EXECUTIVE SUMMARY & VISION
The APX Group’s five-year strategic plan for the Mid America League (MAL) envisions aggressive franchise expansion and deep integration of APXCOIN® throughout league operations. Between 2025 and 2029, MAL will grow from a regional 6-team league into a 30+ team enterprise with national reach and initial international footholds. Expansion will target underserved mid-sized cities (populations ~100,000+) that have been abandoned by the contraction of affiliated Minor League Baseball, yet retain strong community ties and high-quality collegiate stadium infrastructure. In parallel, APXCOIN® – APX Group’s blockchain-based utility token – will become a core transactional and engagement medium for MAL: powering everything from ticket sales and concessions to player NIL (Name, Image, Likeness) payments, sponsor deals, fan reward programs, NFT collectibles, and even community governance of teams.
Fig 1.1: Vision for Aggressive Franchise Expansion (2025-2029)
This capital allocation strategy, backed by a $5,000,000 private equity capital raise (Target Funding Date: October 15, 2025), provides the critical fuel needed to achieve national scale. These funds are meticulously designated for the acquisition of 100% ownership in five flagship expansion franchises and a strategic 10.00% equity stake in the league's central operating entity, Mid America League Baseball, LLC (MALB). This dual-investment structure is designed to maximize investor upside: the franchises provide immediate cash-flow opportunities and regional asset value, while the league-level equity captures the long-term enterprise valuation growth as the franchisor network expands to 30+ cities.
Strategic Pivot: From Tenants to Developers
The Real Estate Catalyst: While the initial phase relies on leasing existing high-quality collegiate stadiums to ensure speed to market, the long-term investment strategy extends far beyond baseball operations. Leveraging the "public-private partnership" model, the Joint Venture aims to use the initial success of these franchises to catalyze sports-anchored mixed-use development projects. By proving the viability and economic impact of the MAL model in heartland markets, the Group positions itself to partner with municipalities on developing permanent entertainment districts surrounding future venues.
This transformation adds a significant Real Estate Development vertical to the portfolio, allowing the enterprise to capture value from commercial, residential, and hospitality districts that benefit from the league's foot traffic. This strategy aligns perfectly with the current trend of municipal urban planning, where cities are eager to fund infrastructures that serve as reliable anchors for revitalization. In this vision, the MAL franchise acts as the "anchor tenant" of a much larger, multi-generational asset that appreciates independently of seasonal game-day revenues, creating a diversified financial fortress for stakeholders.
Vision Alignment: Tech-Forward Sports Enterprise
APX Group’s strategic integration with the Mid America League represents a fundamental shift from traditional sports management to a tech-centric ecosystem. We view the MAL not merely as a baseball league, but as a live-market incubator for the APXCOIN® utility framework. By embedding blockchain technology into the very marrow of the fan journey—from the initial NFT ticket scan to the final APXCOIN® concession purchase—we are eliminating traditional financial friction points while capturing granular consumer data. This "Digital First, Physical Fast" approach allows the National Sports Group to operate in a "Blue Ocean" market, where the stability of heartland American sports meets the explosive potential of decentralized finance.
Our "R&D Lab" methodology enables us to test and refine advanced smart contract applications, such as real-time athlete performance bonuses and fractionalized community ownership, creating an institutional-grade infrastructure that is infinitely scalable across multiple sports disciplines. This convergence of physical infrastructure and digital tokenomics transforms passive spectators into active, economic stakeholders, securing a level of fan loyalty and lifetime value that legacy sports models cannot replicate. Establishing this replicable blueprint ensures that APX Group remains at the forefront of the global entertainment revolution, ready to export this model to minor league soccer, basketball, and e-sports globally.
Fig 1.2: Tech-Forward Capability Index: MAL vs. Traditional Models
APX GROUP & THE WEB3 REVOLUTION
OFFICIAL VERIFICATION & RESOURCES
THE PORTFOLIO INVESTMENT THESIS
Shifting from "Hobbyist" to Institutional Ownership
The Mid America League Investment Group (MALIG) is predicated on a fundamental shift in how independent sports franchises are owned and operated. Historically, the minor league baseball landscape has been defined by a "fragmented model," where individual teams are owned by local hobbyists or sole proprietors. While these operators are often deeply passionate about the game, they typically lack the institutional infrastructure, economies of scale, and cross-market data required to drive significant margins. These single-team owners are highly vulnerable to localized risks—such as regional economic downturns or unseasonable weather—which can wipe out annual profits in a single weekend. Our investment thesis directly challenges this legacy status quo by deploying a Professionalized Portfolio Approach.
The "Single-Team" Inefficiency
In the traditional model, a single owner bears 100% of the risk for weather events, local economic volatility, and rising operational overhead. Every jersey design, insurance policy, and bus contract is negotiated in isolation, leading to bloated expense lines and inconsistent brand quality. Revenue is strictly limited to the local "gate," with no wider network to leverage for national sponsorships or decentralized media rights. This fragmentation prevents the implementation of sophisticated digital technologies, as the R&D costs are too high for a single stadium to absorb.
The "Portfolio" Advantage
By acquiring and operating five franchises simultaneously, MALIG creates an immediate competitive moat. We centralize all "back-office" functions—including accounting, legal, human resources, and digital marketing—to slash G&A costs by nearly 30% compared to independent teams. We negotiate league-wide vendor contracts for equipment and travel, securing pricing power that a single team could never achieve. Most importantly, we diversify risk: rain in Beaumont doesn't wash out the portfolio's earnings if the sun is shining in Fort Scott. This structure turns volatile sports assets into a stable, scalable asset class.
Fig 2.3: Operational Margin Gap: Single Team vs. Portfolio Model
Strategic Scalability: The "Business-in-a-Box" Model
Central to our thesis is the "Business-in-a-Box" scalability provided by the Ventura Sports Group (VSG) management layer. We treat each franchise not as a unique standalone business, but as a standardized operational node. This standardization covers everything from stadium lease templates and municipal partnership frameworks to the unified digital infrastructure that facilitates APXCOIN® integration. By creating a repeatable operational blueprint, we can launch new franchises with significantly shorter lead times and lower execution risk. This model allows the $5,000,000 raise to be deployed with surgical precision, focusing capital on market acquisition and revenue-generating technology rather than inefficient experimentation.
Furthermore, our investment rationale is amplified by the 10.00% equity stake in the league's operating entity (MALB). This creates a "Franchisor Equity Multiplier." As the league expands from its initial 6-team base toward the 30-team target by 2029, the enterprise value of the league office appreciates exponentially. MALIG investors benefit from both the stable, yield-generating EBITDA of the five individual franchises and the significant capital gains uplift as the entire league achieves national prominence. This dual-layered upside ensures that our interest is perfectly aligned with the overall success and expansion of the Mid America League brand.
Three Strategic Pillars of Value Creation
Our operational plan is not just about buying teams; it is about executing a specific playbook designed to force appreciation in asset value:
- 1. Unparalleled Leadership Experience: We are not learning on the job. Our leadership team brings over 200 years of combined experience in high-level sports management, venue construction, and financial turnarounds. This operational "alpha" allows us to identify underperforming markets and execute rapid turnarounds.
- 2. The Differentiated League Model: We do not compete with the MLB; we complement the ecosystem. By positioning MAL as a "Hybrid Pro/Amateur" league, we access elite talent via NIL without the crushing burden of player salaries and workers' compensation. This unique labor arbitrage allows for higher margins than traditional minor league operators.
- 3. Disciplined Market Selection & The "Anchor Tenant" Strategy: We target markets with a minimum 100,000 MSA reach that have been left abandoned by the contraction of affiliated baseball (MiLB). These cities have existing, high-quality collegiate infrastructure but lack a primary sports identity. We enter these markets as the "Anchor Tenant," fostering public-private partnerships that secure our stadiums for pennies on the dollar and position us as the catalyst for future mixed-use entertainment developments.
Fig 2.4: Estimated Portfolio Value Growth ($M)
Fig 2.5: Allocation of $5M Target Capital Raise
THE JOINT VENTURE
Forging Operational Excellence with Global Scale
The strategic engine of our enterprise is the APX National Sports Group, a 50/50 joint venture partnership formally executed on December 16th, 2025. This entity represents a definitive merger of two powerful and complementary forces: the proven, on-the-ground operational expertise of the Mid America League Investment Group (MALIG) and the global capital, marketing, and technology powerhouse of APX Corporation Inc. Headquartered at 40 Wall Street, APX provides the "High-Octane" financial and technological engine required to transform a regional sports initiative into a national movement. This synergy is designed to de-risk execution through institutional governance while accelerating growth far beyond what either party could achieve in isolation.
The Joint Venture operates as a Delaware Limited Liability Company (LLC), serving as the exclusive vehicle for all current and future franchise acquisitions within the Mid America League footprint. By consolidating ownership under a single 50/50 structure, the partnership creates a unified "Command and Control" center for the league's flagship franchises. This eliminates the operational fragmentation that typically plagues independent leagues with diverse local ownership, allowing for standardized branding, centralized vendor negotiation, and the rapid deployment of the APXCOIN® utility layer across all nodes of the network. This consolidation is a critical safeguard for investors, ensuring that the $5M capital raise is deployed with institutional discipline toward a common strategic vision.
| Attribute | Specification |
|---|---|
| Legal Entity | APX National Sports Group, a Delaware Limited Liability Company (LLC) |
| Effective Date | December 16th, 2025 |
| Registered Office | 40 Wall Street, New York, NY |
| Equity Ownership | 50.0% to APX Group / 50.0% to Mid America League Investment Group (MALIG) |
| Capital Raise | $5,000,000 (Target Funding Date: October 15, 2025) |
| Initial Valuation Cap | $20,000,000 (For Convertible Bridge Financing) |
Fig 3.1: 50/50 Equity Distribution
Governance & The Supermajority Buffer
Governance of the JV is managed by a four-person Board of Managers, with APX and MALIG each appointing two representatives. While the CEO (Mark Schuster) retains day-to-day authority to manage operations within the Board-approved Strategic Plan and Budget, the agreement includes a rigorous "Supermajority Buffer" to protect the long-term interests of the enterprise. Pursuant to Exhibit A (Reserved Matters), any significant action—including asset sales exceeding $100,000, the incurrence of debt over $250,000, or the appointment/removal of the CEO—requires a 75% supermajority approval. This structure ensures that neither partner can unilaterally alter the core mission of the Company, providing a stable environment for institutional capital.
The Infrastructure of Synergy: Strategic In-Kind Services
Beyond its capital matching, APX Corporation provides a comprehensive Strategic Service Vertical valued at $750,000. As detailed in the Long-Form Term Sheet, these services are not merely administrative; they are the technological and marketing force-multipliers that enable the MAL to scale at low hard cost. The scope of this vertical includes:
- 1. Institutional Media Production: Leveraging APX's global studio network (Twickenham, Augustus Color) to produce broadcast-quality live streams, documentaries, and social content that positions MAL AS a Tier-1 entertainment product.
- 2. Global Marketing Architecture: Integration with APX's internal marketing agencies to drive hyper-local attendance and global brand awareness for the APXCOIN® ecosystem.
- 3. Proprietary Tech Stack (App & Wallet): Development and management of the unified MAL mobile application, featuring an integrated crypto-wallet for ETH ERC-20 tokens, NFT-gated ticketing, and in-seat concession ordering.
- 4. APXCOIN® Loyalty Framework: Management of the "Play-to-Earn" and "Post-to-Earn" rewards system, converting fan engagement into immutable on-chain value.
- 5. Data Warehouse & Analytics: Implementation of an institutional-grade data layer to aggregate fan behavior insights, enabling the CEO to make data-driven decisions on division expansion and stadium optimization.
STRATEGIC LEGAL FRAMEWORK & KEY PROVISIONS
1. Capitalization & Bridge Financing Mechanics
The JV Agreement mandates a precise capitalization structure designed for maximum agility. APX Group commits to a $2,000,000 Matching Fund in APXCOIN®s and $750,000 in strategic services. MALIG contributes all foundational assets (leases, IP) and $500,000 in cash. Crucially, the agreement authorizes a Bridge Loan of up to $800,000 at a flat 15% interest rate. This debt is specifically structured to be convertible into equity at a valuation cap of $20M, ensuring that the JV is well-capitalized from day one while providing an immediate working capital facility for the franchises and the League office.
2. Tag-Along & Transfer Rights
To protect minority interests and ensure long-term stability, the agreement includes robust Tag-Along Rights. If a selling shareholder proposes to transfer more than 50% of their shares to a third party, the non-selling shareholder has the right to require the third party to purchase their shares on the same terms. Additionally, a Right of First Refusal (ROFR) grants the non-selling partner a 30-day option to purchase any shares offered for sale. These provisions are critical for maintaining the integrity of the partnership during the rapid scaling phase.
3. Intellectual Property (IP) Assignment & Asset Backing
The agreement enforces a strict IP regime that consolidates all enterprise value. APX grants the Company a royalty-free license to use the "APX" brand, instantly professionalizing the league. Simultaneously, MALIG irrevocably assigns all franchise IP—including names like "Beaumont Oil Barons" and "Bryan Cogs," logos, and fan databases—to the JV entity. This consolidation ensures that the Company holds all intrinsic value, creating an asset-backed digital economy where the APXCOIN® utility is directly tied to the success of the physical franchises.
4. Deadlock Resolution & Escalation
To prevent operational paralysis in a 50/50 split, the agreement outlines a tiered resolution process. Disputes escalate first to the Principals (Mark Schuster and the APX Principal) for a 30-day negotiation period. If unresolved, the matter proceeds to independent mediation, and finally to binding arbitration in New York under AAA rules. This governance structure demonstrates the institutional quality of the partnership, providing comfort to investors that the JV is built to withstand internal disagreements.
Fig 3.2: Board Composition and Governance
5. Non-Compete & Restrictive Covenants
Both parties are bound by a strict Non-Compete clause, prohibiting them from owning or operating any independent baseball league or franchise within a 100-mile radius of any Company stadium during the term and for one year thereafter. This protects the JV's market territory and ensures that the principals remain fully committed to the success of the shared enterprise.
THE PLATFORM & BUSINESS ECONOMICS
The Business of Baseball: Strategic Arbitrage in Heartland Markets
The success of the Mid America League is predicated on a high-precision business formula: the strategic arbitrage of the "Goldilocks Zone" markets. We specifically target small-to-mid-sized communities (MSA 100,000+) that possess the socioeconomic capacity to support professional-grade sports but have been structurally abandoned by the contraction of Major League Baseball’s affiliated system. By occupying these "Sports Vacuums," the MAL establishes an immediate and dominant entertainment monopoly. In these markets, the team isn't just a tenant; it becomes the primary civic identity. This positioning ensures high per-capita spend and intense fan loyalty, as there are virtually no competing Tier-1 entertainment options during the peak summer months. Our expansion is further optimized by a "Hub-and-Spoke" Pod Expansion Strategy, where new teams are added in regional clusters to minimize travel costs and maximize regional rivalry sponsorships.
The Mid America League operates in the specialized "Hybrid-Model Pro/Amateur" sector of the baseball ecosystem. This model represents the most efficient risk-reward ratio in the industry. While legacy Independent Pro leagues struggle with massive player salaries and workers' compensation liabilities, and Summer Collegiate leagues are limited by amateur-only restrictions, the MAL model blends the best elements of both. We feature top-tier professional prospects and undrafted stars who play alongside elite college athletes looking for pro exposure. This ensures a high caliber of play that satisfies the most demanding fans, while maintaining an "Asset-Light" operational cost structure that allows for rapid scaling across multi-state pod divisions.
| League Type | Entry Fee | Player Model | MLB Connection |
|---|---|---|---|
| Minor League (MiLB) | $8,000,000 - $80,000,000+ | Affiliated Prospects | Direct MLB Affiliation |
| Independent Pro | $2,000,000 - $10,000,000 | Paid Pros (Undrafted) | Scouted, No Affiliation |
| Mid America League | $350,000 | Hybrid (NIL + Pro) | Scouted, No Affiliation |
| Summer Collegiate | $500,000 - $1,500,000 | Amateur Only | Heavily Scouted |
Fig 4.1: Entry Cost Comparison Across League Tiers
The Revenue Engine: A Four-Pillar Growth Strategy
Franchise-level profitability is driven by a diversified "Four Pillar" revenue engine. Unlike traditional sports models that rely on volatile broadcast rights, the MAL business model is grounded in stable, community-driven cash flows that mature into significant EBITDA contributors over a 3-5 year cycle:
- 1. Corporate Sponsorship & Naming Rights: As the dominant entertainment brand in its market, each franchise creates premium inventory for local and regional advertisers. This includes high-margin stadium naming rights, uniform patch sponsorships, and digital ad space on the integrated MAL broadcast network. These are often multi-year, contractually obligated income streams that provide a guaranteed revenue floor before a single pitch is thrown.
- 2. Premium Ticket & Group Sales: The core of our revenue model is the "Group Experience." We focus on high-margin corporate outings, youth sports nights, and civic club parties. By selling "Entertainment Packages" rather than just individual seats, we increase the average transaction value and ensure consistent attendance regardless of the team's on-field record.
- 3. Concessions & Food Service: Operating within leased collegiate stadiums allows the MAL to capture high-margin food and beverage revenue with minimal overhead. We leverage local craft breweries and food vendors to create a "Taste of the Town" experience, which drives a per-cap spend significantly higher than traditional amateur leagues.
- 4. Merchandise & Brand Culture: The "Hat Culture" of baseball is a powerful revenue multiplier. We invest heavily in unique, community-centric team identities (like the "Beaumont Bayhounds") that resonate with local pride. This branding drives significant year-round sales through our centralized e-commerce platform, converting fans into walking billboards for the league.
The "Host Family" Network: A Grassroots Business Moat
A unique operational advantage of the Mid America League is the Host Family Program. Players are embedded within the local community, living with local families during the season. This program serves two critical business functions. First, it virtually eliminates the massive cost of housing a roster of 30 athletes, a line item that often diverts capital from high-impact marketing. Second, it creates a powerful grassroots marketing engine. Host families become the team's most fervent ambassadors, driving ticket sales and sponsorship interest through deep personal connections. This program transforms the "team" from a visiting entity into a true local asset, building a reservoir of community goodwill that acts as a durable moat against potential competitors.
The Economics of the Central League Office
The central league office—the franchisor—functions as a high-margin service provider to the individual teams. The primary drivers are League Dues and Player Fees, which are contractually guaranteed and scale perfectly with expansion. This creates a highly predictable financial foundation. Unlike individual teams that may face weather-related revenue dips, the League Office's income is fixed and recurring, providing a stable cash flow floor for the entire enterprise. Operating expenses are kept lean at $118,000 for payroll, funding key executive oversight, while league operating profit (EBITDA) is projected to scale from $263,950 (10 teams) to $1,101,318 (24 teams).
The NIL Program: Professionalizing Collegiate Athletics
The MAL’s most disruptive innovation is its utilization of the Name, Image, and Likeness (NIL) program. This allows the league to attract elite college players by offering sponsorship-backed compensation while preserving their NCAA amateur status. This pioneering concept eliminates the two largest cost centers in professional sports: direct player salaries and workman's compensation expenses. By replacing traditional payroll with opportunity-based compensation, the MAL model fundamentally de-risks the franchise P&L, lowering the breakeven point by nearly 50% compared to legacy independent leagues. This NIL Recruitment Edge creates a talent monopoly, as collegiate athletes gravitate toward the MAL for its professional environment and income potential, ensuring a superior product on the field without the traditional financial burden.
Fig 4.2: Operational Expense Savings via NIL Model
THE INAUGURAL PORTFOLIO
Detailed Market Analysis & Team Identities
The APX National Sports Group’s inaugural portfolio consists of five flagship expansion franchises, each meticulously selected through a rigorous data-driven vetting process. These markets represent the 'Goldilocks Zone' of independent sports: high-growth MSA clusters with a proven cultural affinity for baseball but a critical lack of professional entertainment supply. By securing exclusive, long-term stadium lease agreements with premier collegiate institutions and municipal governments, the Joint Venture has established an immediate physical moat around its territory. This 'Asset-Light' expansion strategy ensures that capital is deployed toward revenue-generating activities—such as hyper-local marketing and the APXCOIN® technological integration—rather than being tied up in stagnant real estate debt.
The branding for each team has been architected to drive both hyper-local civic pride and national merchandise appeal through unique visual identities. These identities are not arbitrary; they are derived from the industrial, frontier, and ecological heritage of their respective regions, providing a ready-made narrative for local fan engagement. This cultural anchoring, combined with the professional Front Office management of Ventura Sports Group, positions each franchise as the primary cultural anchor of its community, securing a stable and appreciating asset base for the Joint Venture.
Fig 5.1: Portfolio Market Population Analysis
Beaumont, TX (Bayhounds)
The Beaumont Bayhounds represent our primary entry into the industrial engine of the Texas Gulf Coast. Operating out of Lamar University’s Vincent-Beck Stadium, the franchise leverages a facility designed for collegiate championship play, featuring over 3,000 seats, a high-spec press box, and extensive corporate hospitality potential. Strategically, Beaumont is the epicenter of the Beaumont-Port Arthur MSA, an energy-industrial hub with nearly 400,000 residents and one of the highest industrial payrolls per-capita in the South.
This market is a 'corporate goldmine.' Global giants like ExxonMobil, Motiva Enterprises, and Valero employ thousands of high-income professionals who are the primary targets for premium season ticket packages and multi-year luxury suite leases. The 'Bayhounds' moniker is a calculated nod to the region's coastal maritime identity, designed to create an instant emotional bond with the local workforce. By partnering with Lamar, the Joint Venture bypasses millions in facility debt while securing a premier venue that acts as the summer social anchor for the entire Southeast Texas industrial corridor.
Top Local Employers: Lamar University, ExxonMobil (Refinery & Chemical), Motiva Enterprises, Valero, Christus St. Elizabeth Hospital.
Brazos Valley, TX (River Otters)
Located in the high-growth Bryan-College Station MSA, the Brazos Valley River Otters tap into one of the most resilient and sports-obsessed demographics in America. The franchise is anchored at Travis Major Field, a landmark 2,000-seat historic stadium owned by the City of Bryan. This partnership provides a 'Main Street' presence in a city known for its award-winning historic downtown and robust municipal support for sports-anchored economic development.
The strategic moat of this market is Texas A&M University, which injects over 70,000 students and a permanent faculty/staff of 17,000 into the immediate footprint. This educated, affluent demographic is the ideal proving ground for the APXCOIN® ecosystem, particularly for student-focused digital ticketing and creator rewards. Regional industrial powerhouses like FujiFilm Diosynth and Wayfair provide a massive pipeline for corporate group sales. The 'River Otters' moniker serves as an approachable, family-friendly brand that balances the area's high-tech 'Biotech Valley' status with its natural Brazos River heritage, ensuring maximum merchandise velocity among both local families and the massive Aggie alumni network.
Top Local Employers: Texas A&M University, H-E-B, FujiFilm Diosynth, Sanderson Farms, Wayfair, G-CON Manufacturing.
Ruston, LA (Gandy Dancers)
The Ruston Gandy Dancers occupy a unique 'Super-Fan' market in the heart of Louisiana’s I-20 corridor. Ruston is consistently ranked as a top-40 market nationally for collegiate baseball attendance, indicating a population that views baseball not just as a game, but as a primary social pillar. The franchise operates at Louisiana Tech University’s J.C. Love Field at Pat Patterson Park, an elite 2,000+ capacity venue featuring luxury suites and professional-grade locker rooms that rival Affiliated MiLB stadiums.
The local economic base, defined by Louisiana Tech and Grambling State University, offers a degree of recession-proof stability rare in small markets. The 'Gandy Dancer' monicker is a deep cultural play, honoring the railroad crews who historically connected the region to the national economy and fostering deep local pride. This heritage-driven brand facilitates deep community buy-in, while the high sports literacy of the town ensures a captive audience for the league's high-caliber 'Hybrid' talent. Major local sponsors like Origin Bank provide a stable institutional foundation for year-round corporate engagement and naming rights growth.
Top Local Employers: Louisiana Tech University, Northern Louisiana Medical Center, Lincoln Parish Schools, Grambling State, Origin Bank.
Nacogdoches, TX (Leopard Frogs)
Hosting the Nacogdoches Leopard Frogs, the 'Oldest Town in Texas' provides the Joint Venture with a market defined by extreme community loyalty and an absolute absence of competing professional entertainment. The franchise partners with Stephen F. Austin State University (SFA) to utilize Jaycees Field, creating a low-overhead entry into a market that has supported baseball since 1916.
SFA acts as the primary economic engine, providing a stable demographic of thousands of students and university employees. The quirky 'Leopard Frog' branding is an intentional marketing strategy aimed at the national 'Minor League Collector' market, designed to drive merchandise sales far beyond the local MSA. Nacogdoches’ significant industrial and healthcare sectors, including major employers like Pilgrim's Pride and Etech, offer a robust B2B foundation for high-volume group sales and corporate hospitality. This market is a primary testing ground for our 'Community Ownership' DAO trials, leveraging the town's intense civic pride to convert fans into direct stakeholders via APXCOIN®.
Top Local Employers: Stephen F. Austin State University, Pilgrim's Pride, Nacogdoches Medical Center, Etech, Inc, Walmart.
Fort Scott, KS (Dragoons)
The Fort Scott Dragoons serve as our strategic hub for the Mountain/Midwest pod, operating out of the modern LaRoche Baseball Complex (Dave Regan Stadium). This facility is a regional outlier, featuring a full turf infield and climate-controlled press box that enables year-round utility. While fixed seating is currently 500, the expansive grass berms provide a surge capacity of over 3,500, making it the premier outdoor venue for pod-wide events, concerts, and combat sports managed by Lester Bedford.
Fort Scott captures a unique bi-state demographic, drawing from high-school and collegiate sports hubs across the Kansas-Missouri border. The 'Dragoon' brand honors the city’s military frontier history, providing a ready-made narrative for regional rivalries. Strategically, this market allows the Joint Venture to aggregate a fragmented population into a single, loyal fan base, capturing the 'Mid America' consumer demographic that is currently ignored by major sports franchises. The turf technology at LaRoche virtually eliminates weather-related P&L volatility, ensuring that game-day revenue from concessions and merchandise is delivered consistently throughout the summer season.
Fig 5.2: Stadium Capacities and Infrastructure
TECHNOLOGY CATALYST: APXCOIN®
The ETH ERC-20 Asset: Decentralizing the Sports Economy
APX Group’s deployment of APXCOIN® within the Mid America League is not a peripheral tech experiment; it is the implementation of a sovereign financial architecture designed to replace the inefficient legacy systems of the global sports industry. As detailed in the APX Group Presents: The Future of Film is Decentralized, the entertainment sector has historically been crippled by opaque distribution channels and central gatekeepers who siphon off significant value through administrative friction and slow liquidity. By utilizing the ETH ERC-20 protocol, we are establishing a decentralized settlement layer that ensures every dollar generated in a stadium—from a ticket sale in Beaumont to a merchandise purchase in Fort Scott—is tracked on an immutable ledger. This transparency isn't just a feature; it's the foundation of a trustless economy where sponsors, players, and fans can interact without the friction of traditional banking delays.
The APXCOIN® ecosystem is intentionally grounded in Real World Assets (RWA). In our model, every stadium seat and sponsorship asset is tokenized on the Ethereum blockchain, allowing the Joint Venture to bridge the gap between physical infrastructure and digital liquidity. This 'Phygital' loop creates a circular economy where fan participation generates data, data informs the treasury, and the treasury incentivizes further fan engagement through targeted token rewards. By controlling both the physical venue and the digital settlement layer, the National Sports Group reclaims the 15-20% margin traditionally lost to third-party payment processors, reclaiming millions in potential EBITDA for stakeholders.
1. RWA Tokenization: Ticketing & Concessions
Vision: Transition every Mid America League ticket into a unique, on-chain digital asset. This eliminates the multi-billion dollar fraud risk inherent in secondary markets while allowing the league to capture resale royalties through smart contract automation. Starting in 2025, APX-owned teams will pilot ETH ERC-20 digital ticketing, where the ticket itself functions as a 'Smart Key' that unlocks in-venue loyalty triggers. For example, a fan buying concessions with APXCOIN® can trigger a real-time 'merit-drop' of a discount coupon for future games, creating a high-velocity transactional environment that legacy cash systems cannot replicate.
Fig 6.1: Transition to Blockchain/NFT Ticketing (2025-2029)
2. DeFi Settlement: Sponsorships & B2B Efficiency
Vision: Make APXCOIN® the default settlement medium for the league’s multi-year sponsorship contracts. As defined in the APXCOIN® Bible, the DeFi Settlement vector allows for the near-instant movement of capital between the global APX treasury and local MAL nodes. Structured via smart contracts, sponsorship deals automatically release usage rights and activations when milestones are met on-chain. This removes the need for traditional invoicing and banking wait-times, reducing administrative overhead by up to 40%. Sponsors are incentivized to pay in APXCOIN® through favorable rate parity, further driving the circulation and utility of the token within the sports industry.
Fig 6.2: Reduction in Administrative Overhead via Smart Contracts
3. Creator Rewards: NIL Payments & Athlete Economy
Vision: Utilize the **Creator Rewards** utility vector to streamline the MAL’s NIL program. Players are no longer just athletes; they are viewed as 'Value Creators' within the ecosystem. Rather than waiting for monthly checks, MAL will offer players near-instant NIL stipends in APXCOIN® via the integrated mobile app. This provides players with immediate liquidity and potential upside in the ecosystem's growth. By 2027, we target a 40% opt-in rate for APXCOIN® payouts, linked to social media 'bounty' triggers—if an athlete creates viral content for the league, a performance bonus is automatically deposited into their wallet via a smart contract.
Fig 6.3: Target Player Opt-in Rates for APXCOIN® Payouts
4. Fan Democracy: DAO Governance & Staking
Vision: Use the **Governance Vector** of APXCOIN® to build the most loyal fan base in sports. Drawing on the principles of Decentralized Autonomous Organizations, the MAL will allow token holders to stake their assets to gain voting rights on key league decisions. This moves beyond simple polls to actual meritocratic governance. In the mature phase (2028-2029), fans will vote on All-Star locations, expansion market shortlists, and mascot designs. This psychological 'Stakeholder Effect' is the ultimate retention tool—a fan who votes on the team's identity is 3x more likely to remain a lifetime customer, creating a durable competitive moat for the National Sports Group.
Fig 6.4: Fan Engagement Growth: DAO Participation Levels
5. Digital Memory Tokens: NFT Collectibles
Vision: Leverage the **RWA Tokenization** framework to create a living digital collectible market. Unlike traditional trading cards, MAL NFTs are living assets linked to real-time game data. A 'Dynamic NFT' of a top prospect can update its stats after every game, increasing its rarity and value based on on-field performance. This creates a secondary revenue stream that operates 24/7, monetizing the 'remote fan' demographically dispersed outside the physical stadium footprint. By 2029, digital collectibles are projected to contribute significant high-margin revenue to the consolidated Joint Venture P&L.
Fig 6.5: Projected Growth of Digital & NFT Revenue Streams
Technical Architecture & Security Protocols
The integrity of the National Sports Group’s digital economy is backstopped by the institutional rigor of the **APXCOIN® Master Reference (The Bible)**. The asset is officially verified on the Ethereum blockchain, providing a level of cryptographic security and universal interoperability that legacy proprietary ticketing platforms cannot match. Our implementation utilizes Ethereum's established security model to ensure that every fan interaction is immutable and transparently verifiable on Etherscan.
Crucially, the APX treasury-controlled supply schedule ensures that APXCOIN® remains a stable utility instrument rather than a speculative asset. This 'Fortress of Trust' is critical for securing municipal and university partnerships, as it proves that the digital settlement layer of the MAL is as stable and reliable as the physical stadiums themselves. This architectural alignment between the **Future of Film** whitepaper’s vision and the **MALIG** operational reality positions APX Group as the primary architect of the decentralized sports future.
YEAR-BY-YEAR STRATEGIC ROADMAP (2025–2029)
A Phased Approach to National Scale & Technological Dominance
To realize the vision of a dominant sports-tech enterprise, the APX National Sports Group follows a rigorous phased expansion roadmap. This timeline is not merely about team count; it is a calculated rollout of capital, physical infrastructure, and digital utility designed to create a self-sustaining circular economy. Each phase builds upon the previous year's market stabilization, leveraging the ETH ERC-20 backbone to drive fan engagement and institutional valuation.
Fig 7.1: Franchise Expansion Targets and Operational Milestones
2025 – Foundation & The "Command and Control" Setup
Strategic Milestones: 2025 marks the formal inception of the Joint Venture, with the executed agreement taking effect on December 16th. The primary focus is the stabilization of the inaugural 5-team portfolio (Beaumont, Brazos Valley, Ruston, Nacogdoches, and Fort Scott). APX Group initiates its $2,000,000 Matching Fund in APXCOIN®s to underwrite the league's digital treasury, while MALIG contributes its foundational stadium leases and intellectual property. The $5M private equity raise is activated to secure working capital and initial market penetration.
Economic & Tech Integration: Pilot programs for APXCOIN® digital ticketing launch at the 5 inaugural stadiums. We utilize the $800,000 Bridge Loan facility to upgrade Front Office technology and launch the centralized MAL mobile app. The "RWA Tokenization" vector is tested through commemorative NFT drops for season ticket holders. Corporate sponsorship packages in the energy and education sectors are formalized, securing the first wave of multi-year contractually obligated income. The primary KPI for 2025 is "Node Stability"—ensuring each of the 5 franchises achieves operational breakeven by the end of its first summer season.
2026 – Maturation & "Influencer Army" Scaling
Strategic Milestones: The league expands to 12-14 teams, moving into secondary pods in Oklahoma and Louisiana. Each new team utilizes the "Business-in-a-Box" template established in 2025. We scale the **Host Family Program**, placing players with local ambassadors to weave the league into the civic fabric. The leadership team activates the "Hub-and-Spoke" expansion model, grouping teams to minimize travel expenses and maximize regional rivalry sponsorship value.
Economic & Tech Integration: Full rollout of the "NIL Influencer Army" strategy. Every player on the 14-team roster is onboarded to the APXCOIN® bounty system, earning bonuses for social media engagement tracked on-chain. We target 25% of all in-venue concession purchases through APXCOIN® via a "Digital-Only" express line at every stadium. The 3-year financial forecast (2026-2028) projects total revenue scaling to $3.2M for the 5-team portfolio, with the league-level EBITDA increasing as expansion dues are collected. The **ETH ERC-20** infrastructure becomes the standard settlement layer for player stipends and local vendor payments.
2027 – Acceleration & The "Governance Stakeholder" Pivot
Strategic Milestones: MAL reaches 18 teams, establishing a national footprint. This year initiates international exploration with a specific target on the Ottawa, Canada market. The Joint Venture begins the transition from tenant to stakeholder, engaging in initial talks with municipalities for sports-anchored mixed-use developments. The league-level valuation see significant uplift as the franchise network reaches critical mass.
Economic & Tech Integration: Transition to meritocratic DAO governance. APXCOIN® holders are granted voting power on symbolic reserved matters, such as the All-Star game location and division names. We pilot fractional ownership NFTs for one expansion team, allowing fans to participate in a "Community Ownership" model. The "Phygital" loop is fully realized: fan attendance data from 18 venues is aggregated into a centralized data warehouse, enabling APX's marketing engine to drive personalized conversion campaigns. Free Cash Flow to the JV is projected to approach $600K annually as operating margins stabilize at 21%.
2028 – Expansion & The International Settlement Layer
Strategic Milestones: MAL expands to 24 teams, with the first international franchise operational in Canada. The league matures into a Tier-1 national media asset. We utilize the global studio infrastructure of APX (Twickenham, Augustus Color) to produce the first season of an MAL documentary series for a major streaming platform, monetizing the "Behind-the-Scenes" access to athletes. The enterprise value of the 10% league-level equity stake begins to outweigh the cash flow of individual franchises.
Economic & Tech Integration: The **ETH ERC-20** protocol facilitates seamless cross-border settlement between the U.S. and Canadian nodes of the league, bypassing international banking delays. We launch the APX National Streaming Network, where fans can tip players and unlock premium content using APXCOIN®. The "DeFi Settlement" utility vector is fully utilized for B2B sponsor transactions, reclaiming a 15% margin on millions in national advertising deals. Consolidated EBITDA for the APX-owned portfolio is targeted at $1.1M, with a diversified revenue base split between physical gate receipts and digital asset sales.
2029 – Realization & Sovereign Financial Architecture
Strategic Milestones: The Mid America League fulfills its 30-team national vision. The MAL is recognized as the global benchmark for fan-centric, community-owned sports. This year marks the completion of the 5-year plan and the realization of the "Grand Slam." Success is defined by 30 stable, profitable franchises each serving as a hub for its local economy. The Joint Venture evaluates several exit strategies: an Initial Public Offering (IPO), a merger with a major global sports conglomerate, or the tokenization of the entire league entity into a Sovereign DAO.
Economic & Tech Integration: APXCOIN® is now the sovereign currency of the MAL ecosystem. Over 60% of all league-wide transactions occur on-chain. The treasury-controlled supply schedule has created a stable, appreciating asset class backstopped by billions in physical media and sports infrastructure. The 30 franchises collectively generate $12-15M in revenue, with a dominant share of the "Digital Fanbase globally." The National Sports Group has successfully reclaimed the soul of community sports through technology, creating a durable, multi-generational enterprise that is "too integrated to fail."
Fig 7.2: Geographic Footprint and International Reach (2029)
LEADERSHIP & MANAGEMENT
The Architects of Alpha: Proven Execution at Scale
The success of the APX National Sports Group is anchored in its "Operational Alpha"—a collective leadership resume spanning over 200 years of documented success in high-stakes sports management, award-winning venue development, and large-scale financial turnarounds. This is not a team learning on the job; these are the industry architects who built the modern independent sports blueprint. By combining deep "old school" operational chops with APX Group’s "new school" technological engine, this leadership team is uniquely qualified to bridge the gap between traditional community sports and the emerging decentralized economy. Their track record is defined by an ability to identify underperforming assets and force immediate valuation uplift through aggressive promotion and institutional-grade management.
Mark Schuster (Founder & CEO)
Mark Schuster is widely recognized as one of the most successful turnaround specialists in the history of Minor League Baseball. With a career spanning 36 years, Schuster has built an award-winning reputation for transforming volatile sports properties into stable, high-yield assets. His foundational experience includes a tenure as Director of Food & Beverage for the **Durham Bulls (1989)** during the peak "Bull Durham" era, where he developed the high-volume concessions models that remain the industry standard today.
Accolades & Operational Alpha: Schuster is a recipient of the prestigious Larry MacPhail Trophy (1999), awarded to the top promoter in all of Minor League Baseball, and was named the South Atlantic League Executive of the Year. He famously orchestrated the construction and financing of the $19MM "Joseph P. Riley, Jr. Park" for the Charleston RiverDogs, which established a new benchmark for municipal ballpark design.
The Turnaround Specialist: His most significant financial benchmark involved taking Metropolitan Sports from a $7,000,000 annual loss to a $1,800,000 profit in just 18 months. This specific expertise in operational stabilization is the "secret sauce" of the Joint Venture's expansion strategy. In the MAL model, Schuster applies the "Schuster Turnaround Methodology" to every franchise node, ensuring that each expansion market moves from launch to profitability within a compressed 12-24 month window.
Lester Bedford: The Major Event Engine
Working in synergy with the Front Office is Lester Bedford, a titan of live gate entertainment with over 40 years of documented success. Bedford’s role is critical to the "Year-Round Monetization" strategy of the Joint Venture. He is responsible for transforming MAL stadiums from seasonal baseball diamonds into 365-day event hubs, utilizing his massive network in combat sports and music production.
Scale of Impact: Bedford has managed over 600 professional boxing and MMA events, including 47 of the 50 highest-grossing boxing matches in Texas history. He successfully organized 6 of the 7 largest attended boxing events in the United States over the last four decades, managing crowds of 50,000+ at venues like the Alamodome and Cowboys Stadium. This capability ensures that MAL stadiums can host Tier-1 national events, capturing high-margin ticket and concession revenue outside the traditional 60-day baseball window.
Total Fans Managed: With a lifetime record of over 8,000,000 fans managed, Bedford provides the Joint Venture with an unparalleled depth of expertise in mass-market logistics and event marketing. His presence allows the MAL to secure national sponsors who are attracted not just to baseball, but to the "Event Hub" ecosystem he creates.
League Management: Business-in-a-Box Execution
The daily operational heartbeat of the league is managed by President Nick Weisenborn and COO Jeremy Aagard. This duo represents the execution arm of the "Business-in-a-Box" model. Jeremy Aagard brings over two decades of high-level collegiate summer ball experience, famously setting concession and sponsorship records with the Rochester Honkers (Northwoods League).
Nick Weisenborn, with experience spanning the Frontier League and the Kansas City Royals, manages the complex web of athletic fundraising and municipal relations. Together, they ensure that every franchise node adheres to the institutional standards of the Strategic Plan, facilitating the rapid integration of APXCOIN® into the game-day P&L. Their expertise allows the CEO to focus on high-level expansion and capital allocation while the franchises operate with standardized precision.
Strategic Advisory Board: National Scaling Hooks
The venture is further bolstered by a diverse Board of Advisors providing the "hooks" into national sports policy and corporate sponsorship. Alfred White (former NCAA and College Football Playoff executive) provides the critical roadmap for NIL compliance and collegiate relations. Matt LaBranche, a 20-year veteran of professional sports with **WME/IMG** and the Texas Rangers, serves as the primary bridge to national media rights and global brand partnerships.
On the capital and real estate front, the board features Dany Chenail, a highly successful entrepreneur with a real estate portfolio valued at over **$125 million**. Chenail’s expertise is the primary driver behind the league’s long-term **Mixed-Use Development Vertical**, ensuring that the Joint Venture captures maximum real estate appreciation around its stadium assets. This "Bench Strength" ensures that the enterprise is prepared for institutional growth and potential public listing.
Fig 8.1: Cumulative Leadership Experience (Years)
Fig 8.2: Total Attendance Historically Managed by Leadership Team
FINANCIAL STRATEGY & UNIT ECONOMICS
The "Double-Dip" Investment Model: Yield + Enterprise Growth
The financial architecture of the APX National Sports Group is designed to provide investors with a highly attractive "Double-Dip" return profile. Unlike traditional sports investments that offer either cash yield or capital appreciation, our model provides both. This is achieved through the dual-ownership of high-cash-flow franchise nodes and a 10.00% equity stake in the league-level franchisor (MALB). As the individual teams mature into stable, yield-generating assets, the enterprise value of the league office appreciates exponentially with every new franchise launch. This section provides a granular breakdown of the unit economics and the "forced appreciation" mechanics that drive our 5-year projections.
The foundation of our P&L stability is the "Revenue Floor" Strategy. We prioritize Contractually Obligated Income (COI), which includes multi-year corporate sponsorships, season ticket deposits, and stadium naming rights. In our inaugural portfolio, COI accounts for nearly 45% of total projected revenue, providing a significant buffer against weather-related game-day volatility. By securing this floor, the Joint Venture can comfortably service debt obligations while maintaining the flexibility to invest in the ETH ERC-20 digital infrastructure that facilitates high-margin secondary revenue streams like NFT trading and digital rewards.
Franchise Revenue Drivers (Consolidated 12-Team Model Basis)
| Revenue Category | Total (All Franchises) | Avg Per Team | Description |
|---|---|---|---|
| Contractually Obligated Income | $1,759,000 | ~$146,583 | Stable, pre-paid income from sponsorships and premium seating. Acts as the portfolio's 'economic insurance policy.' |
| Game Day Revenue (Gate/F&B) | $1,697,400 | ~$141,450 | Variable revenue driven by a $12-15 per-cap spend on concessions and merchandise. Reclaimed via ETH ERC-20. |
| Major Live Events (Bedford Vertical) | Projected 15% Uplift | Variable | High-margin revenue from boxing, concerts, and MMA utilizing surge stadium berm capacity (3,500+). |
Margin Reclamation: The DeFiFi Operational Advantage
A critical component of our financial strategy is the 15-20% margin reclamation facilitated by the APX Group’s Web3 technology. Traditional sports operations suffer from "Administrative Slippage"—the loss of revenue to legacy payment processors, banking fees, and delayed settlement periods. By integrating APXCOIN® as the primary settlement layer for concessions and sponsorship deals, the Joint Venture eliminates these middle-men. This trustless settlement protocol ensures that cash flow is immediate and transparently ledgered, increasing the velocity of capital within the treasury. This efficiency is the primary driver of our projected EBITDA margin expansion from 8.4% in Year 1 to a dominant 28.8% by Year 4.
Franchise Expense Structure (Consolidated)
| Expense Category | Total Cost | Avg Per Team | Operational Logic |
|---|---|---|---|
| Payroll Arbitrage (Front Office) | $454,875 | ~$37,906 | Fixed staff costs kept lean via shared services. Zero player salary cost (NIL Model). |
| Team & Travel Expenses | $774,050 | ~$64,504 | Optimized via centralized purchasing and the 'Pod-Based' travel clusters. |
| General & Administrative | $545,471 | ~$45,456 | Insurance and biz-ops costs suppressed by the scale of the 5-team portfolio. |
Bridge Financing & Valuation Logic
As outlined in the MALIG APX Short Form Agreement, the Joint Venture utilizes an $800,000 Bridge Loan facility at a 15% interest rate. This capital is specifically earmarked as a "working capital engine" to fund the launch of the inaugural franchises before the full $5M raise is stabilized. Strategically, this debt is convertible into equity at a $20,000,000 valuation cap. This cap represents the conservative intrinsic value of the secured stadium leases, municipal goodwill, and the underlying IP contributed by MALIG. For investors, this structure provides a high-yield entry point into an asset class that is targeted for significant forced appreciation as the "Anchor Tenant" strategy is realized across multiple states.
Consolidated 3-Year Financial Forecast (USD)
The following forecast represents the base operational target for the Joint Venture entity, covering the consolidated performance of the five flagship franchises. These figures do not include the additional "Digital Uplift" projected from NFT trading or secondary media licensing, providing a conservative baseline for investor due diligence.
| Financial Metric (Consolidated) | Year 1 (2026) | Year 2 (2027) | Year 3 (2028) |
|---|---|---|---|
| Total Revenue | $3,285,462 | $3,942,008 | $4,296,609 |
| Total Expenses | ($2,427,976) | ($2,476,535) | ($2,526,066) |
| EBITDA | $277,006 | $826,945 | $1,100,088 |
| EBITDA Margin % | 8.4% | 21.0% | 25.6% |
| Net Income (Post-Tax) | $120,254 | $532,709 | $737,566 |
| Free Cash Flow to JV | $186,921 | $599,375 | $804,233 |
Fig 9.1: Consolidated Portfolio EBITDA Growth Curve (USD)
League-Level Equity: The Enterprise Valuation Multiplier
While the franchises provide immediate cash flow, the 10.00% equity stake in the league entity (MALB) is the primary engine for long-term capital gains. As the league expands from 10 to 30 teams, its enterprise valuation scales on a franchisor multiplier (typically 12-15x EBITDA in sports). League Operating EBITDA is projected to grow from $263,950 to over $1.1 Million by the time 24 teams are operational. This "Network Effect" ensures that as MAL gains national prominence, the Joint Venture’s equity holding becomes an institutional-grade asset, primed for a public listing or a strategic acquisition by a major global sports conglomerate. The symbiosis between team-level yield and league-level growth provides a diversified financial fortress unique to the APX National Sports Group model.
Fig 9.2: League-Level EBITDA Scaling with Expansion Dues
STRATEGIC MARKETING & PR PLAN
Building a "Phygital" Global Sports Brand: The Content-First Ecosystem
The marketing and communications strategy for the APX National Sports Group (2025–2029) is designed to execute a complex dual mandate: driving hyper-local attendance in heartland American markets while simultaneously building a global, digital-native brand for the APXCOIN® ecosystem. We are not merely selling baseball tickets; we are orchestrating a mass-market onboarding to the decentralized future through the universal language of sports. This requires a fundamental departure from traditional minor league marketing (billboards and radio spots) toward a "Content-First" ecosystem where every player is an influencer, every game is a broadcast event, and every fan interaction is a transaction on the **ETH ERC-20** infrastructure. Our approach recognizes that the "product" exists in two places simultaneously: the physical stadium in Beaumont or Ruston, and the digital wallet of a token holder in London or Tokyo.
The Core Narrative: "The Future of Sports is Sovereign"
Our Public Relations strategy centers on a controlling narrative that positions the Mid America League as the "R&D Lab" for the future of sports consumption. This positioning shields us from direct comparison with major leagues while attracting a different class of investor and fan.
For the Sports Press (ESPN, The Athletic, Baseball America): The story is about "The Return of the Community." We highlight how the DAO-lite model gives power back to fans who feel alienated by the corporate sterility of major league sports. We focus on the "purity" of the game, the NIL opportunities for hungry college athletes, and the revitalization of historic ballparks in heartland America. We frame the league as the savior of America's pastime in forgotten towns.
For the Tech & Finance Press (TechCrunch, CoinDesk, Bloomberg): The story is "Real World Utility." We position MAL as the definitive case study for crypto mass adoption. We move the conversation away from speculative trading and toward functional utility: buying hot dogs, voting on jerseys, and tipping players instantly. This bifurcated narrative ensures we dominate two distinct media cycles simultaneously, maximizing our share of voice.
The "NIL Influencer Army" Strategy
Traditional marketing budgets are inefficient. Instead of spending heavily on paid ads, we leverage our unique asset: the players. Under the APX/MAL model, every player is a paid content creator. This turns our biggest cost center (player compensation) into a marketing engine.
The Mechanics: As part of their NIL (Name, Image, Likeness) agreements, players are incentivized to document their journey. A roster of 30 players across 10 teams gives us 300 native influencers. If each has a modest following of 2,000 people, we have an immediate, organic reach of 600,000 highly engaged sports fans. This is organic, authentic reach that cannot be blocked by ad-blockers.
"Post-to-Earn" Integration: We will implement a specialized bounty system via the APXCOIN® app. Players receive APXCOIN® bonuses for hitting engagement targets on social media (e.g., "50 APX for a TikTok getting >10k views"). This turns our roster into a motivated, 24/7 marketing agency that costs a fraction of a traditional firm. The content—locker room celebrations, training montages, travel vlogs—provides the authentic, "behind-the-scenes" access that Gen Z era craves, reminiscent of the "Welcome to Wrexham" documentary style but generated in real-time by the athletes themselves.
Fig 9.3: Shift from Traditional Ad Buy to Creator Economy & Community Rewards
Target Audience Segmentation
Our strategy addresses three distinct psychographic profiles, each requiring a tailored funnel. By treating these groups distinctively, we maximize conversion rates and minimize wasted ad spend.
- The "Baseball Purist" (Boomers/Gen X): Located in local markets (e.g., Fort Scott, Nacogdoches). Messaging: Affordable family fun, respect for tradition, "baseball the way it used to be." Channel: Local radio, newspaper partnerships, Facebook community groups. Conversion Goal: Season tickets and physical concessions.
- The "Digital Native" (Gen Z/Alpha): Global distribution. Messaging: Highlights, player personalities, meme culture, fast-paced content. Channel: TikTok, Instagram Reels, YouTube Shorts. Conversion Goal: Merchandise sales, streaming views, following players on social.
- The "Crypto-Curious & Investor" (Millennials/Gen Z): Tech-savvy, financially motivated. Messaging: Utility of APXCOIN®, DAO voting rights, NFT collectibility, "owning" a piece of the league. Channel: X (Twitter), Discord, Reddit, Telegram. Conversion Goal: APXCOIN® acquisition, NFT trading, DAO participation.
Tactical Roadmap: The 5-Year Campaign
2025: "The Rebirth" (Hyper-Local Focus)
Objective: Establish deep roots in the 5 inaugural markets. Proof of Concept.
Tactics: "Town Hall" meetings in every city to introduce the owners. Launch the "Founding Fan" NFT series (giving lifetime perks). Heavy reliance on local partnerships (Little League sponsorships, Chamber of Commerce mixers). The PR narrative focuses entirely on "saving baseball in our town," building a reservoir of goodwill.
2026: "The Awakening" (Regional Rivalries & Tech Pilot)
Objective: Validate the tech stack and create viral moments.
Tactics: Introduction of the "Civil War" cup (e.g., Texas vs. Kansas series) to drive travel. Launch of the "My First Wallet" campaign: stadium staff (Genius Bar style) helping older fans set up APX wallets in exchange for a free beer. This de-mystifies the tech. We will commission a documentary crew to film the season, pitching the pilot to streaming platforms (Netflix/Hulu/Amazon) as a "Hard Knocks" for minor league baseball.
2027: "The Movement" (National & DAO Expansion)
Objective: National brand recognition and deep crypto integration.
Tactics: The first "DAO Draft Pick"—allowing token holders to vote on a roster spot or exhibition game lineup. This is a PR stunt designed for global virality. We launch the APX National Streaming Network, a direct-to-consumer app where micropayments (in APX) allow fans to change camera angles or access player audio feeds, monetizing the remote fan.
2028-2029: "The Standard" (Global Scale)
Objective: International expansion and media rights monetization.
Tactics: Exhibition games in Mexico or Canada to broaden the footprint. Monetization of the documentary series (now in Season 3). The league begins licensing its "Crypto-Sports-in-a-Box" tech stack to other minor leagues (soccer, basketball), positioning APX Group AS a B2B technology provider, not just a league operator.
Fig 9.5: Cumulative Tactical Milestone Completion (2025-2029)
Crisis Communication & Reputation Management
We anticipate skepticism regarding the crypto components of the league ("Is this a scam?", "What about volatility?"). Our communication plan includes a proactive "Radical Transparency" protocol to address these concerns head-on.
1. The "Stable-Price" Guarantee: For local fans, we market prices in USD, with the crypto conversion happening on the backend. A hot dog is always $5.00. We insulate the local fan from market volatility, ensuring the technology is invisible unless they choose to engage with it. This removes the primary friction point for adoption.
2. Educational Content: A dedicated "APX Academy" section on the website and app, offering simple, jargon-free video tutorials on how the blockchain protects their ticket ownership and voting rights. Education is marketing.
3. Community Governance: We will establish a "Fan Council" in each city, meeting quarterly with GM's. This feedback loop ensures that the push for technology never alienates the core legacy fanbase. If the Council says "too much crypto," we dial back the messaging while keeping the infrastructure. We listen first.
Budget Allocation & Resource Deployment
Unlike traditional leagues that spend 60-70% of marketing funds on outbound advertising (TV, Radio, Billboard), the APX National Sports Group will invert this model. Our target allocation for the $5M raise period is designed to maximize organic reach and community buy-in:
- Community Rewards (35%): Direct "airdrops" and incentives for fans who attend games, refer friends, or create content. We pay the fan to market for us.
- Content Production (30%): Salaries for videographers, editors, and social media managers attached to each team. High-quality video is our currency.
- NIL Influencer Bonuses (20%): Payments to players for hitting social media KPIs.
- Traditional Local Ads (10%): Targeted spending only for opening day and playoffs to ensure sold-out key dates.
- PR & Media Relations (5%): Retainer for a national agency to secure placements in Tier-1 publications.
Fig 9.6: Projected Fan Acquisition Channels (Traditional vs. Digital)
RISK MANAGEMENT
Institutional Risk Mitigation: A Multi-Layered Defense Strategy
Implementing a combined strategy of rapid physical expansion and cutting-edge decentralized technology entails a sophisticated risk profile. The APX National Sports Group utilizes a proactive "Defense-First" approach to risk management, anchored in the institutional governance of the Joint Venture and the cryptographic security of the **ETH ERC-20** protocol. As outlined in the **APX Group Presents: The Future of Film is Decentralized** whitepaper, forward-looking ventures in the digital economy must account for regulatory shifts, technological vulnerabilities, and market volatility. We have categorized our primary exposure into five domains, with specific, contractually-enforced mitigation protocols for each designed to insulate investor capital and preserve the integrity of the **APXCOIN®** treasury.
1. Governance & Deadlock Mitigation (The 75% Supermajority Buffer)
The Risk: In a 50/50 Joint Venture, there is a structural risk of operational paralysis or "Deadlock" if the Board of Managers cannot align on critical strategic directions. Disagreements on capital allocation, expansion, or executive appointments can cripple an emerging enterprise.
Mitigation: The JV utilizes a tiered Deadlock Resolution Mechanism (Article 15). To prevent unilateralism, all significant capital actions—defined as "Reserved Matters" in Exhibit A—require a 75% supermajority approval. This includes asset sales exceeding $100,000, the incurrence of debt over $250,000, or the appointment/removal of the CEO. This "Supermajority Buffer" ensures that major strategic shifts have broad consensus. In the event of a stalemate, the matter escalates to a mandatory 30-day "Principal's Summit" between Mark Schuster and the APX Board. If unresolved, the agreement mandates binding arbitration in New York under AAA rules, providing a definitive legal exit path and protecting investor liquidity.
Leadership Security: The "Key Man" provision contractually binds the core operational team (Schuster/Bedford) to the venture, ensuring that the "Alpha" of their experience is preserved during the multi-state expansion phase.
2. Regulatory & Jurisdictional Compliance Posture
The Risk: Shifting global regulations regarding digital assets present a risk that **APXCOIN®** could be reclassified as a security, subject to SEC or equivalent oversight. Furthermore, the cross-border expansion into Canada and Mexico introduces diverse multi-state legal and tax complexities.
Mitigation: APX Group maintains a compliance-first posture at its 40 Wall Street headquarters. **APXCOIN®** is architected as a pure utility instrument, with its value explicitly tied to in-ecosystem transactions (tickets, concessions, rewards). We utilize institutional KYC (Know Your Customer) and AML (Anti-Money Laundering) protocols for all major treasury interactions. For jurisdictional NIL risks, we employ Alfred White to manage multi-state reporting standards. By utilizing the ETH ERC-20 protocol, we benefit from the most widely accepted and audited technological standard in the industry, facilitating a transparent and defensible path through shifting regulations.
Legal Backstop: The JV is domiciled in Delaware, utilizing the most established corporate legal framework in the United States to govern partnership rights and asset protections.
Fig 10.1: Multi-Domain Risk Probability Index
3. Operational Stability & NIL Labor Continuance
The Risk: Changes in NCAA policy or federal labor laws regarding collegiate athletes could disrupt the MAL's low-overhead NIL labor model. If players were reclassified as employees, the P&L would face significant direct salary and workers' comp burdens that would erode margins.
Mitigation: We utilize a "Hybrid-Talent" diversification strategy. Our rosters are intentionally balanced between collegiate NIL players and undrafted professionals. In the event of an NCAA policy shift, the MAL is designed to pivot immediately to a full-pro model. The "Reserved Matters" buffer allows the Board to quickly adjust the capital structure to absorb labor cost shifts if necessary. Additionally, the **Host Family Program** acts as a non-monetary compensation anchor, reducing the league's sensitivity to direct cash salary fluctuations while deepening regional civic ties.
Facility Moat: By utilizing the "Public-Private Partnership" model for stadiums, we limit our CapEx exposure to facility maintenance rather than primary construction debt, ensuring a high degree of operational flexibility during labor market shifts.
4. Capital Liquidity & Bridge Financing Protection
The Risk: The $800,000 Bridge Loan and subsequent $5M raise rely on achieving specific valuation milestones. Failure to scale attendance could trigger the conversion of debt at terms unfavorable to existing equity holders, leading to excessive dilution.
Mitigation: Section 4g of the Short Form Agreement provides Anti-Dilution Protection and a $20,000,000 valuation cap for the bridge facility. There is also a $8,000,000 valuation floor, protecting early capital from "down-round" scenarios. Our "Revenue Floor" strategy anchors 45% of income in multi-year Contractually Obligated Income (COI), ensuring that we can service the 15% interest on the bridge loan regardless of seasonal gate performance. APX Group’s €3 Billion global credit facilities provide a secondary "Sovereign Backstop" for the treasury, ensuring long-term liquidity for the franchise nodes during the expansion phase.
Asset Assignment: MALIG irrevocably assigns all team IP and stadium rights to the JV LLC, ensuring that the company's valuation is backstopped by tangible, exclusive contracts.
5. Technological Integrity & Volatility Mitigation
The Risk: Vulnerabilities in the digital platform (wallets/ticketing) or extreme volatility in the crypto markets could damage fan trust and destabilize game-day revenue.
Mitigation: We utilize a Treasury-Controlled Supply Release Schedule, as detailed in the **APXCOIN® Bible**, which aligns token availability with real-world growth milestones to dampen speculative volatility. Critical game-day systems (ticketing, concessions) have redundant offline backups, allowing stadiums to revert to traditional payment methods if the network is disrupted. The use of a verified **ETH ERC-20** smart contract provides a high-trust, audited foundation that separates the enterprise's operational integrity from the wider market's speculation.
Cyber Defense: APX Group employs continuous security audits of the **MAL Wallet** and ticketing stack, utilizing the same institutional-grade encryption protocols that protect its €3 Billion media treasury.
Fig 10.2: Strategic Impact Analysis of Potential Risks
THE FAN'S PERSPECTIVE: A NEW ERA
Power to the Fans: Reclaiming the Soul of the Game
For over a century, the relationship between a sports franchise and its supporters has been defined by a unidirectional, transactional model. Fans were treated as consumers of a finished product—spectators who paid for the privilege of watching from the periphery. The APX National Sports Group is fundamentally dismantling this legacy hierarchy. Our strategic plan is built around the "Stakeholder Fan" concept, transforming supporters from passive revenue sources into active, empowered participants with a tangible voice in the league's evolution. This isn't just about marketing; it's about the "Ownership Effect"—a psychological and economic phenomenon where fans who feel a sense of agency over their team exhibit significantly higher levels of loyalty, engagement, and lifetime value. We are not merely selling tickets; we are building a constituency.
By leveraging Decentralized Autonomous Organization (DAO) principles, we are establishing a true fan democracy where influence is meritocratic and transparent. In our model, APXCOIN® acts as more than just a digital currency; it is a governance token that facilitates an immutable ledger of community sentiment. We move beyond the "illusion of participation" seen in simple social media polls to create a bi-directional ecosystem where token-holders have real, weighted voting power on decisions that define the league's identity. Starting with "DAO-lite" symbolic decisions in the pilot phase, we will transition to deeper governance structures where dedicated fans who stake their tokens can influence league policy, event formats, and team personnel directions. This deep emotional and economic investment ensures that the push for innovation remains grounded in the desires of the community.
The Traditional Fan Role
The legacy sports model relies on one-way communication and high-barrier consumption. A fan's role is primarily to fund the enterprise through ticket and merchandise purchases, with no influence on team operations, branding, or league policy. Fans are often treated as data points in a broadcast algorithm, disconnected from the decision-making process and priced out of the experience. Their participation is limited to their consumer choices, leaving them as passive spectators to an enterprise they have no power to shape.
The New MAL Fan Role
The National Sports Group model recognizes the fan as a primary stakeholder and co-creator. As an APXCOIN® holder, you are a digital member of the team’s inner circle, empowered with voting rights that are recorded securely on the blockchain. You participate in governance, casting weighted votes for expansion markets, All-Star locations, and mascot identities. Through fractional ownership NFTs, fans in markets like Beaumont or Ruston can literally own a piece of their local heritage, bridging the gap between grassroots town pride and the global digital economy.
Fig 11.1: Shift from Passive Consumer to Active Token Holder
The Grand Slam: Success in 2029
The vision for 2029 is a "Grand Slam" for community sports, where the Mid America League serves as the global national benchmark for fan-centric entertainment. Success means a thriving, international league of 30 or more teams where every stadium is a "Smart Venue," seamlessly integrating the physical game with the digital utility of the APXCOIN® ecosystem. We envision a future where a fan in Fort Scott can use their digital wallet to purchase a seat, earn loyalty rewards for their attendance, and cast a vote on the post-game celebration—all within a single, frictionless interface. This "phygital" experience ensures that the ballpark remains the heart of the community while operating on a cutting-edge technological foundation.
Most importantly, success in 2029 is defined by the reclamation of the soul of community sports. In an era where major league sports have prioritized corporate luxury boxes over the average family, the MAL offers a return to intimacy, accessibility, and genuine connection. By empowering fans with actual voting rights and the opportunity for financial upside through tokenization, we are building a durable competitive moat that legacy models cannot replicate. The Mid America League will not just be another place to watch baseball; it will be a community-owned movement where every fan is a partner in the long-term prosperity of their hometown team.
Fig 11.2: Growth of Community-Owned Franchises
INVESTOR DUE DILIGENCE MATERIALS
Study Guide & Key Concepts
To assist potential investors in understanding the nuances of the "Hybrid-Model Pro/Amateur" structure and the APXCOIN® integration, we have compiled the following key concepts and Q&A from our briefing materials.
Short-Answer Key Concepts
- Hybrid-Model Position: Positions the league between affiliated Minor League Baseball and purely amateur collegiate leagues. It allows for a mix of top college players, undrafted prospects, and former MiLB athletes.
- NIL Importance: A "game-changing concept" allowing college players to be compensated via sponsorships while retaining amateur status. This eliminates direct player salaries and workers' comp expenses for the league.
- Expansion Goals: Grow from a 2024 base of 6-10 teams to ~30 franchises by 2029. Domestic focus: South, Midwest, Mountain West. International: Canada and Mexico.
- APXCOIN® Vision: To be the "lifeblood" of the fan experience: NFT ticketing, concession payments, loyalty rewards, and fan voting.
- Portfolio Advantage: Counters single-team inefficiencies by owning a multi-franchise portfolio to achieve economies of scale and centralized management.
Fig 12.1: Key Concept Understanding Score
Critical Essay Questions for Review
1. Strategic Synergies: Analyze the synergies between MAL's operational model and APX's tech capabilities. (Focus: How the Joint Venture leverages "business-in-a-box" ops with "high-octane" capital/tech to create value greater than the sum of parts.)
2. Risk & Mitigation: Evaluate the comprehensiveness of mitigation strategies for crypto regulation and market volatility. (Focus: Determining if the "utility token" structure and USD-pegged pricing are sufficient safeguards.)
3. Ownership Models: Compare APX Multi-Franchise Ownership vs. Community/DAO Ownership. (Focus: Discussing how direct ownership accelerates adoption versus how community ownership deepens loyalty.)
Fig 12.2: Investor Funnel Conversion Metrics
CONCLUSION & GLOSSARY
By executing this comprehensive 2025–2029 strategy, APX Group and the Mid America League will create a thriving, modern sports ecosystem that marries community-based baseball with cutting-edge blockchain technology. The MAL will expand into a powerhouse of 30+ teams across underserved markets, delivering affordable family entertainment and opportunities for college athletes. Simultaneously, APXCOIN® will evolve from a novel concept into the financial backbone of the league, touching every transaction and interaction – a living demonstration of Web3’s potential in sports.
Fig 13.1: Milestones to National Prominence
In five years, APX Group’s involvement will have transformed the Mid America League from a fledgling concept into a sustainable, expanding enterprise at the forefront of the sports-tech revolution. It represents a powerful alignment of incentives: what’s good for fans and players (more engagement, new opportunities) is good for the league (more revenue, growth) and also fuels APXCOIN®’s ecosystem value, creating a win-win-win scenario. As a result, by 2029 MAL is not just a baseball league, but a community-owned movement and a showcase for APX Group’s grander vision – “a new era in media & entertainment” powered by blockchain.
Strategic Implications: A Blueprint for the Future
The success of the APX National Sports Group will serve as a definitive proof-of-concept for the decentralization of sports ownership. By demonstrating that a league can be profitable, scalable, and community-centric without relying on the traditional billionaire-owner model, we challenge the status quo of the entire industry. This model provides a replicable blueprint that can be exported to other sports verticals—minor league soccer, basketball, and even e-sports—positioning APX Group not just as a participant, but as the architect of the next generation of sports infrastructure.
Furthermore, the integration of real estate development into the core strategy creates a tangible asset base that insulates the venture from the inherent volatility of digital markets. By anchoring the digital economy of APXCOIN® to physical mixed-use developments in growing mid-sized American cities, we create a "flywheel effect": the success of the team drives foot traffic to the district, increasing real estate value, which in turn strengthens the team's financial foundation. This symbiosis between the digital token and the physical brick-and-mortar asset is the "Holy Grail" of modern Web3 utility, moving beyond speculative value to intrinsic, utility-driven worth.
Ultimately, this venture is about more than baseball; it is about reclaiming the soul of community sports. In an era where major league sports have prioritized corporate luxury boxes over the average family, the MAL offers a return to intimacy, accessibility, and genuine connection. By empowering fans with voting rights and financial upside, we are not just building a customer base; we are building a constituency. This deep emotional investment is the most durable competitive moat available, ensuring that the APX National Sports Group remains resilient, relevant, and profitable for decades to come.
Glossary of Key Terms
| APX Group | A global diversified media and holding company with interests in entertainment, decentralized finance (APXCOIN®), and strategic marketing. Proposed a 50/50 joint venture with MALIG. |
| APXCOIN® | APX Group’s blockchain-based utility token, minted on ETH ERC-20 blockchain. The strategic plan aims to integrate it as the core transactional and engagement medium for the Mid America League. |
| DAO | Decentralized Autonomous Organization. A model where stakeholders use tokens to participate in ownership and governance decisions. The MAL plan proposes a "DAO-lite" approach for fan voting and potential community ownership of teams. |
| EBITDA | An acronym for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is used as a financial metric to measure the core operational profitability of a business. |
| Hybrid-Model Pro/Amateur | The unique strategic positioning of the Mid America League, which features a mix of compensated college players (via NIL), undrafted players, and former minor league athletes, bridging the gap between purely amateur and fully professional leagues. |
| Joint Venture (JV) Entity | The proposed new Delaware LLC to be formed by APX Group and MALIG, owned 50/50 by each party. It would hold all assets of the five inaugural franchises and the 10% league equity stake. |
| Mid America League (MAL or MALB) | An independent summer baseball league launched in 2024. It operates on a cost-efficient model using the NIL program to attract elite college talent to underserved small and mid-sized markets. |
| Mid America League Investment Group (MALIG) | The investment group, led by Mark Schuster, formed to acquire five new MAL franchises and a 10% equity stake in the league. It is the counterparty to APX Group's joint venture proposal. |
| Mixed-Use Development | A real estate strategy involving the development of commercial, residential, and entertainment properties adjacent to sports venues to create year-round revenue streams. |
| NFT (Non-Fungible Token) | A unique digital asset recorded on a blockchain. The strategic plan proposes using NFTs for ticketing, digital collectibles (e.g., player cards, highlight moments), and fractional team ownership. |
| NIL (Name, Image, Likeness) | A program that allows amateur college athletes to be compensated for the use of their name, image, and likeness through activities like sponsorships and public appearances, without jeopardizing their eligibility. It is a cornerstone of the MAL's player model. |
| Portfolio Advantage | The core investment thesis of MALIG, which argues that owning a portfolio of multiple franchises allows for economies of scale, centralized management, and enhanced revenue opportunities not available to single-team owners. |
| Ventura Sports Group (VSG) | The sports management company founded by Mark Schuster, which launched the Mid America League in 2024. It has extensive experience in franchise operations, stadium development, and financial turnarounds. |