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Canada, as a country, is unique in having developed and matured sport and recreation into a major industry, generating in 2011 annual revenues in excess of $64 billion. Canadian community sport is operated on a seasonal basis by 33,650 not for profit organizations. Here are the published facts:
1. First, it is clear that sport, hockey in particular, is woven into the very fabric of every community in Canada. One out of every 4 adults and one out of every two children actively participate in sport and recreation. The dedication and sacrifices of Canadian parents and guardians is legendary;
2. A diverse 33,650 not for profit organizations engage 28 percent (28%) or 5.3 million Canadians as volunteers – more than any other economic sector in Canada;
3. The 33,650 not for profit sport organization do not own, develop, maintain or invest in sport facilities. The provincial, territorial, municipal, schools, high schools and colleges are the owners of all facilities in Canada. Sport and park facilities are leased to them on a seasonal basis. Rents for sport facilities are not based on commercial consideration, requiring annually substantial public subsidies for maintenance and upkeep;
4. There is only one Canadian for profit private sector company engaged mainly in the development and leasing of ice and hockey facilities, used/rented mainly by the 33,650 not for profit organizations;
5. There is more than 1.8 million Canadians who coach amateur sport while 800,000 participate as amateur sport referees, trainers, supervisors or officials;
6. More than 73 percent (73%) of the 33,650 not for profit community sport organizations are manned by VOLUNTEERS. Most have no paid employees at all;
7. Canada’s 610 Corporate Sponsors and Donors, are providing in excess of $2.1 billion annually sponsoring and supporting a variety of sport and camping programs;
8. There is a strong proactive supporting role on the part of all governments: federal, territorial, provincial and municipal, to provide annually in excess of $400 million in subsidies and grants to players to help pay membership fees, sometimes for equipment (City of Ottawa $250/child) mainly to children from economically disadvantaged families and the disabled;
9. There is an Income Tax deduction consideration – the federal and provincial governments provide annual grants to families by way of income tax deductions for each child under the age of 16. The federal government allows annual deductions of $1000/child and Canadian Provinces and Territories (indigenous people) allow matching annual deduction of $500/child/year;
10. According to published data – Revenues generated from players’ membership fees and coaching charges for the year 2011 were in excess of $65 billion and are projected to continue rising at a rate of 9% – 16% annually;
11. According to published data – In 2011, Canadians spent more than $37 billion on sport equipment, clothes, shoes and sport related services and products and more than $1.1 billion on transportation and other expenses related to sport;
12. According to a Parks Ontario report (Ontario government) Canadian families (1.4 million families) each paid on average $4,185 per family per year, during 2010, for their sport and recreation, not including grants or donations. Current estimate would indicate that the real (average) cost is in access of $7,400 per family of 2 children under the age of 16 living with their parents or guardians;
13. More than 292,000 Canadians are employed or working in a Community Sport and Recreation program in Canada;
14. According to current published data – Ontario requires $5 billion to upgrade its average 28 year old sport facilities. Many parks and community facilities are closed for lack of funding needed for upgrading and maintenance of existing facilities.
15. According to Canadian municipalities reports, they need to increase building new modern community sport facilities to meet an increasing 39% players’ demand for sport facilities. The shortage of facilities are mainly for hockey, soccer, tennis, volleyball and basketball;
16. Canada is behind Europe in the development of age-based sport facilities, where a 6 year old kid is playing tennis on a court or soccer field designed and built for his/her age group;
17. The 33,650 Canadians not for profit sport organizations, generate most of their reported revenues (94%) from grants, subsidies, donations, players membership and coaching and trainers’ fees. Few organization are engaged in online advertising and online selling of a limited number of sport items, mainly tea shirts, caps and sport memorabilia.
First Conclusion: It is self evident that community sport and recreation in Canada is a large industry of a $100 billion a year turnover. It is further clear that what Canadians are paying annually for their sport has reached acceptable revenue levels warranting the keen interest of private equity investors. Based on the fundamentals of our business concept seeking the development of state of the art outdoor, and only outdoor, sport and recreation facilities free of buildings, for the first time offering a one-stop, multi-sport and recreation facilities, it is more than reasonable to assume that the Family Nature Parcs business model would comfortably qualify of having reached the required investment grade milestone.
Highlights of Family Nature Parcs Business Plan
Family Nature Parcs Inc. (the “Company”) is planning to enter the substantial sports leisure and recreation markets of Canada, US and the international markets.
Investment in Family Nature Parcs is in our opinion an ethical investment in healthy sport, wellness and the belief that every kid has a given right to play.
The Company will be the owner, operator, developer and investor in new outdoor one-stop multi- sport and recreation facilities designed and built according to the age of players starting from the age of six years old to seniors. We are aiming to end the time consuming and costly practice of running from one part of the city for a sport facility only to run to another, taxing the energies of parents and children, having further to play afterhours and on weekend on sport facilities belonging to schools, colleges and others.
Land Site of First Parc: The Company is in the process of commissioning architectural design, site plans and engineering work to build its first Parc on a 138.8 acres land site located in the beautiful old village of Ashton in the City of Ottawa, Ontario, Canada. The land site is leased to the Company on a long term lease basis exceeding 25 years with renewable options.
Features of Family Nature Parcs: Our Parcs will be free of buildings. It will be an outdoor paradise. The only permanent structures allowed to be built in our Parcs are hand wash and toilet facilities, specially designed, without the use of septic tanks. Approved healthy foods and beverages will be on wheels specially designed modern and efficient facilities.
The Company will focus on providing state-of-the-art inclusive outdoor sports leisure recreation and wellness facilities, set in tastefully landscaped garden settings of flowers, lawns, trees, and water and park benches. Its business is to cater to the needs, moods and interest of growing families and to allow children and adults of various economic status, ethnicity or disability to visit, make use and enjoy our multi-sports and recreational parks.
The Company will adopt and utilize Canada’s famous LTAD (Long Term- Athlete- Development) model, and will be guided by the CS4L for athletes and for disabilities. We are also adopting Canadian codes and rules and will seek affiliation with Canadian, US and international sports and recreation organizations.
Highlight Of our Sport Facilities: Golf Facilities and a 9 hole par 3 Golf Course, Tennis Courts, Soccer Fields, Olympic Swimming Pool, Basketball, Volleyball, Cricket, Kabati, Softball, Horseshoe Pits, Badminton, Exercise & Gymnastics, Playgrounds, Table Tennis, Pickleball, Bocce, Shuffleboard, Grass Bowling Lanes, Karate, Chess, Crafts, Drawing, Dance, Drama, Native and Ethnic games, Walking and Biking Trails, Community Gardening, Water Sport for Kids: Canoe, Polo, Kayaking, Fishing and Sailing. Winter Outdoor Sports: Hockey Rinks, Kids Skiing, Snowshoeing, Cross Country Skiing, Ice Skating and Ice Fishing, and more.
One of the main objectives of the Company is, to allow children of all ages to participate in wholesome sport and recreation, playing on fields, courts and facilities purpose designed for children, situated next to their dads, moms, friends or guardian adults facilities. We believe this is the ultimate role model to get children to participate in sports.
Another objective is to create and to maintain a caring community environment designed to beat usual boredom, and to keep children and adults engaged in the sports they like and that they want. It is clear that the sheer number, variety and quality of the sports games and recreational facilities we will make available at our Parcs, will certainly keep everyone happy, enthusiastic and engaged in their favorite sport or game or simply enjoy being there.
Revenue sources: The Company plans to generate revenues from the rental use of its sport and recreation facilities by the 33,650 Canadian community sport organizations. The Company is planning to maximize its revenues through the introduction and development of services and products capable of generating similar sustainable revenues and growth that will include:
- Online Shops – sport and recreation equipment and products. Develop upper market made in China own brand: silk products, gift items, leatherwoods, memorabilia etc.
- Online Corporate Promotion & Sponsorship
- In Parcs LED and other advertising mediums
- Food & Beverage on wheels – healthy light foods, salads, fruits, teas, coffee etc.
- Franchise Management Fees, profit sharing & Services
We are confident that Family Nature Parcs’ business model, its one-stop multi sport facilities, products and services, possesses unparalleled superior economic and financial business features of unmatched flexibility, able to increase and maximize revenues and a truly rare ability, to hold in-check operating costs and expenses.
Franchise consideration: We believe in the universality of community sport and recreation practiced in Canada as unique and is adaptable to be franchised and exported across Canada and globally through our Family Nature Parcs Franchising Business Model. The Company is structured as a Franchise Business Model. We are planning to develop our own “Brand of wellness” that will include a number of valuable services and sport related products. The Company is planning to franchise the development of several Family Nature Parcs across Canada, the US and the world.
Fighting obesity: The alarming and unacceptable high levels of obesity, diabetes and related health problems, caused mainly due to the lack of physical activities amongst children, highlighted by sport and health specialists, journalists, academics, social organizations and governments are adding compelling urgency for the upgrading of existing sport facilities in Canada. There is also an urgent need to develop new modern sports and recreation facilities. They require several billion dollars of taxpayers’ money to upgrade aging sport facilities. Unfortunately governments at all levels are stymied by the continuing financial and economic crisis, most are laboring under the weight of large deficits and shrinking budgets.
Corporate matters: The Company will be owned, operated and managed by its shareholders. All employees are required to own shares in the Company. The Company will have one class of voting ordinary common shares. The Company is not authorized to borrow funds save for ordinary operational banking credit lines. All future capital requirement will be raised by issuing equity shares to new and existing shareholders. The Company is structured to allow it, at the appropriate time in the future, to seek the listing of its shares (IPO) on international stock exchanges.
For Profit & Not for Profit: Family Nature Parcs is seeking to be granted the right to be the first hybrid Canadian Company, one arm is for profit the other is not for profit, aiming to raise funds from donations, sponsorship and grants to support the economically disadvantaged and the disabled to play for free at our Parcs.
Sources of Data: The information and data used in the preparation of this presentation were taken from more than 400 sources of studies, reports commissioned over the past 15 years by various ministries of Canada’s three government levels. Revenue and other data relating to membership, seasonal fees, coaching and training and other charges were copied from more than 60 websites of active not-for-profit Canadian Sport Organizations.