Oakville SportsCentre Expansion

Oakville Sport Centre (OSC) currently operates a multi-sport facility in Oakville , Ontario with 12,000 customers per week. The facility runs soccer, golf, field sports, bar, restaurant, corporate events and retail store sales. The OSC is managed under a long term contract by SportsCentre Design & Management (“SCDM”), a leading sports and recreation facility management company. SCDM has grown the revenues and profits of the OSC consistently over the past 5 years where the OSC generated revenues of over $1,750,000 and EBITDA over $830,000 for the period ending December 2006.

The OSC has entered into a contract with SCDM, Nike and Manchester United for the exclusive delivery of the Manchester United Soccer Schools (“MUSS”) program in the GTA which will significantly increase and diversify the current business. In order to accommodate the MUSS program and the demand for indoor and outdoor sports programming in the market, the OSC needs to expand its capacity, and the existing 10.5 acre facility will not feasibly allow this to happen. OSC has acquired a new 32 acre site and will build a much larger, more modern facility to ac com modate the growth.

The largest single contributor to existing operating revenues is the Oakville Soccer Club (the “Club”)with 23% of revenues generated from this amateur youth club of over 10,000 youth players. OSC intends to enter into a 5 year deal with the Club for additional field time bookings. However, due to the increase in capacity and growth in alternative programming, including the MUSS program, the dependency on the Club will decrease to under 15% of revenues.

Location

The existing facility is located on 10.5 acres of land on North Service Road W in Oakville near the QEW. The facility has 2 air supported vinyl domes with over 80,000 sq ft of playing surface along with a concrete building which houses a retail store, licensed restaurant/bar, change rooms and offices. There are outdoor beach volleyball court and a 9 hole Pitch & Putt golf course on site as well.

The new location is situated off Winston Churchill Blvd and is also near the QEW. It is a 32 acre parcel which is sufficient to contain a 160,000 sq foot indoor facility including a full size FIFA field that can be sub-divided into 4 indoor fields, a NHL size boarded rink for soccer, lacrosse and ball hockey, a sports therapy clinic, a 6500 square feet Fitness Studio for individual and team training, 300 seat restaurant, snack bar, Nike retail store and large common space for meetings and special events and a minimum of 6 full size outdoor fields (3 with all season surface and stadium lighting). With the new facility, a Manchester United Soccer School will be opened as the 1 st in Canada with world class training, curriculum and recognition.