Lone Star Amphitheatre & Off Road Park
Executive Summary
The Phoenix Group is seeking investors to enhance their existing off-road park to include a 20,000 seat Amphitheatre that will rival Colorado’s Red Rocks Amphitheatre and become known as a premiere live entertainment destination with state-of-the-art sound and fun year-round outdoor activities for the whole family.
What will distinguish Lone Star from Red Rocks is the extra outdoor activity options that will make Lone Star a vacation destination.
Have fun camping and off-roading while your kids see their favorite pop-star perform at the greatest amphitheater in the Nation!
Lonestar Amphitheatre & Off-Road Park Entertainment Venue will be loaded with year-round outdoor fun spread out over 1,200 acres. There are plenty of activities for the entire family including: watching live music, camping, hiking trails; team activities, off-roading, hill climbs, mud pits, creek runs, side-by-side tracks, rock courses and canyons to explore.
Industry Experts and Analyst See Future Growth
• Musicians and artist make more revenue through live performances than sales of digital music.
• Live Nation reportedQ3:2023revenues of $8.2 billion-32% Increase from 2022.
•Ticketmaster sold over 151 million tickets in 2023-22% increase over last year.
• Revenues for the company’s concert division increased 29% during the second quarter this year, with growth across stadiums (+28%), arenas (+19%), and festivals (+14%).
•Goldman Sachs estimates global live music market will grow at a compound annual growth rate(CAGR)of 5% in the 2023-2030 period.
•Allied Market Research expects the music event market to grow to $481 billion globally by 2031–a CAGR of 9.7%.
•Additional live event companies like Vivid Seats, Sphere Entertainment, Cts Eventim, and Endeavor have reported 2023 results exceeded expectations and raised their forecasted projections.
The Ask
This Project is Fully Funded, But Not Closed.
Investors can participate beyond the $500,000 and share in the benefits of this project. We will simply reallocate the balance of the Sponsor’s $2.5M Equity to other profit enhancing activities on this project.
Total Equity Requirement is $3,000,000
Conservative Financial Overview:
1. Passive Investor Partners receive 100% of profits, until their original capital is returned entirely (Per the SEC registered partnership agreement).
2. By end of year 2 operations the partnership will have received a total of $2,250,000 (Year 1 + Year 2profits). This is 75% of partnership investment total.
3. By year 3 the partnership will have received all original investment and now GP participates in profits.
4. By year 4 investor returns projected to be $1M+Annually. Profit Est: $5,375,000 X 25% = $1,075,0005. Other revenue generators such as naming rights, corporate/event sponsorships, etc. are not factored into the income projections.
Pro-Forma
Year 1
The $750,000 in profits highlighted in year 1 of operations are funds used to pay the Limited Partners (Investors). Profits are paid from current running operations at the park alone, while the Amphitheatre is constructed Investors get paid first until their original investment is paid back entirely.
Year 2
By Year 2 the partners have received a total of $2,250,000(Year 1 +Year 2 profits).75% of the original investment will have been distributed back to the partners by year 2.
Year 3
By the 3rd Quarter of Year 3 the Amphitheatre is fully operational. By Year 3 the partners will have received all of their original investment. Now after investors received their entire investment back, the General Partner/Sponsors can participate in profits.
Year 4
By Year 4 the partners participate in25% of profits: $5,375,000 X 25% = $1,075,000.
Investors continue to receive returns from the profits moving forward.
Year 5
By Year 5 the Amphitheatre is projected to reach critical mass with regular performances from topper formers.
The Amphitheatre will be known worldwide as a tourist and entertainment destination.
The partners continue to receive25% of all profits moving forward.
These projections do not include other revenue generators such as naming rights, corporate/event sponsorships, etc.
Projected Cashflow Example for Every $100,000 Invested
| For Every $100,000 Invested: | Cash Flow Projected: | Comments: |
|---|---|---|
|
Year 1 |
$100,000 |
Investors’ funds ($500K) get paid back first. Original investment returned from $750,000 profits in year 1 |
|
Year 2 |
$0 |
The original $500k investors wait to receive additional
distributions until year 3, when remaining $2.5M equity is returned. |
|
Year 3 |
$29,906 |
3.3% of the partners 25% year 3 profits |
|
Year 4 |
$44,344 |
3.3% of the partners 25% year 4 profits |
|
Year 5 |
$54,656 |
3.3% of the partners 25% year 5 profits
Projected 2.2X multiple by end of year 5 |