Race World Offshore 2020 by Cox Group

TABLE OF CONTENTS

Race World Offshore (RWO) is proud to have the opportunity to present and share the following information. We are committed to providing one of the best sports marketing platforms available to corporate sponsors.

TABLE OF CONTENTS POWERBOAT RACING AND BOATING COMMUNITY

Offshore (and inshore) racing has been around a long time and the popularity of the sport has continued to grow. Boat owners, racing enthusiasts and communities on the waterfront have engaged with the high performance boating world which has seen great success and community involvement from these sporting activities.

– A BIG INDUSTRY................................................... 1

Offshore racing is very exhilarating, exciting and is designed for the whole family. Our sport allows for upclose interaction with our teams,drivers and throttlemen. Fans come into the pits and are encouraged to visit the team camps, where they have the opportunity to talk one-on-one with the professionals themselves.

HOW BRANDS WIN................................................. 10

Using high performance offshore racing has been a proven tool to build brands, grow business relationships, grow sales and build community involvement. Also, a great catalyst for building a community event that has a significant economic impact.

FAN DEMOGRAPHICS............................................. 20

WHY POWERBOAT RACING..................................... 2 POWERBOAT RACING FACTS................................... 3 WHO WE ARE – RACE WORLD OFFSHORE............... 4 RWO GUIDING PRINCIPLES.................................... 5 RACE SCHEDULE..................................................... 6 SPONSORSHIP LEVELS............................................ 12 MARKETING & PUBLIC RELATIONS.......................... 14 INDUSTRY FACTS..................................................... 16 AFFINITY & TRENDS................................................. 18 ECONOMIC IMPACT................................................ 22 CAUSE & CONSERVATION....................................... 24

MARINE INDUSTRY ECONOMIC IMPACT

POWERBOAT RACING & BOATING A Big Industry Fans stream to the waterfront and watch from yachts, piers, recreational boats and crowded beaches as high performance powerboats race along the shores. Fans are consumers of a big boating industry and who like to engage in boating events and activities, such as racing, boat shows and festivals. Â Corporate sponsors need to go where the audience is and enhance their experience. The ability to create emotional connections with fans on-site is the real opportunity to move down the sales funnel. Event marketing, PR, live streaming and social media play a big role in promotion and event success.

121 Billion Dollar Industry 88

Million People

650,000

Jobs

95% Made In USA 80% Middle Class 72% Income

Nationally, the marine industry has a 121 billion dollar impact 88 million people participate in recreational boating at least once per year in the U.S. 650,000 marine industry jobs (manufacturing, dealers/ wholesalers, services) at 34,833 marine industry businesses

95% of the boats sold in the U.S. are made in the U.S. 80% of boaters are middle class 72% of boat owners household income less than $100,000

WHY POWERBOAT RACING

ACTIVITIES

EXCITING OFFSHORE RACING MOTORSPORTS PROPERTY COMMUNITY, CAUSE MARKETING & BUSINESS INVOLVEMENT SOCIALLY ACTIVE DEMOGRAPHIC AND LIFESTYLE ENTERTAINMENT & MERCHANDISING STREET PARADES & BLOCK PARTIES Sponsorship is an important tool of marketing communication that seeks to achieve favorable publicity for a company and or it brands within a certain target audience via the support of an activity not directly linked to the companyâ&#x20AC;&#x2122;s normal business. Customers (fans) are increasingly demanding and want the ability to engage on their time table, watch whatever they want, in whatever way they want,

wherever they are and have an ultimate experience. In recent years, companies (sponsors) have faced more and more problems reaching fragmented consumer markets with their traditional marketing instruments, such as advertising and sales promotions. This is the reason why sponsorship (particularly sports) has become increasingly popular as a marketing tool.

POWERBOAT RACING FACTS This is the EXCITEMENT of boat racing and how marketing through motorsports is about much more than the placement of a logo on a sports property. Instead, it is about brands strategically connecting with their audiences through an authentic consumer journey, while mixing motorsports, entertainment and beachfront communities to drive results.

THRILL OF RACING

RACE DAY EXCITEMENT

Boats reach speeds in excess of 150 mph Attracts thousands of fans at each event Races take place in premier locations Boats compete close to shore Fans have face to face access to drivers & throttlemen Race boats in the dry pits draw crowds Fan engagement sharing videos & images of exciting event

15 laps and 75 miles of competition on 5 mile course Racing close to beaches and shoreline Sleek Super Cats & Vee Bottoms compete in different classes Boats lineup deck to deck for rolling start Side by side high flying racing One driver and one throttleman in each boat working together

CLASS NAMES AND SPECS US Class 1

Catamaran style (40 to 50’ long) - 1100 hp

SuperCat

Catamaran style (36 to 46’ long) - twin 800 hp

SuperVee

Vee Bottom style (35 to 46’) - twin 650 hp

Super Stock

Catamaran style (28 to 32’) - twin 300 hp outboard

ProStock Vee

Vee Bottom style (26 to 32’) - single 600hp

Classes 1-7

Various lengths and horsepower

WHO WE ARE

Race World Offshore (RWO) Team Managing members of the RWO team, the racing series sanctioning body, have decades of experience producing successful offshore race events in Key West and across the United States with the worldâ&#x20AC;&#x2122;s biggest and fastest race boats.

RWO LEADERSHIP Larry Bleil Founder - 9 years Key West World Championship (President CROPRA)

Richie Dancisin Director of Race Operations (DRO) 15 years Race Operations & 20 years Professional Racing

Rodrick Cox Leland Stanford Chief Operating Officer (COO) - Executive Director Policy & Procurment 17 years Offshore Racing Operations & Marketing Experience 25 years Racing & Marine industry Experience Combined

RWO GUIDING PRINCIPLES

RWO is committed to more than just producing great races, but also having strong beliefs to connect on a deeper level with those around us. We are committed to respecting, engaging and recognizing the following guiding principles:

Deliver superior customer service to promoters, teams, sponsors and associate partners Proudly stand for sportsmanship, fairness, respect for oneâ&#x20AC;&#x2122;s opponent, and graciousness in winning or losing Provide an exceptional experience at every level to fans and stakeholders committed to RWO Conscientious steward to protect endangered species, marine life and maintain clean waterways Mentor our youth and provide opportunities for young people to be a part of a growing sport Most importantly honor given to Veterans, Active Military, Police & Fire and 1st responders

2019 RWO RACE SCHEDULE Motorsports offers unique and compelling opportunities for brands to interact with a loyal and experiencedriven fan base. Creating fully integrated programs reinforces the brandâ&#x20AC;&#x2122;s call-to-action. With racing experience across many states our goal is to develop the best race sites that maximizes ROI for sponsors and makes the most economic sense for teams traversing the United States. Our mission is to confirm a solid schedule as soon as possible ultimately providing the best racing series for teams and contributors.

Apr 17 - 19

Orange Beach, AL

Thunder On The Gulf

June 12 - 14

Atlanta, GA

Lake Lanier Grand Prix (Pending)

Jul 10 - 12

Dunkirk, NY

3rd Annual Great Lakes Grand Prix

Sep 25 - 27

Clearwater, FL

Hooters Clearwater Offshore Nationals

Nov 8 - 15

Key West, FL

The Offshore World Championships

HOW BRANDS WIN

Brands (corporate sponosrs) that outshine their competitors are creating programs & campaigns that enhance fan experiences. The values and congruent messages between the brand and property must be portrayed in content and activation campaigns. Powerboat racing drives more than awareness and impression numbers. In addition, it provides businessto-business opportunities, employee engagement opportunities, customer hosting platforms, unique content marketing campaigns and once-in-a-lifetime experiences.

Unique to powerboat racing is the flexibility and relatively lower costs for sponsorship investments. Brands have a history of finding longevity in powerboat racing because they can sustain longtenured agreements that are catered to the evolving needs and objectives of the brand and have an expanded reach with a wide demographic. While recent announcements from corporations exiting car racing motorsports may seem like a heavy hit to motorsports, including brands Loweâ&#x20AC;&#x2122;s and Target, it is a great time for brands to investigate the value of powerboat racing and the lower costs of entry.

CORPORATE SPONSORSHIP

Get involved in corporate sponsorship with Race World Offshore to increase visiblility of your brand and attract new consumers world wide. In a cluttered sponsorship environment of most motorsports, offshore racing is a little different. It is an untapped market that allows a brand to come in and be a very large fish in the naming rights and category entitlement pond at a fraction of other major motorsports.

Points of entry should be rooted in connection to consumer, strategy and entertainment. Powerboat racing finds ways to control costs and enhance the fan experience, which in turn has created new categories for sponsors. Race World Offshore offers a wide range of entitlements, official status and technical & category specific sponsorship opportunities.

Brands should develop and apply programs with a clarity of message and a focused channel to hit every touchpoint of the consumer journey.

There is no one-size-fits-all approach to any sponsorship level. Asset-based agreements are in the past and should be replaced with conversations on how to drive opportunity to meet a particular brand’s interests.

When it comes to sponsorship, one of the most fundamental goals of a company is to generate or increase the awareness of it’s products, services or corporate name along with the following: Brand Awareness Persuasion Building Relationships

Changing Attitudes Building Brand Image

Meeting Any competitive threat Reaching Target Markets

SPONSORSHIP LEVELS

Within the sanctioning body of Race World Offshore there is an opportunity to be a title sponsor, an official partner, an official sponsor - category, an associate sponsor of the series or a sponsor of one or multiple assets. RWO offers many categories. Sponsorships can include, but are not limited to a vast combination of deliverables: Naming rights for the series, classes and categories

Logos on RWO equipment, official apparel, on-premise and website banner advertising, collateral and much more Logos on team raceboats, team haulers, merchandising and official boats Use and likeness of many RWO marks, boats, teams and headshots

Involvement with entertainment, bikini contests, festivals, parties and awards presentations Boat appearances at corporate offices, all access credentials and VIP Tickets

Companies and brand activation can include: Hospitality, VIP events and consumer displays

Sweepstakes, raffles, data mining and giveaways

Pace boat rides, Grand Marshals and B2B meetings

TITLE SPONSOR

Title sponsorship encompasses the RWO series and its components for the full year of racing. This allows a sponsor to brand the series with their name, benefit from their association with the series and have a connection with all of the race teams. Sponsorship level also includes other deliverables and benefits.

OFFICIAL SPONSORS CATEGORY (EXCLUSIVE)

Exclusive category sponsors allow the company the benefits of sponsorship, while at the same time exclude competitors from equal naming rights or inclusion into the official status. Adult Beverages Airlines Apparel Attorneys Auto Parts Broadcast Partners

Cable / Internet Providers Cell Phone Carriers Convenience Stores Credit Cards Credit Unions Equipment

Fast Food Financial Institutions Franchises Fuel Insurance Printing

Rental Car RV Dealers Tire Stores Truck Sales

OFFICIAL PARTNERS (NON-EXCLUSIVE)

ENDEMIC & NON-ENDEMIC

Non-exclusive partners are designed to allow companies to be included in benefits of sponsorship along with a connection to individual race teams. This official partner status includes decals on all race boats and official status privileges, in addition to other deliverables and benefits. Does not include category exclusion by default.

Boat Manufacturers Engine Manufacturing Trailers & Towing navigation Electronics Accessories

ASSOCIATE SPONSORS

ACROSS ALL INDUSTRIES

Race World Offshore associate sponsor opportunities allow companies and service providers to be involved with offshore racing on a national scale. Powerboat racing brings the raw power of the platform combined with a multitude of ways to activate sponsorship that other platforms do not have. Each associate sponsor package is unique.

Rental Equipment Misc. Manufacturing Beverage Photography Big Box Stores Fun & Sun

RACE CITY SPONSORS

LOCAL & REGIONAL

Pace Boats Support Boats Power / Generators Luxury RV Support Equipment Oil Removal

Merchandising Small Business Tent & Canopies Videography Transportation Coffee, Craft & Juice

Local communities and beachside hotels & resorts have great opportunities to get involved in sponsorships and use the marks of RWO and teams to build a tighter bond with customers. There are a wide range of products and services that are a good fit with offshore racing. Race city sponsorship also includes other deliverables and benefits.

Hotels Bars & Clubs Equipment Rentals Fire & Police Musical Groups

SPECIAL ACCOUNT SPONSORS

GREAT MARKETING OPPORTUNITIES

RWO uses a wide range of vendors in local communities. Companies have the chance to promote their companies and to be a sponsor, not only when the races come to town, but also as they are able to expand services outside their region. Each special account sponsor program is individually crafted to meet sponsor expectations.

Signs & Banners Catering Party Rentals Entertainment Golf Carts Live Streaming

Restaurants Resorts Waste Removal Security Heavy Ton Cranes

Transportation, Towing & RV Banquet Rooms Stages, AV & Lighting VIP Parties Printing TrophyHardware/Naming

United States Office | 7900 National Service Rd. | Mailstop DR2-63 | Greensboro, NC 27409

MARKETING & PUBLIC RELATIONS STRATEGIES The average American spends 24 hours a week online. Smartphones are used by 84 percent of the American population to browse social media, streaming services and the internet. Despite the growing amount of time spent online, there is still a limit to how much people can consume. People are develping relationships with brands as much as they are with people through social networks, and every piece of content determines if and how much a person will engage. Powerboat racing has impressively developed content that their fans and prospective fans are not only interested in, but are engaged in and share over and over again.

There are many ways RWO activates its marketing & public relations strategies to maximize the exposure of its series and sponsors. RWO uses traditional media (print and electronic), social media, grassroots marketing, radio, live streaming and partnerships with local communities. The combined efforts bring the biggest value and ROI for RWO sponsors.

PUBLIC RELATIONS

A robust PR campaign is implemented throughout the year and gets amplified around series events. From pitching local and national outlets, use of b-roll and other tools, RWO maximizes the longstanding value of traditional PR.

SOCIAL MEDIA

The growth of social media in motorsports has established a new dynamic in marketing. Social media platforms allow brands to engage in extensive brand-related activities, enabling dynamic, ubiquitous and often real-time communication between brands and consumers, as well as large-scale consumer-to-consumer interactions. Engagement is particularly relevant within communities on social networking sites, such as YouTube, Facebook and Twitter brand pages, through which organizations are allowing consumers to engage with the brand, while at the same time being able to share their activities within their social and lifestyle group. Given the new possibilities provided for customersâ&#x20AC;&#x2122; empowerment, social media has become one of the main channels through which consumers engage and interact with brands and allows brands to connect.

LIVE STREAMING

The evolution of live streaming and second-screen experiences are impacting viewership numbers, and RWO has brought that experience to its fans. Going forward the best way for powerboat racing to be seen live, in home, or on mobile, in restaurants or bars and internationally is through live streaming. RWO continues to build its strategies around live digital content for fans and sponsors.

TELEVISION

People are watching television differently. Viewership has shifted dramatically from broadcast and cable networks to free and subscription-based streaming services and traditional online digital content. The popularity of these services, as well as cord-cutting and cord shaving are changing the television industry. The evolution to move past traditional broadcast and into digital experiences are impacting viewership numbers, but RWO saw a great opportunity in its first season to broaden our brand with programming on CBS Sports. Television in coming seasons will include sponsor driven objectives.

ADVERTISING

RWO works closely with the local community hosting the races to maximize advertising on television, online and in print that brings awareness to the event and maximizes fan turnout. Host cities and local convention visitors bureaus spend time and money promoting offshore race events to their community and regions.

RADIO

Typical strategies for radio marketing and advertising are done by RWO providing teams for interviews and drive time talk shows and also providing access for live remotes and race day broadcasts in exchange for promoting our events with advertising and promotions.

PRINT & MAGAZINES

RWO has the support of online magazines and blogs, along with industry related print magazines, which cover our series intensely. We have good standing relationships with various publishers which not only allows for great coverage of events, but RWO also provides storylines, features and content to outlets to increase our presence throughout media content cycles.

INDUSTRY FACTS

“As the strong economy continues to bolster new boat sales and boating expenditures, capital spending and manufacturer optimism are at record highs, creating one of the strongest periods on record for the U.S. boating industry and a buyers’ paradise with more boats and more options on the market.” – NMMA President, Thom Dammrich

The National Marine Manufacturers Association (NMMA) reports this year in 2018, the boating industry is seeing some of its highest sales in nearly a decade. Data recently released by the NMMA shows that unit sales of new powerboats increased five percent in 2017, reaching 262,000, the highest levels the U.S. recreational boating industry has seen in 10 years. What’s more, total marine expenditures were at an all-time high in 2017 at $39 billion (spending on new boats, engines, trailers, accessories and services), up seven percent from 2016. Boat manufatureres are expanding capacity to meet this demand by building new plants and increasing production, supporting recent data from the Bureau of Economic Analysis that U.S. manufacturing gross output increase to $6.228 trillion in the fourth quarter of 2017.

BY THE NUMBERS

AFFINITY & TRENDS

The ability to create emotional connections with fans on-site creates a great opportunity to move down the sales funnel. We live in an experiential economy. The demand for more experiences is increasing across generations, and brands need thoughtful strategies to implement an authentic experience. Marketers have known this for a long time, and 77 percent of brands view experiential marketing as a vital piece of their marketing strategy. When a consumer interacts with a brand that connects with their passions, they are 33 percent more likely to purchase from that sponsoring brand. After a handson experience with a brand, 32 percent of consumers have an improved opinion of the sponsoring brand.

Experiential marketing taps into this through consumer experiences that attempt to develop brand affinity, brand loyalty, brand advocacy and brand evangelists. Powerboat racing offers unique and compelling opportunities for brands to interact with a loyal and experience-driven fan base. One-on-one consumer engagements created by brands that carry across digital, social, retail and television all need to be considered when developing amazing experiences for fans to engage with their products. Like other motorsports properties, offshore racing has very similar associations, between the powerboat racing community and brand engagement.

TRENDS OF RACING OWNERS

TRENDS OF RACING FANS

Most often upgrade their boats with the same manufacturer

Very passionate about teams and manufacturers

Are very socially minded

Strong Facebook and Instagram presence sharing photos and videos

Share images and video on social media platforms Participate in other outdoor activities Recommend others to liked brands

Travel outside of hometown for racing events Have great collection of sponsor merchandise and collectables Return to racing events year after year

FAN DEMOGRAPHICS

There are a lot of boaters, fans and families throughout the U.S. and abroad who follow powerboat racing. Sponsors of RWO can benefit from the fan viewership on a local and national level. RWO events tend to be ninety percent in the Eastern Time Zone and in large destination cities. Locals are immediately attracted to the events and short travel time allows fans to travel to various destinations to attend multiple race events throughout the year. While offshore powerboat racing draws large crowds, we are also aware that fans can not travel to all events but still want to participate. Our fan base is highly engaged on social media following the activities of the weekend, even if they are not attending the event. The growth

of social media and live streaming capabilities has established a new dynamic in marketing. These platforms allow brands to engage in brand-related activities enabling dynamic, ubiquitous and often real-time communication between brands and consumers, as well as large-scale consumer-toconsumer interactions. Engagement is particularly relevant within fans on social networking sites, such as YouTube, Facebook, Instagram and Twitter brand pages, through which consumers are engaging with their brands, creating an emotional connection to a product and allowing the opportunity to produce higher sales.

AGE

TOTAL

MALE

FEMALE

18-24

30,616,469

15,697,044

14,919,425

25-44

86,218,042

43,360,461

42,857,581

45-64

84,370,610

41,164,160

43,206,450

TOTAL

201,205,121

100,221,665

100,986,456

RWO HIGHLIGHTS

78% of Powerboating Fans are on Social Media RWO is the Fastest Growing Offshore Sanctioning Body in the United States 65% of RWO Fans Earn over $50,000 RWO Fans are Twice as Likely to have Served in the Military or been a First Responder

INCOME DISTRIBUTION

• RWO fans are middle class and just as affluent as the U.S. population • Average household income for RWO fan is $71,000 per year

INCOME PRESENCE OF CHILDREN

• Powerboat Racing is a sport the whole family can enjoy • 1 out of 3 engaged RWO fans have children under the age of 18

RWO SENSABILITY ASSUMPTIONS Outdoor Enthusiast Socially Active Smartphone Minded Thoughtful of Financial Decisions Comfortable with Breaking Routine

Employed Married Homeowner Kids Pets

ECONOMIC IMPACT

Politicians, economic developers, citizens, business people, and academics often do not understand the economic importance of professional offshore powerboat racing. When the over 100 year old sport of offshore powerboat racing comes into town and joins forces with the host city, great things tend to evolve.

Offshore powerboat racing, with their extreme boats, heart pounding action and festival like atmosphere, brings teams and participants from across the states and abroad. Teams fill heads in beds and with that, comes the fans. The sport of powerboat racing brings increased jobs, increased hotel occupancy, tax revenue and much more.

COCOA BEACH, FLORIDA (Estimated)

• 80,000 Attendance Over 3 Days • $3.1 Million Economic Impact • Full Hotel Occupancy Beach Front Hotels • 4,000 Attendance Downtown Street Party

CLEARWATER, FLORIDA (Chamber Commerce CWB) • 180,000 Attendance Over 3 Days • $20 Million Economic Impact • 3,500 - 4,000 spectator Boats • 8,500 People at Street Parade and Racer Village • 700,000 Fans Total reach on Social Media • 5,100 Attendance Fireworks Display

KEY WEST, FLORIDA (Estimated TDC)

• $30 Million Economic Impact • $8.1 Million Hotel Revenue • Over 100 Boats in Adjoining Poker Run • Largest Event Held in Key West • 90,000 Attendance Week Long • 45,000 Attendance Block Party

SARASOTA, FLORIDA (Per P1 Management Ltd) • $27 Million Economic Impact • 18,500 Room Night Bookings • $3.3 Million Hotel Room Impact • 100,000 Online Viewers of Livestream Event • 990,000 Fans Total reach on Social Media

COCOA BEACH

CLEARWATER BEACH

$3.1M

$20M

SARASOTA

$27M

KEY WEST

$30M

CONSERVATION / PRESERVATION / SAFE BOATING

Race World Offshore is very aware and supportive of the efforts to protect our waterways and promote safe boating. Todayâ&#x20AC;&#x2122;s education must provide knowledge of how to to protect our waters, protect what is beneath those waters and when we are using these waterways, to be as smart and safe as possible. RWO is committed to implementing protection measures and applying best management practices in protecting critical habitats and endangered species, which are enforced by the National Marine Fisheries Service (NMFS), Florida Department of Environmental Protection (FDEP), U.S. Fish and Wildlife Service (USFWS), Florida Fish and Wildlife Conservation Commission (FWC) to name a few.

LIFEJACKETS

Modern lifejacket styles are designed to help you get the most out of your day on the water. They are easy to wear and donâ&#x20AC;&#x2122;t get in the way of your favorite boating activites. So be safe and wear yours, because a lifejacket could save your life.

Some of these efforts are accomplished by flying a plane or helicopter one hour preceding the start of the race, complete through to the conclusion of each race to ensure no accidental incidents with protected sea life. Our efforts are to also ensure our teams are safe on the water, by performing full inspections of their race boat, safety equipment and requiring detailed escape plans the crew must perform in case of incident. Safe boating habits from our professional racers are carried over into the everyday lives of the masses that are involved in the marine industry. The habits are passed along within the industry and down to families and recreational boaters.

BOATERS & ANGLERS ARE THE ORIGINAL CONSERVATIONISTS

Boaters and anglers lead the way in preserving our nation’s waterways, contributing:

$600 million annually from motor boat fuel and fishing equipment excise tax. THE SPORT FISH RESTORATION AND BOATING TRUST FUND

These assets are the backbone for fisheries conservation and provide critical funding for state and national fishing and boating programs.

CONSERVATION DOLLARS AT WORK

In the past 8 years, the Trust fund has supported: 3.8 billion fish stocked annually 11,000 boat ramps and access sites created and improved 4.7 million students taught aquatic education 64,000 acres of fish habitat protected 6,000 boat sewage pump out stattions constructed

PREVENTING INVASIVE SPECIES

Marine manufacturers and the industry are doing their part to examine design controls which help prevent the spread of Aquatic Invasive Species (AIS).

ENGINE CUT-OFF DEVICES

The National Boating Safety Advisory Council has issued several resolutions supporting mandatory wear of engine cut-off devices. Manufacturers of new boats and engines already install engine cut-off switches as a standard safety feature - there is no additional cost to consumers! Use of engine cut-off devices will save lives, prevent injuries, and protect law enforcement from perilous situations of runaway boats.

FLARES & VISUAL DISTRESS SIGNALS

Most vessels operating in the U.S. must be equipped with visual distress signals to identify they need help.

raceworldoffshore@gmail.com t. (704) 896-2323 raceworldoffshore.com

Materials by COX GROUP • www.coxgp.com • 704.896.2323 • rodrick@coxgp.com #170101