary attractions and opportunities to choose from. Sometimes “more is more” when it comes to entertainment destinations. Restaurants, shops, parks, etc. that are all focused on the “family entertainment” consumer can all contribute to the quality of the experience when visiting the MHOF. Likewise, the MHOF would complement and create a draw for the other family attractions currently being developed in Whiting. FINANCIAL EXPECTATIONS. It is expected that the MHOF would be like many other publicly supported entertainment venues around the country. The revenues generated from the MHOF will not be sufficient to pay for the cost of developing and constructing the MHOF. Construction of a library is not paid for by future revenue streams from membership dues or overdue book charges; airports and runways are not built with projected revenues from FAA Passenger Facility Charges; and development of a new arena is not fully funded by dedicating future revenues to be generated from events hosted within the arena. The same is true with public parks, professional sports stadiums, and other such public venues. Virtually without exception, public entertainment venues are constructed with a significant contribution of public dollars, and the majority of revenues generated by operation of the facility are needed to offset the facility’s operating costs. Public dollars are frequently used to fund construction of entertainment venues because both the venue and the events it attracts are understood to enhance the quality of life for the local community, as well as generate significant economic and fiscal impacts by attracting new visitors from outside of the community. It would be a mistake for Whiting to construct the MHOF believing that, under any scenario, the operations and rent paid by the MHOF would be sufficient to pay for construction-related debt service. In many cases, Halls of Fame are further supported with an ongoing subsidy, whether characterized as government grants, dedicated tax revenues, rent credits, service/maintenance fees, etc. The benefit to the community is to enhance the quality of life, attract tourism dollars, create and retain jobs, etc. OPERATIONS. The operation of the MHOF should be structured around performance-based compensation for its operating staff. The private sector traditionally is in a better position to compensate employees for efforts to aggressively promote the facility and attract visitors. An effective staff will be able to sustain enthusiasm for the MHOF among many different constituent groups so that funding comes in from all kinds of sources, including admissions, donations, corporate sponsorships, naming rights, contributions towards endowment, etc. Municipal operations are typically not as well positioned to compensate staff based upon successful operations with bonuses and other performance-based incentives. We would encourage the City to evaluate the host of private sector management options available with regard to the ongoing operations of the MHOF. In addition, we encourage the City to consider housing the operations of the MHOF within a 501(c)(3) non-profit organization that is specifically created to operate the venue. Most successful Halls of Fame are operated by a dedicated non-profit organization, as this structure enables the venue to more effectively solicit donations and corporate sponsorship by offering the opportunity for qualified tax deductions in return. TARGET AUDIENCE. In developing the size, focus, components, programming, etc. of the MHOF, it will be important to develop a more thorough understanding of the target audience. While we believe the target audience is likely comparable to the target audience for a minor league sports team, for example, this matter should be given thoughtful consideration and studied further. Our preliminary assessment is that the MHOF will perform better financially and achieve greater attendance if both the MHOF and the surrounding mixed-use development/attractions are focused squarely on the family entertainment market. MHOF MARKETING AND BRANDING. There may be an opportunity to creatively promote both the City of Whiting and the MHOF with some form of traveling program. Marketing and promoting the MHOF throughout the Chicagoland region, given its size and diversity, will be challenging and expensive by relying upon paid media alone. The Chicago media market is expensive, segmented and, as noted above, there is a tremendous amount of competition with other entertainment venues and functions. An aggressive, nimble and creative promotional and branding strategy will be critical with the marketing of the MHOF. As such, one concept we believe might be beneficial for further exploration would be the opportunity to promote the MHOF (and other developments within Whiting) with a mobile exhibit or program which could enhance the visibility of the MHOF and the City of Whiting. The vision of the traveling program and mobile exhibit would be to create an integrated marketing and branding platform in a fun, interactive environment. In addition to entertaining multi-media, audio and video elements and artifacts from MHOF inductees, the tour would include state-of-the-art interactive elements as well as hands-on traditional activity for the enjoyment of visitors of all ages. A tremendous number of “mascot” activities (education, entertainment, etc.) can take place within this comprehensive traveling program. The exhibit would also host, promote, market and brand other attractions connected with the Whiting family entertainment district. ACTIVE PROGRAMMING. The MHOF must be actively programmed to remain vibrant, exciting, new and fresh. There will be a honeymoon period (perhaps a few years) following completion of the MHOF whereby fans and patrons will visit, enjoy the experience and speak well of it to others. This honeymoon period will not last much beyond a few years and, as a result, necessitates programming which remains dynamic, fresh and engaging. Families and visitors should want to visit multiple times because the product is different and changing. If the product becomes stale, attendance and revenues will drop and the viability of the MHOF will be challenged. THE BUSINESS OF MASCOTS. Mascots have become an integral part of any well-managed, sports-related entertainment experience. Attached at Appendix A is a copy of the feature story about the “Funny Business” of Mascots from Sports Business Journal’s July edition. Mascots are used by every professional and collegiate team in one form or another to brand the team’s image, create fan affinity, offer entertainment and create a family-friendly environment. Mascots are considered to be American as apple pie, loved by all regardless of age, and are often times as important as the event itself. Mascots can be more than “crazy, wild, and silly”; they are in many instances as valuable to the team as their logo, name or talent on the field. For a child to be able to “hug” their favorite team’s mascot, the experience can be as powerful as hugging their favorite players themselves. Among many things, mascots are a very powerful youth marketing tool that creates long-lasting brand loyalty. 11. INVEST IN CONTINUED SUCCESS. There are multiple examples within minor league sports that help make this point. In 1992, Joliet, Illinois, constructed a state-of-the-art, $28 million, downtown ballpark. The team commenced play in the Northern League, an independent professional baseball league, in 1993. While the Joliet market is nowhere near as favorable as Whiting’s metro area, the ownership and community in Joliet failed to recognize the importance of reinvesting in the facility and the product, and so the experience became stale and fan interest declined. Nearly 15 years later, the facility is dated, in need of substantial upgrades and the product has become bland. The team does not attract the community support that it could today if only the product and the facility had been properly maintained. In order for the MHOF to be sustainable long term, there should be a strategy (including dedicated funds) to keep the facility fresh and the product vibrant, and we cannot emphasize enough the importance of professionalizing the management of the MHOF. Given the uniqueness of the MHOF, it will be important for the community to select the right operators who bring a dynamic, creative, energetic and insightful approach to the operation of the MHOF.
MHOF PROGRAMMING The Mascot Hall of Fame cannot be an average museum or Hall of Fame. It has to be a unique combination of elements from interactive low and high tech exhibits, one-of-a-kind activities for the whole family, engaging educational content and ever changing programming that attract consumers time and time again. Fans need to leave with a great memory and a desire to visit again. Whether you enter the Mascot Reality Zone learning what it is like to be a mascot first hand, host your own World Mascot News Network segment, design your own Mascot, or dance along with the characters in the Furitorium, the MHOF has to create memories that last a life time, yet has elements that continually attract consumers for more than just one experience. Dave Raymond, owner of Raymond Entertainment Group, was the original Phillie Phanatic (Philadelphia Phillies mascot) and was credited with developing one of the most recognized mascots in the United States. He has performed in front of nearly 35 million fans, including three Major League Baseball World Series, over a span of 16 years. During that same period, David averaged over 250 “outside” appearances per year as the Phanatic which included visits to community events, parades, funerals, weddings, bar-mitzvahs, hospitals and church services.
Dave has developed a vast amount of knowledge, experience, development, character building and branding while working with teams in the NFL, MLB, NBA, NHL, NASCAR and in minor league baseball, hockey and basketball. The following outlines a few basic MHOF programming elements based on the aforementioned;
The Mascot Hall of Fame could be hosted by a lovable and hilarious virtual character who would guide the consumer throughout their journey, popping up along the way adding levity and fun at every turn. The journey might include:
THE MASCOT REALITY ZONE: If you have ever wondered what it was like to be a mascot, here is your chance. Guests will be able to try on various costume pieces, design their own characters, participate in the Mascot Olympics, show off their aim in the T-shirt Cannon Shooter Gallery or take their chances in the Silly String Wacky Fun Booth.
MASCOT SCIENCE: Explore the world of mascots like never before. Ever wonder how much force it takes to jump off a mini tramp and dunk a basketball from the 3 point line? Just how hot does it get in there or what is that fur really made of? Consumers will find out this and more in Mascot Science.
THE HALL: Guests will learn the history of mascots and how each of the inductees made it to the top. This will be the most colorful and fun Hall of Fame ever created. Filled with characters, ridiculous props, images, and interactive touch screens where kids design and build their own mascots and, guests will be able to learn everything about their favorite characters or become a life-time mascot fan. Each character inductee will be celebrated with a highlight reel, bloopers, iconic images, fun facts, and more. Every year, the MHOF will be filled with more and more character fun.
THE FURITORIUM: The MHOF could feature a fully equipped featured auditorium that could play host to a variety of programming (both live-action and on-screen) within the Whiting Entertainment Complex. Regular video and live-action programs will keep visitors rolling in the aisles. From educational assemblies, break out dance parties, to press conferences and special events, the FURITORIUM will be a key component to multiple programming activities and the overall MHOF experience.
Special events at the MHOF might include:
ANNUAL MHOF INDUCTION CEREMONY: The cornerstone event of the year will look to Whiting as the host of MASCOT TOWN USA for its annual MHOF Induction Ceremonies for the most famous and talented mascots at the professional, collegiate and amateur sports level. Highlighted by a “Fur Parade” which include mascots and mascot performers from all over the world through town, live induction event, media briefings, and various character charity fundraising appearances, mascot characters from all over the world will migrate to Whiting for one glorious fun and fur filled weekend. This could create tremendous economic impact and media exposure for the MHOF and the City of Whiting.
By way of example, the first MHOF induction ceremony in Philadelphia included the Famous Chicken, Phoenix Gorilla and the Phillie Phanatic. Media exposure for the induction ceremony exceeded twelve million media impressions worldwide. The ceremony was covered by CBS, NBC, ABC, FOX, ESPN and more. Nearly 3,000 mascot-crazed fans and people from all over the United States attended the induction ceremony.
MASCOT PERFORMANCE TRAINING: At various times throughout the year, hundreds of performers will travel from all over the country for one day, three days or week long training seminars where they learn the tricks of the trade from professional mascot personnel. The proposed MHOF and mascot experience exhibit site in Whiting, Indiana, could become the permanent home of The Mascot Boot Camp.
MASCOTS FOR A CURE: This ongoing charity component of the MHOF will serve to benefit worthwhile charities, organizations, and causes in an effort to make Whiting a better place to live “one mascot at a time”. There is nothing more wholesome and good old-fashioned fun for the entire family than interaction with mascots. Subsequently many local, regional and national businesses will likely want to align their brand to be associated with the MHOF.
CELEBRITY MASCOT EVENTS: Each month the MHOF will host a major market Celebrity Mascot and some of their fuzzy friends. These could include character breakfasts, lunches, meet and greets and dance parties to name a few. One of the main reasons why mascot performance resonates with “children of all ages” is that it is spontaneous, interactive and personal. When two or more mascots gather, everyone is drawn in and the party begins. People will look forward to these monthly events giving them one more reason to come back time and time again. Additionally, through a licensing program, the MHOF will have the most well-known mascots in the country on site, every day and in person. This will allow fans to hug their favorite mascot, take pictures, act silly and have fun.
PRIVATE PARTIES, MEETINGS AND RECEPTIONS: With all the fun and interactive exhibits, the MHOF would be the perfect place to host private parties, receptions, meetings, birthdays, field trips, themed conventions, corporate retreats and other events...maybe even a wedding and reception where couples can be married by our own Fur Justice of the Peace.
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