Startup of the Week: A sports management app with multiple revenue streams

Startup of the Week: A sports management app with multiple revenue streams
TeamUp is a startup providing sports management solutions with a multiple-tier revenue model based on subscriptions. (Shutterstock)
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Updated 11 April 2022

Startup of the Week: A sports management app with multiple revenue streams

Startup of the Week: A sports management app with multiple revenue streams
  • Featured in the Startup Hall of Fame at Riyadh’s Global Entrepreneurship Congress

RIYADH: TeamUp is a startup providing sports management solutions with a multiple-tier revenue model based on subscriptions, commissions, advertising and monetization of big data.

Based in Riyadh, TeamUp was founded by CEO Abdulrahman Al-Amer, his brother Amer and their partner Khalid Khudhayr.

All three bring their strengths to the table. Abdulrahman gained no less than seven bachelor’s degrees in the US, from neuroscience to political science, and followed that up with stints in strategic consulting and data analysis and as a swimming referee with Saudi Arabia’s Ministry of Sports.

CTO and CPO Amer graduated in electrical and microelectronics engineering. He was a part of Saudi Basic Industries Corporation’s, or SABIC’s, undergraduate scholarship program and had a management background as founder and CEO of a web solutions provider.

COO Khudhayr has a degree in mechanical engineering and six years of experience as an engineer with Aramco.

TeamUp was conceived after Abdulrahman failed to find an app to manage sports leagues and tournaments that could track individual players’ stats. 




Abdulrahman Al-Amer

He and his partners founded TeamUp in December 2020, with Abdulrahman himself doing much of the coding. They soon hired a three-person development team in Amman, Jordan. They now have a staff of 24, including themselves, in Riyadh, Amman and Nairobi.

The beta version of TeamUp has been up and running since June 2021, and the official launch will happen during Ramadan.

The TeamUp app focuses on football but, in theory, could be applied to any sports tournament. Its revenue model is based on several income streams.

“When a team pays an organizer to participate in a league through TeamUp, we take a commission,” Abdulrahman told Arab News.

“Second, schools can organize their sporting tournaments with TeamUp, and there are several subscription packages for that. For this, we have a strategic partnership with Classera, the largest learning management system in the MENA region with two million students.”

“Third, we can earn revenue from advertising from players and followers. But the real meat in the equation is the commission we make with scouting players for big teams. Our ecosystem will host thousands of players and lots of data points, like how many goals a player scored, the number of followers, how many matches they played, and how many of those games they were the leading player or on the bench or injured. This information is gathered with the permission of the players using our app.

“From these metrics, we do predictive data analysis. We go to Al-Hilal or any other team and ask them what kind of player they require, say, a defender or maybe a right-wing player, and based on their requirements, we search our database and choose the players that match the criteria.”

“We can give them two years of data for each player. They cannot have the same quality of data and accuracy from traditional scouters, who go with pen and paper and watch a player for one or two matches.”

TeamUp will receive a percentage of every deal signed. Given that leading teams are willing to pay anything upwards of $5 million for a player and Paris Saint-Germain paying €222 million to Barcelona to transfer Brazilian player Neymar in August 2017, the possible rewards are apparent.

Abdulrahman expects TeamUp to have a big enough pool of players, and enough data, to begin scouting activities in approximately 18 months.

The company has already signed contracts with sports ministries in Saudi Arabia and Kenya, whereby football teams are mandated to use TeamUp to participate in amateur tournaments. It expects to sign similar deals in several North African countries later this year, with further plans to expand into the UK in 2023.

While 18 months is a long time to wait for generating substantial revenue, Abdulrahman counters that tech giants Google, YouTube, and Twitter all took at least five years to become profitable.

Their business models, like TeamUp’s, depended on their ability to mine and monetize data from that pool of users.

TeamUp’s revenue model and management team received $800,000 in pre-seed funding from 500 Global and Sanabil Investments. Other investors are showing interest in joining the round, and TeamUp will officially announce the funding once they have hit $1 million.

As a sport-tech venture with a strong management team and a globally scalable model, TeamUp was featured in the Startup Hall of Fame at Riyadh’s Global Entrepreneurship Congress.


Biden administration holding its first onshore oil sales

Biden administration holding its first onshore oil sales
Updated 29 June 2022

Biden administration holding its first onshore oil sales

Biden administration holding its first onshore oil sales

BILLINGS: The US government this week is holding its first onshore oil and gas drilling lease auctions since President Joe Biden took office after a federal court blocked the administration’s attempt to suspend such sales because of climate change worries.

The online auctions start on Wednesday and will conclude on Thursday. About 200 square miles (518 square kilometers) of federal lands were offered for lease in eight western states. Most of the parcels are in Wyoming.

The sales come as federal officials try to balance efforts to fight climate change against pressure to bring down high gas prices.

Republicans want Biden to expand US crude production. But he faces calls from within his own party to do more to curb fossil fuel emissions that are heating the planet.

A coalition of 10 environmental groups said in a lawsuit filed before the sales even began that they were illegal because officials acknowledged the climate change impacts but proceeded anyway.

An immediate ruling was not expected. Interior Department spokesperson Melissa Schwartz said the agency did not have comment on the litigation.

Beginning with this week’s sales the royalty rate for oil produced from new federal leases is increasing to 18.75 percent from 12.5 percent. That’s a 50 percent jump and marks the first increase since the 1920s.

Parcels also are being offered in Colorado, Utah, New Mexico, Montana, Nevada, North Dakota and Oklahoma.

Hundreds of parcels of public land that companies nominated for leasing had been previously dropped by the administration because of concerns over wildlife being harmed by drilling rigs. More parcels covering about 49 square kilometers were dropped at the last minute in Wyoming because of potential impacts on wilderness, officials said.

But attorney Melissa Hornbein with the Western Environmental Law Center said the reductions in the size of the sales were not enough.

“They are hoping that by choosing to hold sales on a smaller amount of acreage they are threading the needle. But from our perspective, the climate science is the one thing that doesn't lie,” Hornbein said.

Fossil fuels extracted from public lands account for about 20 percent of energy-related US greenhouse gas emissions, making them a prime target for climate activists who want to shut down leasing.

Biden suspended new leasing just a week after taking office in January 2021. A federal judge in Louisiana ordered the sales to resume, saying Interior officials had offered no “rational explanation” for canceling them and only Congress could do so.

The government held an offshore lease auction in the Gulf of Mexico in November, although a court later blocked that sale before the leases were issued.


Arabian Plastic Industrial Co. gets CMA nod to IPO 20% stake on Nomu

Arabian Plastic Industrial Co. gets CMA nod to IPO 20% stake on Nomu
Updated 29 June 2022

Arabian Plastic Industrial Co. gets CMA nod to IPO 20% stake on Nomu

Arabian Plastic Industrial Co. gets CMA nod to IPO 20% stake on Nomu

RIYADH: Saudi-based Arabian Plastic Industrial Co. has received approval for an initial public offering of 1 million shares on the Kingdom’s parallel market.

Shares to be listed represent 20 percent of the company’s share capital. 

The resolution was issued by the Saudi stock market regulator Capital Market Authority in a statement on Wednesday.

The Capital Market Authority’s approval shall be valid for six months from the authority’s board resolution date. It shall be deemed cancelled if the company’s offering is not completed within this period. 

The authority also granted Abdulaziz and Mansour Ibrahim Albabtin Co. approval to list 544,000 shares, representing 16 percent of the firm’s capital, on Nomu.

 

 


Arabian Drilling Co. gets approval to IPO 30% stake on Saudi stock market

Arabian Drilling Co. gets approval to IPO 30% stake on Saudi stock market
Updated 29 June 2022

Arabian Drilling Co. gets approval to IPO 30% stake on Saudi stock market

Arabian Drilling Co. gets approval to IPO 30% stake on Saudi stock market

RIYADH: Saudi-based Arabian Drilling Co. has received approval for an initial public offering of 26.7 million shares, representing 30 percent of the firm’s capital, on the Kingdom’s stock exchange.

The Capital Market Authority’s approval shall be valid for six months from the authority’s board resolution date. It shall be deemed cancelled if the company’s offering is not completed within this period. 


ICT infrastructure in Makkah, Madinah fully operational for Hajj with 41% rise in 5G towers 

ICT infrastructure in Makkah, Madinah fully operational for Hajj with 41% rise in 5G towers 
Updated 29 June 2022

ICT infrastructure in Makkah, Madinah fully operational for Hajj with 41% rise in 5G towers 

ICT infrastructure in Makkah, Madinah fully operational for Hajj with 41% rise in 5G towers 

RIYADH:  The Communications and Information Technology Commission, Saudi Arabia’s digital regulator, on Wednesday announced that communication infrastructure is fully operational in Makkah and Madinah and ready for this year’s Hajj.

The CITC has ensured the functioning of over 5,900 communication towers and more than 11,000 Wifi access points in the two holy cities, according to a statement. 

The number of 5G towers rose 41 percent to reach more than 2,600.

 “The Kingdom’s infrastructure readiness will not only help smooth the passage of fulfilling a lifelong dream,” said CITC Gov. Mohammed bin Saud Al-Tamimi, “it will significantly enhance their (pilgrims) digital experience.” 

 


Saudi Electricity sells entire stake of its subsidiary to the government

Saudi Electricity sells entire stake of its subsidiary to the government
Updated 29 June 2022

Saudi Electricity sells entire stake of its subsidiary to the government

Saudi Electricity sells entire stake of its subsidiary to the government

RIYADH: State-owned Saudi Electricity Co. has transferred its entire stake in the Saudi Power Procurement Co. to the government, the company said in a bourse filing.

SPPC as of today is an independent company wholly owned by the government, following completion of all legal arrangements for sale and transfer of assets, liabilities, and contracts

SPPC and SEC also signed energy conversion agreements, bulk supplies, and fuel supply novations, all effective July 1.

With that, SEC, SPPC and the Ministry of Finance signed a fuel inventory sale agreement, which stipulates that the ministry shall pay SEC its net book value for the fuel inventory.

The sale price shall be calculated based on the book value of SPPC's net assets at the end of the second quarter of 2022.

SEC does not expect the carve-out of SPPC to negatively impact its business since SPPC possesses no material tangible assets.