PLUS PROJECT- Help the Lonestar Rollergirls!!!!
TXRD LoneStar Rollergirls is the only all-women banked track roller derby league in the world and they are located right here in Austin! None of the skaters or support staff is paid; as historically revenue has only been enough to cover fixed costs and promotions. However, this will be changing very soon. A recent article in the New York Times has increased interest in the league and they have received numerous phone calls and inquiries about television shows and movie ideas. This will bring significant revenue to the league putting them in an unprecedented position of net income. This has brought about the opportunity for 2 plus projects with McCombs MBAs. My project team is researching and suggesting the appropriate corporate structure for the organization, considering compensation, liability, taxes and the overall goals of the league. Also, several agreements will be signed with agents, television and movie production companies, etc. Therefore, this team will also review the contracts and make suggestions on terms and negotiations. The second team will research, identify and contact promotional outlets to suggest an overall promotional/marketing strategy. This will include written, radio and television medium as well as partnerships and sponsors for the league.
These are exciting opportunities for 4 MBAs for each team to be able to truly create and implement these strategies over the 2-week project.
Visit www.txrd.com for more information about the league.
Company / Division / Operating Group Description
Texas Roller Derby (TXRD) is a limited liability company organized in the state of Texas. It’s a league whose members are approximately 40 women who skate in roller derby. Roller Derby is a sport that was extremely popular in the 1970s, however, the start of the 1980s brought about the end of professional roller derby. TXRD is currently the only banked-track all girl roller derby league in the world. There are several seedling organizations starting up in New York, Los Angeles, and Philadelphia. They attract approximately 600 people for each bout which is held every three weeks. Admission is $10 per person.
TXRD’s mission is to promote all women roller derby both nationally and internationally. Its goal is to help nurture leagues around the world such that the league can play against other teams in other states and eventually other countries while maintaining the skaters’ safety.
Business Issue to be Addressed [and networking incentives for the MBA team members]
TXRD currently is structured as a limited liability company. None of the skaters or support staff is paid; as historically revenue has only been enough to cover fixed costs and promotions. However, this will be changing very soon. A recent article in the New York Times has increased interest in the league and they have received numerous phone calls and inquiries about television shows and movie ideas. This will bring significant revenue to the league putting them in an unprecedented position of net income. Several decisions need to be made regarding how to pay the women of the league, e.g. as owners or as employees. Also, the corporate structure needs to be reviewed to understand if this is the most appropriate structure when considering liability and tax concerns. Further, the operating structure must be reviewed to understand if appropriate corporate governance procedures are being followed regarding meetings, minutes, controls, etc. Improvement is necessary to guarantee the continued success of the organization. One example is that there are currently four signatories for the company. None of these signatories reside in Texas and no longer participate in the league.
Specific Scope for this McCombs Plus Project [and networking incentives for the MBA team members]
The Team will research the most appropriate corporate structure for the organization considering tax and liability risks.
After selecting the appropriate organizational structure, it will develop policies and procedures the organization must follow to ensure they are in compliance with the corporate structure and laws regulating incorporation. . Recommendations regarding final payment structure for skaters will be made. Terms as to whether skaters should be paid as employees or members/owners will be recommended when considering continuance plans, tax implications and liability concerns.
The team will review contracts regarding special events and television and movie opportunities for negotiation strategies and unusual or inappropriate terms. It is hopeful that we will be able to review standard terms of similar contracts to understand what industry norms are regarding payment, revenue sharing, and copyrights, etc.
In the course of this project, other opportunities may be identified and scope will be adjusted by the Project Team Captain. This project will give MBAs the opportunity to truly create and implement the corporate structure for a start- up organization. . They will be involved in negotiations of significant contracts for the organization. Most importantly, due to the timeline of the launch of this company and the lack of expertise by its members, the MBAs will be able to create AND implement their ideas. Depending on the success of the project as well as the organization, there may be opportunities for continued consultancy to the organization.