Presentation on theme: "P ROGRAMS E nterprises Cockfighting Lotto Business Plan P O Box 245, N P O, Quezon City 1116, PHILs Fax/Tel/VOICE: 632.419.6965 MOBILE: 0917.326.0897."— Presentation transcript:
P ROGRAMS E nterprises Cockfighting Lotto Business Plan P O Box 245, N P O, Quezon City 1116, PHILs Fax/Tel/VOICE: MOBILE: or
Cockfighting Lotto Modern cockfighting in the Philippines has become very prohibitive. The kinds of fighting cocks used for combat inside the Cockpit Arena command prizes from P3, to P10, per cock. It is for this high cost of fighting cocks that inside bets or “plasadas” for the two (2) fighting cocks placed at the cockpit arena range from P10, to P1 million per cock. Entrance fees for the bettors and other participants just to be able to enter the cockpit range from P to P depending on the occasion whether it is ordinary or special. When you make a bet during derbies or special events, the bet callers or “kristos” do not accept anymore bets of P or less. These special occasions are attended by the bigtime cockers or players in the cockfighting industry. Cockfighting Lotto as an Alternative to Prohibitive Cockfighting Events In order for cockfighting to be better appreciated by all sectors of society, the Cockfighting Lotto was conceived with the primary objective to reform the bad practices of the industry; bring sanity to uncontrolled betting; promote tourism; provide employment to many; make cockfighting less expensive by introducing a betting system that could accept a P10.00 bet which can win a jackpot price of P1 million or more; and, preserve the custom and tradition of cockfighting as part of Filipino culture and sports. This sport should be more viewed as a source of entertainment, pastime and recreation rather than the prohibitive setup that we see today. Source of Revenue and Job Opportunities for both the National and Local Governments. This Cockfighting Lotto is a very rich source of revenue for both the national and local government units. There are 1,400 cockpits scattered around the country which conduct daily forms of cockfighting either as ordinary cockfights or derbies. The right amount of taxes from these cockpits, the promoters, and the owners has to be exacted. It is really unfortunate that the government has not yet devised an unbeatable system of collecting taxes from the cockpit promoters, operators and owners. In the event that Cockfighting Lotto will take place, there is no way that the share of the government could be taken away because of the pari-mutuel system of betting just like the PCSO’s on-line lotteries classified now as Little Lotto, Big Lotto, Mega Lotto and Super Lotto, which are conducted from Monday to Saturday or six times a week. At a conservative estimate of about P100, weekly collection of bets per cockpit, the total amount of bets collected for the whole country will be P100, times 1,400 cockpits or P140 million weekly. The monthly collection of bets will be P420 million or P4.84 billion annually. The government will earn 28% of this annual total collected bets or about P1.36 billion. It could be more as interest on the game increases. “Sub-Franchisee” to Conduct Cockfighting Lotto PAGCOR under its charter could sub-franchise the operations of Cockfighting Lotto by entering into a Memorandum of Agreement (MOA) with another party to conduct Cockfighting Lotto under certain terms and conditions to be imposed by the former.
Ownership Structure Programs Enterprises, the company that was established by the late Gen Wilfredo R Reotutar, author and copyright holder to several books and games & lottery/s, more particularly, “Cockfighting Lotto”, shall under go restructuring geared towards incorporation with not less than THIRTY (30.00%) PERCENT stake to be retained by the original company represented by his heirs and their administrator. TWENTY (20.00%) PERCENT shall be reserved or allotted to a major partner. The remaining shares shall be sold to reputable corporations and persons as would be incorporators or minority shareholders. The targeted number of incorporators or shareholder/s, tentatively, are TEN (10). Each incorporator will subscribed to and be limited to 100,000 shares representing ONE(1) BOARD SEAT. Thus, under the envisioned worth of the Corporation which is PESOS: ONE HUNDRED MILLION (P 100,000,000.00), the following would be the projected distribution of share/s or structure of ownership: Programs Enterprises:300, shares MAJORITY3 Seat/s Major Partner:200, shares MAJOR2 Seat/s Minor Shareholder/s:500, shares Minor1 Seat/s ea
Key Management This will be composed of the owners, majority partner and shareholders. All other positions will be filled up through meticulous recruitment based on education and expertise. Chairman Director Vice- Chairman Corp SecTreasurer Pres & CEO Operations LegalMarketing Finance Accounting Admin H R DE D PSupport E V P
Product Product “Cockfighting Lotto”, a form of Lottery that is very similar to the game structure of PCSO’s Lotto but very different in terms of the basis of results (based on the results of series of cockfighting events) and chances or probability of winning. Competition There is no known competition when it comes to Legalized Gaming or Lottery. In fact, studies showed that an individual bettor, provided he has the means and resources will exhort all these to place his bet on all forms of lottery and games available regardless of any parameter such as know~how and winning chance. For the sake of argument, there is one known competition in terms of how the game is played, the PCSO’s Sweepstakes & Lotto.
Market Area Primary Market The initial target location of betting stations shall be on the 1400 cockpit arenas already in placed all over the country so market would focused on all cockfighting “aficionados”. These are not just limited to the Cockfighters, owners, trainors, breeders and existing bettors alike but to all individuals within the Cockfighting “Eco System”. They are the Cockpit arena personnel/s, people in nearby establishments and commuters within the immediate area/s of these arenas, to enumerate some. Secondary or Eventual Market If and when betting stations on all targeted cockfighting arenas are in placed and have reached a level of success in terms of market response, we will have this lottery more accessible to the betting public by putting up atleast one (1) betting station per district and eventually per “barangay” as long as it is geographically legal and viable. Ambitious? Yes, but it can be done. Lotteries, particularly illegitimate ones have been able to succeed in the most remote areas and most bizarre conditions.
Major Suppliers Constant suppliers of this business will be more on office and betting supplies, hardware maintenance people, a permanent printing company, poultry supplies and Fighting Cock breeders and personnel.
Facility~Nerve Ctr~Head Office It is highly suggested that the company, if its logistics can provide, purchase an office space with an area not less than TWO HUNDRED (200 sq.m.) square meters to house its Nerve Center or Head Office. This will form part of the company’s asset and will be significant in the deliberation of a Memorandum of Agreement between PAGCOR and the company. The total area will be divided into quadrants. Two (2) quadrants will be allotted to the company’s key management, other personnel and periodic board meetings. A Management Information System (MIS) of the business and the actual lottery composed of sophisticated hardware and seasoned peopleware will be assigned one (1) quadrant. The use of the remaining quadrant will be flexible and changing depending on the need of operating the business. A separate location and structure will house the fighting cocks scheduled to engage in the weekly Cockfighting Lotto Events which suggestively be held at the PAGCOR’s Cockpit Arena in Paranaque.
Financial Plan Capitalisation based on ONE (1) year of Operation Business Registration:P 100, Prepaid Office Rental: 480, Prepaid Salaries & Wages:3,991, Prepaid Utilities: 300, Machine/s & Equipment/s:3,108, Office & Poultry Supplies:2,712, Marketing & Promotion: 3,600, Budget for Fighting Cocks: 12,960, T O T A LP 27,251,000.00
Projected Income After ONE (1) Year Gestation Period PARTICULARSFactrProjected: Inc/MoProjected: Inc/Yr Annual Gross Sales ,000, ,720,000, Prize Money ,000, ,360,000, Sub-Franchisee ,000, ,344,000, Betting Stations ,800, ,600, Machine Rental Fees ,400, ,800, Franchise Tax ,000, ,000, PAGCOR ,800, ,600, Provincial ,800, ,600, City/Municipality ,200, ,400, PAR VALUE of P Total Subscribed SharesP 1,000, Paid-up Capital For: P 100,000, NETIncome~SubFranchisee109,763, ,316,849, PROJECTED Profit Share 10,976, ,684,900.00
Income vs. Capital (ROI) Based on the very conservative figures (monthly gross income per betting P 15, only) above, Return on Investment is ONE THOUSAND (1,000.00%) PERCENT over a period of one (1) year.
Alternative Business In the event that the National Government through its Games & Amusement arm decided to acquire this project in its entirety, the Law on Intellectual Property Rights shall take its toll of protecting its owners and would be partners through its holding company. The company would then be entitled to a Royalty Fee or just compensation to be proposed upon by Government agency concerned and agreed upon by all and among owners and partners. With this compensation or income, the owners can opt to pay off their partners and creditors or they can continue to co-operate the company as a Consultancy Firm which business interest will be focused on research and developing business in the field of games and amusement and other/s.