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Proposals / Motorsports / Santa Barbara Race Club / The Plan / Financial Model Overview
Strategy

Financial Model Overview

The Phase I financing model at a glance — three scenarios on a single swing variable (absorption), with the Expected case as the financing plan and the Conservative case as the underwriting floor.

~$6.1M
Permanent equity (Expected)
~$15.8M
Peak construction-period equity (Expected)
$10.0M
Liquidity reserve held every quarter
$5.0M
Recurring annual dues (stabilized P-I)
Three scenariosInteractive toolsSensitivity

Three scenarios, one swing variable

Pricing and absorption pace define the scenarios; absorption is the swing variable in every one. The Expected case is the financing plan, underwritten and stress-tested to the Conservative floor; the Optimal case quantifies upside only.

Phase I financing scenarios.
MeasureConservativeExpected (Base)Optimal
Membership pricing / pace$150K · 20/yr$250K · 30/yr$300K · 50/yr
Completed Phase I RE value$84.0M$128.7M$195.0M
60% LTV debt capacity$50.4M$77.2M$117.0M
Permanent equity required$53.8M$6.1M($62.7M) surplus
Peak construction-period equity—~$15.8M—
Recurring dues (stabilized P-I)$1.8M$5.0M$7.5M
VerdictHeavy equityFinanceableSelf-funding surplus

Interactive tools

Financial-forecasting tool

Projected recurring revenue from opening (2033) to maturity, by membership-absorption scenario. Dues build with the active-member base; ancillary revenue activates from the sixth operating year.

$45.0MRecurring revenue, year 10
300Members by year 10
$245MCumulative 10-yr revenue

Dues at $50,000 per member; ancillary revenue scales toward ~$8.7M/yr. Capacity is treated as a long-run ceiling of 1,515 members.

Return-on-investment calculator

An illustrative equity-return model: stabilized recurring revenue, an operating margin, and an exit multiple imply an enterprise value, equity value, equity multiple, and indicative annualized return on the equity invested.

$6.1M
$45.0M
45%
12.0x
10
$243MEnterprise value
39.8xEquity multiple
45%Indicative annual return

Illustrative only; assumes the construction facility is repaid at stabilization. Returns are highly sensitive to absorption and exit multiple, which the decision-maker should test independently.

Sensitivity analysis

Set the base case, then see how the permanent equity required swings when each driver moves across its full range while the others hold. Absorption pace is the dominant lever.

30
$250K
0%
$6.1MPermanent equity (base case)
FinanceableAssessment

Equity model calibrated to the three financing scenarios. Bars to the right of the base line indicate a higher equity requirement; bars to the left a lower requirement or surplus.

What the model is sensitive to

Absorption pace

The binding variable — paces revenue, the residential schedule, and bridge-capital duration

Membership pricing

Within the comparable band; $50K dues sits at the top and is confirmed by a pricing study

Construction cost

Contingency-protected at 12%; replaced by a line-item three-point estimate at design

Reserve discipline

A $10M reserve is held in every construction quarter under the Expected case
The analysis indicates the Expected (Base) case is financeable; the Conservative case provides the underwriting floor and the Optimal case quantifies upside. Several alternatives exist for the decision-maker. The construction loan is fully repaid from real-estate deliveries at completion.

Related analysis

Capital StructureBusiness Plan
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Confidential. Prepared by Ignition Advisory Group for SBRN Management LLC. Access-controlled; not for public distribution. Supporting documentation is available through the References & Sources section.
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