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NBC SPORTS/NFFC TO OFFER $1 MILLION BONUS



NBC Sports and F+W Publications are proud to announce a $1 million bonus for this year's National Fantasy Football Championship participants. Any owner who can win the NBC Sports NFFC Classic main event overall title and the NBC Sports NFFC Primetime main event overall title will win $200,000 in prizes and our $1 million bonus.



The 14-team NBC Sports NFFC Classic format is in its fifth season of competition and 392 teams are expected to participate in live drafts on Saturday, Aug. 30th in Las Vegas, New York, Chicago and Orlando. The 12-team NBC Sports NFFC Primetime event is in its first season and will also hold live drafts on Saturday evening, Aug. 30th in the same four cities and feature 396 teams. If anyone can outsmart those competitors in both events, they will become the industry's first millionaire playing fantasy football.



"We're excited to offer this $1 million bonus as an incentive to our dedicated players who are planning to compete in both events," said Greg Ambrosius, director of the NBC Sports NFFC Classic & Primetime events. "We already have over 60 owners who are signed up for both events and it will be great to follow these teams as they battle for league titles in both formats, playoff spots in both formats, and eventually the $100,000 grand prizes and the $1 million bonus. We'd like nothing better than to crown the industry's first fantasy football million dollar winner."



Insurance has been secured to pay out the $1 million bonus, which will be paid through a 40-year annuity. NBC Sports and the NFFC will also provide other prizes for those dedicated enough to play both events. They include:



** The team that accumulates the most total points in both main event contests (Classic and Primetime) will receive free entries in the 2009 NFFC Classic and Primetime events. Additional prizes to be announced later.



** Anyone who can win a league title in both events will also be given a free entry into either the 2009 NBC Sports NFFC Classic or Primetime main events.



The NBC Sports NFFC Classic main event will begin at 1 p.m. EST/10 a.m. PST with simultaneous drafts in all four cities. The NBC Sports NFFC Primetime main event will follow in all four cities at 7 p.m. EST/4 p.m. PST. Draft locations include the Flamingo Las Vegas, New York Sheraton Hotel & Towers, Chicago Schaumburg Renaissance Hotel & Convention Center, and Orlando Holiday Inn International Drive Resort.



For more details on both events, go to:



Nfc.nbcsports.com

Www.fantasyfootballchampionship.com



"There are a lot of choices for consumers this football season, but nobody is offering two different league formats with two $100,000 grand prizes and the chance to draft in any area of the country," added Ambrosius. "Between the live events, the satellite leagues, and the 12 and 14-team formats, there's something there for everyone. And if you want it all and can pull

out the unthinkable, then we have a million dollars waiting for you."

The above is a press release that is going out today to all past NFFC and NFBC participants and will go out in an NBC Sports/Rotoworld.com e-mail blast shortly. I'm excited about this special bonus as we try to tie in the two NFBC Sports NFFC Classic & Primetime events with more prizes. The odds of winning this bonus are high, but it is achievable and it should be fun to watch teams in the Championship Round battle for this $1 million bonus. I wouldn't be surprised to see several teams in the Championship Round of each event and I will gladly watch their performances in Weeks 14, 15 and 16.



As for the payout, we have stated above that this is a 40-year annuity. I realize that one big check of $1 million would be better and I'd love to provide that. But the only way to economically do that would be to gamble with your own $1 million as insurance for one lump sum would be in the six figures. We are paying entirely for this policy out of our resources as this goes on top of the guaranteed prizes we're paying and the price isn't low. To do it over 20 years would be twice as much, to do it over 10 years would be four times as much and we had to make the decision to do it this way or not at all. I hope you all understand that.



We've added some prizes for the top scoring team in each event and an added incentive to be a multiple league champion. NBC Sports will likely add a few more prizes to those areas as we move forward as we are talking with them about apparel and more. They are televising the Olympics, the Super Bowl and the Pro Bowl this year and they said they will analyze a booster prize once things settle down for them. I hope to announce a few goodies in the next month or so.



So we're not done with this announcement yet, but we're heading in the right direction. The $1 million bonus is guaranteed and soon to be paid for, so I'm rooting for someone to win it.



Feel free to post comments or questions here and I'll do my best to answer them. This is still a work in progress and hopefully it's enough to entice you to do both events this year.



Look for the e-mail soon and pass it around. In fact, spread the word among friends, industry insiders and others. This is good for everyone and should create quite a buzz with our players this year. Good luck all.

The reason I'm posting this here is to get everyone thinking about what we can do here to create something like this in baseball. I have something in mind already that would allow us to give a $1 million bonus for 2009 baseball. It would also involve our NFBC main event and one other event. I like the idea of us providing $1 million bonuses for all of our events going forward, but of course baseball is a tougher animal.



I'll look for some ideas from this group before announcing anything. I like the idea I have and we'll see if anyone can figure it out by looking at our $1 million format for football. Put your thinking caps on because this will be announced in early October for our plans for 2009. I'm excited.

NFFC / NFBC... fast becoming the Walmart of fantasy sports yet still maintaining the personal touch of your local bodega stand.

Originally posted by Quahogs:

NFFC / NFBC... fast becoming the Walmart of fantasy sports yet still maintaining the personal touch of your local bodega stand. For someone in Wisconsin, I need a picture of that. I know you'll figure out a way to provide one.

Originally posted by Greg Ambrosius:

quote:Originally posted by Quahogs:

NFFC / NFBC... fast becoming the Walmart of fantasy sports yet still maintaining the personal touch of your local bodega stand. For someone in Wisconsin, I need a picture of that. I know you'll figure out a way to provide one. [/QUOTE]come get your phone cards, $ transfer orders, Main Events, Ultimates, and satellites here...

www.mediabistro.com/unbeige/original/NYC%20bodega.jpg

Originally posted by Quahogs:

quote:Originally posted by Greg Ambrosius:

quote:Originally posted by Quahogs:

NFFC / NFBC... fast becoming the Walmart of fantasy sports yet still maintaining the personal touch of your local bodega stand. For someone in Wisconsin, I need a picture of that. I know you'll figure out a way to provide one. [/QUOTE]come get your phone cards, $ transfer orders, Main Events, Ultimates, and satellites here...

www.mediabistro.com/unbeige/original/NYC%20bodega.jpg [/QUOTE]I knew you'd come through. Good picture of Tom behind his desk!

I'm way busier than that guy.

Originally posted by Greg Ambrosius:

quote:Originally posted by Quahogs:

quote:Originally posted by Greg Ambrosius:

quote:Originally posted by Quahogs:

NFFC / NFBC... fast becoming the Walmart of fantasy sports yet still maintaining the personal touch of your local bodega stand. For someone in Wisconsin, I need a picture of that. I know you'll figure out a way to provide one. [/QUOTE]come get your phone cards, $ transfer orders, Main Events, Ultimates, and satellites here...

www.mediabistro.com/unbeige/original/NYC%20bodega.jpg [/QUOTE]I knew you'd come through. Good picture of Tom behind his desk! [/QUOTE]does Tom have a snack cache like that guy too ?

GREAT NEWS GREG!!!



CONGRATS!!

Let me start off by saying I'm a big fan of the NFBC and I think Tom and Greg have done a great job but I must digress on this topic...



If this isn't a sign of going "corporate" than I don't know what is....



What we are talking about here is giving away a 1,000,000 bonus for something that essentially can't be done...



Let's assume for a minute that it does occur - afterall it is *possible*. Are they really being so generous in giving away a $1,000,000? Will it drastically change your life?



The plan is to pay this out over a 40 year life span which, of course, will not include any interest payments. The first thing that comes to mind is.... Most of the guys I see playing fantasy sports aren't going to live another 40 years. Last I checked, $25K/year is nice but not even remotely close to anything life change for the average NFBC player who drops $1,300+ to play in a league.



Secondly, and most importantly, giving away this amount will actually earn NBC/NFBC money. At an *extremely* conservative 5% interest rate, the yearly income from that alone would be $50,000+. That means by them NOT giving you a $1,000,000 they are paying you $25,000 and EARNING $25,000/year. I'm sure the accountant who came up with chuckled "I hope we give it away".



Personally, to me, it feels a little like an insult. You don't need to give away a $1,000,000 bonus to incent quality fantasy players to pony up for the sport. I'd prefer to leave the marketing "tactics" on the shelf. The person to person relationship that's been built here is what has grown the NFBC not gimicks and hype.



Just my two cents....



Jon

Originally posted by DrDobs:

Let me start off by saying I'm a big fan of the NFBC and I think Tom and Greg have done a great job but I must digress on this topic...



If this isn't a sign of going "corporate" than I don't know what is....



What we are talking about here is giving away a 1,000,000 bonus for something that essentially can't be done...



Let's assume for a minute that it does occur - afterall it is *possible*. Are they really being so generous in giving away a $1,000,000? Will it drastically change your life?



The plan is to pay this out over a 40 year life span which, of course, will not include any interest payments. The first thing that comes to mind is.... Most of the guys I see playing fantasy sports aren't going to live another 40 years. Last I checked, $25K/year is nice but not even remotely close to anything life change for the average NFBC player who drops $1,300+ to play in a league.



Secondly, and most importantly, giving away this amount will actually earn NBC/NFBC money. At an *extremely* conservative 5% interest rate, the yearly income from that alone would be $50,000+. That means by them NOT giving you a $1,000,000 they are paying you $25,000 and EARNING $25,000/year. I'm sure the accountant who came up with chuckled "I hope we give it away".



Personally, to me, it feels a little like an insult. You don't need to give away a $1,000,000 bonus to incent quality fantasy players to pony up for the sport. I'd prefer to leave the marketing "tactics" on the shelf. The person to person relationship that's been built here is what has grown the NFBC not gimicks and hype.



Just my two cents....



Jon Jon- As someone that has done a fair amount of marketing in my career and organized events with such prizes (hole-in-one challenges, ect), let me tell you how it really works.



NFBC pays an insurance company a fee to underwrite the risk of an individual winning both contests. The insurance company calculates the odds of someone winning both events; they calculate the value of $1,000,000 paid out over 40 years. Multiply the two together and come up with an expected value. Then the insurance company charges a significant premium on top of that.



For example- assume 400 people per event. Odds of winning both, assuming all players are equal, would be 1/400 * 1/400 or 160,000:1. Doing a discounted cash flow on an annuity over 40 years, we will call the value of the $1,000,000 to be approximately $250,000 (Estimate, I did not do the math). Win the lottery and you can get a cash payment up front of less than 50% before taxes, instead of the published value of the lottery. This is very similar. So, the expected value of the prize is 250,000 * 1/160,000 or about $2. Given this is a game of skill and the fact that if a person uses the same strategy in both leagues and is successful, the odds of winning both could be argued to be 1000:1. Thus the expected value would be $250. I assure you, NFBC is paying SIGNIFICANTLY more than this for the premium. And they do not get to keep the $1,000,000 or the payments for any period of time.



So, why would the NFFC and NFBC do this? Because it is a strong marketing tool. If more people see that they could win a $1,000,000, they look into the event, see it is a great opportunity (great service, dedicated players, trusted brand and game, fun in Vegas, etc), and join. And those already playing, think about joining one more event, hopefully without dropping another event.



I, for one, am excited about the opportunity and I don't even know what the 2nd event will be. And if I don't outlast the 40 year annuity, well my daughter will be able to throw some great parties in my honor. (Kent, if you are reading- you are not invited to any of my daughter's parties).



-Neal

Jon, it's an interesting post and everyone is free to provide their opinions. I'm not sure what you mean by going corporate, as we're already a huge international corporation that just partnered with NBC/GE, so I think we were "corporate" long before we announced this $1 million bonus. But you can still have a strong personal touch with your customers and your products even if you work for a "corporation." I think we provide that.



As for the bonus over 40 years, this has been secured through an insurance company and that company is taking all the risk. Our payment for that risk won't earn them any interest over the term of the deal and they certainly don't want anyone to win this. We, on the other hand, have paid our dues and can now root for anyone to win it. Only good can come out of it for us if someone wins the $1 million prize.



As for complaining about the 40-year annuity, last I checked folks who complain about game operators providing more money out of their pockets for their customers are customers who can't be satisfied about anything. We are paying for all of this and none of it is coming out of the prize pool. And if you don't live to enjoy it, pass it onto your family. It stays in the house, trust me. Plus, we're also providing free prizes in that contest for the top team in both contests (again $2,600 out of our pockets) and more free entries for anyone who wins both league titles. We keep on giving and folks can keep on complaining.



I wish we could give one lump $1 million sum, but feel free to check out how much insurance that would cost. Or if you think we should just gamble our future away by taking the chance on our own that nobody could win it, well, then you're a better man than me. We'll pay for the insurance and hope for the best.



No problem if you feel "insulted" or cheapened. I have a great idea to provide the same $1 million bonus in the NFBC next year and we'll see if it comes to fruition. You certainly can't please everyone -- as you've shown here -- but I'll keep trying to better the events and provide more incentives for people to stay with us. It's a competitive marketplace right now and we'll continue to do our best to improve our games, provide more chances for people to win more money, and keep folks guessing what we'll do next.



Good luck to you. Sorry we let you down.

Originally posted by Asumijet:

quote:Originally posted by DrDobs:

Let me start off by saying I'm a big fan of the NFBC and I think Tom and Greg have done a great job but I must digress on this topic...



If this isn't a sign of going "corporate" than I don't know what is....



What we are talking about here is giving away a 1,000,000 bonus for something that essentially can't be done...



Let's assume for a minute that it does occur - afterall it is *possible*. Are they really being so generous in giving away a $1,000,000? Will it drastically change your life?



The plan is to pay this out over a 40 year life span which, of course, will not include any interest payments. The first thing that comes to mind is.... Most of the guys I see playing fantasy sports aren't going to live another 40 years. Last I checked, $25K/year is nice but not even remotely close to anything life change for the average NFBC player who drops $1,300+ to play in a league.



Secondly, and most importantly, giving away this amount will actually earn NBC/NFBC money. At an *extremely* conservative 5% interest rate, the yearly income from that alone would be $50,000+. That means by them NOT giving you a $1,000,000 they are paying you $25,000 and EARNING $25,000/year. I'm sure the accountant who came up with chuckled "I hope we give it away".



Personally, to me, it feels a little like an insult. You don't need to give away a $1,000,000 bonus to incent quality fantasy players to pony up for the sport. I'd prefer to leave the marketing "tactics" on the shelf. The person to person relationship that's been built here is what has grown the NFBC not gimicks and hype.



Just my two cents....



Jon Jon- As someone that has done a fair amount of marketing in my career and organized events with such prizes (hole-in-one challenges, ect), let me tell you how it really works.



NFBC pays an insurance company a fee to underwrite the risk of an individual winning both contests. The insurance company calculates the odds of someone winning both events; they calculate the value of $1,000,000 paid out over 40 years. Multiply the two together and come up with an expected value. Then the insurance company charges a significant premium on top of that.



For example- assume 400 people per event. Odds of winning both, assuming all players are equal, would be 1/400 * 1/400 or 160,000:1. Doing a discounted cash flow on an annuity over 40 years, we will call the value of the $1,000,000 to be approximately $250,000 (Estimate, I did not do the math). Win the lottery and you can get a cash payment up front of less than 50% before taxes, instead of the published value of the lottery. This is very similar. So, the expected value of the prize is 250,000 * 1/160,000 or about $2. Given this is a game of skill and the fact that if a person uses the same strategy in both leagues and is successful, the odds of winning both could be argued to be 1000:1. Thus the expected value would be $250. I assure you, NFBC is paying SIGNIFICANTLY more than this for the premium. And they do not get to keep the $1,000,000 or the payments for any period of time.



So, why would the NFFC and NFBC do this? Because it is a strong marketing tool. If more people see that they could win a $1,000,000, they look into the event, see it is a great opportunity (great service, dedicated players, trusted brand and game, fun in Vegas, etc), and join. And those already playing, think about joining one more event, hopefully without dropping another event.



I, for one, am excited about the opportunity and I don't even know what the 2nd event will be. And if I don't outlast the 40 year annuity, well my daughter will be able to throw some great parties in my honor. (Kent, if you are reading- you are not invited to any of my daughter's parties).



-Neal [/QUOTE]Good post and you are right on. I should have just waited for this post to explain my position. Good job.



As you've said, we have added a second main event in football and are rolling the dice that our customers will do both, not eliminate the NFFC, and that our new bonus will bring in even more new customers to play our contests. And in turn, hopefully some of those football newbies will join baseball next year, and they will in turn do satellites and on and on and on. It's not a bad marketing plan.



And if we can think of a similar scenario for baseball, well, I've learned that if you build it our baseball folks will come. I'm in the process of trying to build it now and will throw out my plan for all to see soon. Get ready to be "disappointed."

Last week I found a $100 bill on the ground Was pissed off all week. It felt like I tweaked my back a bit when I bent down to pick it up and probably caught my cold from the grubby germs of the person who dropped it The gas cost to drive to the store killed me and now my new lamp makes the rest of my cave look like crap



:rolleyes:

Originally posted by DrDobs:

What we are talking about here is giving away a 1,000,000 bonus for something that essentially can't be done...

First, I gotta say, this is one of the worst thought-out posts I've ever seen. I'd say the odds of this are somewhere between 25:1 and 100:1, which is a long ways away from "can't be done".



Originally posted by DrDobs:



The plan is to pay this out over a 40 year life span which, of course, will not include any interest payments. The first thing that comes to mind is.... Most of the guys I see playing fantasy sports aren't going to live another 40 years. Last I checked, $25K/year is nice but not even remotely close to anything life change for the average NFBC player who drops $1,300+ to play in a league.

If you aren't going to live another 40 years and you want the money soon ... sell parts of the annuity over the next three years - it should net you $100,000+ for each of the next three years --- which is the equivalent of winning the NFFC for three years in a row (on top of the $200,000+ you'd win this year. I'd say that is a pretty good prize.



Originally posted by DrDobs:



Secondly, and most importantly, giving away this amount will actually earn NBC/NFBC money. At an *extremely* conservative 5% interest rate, the yearly income from that alone would be $50,000+. That means by them NOT giving you a $1,000,000 they are paying you $25,000 and EARNING $25,000/year. I'm sure the accountant who came up with chuckled "I hope we give it away".

Where's the AFLAC duck when you need him? The NFBC wouldn't be earnings anything with this giveaway, you would be earning at the expense of the underwriter (who if it was won in the early years would lose a substanital amount of money on this underwriting), the NFFC isn't even in the picture for cash flow from this one way or another once they've paid their insurance premium.



The "I hope we give it away" line is logical. First, they've already paid for it with an insurance premium - and if someone actually wins it they'd get a huge marketing boost for future seasons.



Originally posted by DrDobs:



Personally, to me, it feels a little like an insult. You don't need to give away a $1,000,000 bonus to incent quality fantasy players to pony up for the sport. I'd prefer to leave the marketing "tactics" on the shelf. The person to person relationship that's been built here is what has grown the NFBC not gimicks and hype.

Adding a substantial potential prize ON TOP of the NFFC's existing fair payout structure ... could not be viewed by anyone (in their right mind) as an insult. You might want to think this one through a little more Jon.



[ July 10, 2008, 09:09 AM: Message edited by: KJ Duke ]

"Win 15K every year tax-free for life!" would sound pretty darn good and would make people feel like they aren't undermined by the small print, imo.

Well, I figured I’d get some spirited responses from my post and I’m glad to see that I did. To suggest that I’m an “ungrateful” person or that there is nothing in the world that could make me happy is far from the truth and as far as I’m concerned is an unrealistic opinion based on such limited data.



First let me respond by saying that the suggestions made that my thoughts weren’t very well thought out are absolutely true. I simply read over the newsletter, jumped in to see if anybody had made any comments about this new “offer” and starting banging away at the keyboard. So I was responding more out of my gut than my mind. Allow me to try an elaborate better below in hopes that my gut wasn’t steering me of course…..



Is the insurance premium that NFFC is paying free? Obviously it is not, which means it comes at a cost. Just because that cost isn’t being directly charged to the players, the charge none the less is costing the players indirectly. Might the premium being charged for the service of advertising a $1M payout be better served by other means? Such examples might be increasing the player payout pool across the board. Perhaps there could be a decrease in the entry fee? They could give out more study material, more food at the event? There are certainly other opportunities to give back if you will than to purchase an insurance policy that rewards a $1M prize. My point here is that A) this prize is *not* free to the players, and B) if there is “extra” money to go around, why choose to spend it this way?



My guess is that when evaluating methods to increase participation in the NFFC (revenue) there are few better ways to do this than to come up with a huge prize payout. Again, this move – in my opinion – is not so much an effort to give back to those who have been already playing year after year in the NFFC but rather to entice new players to get involved. After all, NFFC is already getting the $1,300+ out of its existing players that is not adding to the bottom line. There is a new owner in town and my guess NBC/GE did not get involved with the NFFC so that they could chum along status quo and mingle with the same set of player’s year in and year out. We’ve already seen household changes in the past 2-3 months since this announcement and this move continues in that direction.



My contention is that making a splash with a big $1,000,000 payout is a sign of a trend towards not putting back into the existing player pool but one which is geared towards new blood and a new way of doing things. This is where my comment of “going corporate” originated from. It’s a marketing maneuver which, when looked at carefully, comes at little risk to that which is bearing the cost. As I laid out earlier, the “penalty” of winning the $1M to whomever is putting up the money be it an underwriter behind an insurance policy, NBC, or Greg himself, as far as I’m concerned is not that high while the “gain” of winning the $1M to the end user is really not what winning $1M ought to be.



I should mention here that I think it’s perfectly fine to attract new players and hope they are successful doing so. I just question this particular method of doing so and considering is wasn’t thought up over the past 4-5 years, but is upon us all of a sudden given some of the other changes we’ve seen recently, I’m not impressed.



Jon



PS: Out of curiosity, does the $25,000 first payment occur at the time of winning the event or do you have to wait until the end of the year to collect your first $25K? If it’s at the end it even further illustrates my point of virtually no risk to the underwriter.

Originally posted by DrDobs:

If it’s at the end it even further illustrates my point of virtually no risk to the underwriter. maybe you could underwrite it?

This is great Greg! An unexpected bonus. If you were planning to do the football leagues, this is a phenominal addition at no extra cost to the participants. You CANNOT ask for more than that. Certainly if I could make the time committment, I would jump in with both feet.



I cannot wait for the NFBC plan!