Chattanooga Football Club

Management’s Discussion and Analysis of Financial Condition and Results of Operations

You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.

Overview 

For the first time in America, a soccer club offers fans true ownership.

 As Chattanooga Football Club enters a new era of growth, we’re inviting you to invest in our future and own part of the team. By selling equity shares, we’re expanding our commitment to Chattanooga and our fans, so that when Chattanooga Football Club wins, we all win. We are leading the way in American soccer, creating a sustainable model that’s better for players, fans, and communities.

Our goal has always been to establish a community-based club that will be around for 100 years, like soccer clubs around the world. With the experience gained over the last 10 seasons, we've established our place in the landscape of American soccer and are ready to move to the next level. We are adding professional players next year and playing a longer season in a new league we're helping launch. This is something we’ve been working on for years, and we are thrilled to finally see it happen.

Milestones

Beautiful Game, Inc. was incorporated in the State of Tennessee in October 2018.

Since then, we have:

• This is a limited opportunity to own an equity stake in Chattanooga Football Club. Supporter shares are limited to 8,000. This is real equity with real rights—each share comes with life-long voting rights and special owner privileges.
• We have inspired dozens of community-based clubs throughout the United States, giving them hope that soccer can thrive in places we never thought possible. A successful raise will set an example and pave the way for other clubs and cities across America.
• By becoming an owner, you’re not just investing in the local soccer community, as shareholder of a benefit corporation, you’re buying a piece of U.S. soccer history.
• You can buy a share for yourself, your family, or your friends. For kids, team ownership is a gift that lasts a lifetime.
• Chattanooga Football Club shares have financial rights and come with voting privileges, investor updates, and special owner perks.
• We are well-established. Our loyal fan base has drawn the highest total attendance in the National Premier Soccer League over the last ten years—averaging more than 4,000 fans per game in 2017. We have set many amateur soccer attendance records, includin

Historical Results of Operations

• Revenues & Gross Margin. For the period ended December 31, 2022, the Company had revenues of $1,105,907 compared to the year ended December 31, 2021, when the Company had revenues of $1,234,799. Our gross margin was 19.55% in fiscal year 2022, compared to 56.63% in 2021.
• Assets. As of December 31, 2022, the Company had total assets of $1,528,214, including $1,050,059 in cash. As of December 31, 2021, the Company had $412,434 in total assets, including $37,461 in cash.
• Net Loss. The Company has had net losses of $1,412,242 and net losses of $885,624 for the fiscal years ended December 31, 2022 and December 31, 2021, respectively.
• Liabilities. The Company's liabilities totaled $0 for the fiscal year ended December 31, 2022 and $1,000,000 for the fiscal year ended December 31, 2021.

Liquidity & Capital Resources

To-date, the company has been financed with $4,781,656 in equity.

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 36 months before we need to raise further capital.

We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.

We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 24 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.

Runway & Short/Mid Term Expenses

Beautiful Game, Inc. cash in hand is $592,000, as of March 2023. Over the last three months, revenues have averaged $148,000/month, cost of goods sold has averaged $21,000/month, and operational expenses have averaged $24,300/month, for an average net margin of $102,700 per month. Our intent is to be profitable in 4 months.

In January 2023, the club hosted a Major League Soccer team and saw the biggest ticket revenue day in the club's history. 

The Club revenues will be close to or exceed $500,000 in the next six months. Ticket sales, both single game and annual passes, will account for half of the revenue earned.  The remaining will be earned primarily through corporate sponsors as well as merchandise sales. 

The Club is currently not profitable and is on track to finish this year with a loss of approximately $500,000. The Club aims to be at a breakeven point within the next five calendar years.  

The Clubs board members and primary owner are committed to moving the Club forward to a sustainable future. 

All projections in the above narrative are forward-looking and not guaranteed.