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Opportunity Proposal
1
Houston Texans
Subway Franchise within the
Stadium Proposal
Bri Rubach
Robby Shapiro
Ben Rechler
Shaan Baren
Jonathan Mastin
Alex Tracosas
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Table of Contents
Cover Letter
3
Executive Summary
4
Introduction to The Houston Texans
5
Subway’s Benefits, Needs, and Rewards
7
Product/Service Offering
8
Features and Advantages
9
Vision of Subway and Texans
11
Community Programs
13
Financial Arrangement
16
Conclusion
18
[Apart from the Proposal]
Personal Profiles
19
Wednesday, April 11, 2012
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Brij Agrawal
Owner and Operator of Subway Franchises
12829 Aldine Westfield Road
Houston, TX 77039
Dear Mr. Agrawal:
Enclosed is the proposal that we have met about several times. The proposal
includes in stadium Subway restaurant rights, Tri-Vision Billboard slides, and the
philanthropic events exclusive naming rights. The sale proposal is very well suited for
you and your organization, which we hope is looking for a sports teams that will help
increase sales.
I would also like to thank you for this wonderful opportunity and all the help and
advice you have given us. It has been a pleasure working with you and I hope to
continue a long lasting friendship. Thank you once again for your time.
Sincerely,
Houston Texans
Sales Team
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Executive Summary
The Houston Texans and Subway are seeking to create a business partnership
that will benefit both parties in the near future. The proposed deal, worth $15 million
over the next ten years, would start before the NFL pre-season in 2013. The Houston
Texans would like to open a Subway franchise within Reliant Stadium in order to
generate revenue for the stadium and for the team. In the proposed deal, Subway would
also buy sponsorship space around the stadium in order to generate more brand
awareness within Houston, America’s fattest city. Subway, who promotes healthy
eating, would benefit greatly from this. The Texans’ host eight NFL games per year as
well as a multitude of other events ranging from concerts to NASCAR races. The
franchise within the stadium would attract hundreds of thousands of customers per year.
The Houston Texans are also looking for a sponsor for their NFL Play 60 event.
This event, aimed to promote healthy living for the youth of Houston, is going to be
sponsored and have multiple Texans players there to represent the team. One of the
elite receivers in the NFL, Andre Johnson, and one of the elite running backs in the
NFL, Arian Foster, are going to be attending the event and interacting with the children
in different athletic activities. Subway could potentially be a title sponsor for this event.
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Introduction to The Houston Texans
The Houston Texans, a professional football team, are located in Houston,
Texas. The Texans joined the National Football League in 2002, and since 2006 have
been led by current head coach Gary Kubiak. An expansion team from the previous
Houston team, the Houston Oilers, who would move to Nashville, Tennessee and
become the Titans. The Houston Texans while, proudly dressed in “Deep Steel Blue,”
“Battle Red,” and “Liberty White,” play their home games at Reliant Stadium, a stadium
with a 71,054 seating capacity. Reliant Stadium is also the first facility in the NFL to
have a retractable roof, making them a preferred Super Bowl destination. This rapidly
growing team is owned by a man named Bob McNair, and recently pulled off their first
playoff birth by becoming champions of the AFC South division in 2011. Playing in front
of crowds of 75,000 plus the Houston Texans have continued to grow and compete
amongst some of the toughest competition the National Football League has to offer.
Filling out the roster for the Texans include big names such as Matt Schaub and Andre
Johnson.
The Houston Texans look to continue their path to great success in the
upcoming 2012-2013 season after coming off of what could be arguably their best
season thus far.
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Subway’s Benefits, Needs, and Rewards
Subway has not expanded to the NFL. Though Subway is one of the most
successful food franchises, it has yet to be seen how they would do as a vendor for an
NFL team. Subway needs to expand not only restaurants but also needs to get more
involved with other organizations and franchises. It would benefit them to expand to an
NFL franchise because not only would that mean they are involved with one of the most
successful professional sports league, but would also the company forming a good
relationship. By forming a relationship with the Houston Texans it can lead to many
great rewards on and off the field. For instance, our franchise loves to do a lot of
charitable events and would get our star players involved.
Allowing Subway to get involved in these events it would help represent that
motto of “providing great tasting, healthier food choices and having a positive influence
in the communities they serve.” It would benefit Subway to use another example
besides Jared (whose first commercial was ten years ago) and start showing a large
number of people that their food impacted positively. Houston would be a great city to
expand to since it is the most obese city in America. Working with our franchise would
also allow Subway to increase the quantity of people they feed in a much shorter period
of time. Though Subway does do catering, it is mostly for offices and not events that will
feed thousands of people. If Subway got more involved with vending big time events, it
would increase revenue greatly by feeding so many people in so little time. It may seem
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not worth it only having nine home games. However, the rewards of revenue from the
home games and relationship we will form by working together and doing many off the
field events will positively impact both franchises.
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Product/Service Offering
We, the Houston Texans, would like to offer Subway the unique opportunity of
opening up multiple Subway franchises within Reliant Stadium. By opening a franchise
inside Reliant Stadium, and becoming an official sponsor of the Houston Texans,
Subway will receive many various benefits. For one, Subway’s brand recognition within
the Houston region will increase significantly. Average attendance at Texans games is
over 70,000, and that means thousands and thousands of eyes on the Subway logo
every week. As well, Subway will be able to reap the benefits of the community service
programs that the Houston Texans’ participate in. The Texans host several community
service events throughout the year, and as an official sponsor of the Texans, Subway
will be able to affiliate its brand, not only with the NFL team but also with the Texans’
community service initiatives. Advertisement space is also a huge offer that we would
like to extend to Subway. Advertisement is very helpful to Subway in that it’s a great
deal of promotion as well as recognition. As well, by partnering with the Texans, we
hope to offer Subway unique opportunities such as player endorsements and potential
commercials that pair Subway with the Houston Texans and the NFL.
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Features and Advantages
The franchise combination that we wish to propose to Subway will allow Subway
to continue to promote its campaign of healthy eating and living, while in a city that
struggles with obesity. Subway will be promoted in the following ways, through
sponsorship, promotion, franchise opportunity, and advertisement. The franchise
opportunity is the main concern of our proposal and what we choose to focus on the
most. We propose that a total of four Subway franchises be placed in Reliant Stadium,
two on the Field Level and two on the Club Level. Each franchise will be located on the
opposite end from the other, allowing easy accessibility to all ticket sections of the
stadium.
Having a franchise at all in Reliant Stadium is very beneficial to Subway for many
reasons. The amount of people we attract at each Houston Texans game averages 71,
496 people in, which is the 5th highest in attendance ratings. We have the opportunity
to host a Super Bowl which averages to 71,525 people in attendance, which is a huge
advantage to brand recognition. The Houston Texans, the main event at Reliant
Stadium, are an up and coming team that have recently made the play offs for the first
time; however, there is more than just football games hosted at Reliant Stadium. There
are motocross events, local football games, concerts, national cheerleading
competitions, charity events, and the famous March Madness tournament. Local high
school graduations are also held at Reliant Stadium as well. The wide array of events
hosted at the stadium allow for many patrons to be walking through and noticing the
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Subway franchises and then making the effort to eat at one, which is a healthy
alternative to the typical arena hot dog.
Player Sponsorships is another advantage to Subway. Possible athletes would
be Arian Foster or Andre Johnson, both well known Houston Texans, NFL Icons, and
NFL rushing and receiver leader. Players would take part in reaching out to the
community, which is always profitable for a public image, such as Subway’s. Working
with these athletes can allow for a strengthened brand recognition for Subway,
specifically in the Houston area. Increasing awareness in the Houston area would be
very rewarding for Subway, considering the fact that Houston is the fattest city in
America, and Subway is a huge advocate for healthy eating. This would allow Subway
to benefit from us being the most obese city in the nation.
Lastly, advertisement and community program sponsorship (see community
program content) would be an immense benefit for Subway. Having a stadium with lots
of room for advertisement, such as scoreboard advertisement and billboards within the
stadium, acknowledges a brand, such as Subway.
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Vision of Subway and Texan Partnership
The Houston Texans’ vision is to create a partnership in which both parties (the
Houston Texans and Subway) are equally happy in their involvement with the proposed
deal and possible future opportunities. Some of these opportunities could lead to great
things for both parties. It will potentially renew or create a new deal that will please both
parties even more. The vision is that Reliant Stadium will open a franchise within the
stadium that hundreds of thousands of customers are attracted to per year. The Subway
in Reliant Stadium will create a trend in numerous stadiums and arenas throughout the
country which will create a huge potential revenue stream for Subway. Reliant Stadium
will host Subway signs that will be located throughout the stadium to promote the
Subway brand and attract the audience to purchase Subway at that particular event.
The Houston area will also contain billboards and signs to promote Subway within
Reliant Stadium and also Subway franchises throughout the Houston area. The vision is
that Subway will also be the title sponsor of multiple NFL Play 60 events in the Houston
area, to promote healthy living for the youth of the Houston area.
This will be the first step for Subway to create a much larger brand awareness
than they already have. Subway will start to implement this strategy throughout other
popular areas, such as Los Angeles, New York, Chicago, Miami, Boston, Dallas, New
Orleans, Washington D.C., and many more. Subway will become the largest chain of
fast food restaurants in the country and lead them to many more opportunities in the
future.
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Community and Youth Programs
By partnering with the Houston Texans and developing a Subway franchise
inside Reliant Stadium, Subway will automatically be able to associate with the various
community service and youth events that the Houston Texans host. The Texans offer
an array of community service and youth programs, one of which is the Texans Youth
Football Camp. This football camp enables children ages 8-14 in the Houston area to be
instructed by elite high school coaches, and learn the fundamentals of football. As well,
this camp includes visits and autographs from former Houston Texans players. A
partnership with the Texans would allow Subway to be an official sponsor of this event,
which would be extremely beneficial to the Subway brand. By being an official sponsor
of this event, Subway would be able to associate with a healthy lifestyle in the mind of
the consumer, as well as demonstrate Subway’s commitment to the youth of America.
The Texans are also a proud participant of the NFL’s “Play 60” campaign, which
is committed to reversing the effects of the childhood obesity epidemic and engaging
youth and families in every community to make the next generation the most active and
healthy. NFL “Play 60” is a national youth health and fitness campaign focused on
increasing the wellness of young fans by encouraging them to be active for at least 60
minutes a day. A Houston Texans and Subway partnership would enable Subway to
associate with the NFL Play 60 campaign, demonstrating that Subway is committed to
promoting a healthy lifestyle and supporting the American youth.
However, the Houston Texans offer more than football camps and physical
fitness campaigns. The Texans “Players and Coaches Bike Giveaway” is an annual
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event where the Texans buy bikes for underprivileged youth in the Houston area from a
local Academy Sports + Outdoors using players' fine money accumulated during the
season. In 2008, 265 bikes were bought and donated to the youth from 5 nonprofit
organizations. Since 2006, players and coaches have donated over 2,000 bikes. The
Texans are also proud members of the “NFL Play it Smart” campaign, which is an NFL
program that empowers student athletes to use their dedication and passion for football
and transform it into a catalyst for scholastic, community and career development. Play
it Smart gives high school students an opportunity to be part of a team, to develop their
bodies and minds and to lift their aspirations for the future. Texans players frequently
visit high schools in the Houston area during the school year to speak to student
athletes on the importance of education as a part of the Play it Smart program.
These are just a few of the community based programs that the Houston Texans
host and/or participate in. A Houston Texans and Subway partnership would allow
Subway to align its brand with spectacular events such as these, thus demonstrating
that Subway is an active member of the community, an avid supporter of children, and
an advocate for a smart, healthy lifestyle; all of which are fundamental aspects that the
Subway brand already promotes.
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Financial Arrangement
Four 2,000 Square-Foot Subway Restaurant and Concessions
$2,000,000
Tri-vision Billboard System Throughout Stadium
$1,500,000
Subway & NFL Play 60 Partnerships
$800,000
Player Commercials
$700,000
Total Balance:
$5,000,000
The Subway restaurant chain will cost about $2,000,000 to be put into Reliant Stadium.
There will be a total of four Subway restaurants, two on the Field Level and two on the
Club Level. Many stadiums now have restaurants inside the stadium and adding
Subways will only benefit both parties. We are dedicated to making Subway be known
within the Houston Texans Organization.
In Reliant Stadium we are lucky enough to have state of the art tri-vision billboards
throughout the stadium. Tri-vision billboards are electronic billboards that change
advertisements every minute. Having the Subway logo all over a stadium filled with
71,500 people each week is great. People will think, and want to eat a famous Subway
sandwich after seeing it on all the high definition screens throughout such a large
venue.
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Each year the Houston Texans reach out to the community through the NFL “Play 60”
program. The “Play 60” Program promotes kids to get at least 60 minutes of physical
activity a day. With this the players go out and play with children, help them build
playgrounds and have punt, pass and kick events with the kids. Getting Subway
involved in this program would be great for their public image. Healthy eating, which is
promoted by Subway and living a healthy life style, promoted by “Play 60” is something
that goes hand in hand. Having Pro Bowlers such as, Matt Schaub, Andre Johnson and
Arian Foster on the team, it would be a great idea to incorporate them into the Subway
brand name. Shooting commercials with these players would not only increase revenue
but also increase the knowledge of the name. These players are class acts, always
reaching out into the community and are always scoring touchdowns. This sets up for a
successful due.
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Conclusion
Subway partnering up with the Houston Texans would be an opportunity neither
team would want to miss out on. A sponsorship would create many new opportunities
for the Subway franchise, expanding their already successful company to new heights.
With the loyal Texans fans, and up and coming superstar players, the possibility for
success can only go up.
Although there is an initial investment of $5,000,000, it will be worth every penny.
Not only will the return be successful but Subway will also gain national publicity
through Reliant Stadium. Each Sunday during the NFL season Reliant Stadium hosts
71500 people and they have also hosted a Super Bowl. During the off -season it is
home to events such as motocross, NCAA final fours, and concerts. The NFL play 60
sponsorship will also grab the attention of participants. Reaching out to the community
can only help Subways public image.
The Houston Texans Believe the proposed sponsorship will be a great
investment for Subway. It will not only increase revenue but it will also expand the
message of healthy eating the Houston area where it is needed most. That you for
taking time to look over this proposal and we hope this can be the beginning of more to
come with Subway.
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Personal Profiles
Shaan Baren: I am from Los Angeles, CA. I attended Wildwood
High School, and am currently a freshman studying Sports Management
at Syracuse University. I have a very sports oriented background
consisting of interning for BDA Sports and the UCLA Athletic
Department, and volunteering and creating the Future Leaders’ Division
for the Cedars-Sinai Sports Spectacular charity event. I hope to work in the sports
business for a team or as an agent.
Jonathan Mastin: Living in a suburb of Rochester, New York I
live with my family including two younger brothers, and a younger
sister. After graduating Canandaigua Academy in the spring of 2009,
I attended Finger Lakes Community College. At FLCC I pursued an
Associates Degree in Sports and Tourism Studies. I also played one
year of NJCAA baseball for the Lakers before a career ending injury
took place. After achieving my Associates Degree I continued on
with my education and was accepted at Syracuse University.
Although, I have had issues with credits transferring properly I am on
track to graduate in 2014 with a Bachelors Degree in Sport
Management from the David B. Falk College of Sport and Human
Dynamic here at Syracuse University. I am also minoring in marketing in the Whitman
School of Business. Once I have achieved my Bachelors Degree I plan to pursue
achieving my M.B.A. in order to better prepare myself for a successful career. A career
goal of mine is to pursue a job in marketing to start out, and eventually I want to
work my way up through the front office. My dream job would be to become a
Chief Executive Officer of a sport franchise, or of a well known sports industry
company.
Alex Tracosas: I am a freshman, Sport Management major at Syracuse
University, looking to pursue a minor in Entrepreneurship and Emerging
Enterprises. I am from Los Angles, California, and attended Palisades Charter
High School, where I graduated from in June 2011. My professional background
includes spending the past two summers working as a beach/gym attendant at
the Jonathan Beach Club of Santa Monica, as well as working at a sports
memorabilia store during my freshman year of high school. My experiences at
both of these jobs have taught me to be responsible, polite, and they have harnessed
my skills as a salesperson. Eventually, I hope to use the skills I have acquired during
my youth to earn a job as a sports agent in Los Angeles.
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Bri Rubach: I am freshman, Sport Management Major, hoping to
minor in hospitality management. My dream job is to work for a
prestigious sport organization or arena and run the events for their
team. I am from Tenafly, NJ, where I attended the local high school
and graduated in 2011. I have had some sales experience and that
has come from working in a children’s clothing store, as a
salesperson. I have worked there for the past 2 summers and the
past year. The job taught be responsibility and many skills to take forward
with me in the area of sales and sales communication. I am really looking
forward to the journey ahead.
Robby Shapiro: I graduated from Beaver Country Day School in Chestnut Hill,
Massachusetts. During my time at school I was captain of two varsity sports
and graduated with honors. I also received two presidential service awards for
reaching out into the community and being social. Through my experiences I
have gained knowledge of different neighborhoods, people and communities.
Since arriving at Syracuse University I have joined the Sports Management
Club, and the Zeta Beta Tau fraternity. My social skills blend in with my
people first mentality. All of these experiences working with children and adults have
enabled me to gain insight on how to organize a group and work well with others. The
Texans are honored to have a professional like myself.
Ben Rechler: I graduated from Jericho High School in Long
Island, New York. I was the captain of the Varsity soccer teams
his senior year and devoted most of my childhood playing the
sport. My passion for soccer lead me to do community service
work one summer in Ghana. I coached young local players
around the area for half the trip and then decided to work do
more community service for the seconded half of the trip. After
coaching soccer I decided to work in an orphanage where I
would teach the children and help paint the orphanage. I was
nominated for a leadership program and spent a summer in
Washington D.C. Recent experiences for myself, as a student at
Syracuse University, is joining the Sport Management Club and also being a member of
the Zeta Beta Tau fraternity. All of my experiences are what lead me to communicate
and work well with others. I am currently using positive qualities I got out of my
experiences to make a positive impact on the Texans organization.
1 Reliant Park Houston, TX 77054