ATLANTA, July 18 /PRNewswire/ -- Concurrent with its new fiscal year
beginning July 1, 2000, Bull Run Corporation (Nasdaq: BULL) subsidiary, Host
Communications, Inc., recently completed identifying the significant
components within its new business plan which clearly define the company's
targeted areas of growth to maximize profit margins and increase shareholder
value.
Host, recognized by SportsBusiness Journal as a top five sports marketing
company, is a sports, lifestyle and affinity marketing and management company
noted for its 25-year relationship with collegiate sports and, through its
Streetball Partners International division, the Hoop-It-Up 3-on-3 basketball
tour held in partnership with the NBA and NBC Sports. Specifically, Host's
primary business units -- "Collegiate", "Affinity Events" and "Affinity
Management International" -- are strategically poised to be the foundation for
its accelerated growth now, and extending into the future.
Under Host's business plan, the company intends to expand and strengthen
its base of U.S. and international affinity properties, such as its
contractual relationships with universities, conferences and high school
associations; and its affinity management international groups, such as those
with the National Tour Association, International SPA Association, National
Limousine Association and Quest, the international users group for J.D.
Edwards customers. Host also intends to significantly grow its "Affinity
Events" business, operated as its Streetball Partners International division,
through additional expansion in Europe, South America and the Pacific Rim.
Streetball currently produces more than 200 grassroots events annually through
such properties as the Hoop-It-Up and Toyota Golf Skills Challenge tours,
attracting nearly 250,000 participants and 1 million spectators in cities
throughout North America and Europe. Streetball has a Paris, France office
and has collaborated with NBA Europe on a variety of ventures since 1993.
Host has elected not to pursue marketing rights assigned by the NCAA
beyond the end of its current contract (2002), as the expected increase in
rights fees would have a substantial negative impact on the company's gross
revenues. This move further enables Host to continue to build an even
stronger platform with its individual universities, conferences and NCAA
Football.
"Our new Host business model escalates shareholder value by expanding
margins, decreasing expenses and eliminating profit-consuming rights fees,
which is how we evaluated our recent decision on whether or not to continue
with the NCAA Championships marketing rights," said W. James Host, president
and CEO of Host Communications. "While this particular relationship has had a
significant impact on our revenue over the years, it also has represented
sizeable expenses. We know our overall net cash flow can be significantly
enhanced by substantially increasing our affinity marketing businesses and
eliminating the ever-increasing fixed expense related to NCAA Championships
rights fees."
"We believe the future of sports and lifestyle marketing is in capturing
the 'affinity' business and leveraging opportunities between a defined group
of consumers who share a common interest, held so strongly, that they will
suspend economic rationality to pursue it," Host added. "We're experts at
creating and delivering quality, unique marketing platforms that corporations
desire to effectively reach their respective 'affinity' groups. Today's
explosion of consumer choices has and will continue to drive an increase in
affinity groups. Corporate America consistently wants an 'in' with these
concentrated audiences who share a common bond, and we successfully accomplish
this for them, like we have and will continue to do for NCAA Football and the
Southeastern Conference, both of which have phenomenal affinity groups who are
passionate about that specific association."
Streetball's newest affinity program, its first entry into NASCAR racing,
involves the SONY TechPit mobile marketing unit that will travel to the
remaining 2000 Winston Cup races this season. Streetball, in conjunction with
BMA, Inc., has specifically designed this unique marketing platform by which
SONY can display its products to NASCAR fans.
Contacts: Robert S. Prather, Jr., President & CEO of Bull Run
Corporation, at (404) 266-8333, or W. James Host, President & CEO of Host
Communications, Inc. at (606) 226-4202.
SOURCE Bull Run Corporation
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Company News On-Call:
http://www.prnewswire.com/comp/232438.html or fax,
800-758-5804, ext. 232438
CONTACT:
Robert S. Prather, Jr., President & CEO of
Bull Run Corporation, 404-266-8333, or W. James Host, President &
CEO of Host Communications, Inc., 606-226-4202.
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