Ultiworld has obtained a copy of the email sent out to the league from VP of Operations David Kucherlapati, part of the league’s core investment group; Executive VP Nic Darling; and CFO Lindi Sabloff. Here is the unedited text of the email:
Friends and Colleges,
The goal of Major League Ultimate since its inception in 2012 has been to bring the excitement of ultimate to sports fans around the country and to provide an outstanding experience to players and partners. During the past four seasons we have produced a superb product that was seen by many fans both live and through our media offerings, both online and on TV. However, despite the success on the field and in media creation, the expenses of MLU have continued to increase in relation to the revenue created…
Sports Leagues such as ours depend on national and local sponsorships and ticket sales to cover their expenses and although we have received support from many national and local businesses, it has not been possible to cover the costs of the League’s operation. The League has suffered significant losses during the past four years and these losses have been covered by several Investors.
Since the largest challenges by MLU were related to the creation and capture of larger revenue streams through corporate sponsorship, tickets, and merchandise sales the Management team worked diligently to generate new ideas to bolster these efforts, most recently in bringing on board professional assistance in the areas of sponsorship and ticket sales. However, despite our best efforts, and a recent influx of experience and knowledge, we have not succeeded in increasing the revenue to a level that would be adequate to cover the expenses of the League.
Due to the past losses, future projected losses, and the inherent issues that we have found in our business model the Board of Directors has decided to suspend operations, effective immediately, and the company will be issuing a public statement shortly.
While financial success has eluded us to this point, it has been our pleasure to work with a very passionate group of investors, employees, and staff who made the operation of this company possible over the past four seasons. While this chapter of the MLU will be coming to a close shortly, we can take pride in the positive exposure that we have generated for the sport of ultimate, and we can remain optimistic for the sport’s future.
We are exceedingly grateful for the time and effort that you and other members of the MLU, have put into this company. Year over year, hundreds of individuals from around the country have helped us build the MLU and our eight teams, creating an exciting spectacle for fans and viewers around the US and the world. We’d like to take moment to thank all of our investors, full-time employees, part-time employees, staff, athletes, and coaches both past and present who have helped to build this organization over the years.
Thank you for everything, and best wishes to you and yours,
David, Lindi, and Nic
Originally published at: https://ultiworld.com/2016/12/21/read-league-wide-letter-mlu-executive-team/