We live in a fast-paced society that wants instant gratification. Interested fans might not yet want to read the whole book, Power to the Fans, to answer a few specific questions. Each answer below provides a specific location in the book, which explains the concepts in much greater detail.
This FAQ reflects the core ideas of TruStar Sports, LLC, an innovative new approach to professional team sports. Currently, TruStar Sports is focused on spreading the word of its ideas through the PDF e-book, Power to the Fans, building a community of like-minded fans who want to see change in professional sports, and providing information to parties potentially interested in taking a more active role in the growth of TruStar Sports. Many of the answers below are phrased from the perspective of the projected operations of the leagues envisioned by TruStar Sports. As the concept evolves, changes may occur.
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Q: What is TruStar Sports?
A:: TruStar Sports is the next generation of professional team sports in America. It’s brand new leagues in baseball, football, basketball and hockey. Games are played the same exact way, just as we’re used to, except instead of players being paid by the team they play for, they’re each paid: (1) an equal base salary, (2) a team standings bonus, and (3) an end-of-the-season individual performance bonus. Most importantly, active fan participation determines how much performance bonus each and every player should get!
(for more information,
see Chapter 6, Welcome to TruStar Sports).
Q: How are the players paid?
A: Instead of getting paid from the teams that they play for, players now get paid from one common fund called the league’s CENTRAL FUND. Out of the CENTRAL FUND, each player gets an equal base salary plus a chance to earn extra bonus money based on his individual and his team’s performance. The balance of player money allocated from the CENTRAL FUND after base salaries are paid is divvied up to the players at the end of the season. Players get both a team standings bonus as well as a performance bonus—money issued to each player according to how well he played during the season. Performance bonus money is determined by active member TruStar Sports fans.
(for more information,
see Chapter 7, How TruStar Sports
Works).
Q: How do the fans determine players bonus?
A: Each TruStar Sports player receives an equal amount of TruStar Sports PLAYER TRADING SHARES issued in his name. Once league play commences, these player shares will be traded by active member TruStar Sports fans. Fans can profit (or lose) through the trading of player shares. As fans buy and sell player shares—for both on- and off-the-field reasons—a resulting market value compares one player to another. The higher a player’s market value, the more end-of-season performance bonus he earns.
(for more information,
see Chapter 7, How TruStar Sports
Works).
Q: Why do fans even want to get involved?
A: Fans want to get involved for several reasons.
Fans like the idea of being empowered and being as important as the owners and the players themselves. They want to make sure that the right players get the right amount of performance bonus, as compared to the other players.
The roughly ten million fans who participate in fantasy sports substantiate the fact that fans want to “play the players.”
Also, fans for their involvement now also get a piece of the pie. The CENTRAL FUND that doles out money to the players as well as to the team owners also gives money back to the fans. Fans who own player shares may get fan dividends, depending on share value. The higher the value of the player shares that they own, the bigger the dividend that a fan will receive.
(for more information,
see Chapter 9, Why TruStar Sports
Will Work).
Q: What is the "CENTRAL FUND"?
A: Instead of teams paying for all of their own expenses, including player salaries and stadium and management expenses, TruStar Sports teams will contribute proportional amounts of their revenues to a single common fund. That common fund will be called the league’s CENTRAL FUND. All of the money that used to be paid out through the individual teams is now doled out through this CENTRAL FUND. All the revenues, both local and national, now are dispersed to the three stakeholders of the game: the players, the owners, and—new to pro sports—the fans. This system provides: (1) fair and balanced competition between all of the teams, no matter what revenues individual teams generate, and (2) correct, market-based compensation by way of bonuses for performance.
(for more information,
see Chapter 7, How TruStar Sports
Works).
Q: What is "MARKET BASED SPORTS"?
A: MARKET BASED SPORTS—market value in professional team sports—is the core concept that resolves the detrimental issues that currently plague SPORTS PAST. MARKET BASED SPORTS for teams and athletes is a new idea that insures the future viability of professional team sports and is built around the involvement of empowered fans. The MARKET BASED SPORTS business plan revolves around:
Paying Players from a "COMMON FUND",
that
- Lets the fans decide
- Through Market Value
- Using Risk
- Via the Internet
(for more information,
see Chapter 7, How TruStar Sports
Works).
Q: Why new pro sports leagues and owners?
A: In order to realize its transformative vision, TruStar Sports needs a fresh start. It’s not out to fix the problems of SPORTS PAST. It would never be able to. Only new team owners that accept the superior sports business philosophy, MARKET BASED SPORTS, will be able to take advantage of the opportunity. SPORTS PAST owners would never give up the autonomy that they have always enjoyed. They would never let go of the idea of being able to generate and keep as much revenue as they could and spend it as they saw fit—even if it does mean that the league would never achieve competitive balance.
(for more information,
see Chapter 9, Why TruStar Sports
Will Work).
Q: Will it be hard to find new owners?
A: History shows us that there has always been a demand for team ownership. That’s why the teams of SPORTS PAST are so valuable: Many potential owners expressing their demand by bidding up prices for a limited supply of teams. It’s public knowledge that a lot of successful retired players and wealthy businessmen have expressed a desire to own their own team. But they always knew that it would be extremely hard to enter that small clique of team owners.
TruStar Sports teams will be relatively economical to own initially because they are yet to be proven and thus represent an investment risk. They will be substantially less costly than a SPORTS PAST team ever would be, even if you could secure an existing SPORTS PAST team. But with TruStar Sports being potentially as, or even more, successful than SPORTS PAST, does a potential new owner really want to consider a high-price traditional team ownership, versus the fan-empowered team? It may be that once-in-a-lifetime chance to own a much-desired professional sports team. Team ownership can be considered by any one person, partnership, company, corporation or municipality.
(for more information,
see Chapter 9, Why TruStar Sports
Will Work).
Q: Can new pro sports leagues survive?
A: There have been numerous attempts to establish additional leagues, including but not limited to the ABA (Basketball), WHL (Hockey) and the USFL (Football). Each attempt at starting a new league was always at an initial disadvantage since they really weren’t bringing anything new to the table—they were just providing more of it. And why would any new league survive when they had nothing more than what was already available? They thought that by stealing away a few existing premier athletes they could buy the necessary credibility.
The success of TruStar Sports is predicated upon going after the now empowered fans, not going after certain athletes. It’s the fans who make pro sports successful. Whoever has the fans will be successful as a league.
Also, we live in a plural society. What we mean by that is that we all have choices. We can be Democrat or Republican (or Independent), we can drive a Ford or a Chevy (or choose from a plethora of other manufacturers), eat at McDonald’s or Burger King (or any number of other eatery franchises). SPORTS PAST franchises are not heaven sent or written in stone, and there’s no reason why alternative pro sports leagues, that resolve all of the faults in pro sports as we now know them, cannot also thrive.
(for more information,
see Chapter 9, Why TruStar Sports
Will Work).
Q: What is SPORTS PAST?
A: SPORTS PAST is our term to describe the current, entrenched system that dominates professional sports, with the team owners and the players as the key stakeholders, while fans serve as passive spectators. An artificial presentation of pro sports!
(for more information,
see the Preface).
Q: Which league will begin play first, baseball,
football, basketball or hockey?
A: This will depend on a variety of factors, including: interest of entrepreneurs, status of the SPORTS PAST equivalent, and media interest. Clearly, it is probably easiest to start a basketball league because of the quantity of potential venues, the number of quality players that exist but do not play in the SPORTS PAST league and the fact that fewer players are needed to fill out a roster. On the other hand, the plight of the SPORTS PAST hockey league and the international nature of the sport open up some intriguing possibilities.
(for more information,
see Chapter 9, Why TruStar Sports
Will Work).
Q: Will it be hard to find players?
A: While there are a small number of elite-type players who participate in SPORTS PAST, there are a vast majority of highly skilled players below that elite status. Moreover, colleges are turning out hundreds of athletes that are comparable to the second-tier current professional caliber athlete. While the TruStar Sports leagues probably will not have the superstars that SPORTS PAST leagues have initially, the level of competition will be so exciting that we believe the fans will consider it a quality product and will support it. Moreover, the empowerment of the fans will add a new dimension to TruStar Sports competition.
(for more information,
see Chapter 9, Why TruStar Sports
Will Work).
Q: What will the quality of competition be like?
A: The quality of competition will be as good—or even better than—what we’re used to seeing in SPORTS PAST. We’ve already explained that there are plenty of potential players available. Now take into consideration what we characterize as the “psychological fence.” Which player will you give you the better performance: the one on the SPORTS PAST side, who knows he has a signed contract, cash in the bank, and doesn’t have to prove anything more until contract time, or the TruStar Sports player that deservedly gets a base pay and substantially supplements his earnings with a bonus tied his team’s and his own personal performance? There are plenty of athletes that have bigger hearts than stature, and they will provide an unparalleled enthusiasm that hasn’t been seen in SPORTS PAST in a long time.
In addition, realize that these players now have to give unconditional respect to all stakeholders: respect to their teammates, because it truly is a team sport; respect to the fans, so they can earn higher performance pay; and respect to the coaches/managers, so they can get as much playing time as possible.
(for more information,
see Chapter 9, Why TruStar Sports
Will Work).
Q: Will games be broadcast?
A: YES. There is an ever-expanding number of cable and satellite networks that eagerly seek refreshing new programming. Sports programming is inexpensive to broadcast and is of wide interest to advertisers.
(for more information,
see Chapter 9, Why TruStar Sports
Will Work).
Q: Where will the new teams play?
A: There are large numbers of publicly-owned venues that are available for rent as well as a large number of college stadiums and arenas. Finding a place to play does not represent a problem.
Additionally, most SPORTS PAST teams rent facilities from the municipalities where they are located. It is a common practice for multiple teams to share facilities, for the same or different sports, even during the same season. For example, currently both the New York Jets and the New York Giants share and have shared the Meadowlands facility for years.
What a boon for the taxpayers who benefit from those facilities!
(for more information,
see Chapter 9, Why TruStar Sports
Will Work).
Q: How do the fans become involved?
A: Through the purchase of a license to download Power to the Fans, fans receive a free membership to TruStar Sports. Once league play commences, only member fans can participate in the trading of PLAYER TRADING SHARES. Fans who become members before play begins are called CHARTER MEMBERS. Unique to CHARTER MEMBERS is the fact they will be asked to help decide specific issues relating to league composition and rules. There are other incentives for fans to join before play begins:simply check out “Join Now” at www.trustarsports.com and get all the details.
Q: Is TruStar Sports Fantasy sports?
A: NO. TruStar Sports will encompass real leagues, with real teams and real players. A huge reason why TruStar Sports was created, though, was because of the phenomenon of fan participation in fantasy leagues and the obvious interest of these fans wanting to participate in some capacity in professional sports. TruStar Sports moves beyond fantasy—the fans can actually be part of something real.
(for more information,
see Chapter 9, Why TruStar Sports
Will Work).
Q: What is TruStar Sports PLAYER TRADING SHARES?
A: PTS (PLAYER TRADING SHARES) provide a vehicle for Member participation in setting the compensation of TruStar players. From the question “How do the fans determine player bonuses?” we learned that each TruStar Sports player receives an equal amount of TruStar Sports PLAYER TRADING SHARES issued in his name. Once league play commences, these player shares will be traded by active member TruStar Sports fans. As fans buy and sell player shares—for both on- and off-the-field reasons—a resulting market value compares one player to another. The higher a player’s market value, the more end-of-season performance bonus he earns.
BEFORE ENGAGING IN TRANSACTIONS CONCERNING PTS, MEMBERS WILL ACKNOWLEDGE THEIR UNDERSTANDING THAT PTS ARE NOT STOCK OR AN INVESTMENT CONTRACT OF ANY KIND AS DEFINED BY FEDERAL OR STATE SECURITIES LAWS. PTS HAVE NO INHERENT VALUE AND DO NOT CREATE ANY STAND-ALONE RIGHTS AS BETWEEN THE MEMBER AND TRUSTAR SPORTS, LLC, EXCEPT FOR THE RIGHTS SPECIFICALLY ENUMERATED IN THE PTS MEMBER TERMS AND CONDITIONS AGREEMENT (WHICH MEMBERS WILL EXECUTE UPON FORMAL COMMENCEMENT OF LEAGUE PLAY).
After league play commences, the Fans—holders of PTS—may also be entitled, depending on a number of defined factors, to distributions from the Fans’ portion of the Central Fund at the end of each season, based on player performance and the obvious nominal quotation of the PTS. Members will not be guaranteed any distributions, and the relevant risk factors concerning PTS are again set forth in the PTS Member Terms and Conditions Agreement.
(for more information, see Chapter 9, How TruStar Sports Works).
Q: How will TruStar Sports Member fans trade PLAYER TRADING SHARES?
A: Once league play commences, Member fans will have access to a proprietary, Web-based marketplace, located at www.trustarsports.com.
(for more information,
see Chapter 7, How TruStar Sports
Works).
Q: Will TruStar Sports leagues ever challenge
the leagues of SPORTS PAST?
A: NO.
Q: Will the games be played differently?
A: Essentially, the rules will be similar to SPORTS PAST leagues. However, each TruStar Sports league will have a commissioner and owners who will have the power to make improvements in league play. Moreover, an empowered fan base will become involved in determining the way the sports are played and the rules of the leagues.
(for more information,
see Chapter 7, How TruStar Sports
Works).
Q: What will be TruStar Sports biggest challenge?
A: Overcoming “Tradition.” Fans for the most part will be asked to make a decision. Do they want to continue to watch SPORTS PAST as passive bumps-on-a-log, or will they be tempted by the idea of becoming active participants? As compelling as SPORTS PAST can be at times, they continue to abuse the relationship between the leagues and the fans. TruStar Sports is built around the fans, who decide major rules as well as the compensation for each player.
(for more information,
see Chapter 9 ,Why TruStar Sports
Will Work).
Q: Will TruStar Sports be successful?
A: It’ll be up to both the fans and the new owners. Is there a frustration amongst the fans with SPORTS PAST that TruStar Sports can take advantage of? Will the fans opt for Participation over Tradition? Do potential team owners see the possibilities?
You know what else that’s really appealing about rival leagues? In TruStar Sports, there’s no hocus pocus. There’s no smoke and mirrors. Everything is up front and out in the open. TruStar Sports is fiscally responsible. Only the revenues generated during each season are disbursed through the CENTRAL FUND. No more irresponsible, long-term contracting with players that require long-term financing. No more spending future revenues for today’s teams. Every dollar that’s generated this season is predestined and every owner, player and fan knows where each one is headed.
(for more information, see Chapter 9 ,Why TruStar Sports Will Work).
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