Signing Day
Scottsdale, Arizona, United States
Industry: Sports Recruitment
Region: US 🇺🇸
Founded: 2020
Expected Valuation: $81.28 million
IPO Date: 2023 (expected)
Signing Day Sports, Inc.
Key Company Facts
| Founded | 2020 |
| Headquarters | Scottsdale, US |
| Sector | Technology, Sports |
| Industry | Sports Recruitment |
| Founder | Dennis Gile |
| Number of employees | 11-50 |
| IPO Date | 2023 (expected) |
| Number of investors | N/A |
| Total funding | $8.06 million USd |
| Valuation estimate | $81.26 million USD |
Company Overview & History
Signing Day Sports Inc. is a technology company that develops and operates platforms aiming to give significantly more student-athletes the opportunity to go to college and continue playing sports.
Its primary product is the Signing Day Sports platform, a digital ecosystem designed to help athletes get discovered and recruited by coaches and recruiters across the country. The company was founded in 2020.
Financial Performance
As of the close of trading on the most recent Tuesday, Signing Day Sports’ stock price stood at $38.48, with a 52-week range of $38.03 to $40.35.
The company has a market cap of 5.95 million shares and an average volume of -$0.59 EPS. The financial summary of the company shows revenue of 78,000 USD, an EBITDA of -6,075,000 USD, and a net income of -6,674,000 USD. The company has total assets of 454,000 USD and a total debt of 7,366,000 USD.
Revenue
| Year | Revenue (USD) |
|---|---|
| 2021 | $0.34 million |
| 2022 | $0.08 million |
Business Model
Signing Day Sports operates on the principle of transparency in the recruitment process, utilizing synchronized video technology to verify athlete data.
Their mobile app allows athletes to complete a player profile with all the key information and videos college coaches need for indisputable athlete data.
The app is fast becoming the most honest and trusted recruiting platform in the college space.
Through QR codes, automated tutorials, and synchronized video technology, high school athletes can be legitimately evaluated by college staffs in football, baseball, softball, and soon soccer through verifiable, mostly indisputable video data.
The company has also developed a three-pronged app that uses overlays, side-by-side comparative video data, and stringent electronic protocols to verify a recruit’s metrics.
Individual athletes and their families have two options: either have their analytics recorded and uploaded to their profile at a Signing Day Sports combine or go to a field/weightroom on their own with a partner and have every drill filmed with precise specifications from a tutorial on a smartphone.
At that point, their one-stop-shop profile can be relayed to 500 colleges via a QR code, meaning every athlete is potentially one click away from a scholarship offer.
For the colleges, there is another iteration of the app where a coach plugs in the kind of player he wants — by position, region, size, etc.
This model has been embraced by over 500 colleges and universities and is consistently running combines in partnership with the U.S Army Bowl game for football and Louisville Slugger for baseball
Estimated Valuation
| Year | Valuation (USD) |
|---|---|
| 2023 | $81.28 million |
Risk Factors
Signing Day Sports, a small firm based in Scottsdale, Arizona, operates an online network that connects college coaches and recruiters with promising high school athletes.
The company has experienced declining revenue, considerable operating losses, and is thinly capitalized, which poses significant risks to potential investors.
Despite the challenges, the company aims to raise $18.75 million in gross proceeds from an IPO of its common stock, offering 3.75 million shares at a proposed midpoint price of $5.00 each.
However, the IPO has been criticized as excessively priced, and no existing shareholders have indicated an interest in purchasing shares at the IPO price.
Additionally, the company is an “emerging growth company” as defined by the 2012 JOBS Act, meaning that prospective shareholders will receive less information for the IPO and in the future as a publicly-held company within the requirements of the Act.
It’s also worth noting that the company is subject to a couple of legal claims, including one for breach of contract and another from a former CEO, totaling approximately $178,063.
Market Opportunity
Despite the aforementioned challenges, the company operates in an expanding market.
The global youth sports market was estimated at $36.9 billion in 2021 and is projected to reach $65.1 billion by 2028, representing a forecast compound annual growth rate (CAGR) of 8.9% from 2022 to 2028.
This expected growth is driven by an increasing emphasis on the benefits of athletic participation and the introduction of automated processes for managing youth teams and leagues.
The company has also raised $9.3 million in convertible notes and equity from various individual investors, which reflects the potential interest in the sector.
Competitors
- SEQL
- Factory Athletics
- ScoutDay
- Sports Coach India
- SportsThread
- ATHLYT