The Charlotte HornetsApril 7, 2016

Investor Presentation

Executive Summary• XYZ Ventures: Alex, Cameron, Gouthum, Wyndham.• XYZ Ventures 1: $1b committed capital.• High-valued, long term, late stage VC investments.• Fund 2: Size: $500 Million Term: 10 Years Investment Period: 3 years from Jan/1/2016 General Partner Commitment: 1% of committed capital up to 5,000,000 Annual Management Fee: 2% of aggregate capital commitments Carried Interest: Subject to 8% hurdle

Industry Analysis

• 30 NBA teams.• New team approval process is substantial.• Player collective bargaining creates supplier power.• Media, fans, corporations hold high buyer power.• Threat of substitutes is high.• Low competitive rivalry due to league structure.

Opportunity

• 1st sports franchise in portfolio.• Basketball’s growing popularity.• History of successful PE transactions.• Michael Jordan.• Undervalued operating asset.

Value Creation

• Grow game day revenue.• Media rights.• New sponsorship.• Merchandise and licensing sales.• Taxpayer subsidized area repair.

Deal Risks

• Assembling the right “army”.• Player’s union Lock-Out.• Quality of draft talent.• Player behavior.• Nearby college basketball.

Valuation / Deal Structure

• $750 million pre-money valuation.• $75 million investment for 10% equity stake.• Series A Preferred.• Receive 1/3 of Board seats.• Hiring and firing rights for management• Liquidation preferences.

• Anti-dilution strategy.• Due diligence costs covered up to $50,000.• Offer expires 4/18/2016.• Sell ownership stake to future investor.

Conclusion• Minority investment of $75 million for 10% equity

stake.• Long-term investment.• Undergo thorough ownership approval process.• Bolster on-court performance, team brand, and

value creating operations.