The New Hampshire Tennis Hub, L.L.C.

Investor Invitation

Pelkey’s New Hampshire Tennis Hub, LLC is actively seeking investors to raise at least 20% to 25% of the total project cost in order to build a 3 to 3.5 million-dollar, indoor/outdoor tennis facility in Southern New Hampshire.  The Hub is primarily looking for a royalty investor or sub-debt arrangement; however, the structure of the agreement between The Hub and potential investors is open to negotiation.  We are not opposed to a partnership, but we would very much prefer to have control of the operations decisions of the facility and programming. 

Currently, the management team consists of John C. Pelkey, Glenn DiTulio, Art Barbuto and S. William Dahar II.  These men bring a range of tennis, financial, and legal experience to the project.  Mr. Pelkey, Mr. DiTulio, and Mr. Dahar are shareholders of a private club, Algonquin Tennis Center, Inc. and Mr. Dahar is on that facility’s board. Mr. Pelkey is the pro at the club.  For a synopsis of the board's backgrounds, go to http://newhampshiretennishub.com/aboutus.aspx on the web.

Pelkey’s New Hampshire Tennis Hub, LLC has selected several contractors to complete the project, including local and internationally known companies, and we have received estimates for the work.  

Below we have highlighted several reasons why this is a worthwhile endeavor.   

First:  At full capacity, the New Hampshire Tennis Hub will between 800,000 and 1.2 million dollars per year with a yearly operational cost under $400,000.  

Second: The tennis industry has consistently increased its revenue nationally over the last 8 years. The graph below illustrates that the Pro Shop/Tennis Specialty Retailer Index has been on a steady rise, even though consumer confidence has dropped.

(Tennis Industry Association 2008) 

Third: 

• US tennis participation is at its highest level since 1992.

• Tennis is the only traditional sport that has shown a marked increase in national participation, 43% since 2000.

• Presently, there were over 30 million players in the United States .

• In 2008, “total play occasions” in tennis broke 600 million for the first time, 603 million (+13% over 2007).

• “Continuing” players grew to 15.13 million (+ 9 % over 2007).

 • In 2008, nearly 6 million former players, the most ever, came back to the game (+7% over 2007).

(Taylor Research Group, Tennis Industry Association

and Sporting Goods Manufacturing Association 2008)

Fourth:  Without a doubt, the need exists for such a facility.  Over 3,000 potential customers play organized tennis in Southern NH (Tennis Hub Survey, and USTA 2007).  In Derry alone, among just 3 activities John Pelkey ran (a Quick Start Camp, a Tennis Across America event, and a charity tournament) over 450 people participate!   

HUB

Fifth:  Perhaps the most compelling reason to build a tennis facility in Rockingham County is the demographic cross section of the area (a large group of 30 something parents, and baby boomers). Tennis is truly the sport for a lifetime, and local demographics fit well with the typical tennis customer base. Tennis is a natural health sell for these groups.  Go to http://uspta.com/index.cfm/MenuItemID/1933/MenuGroup/New-USPTA-About.htm and click on “34 Reasons to Play Tennis” for the benefits of playing tennis. Tennis players live longer than participants in other traditional sports because they stay active longer. At the NEW HAMPSHIRE TENNIS HUB, tennis will become the recreational focal point of the Southern NH area.  Healthy and happy people are more likely to become active participants in their community.  Thus, the personal and public welfare of the area will be improved.

Sixth:  The USTA, TIA, USPTA, PTR are among leading organizations bringing rapid change to the tennis world that include Welcome Centers, Cardio Tennis and Quick Start Youth Tennis, as well as recreational and competitive leagues. Tennis will continue to expand; with the help of these and other worldwide efforts, the game of tennis will continue to influence recreational lifestyles. The New Hampshire Tennis Hub will offer programming that will adjust to customer needs and desires, to keep pace with industry developments.

Seventh: Pelkey’s New Hampshire Tennis Hub, LLC understands Southern New Hampshire’s tennis population.  We will be positioned to support the growth of tennis in the area for years to come.  Our intent is to reach out to various community sub groups as well as develop a healthy commercial enterprise.  The Hub will target groups such as physically and mentally challenged individuals and youth at risk.  Furthermore, we will have the largest programming menu possible because the current client wants structured activities. 

Ultimately, the Hub will be known for its community involvement, and it will become a magnet for the area. Because the facility will be built to meet professional tour construction standards, the Hub will be able to host professional events.  We plan to develop relationships with the USTA, ATP, HEAD/Penn and other manufacturers in order to conduct various activities.  We already have had discussions with John Mayotte, General Manager of the Boston Lobsters and Eric Driscoll, USTA New England Community Tennis Director about various possibilities. The Hub is already a HEAD/Penn retail representative and has done over $20,000 of wholesale orders to date.

The Tennis Hub will be the place for tennis in New Hampshire and a local icon.  We will offer 3 of 4 Grand Slam surfaces (clay, Deco Turf, and synthetic grass).  We will offer the only tennis environment that offers outdoor play, indoors because of facility’s architectural plans include retractable sidewalls!  The Hub will be ready for climate-change.  The structure is a clear span building that can be used for multiple purposes should The Hub ever need to move in other directions. 

Simply, it is a facility that needs to be built, and we are requesting your financial assistance. A fully developed business plan will be provided for your review should you become interested in our project.