8-K: Agassi Sports Entertainment Forges Strategic Partnership with IBM to Revolutionize Racquet Sports Experience with AI

Agassi Sports Entertainment Corp. has entered into a Statement of Work with IBM Norge AS to develop a state-of-the-art digital racquet sport experience, leveraging AI for player insights and community building, with an initial project cost of $75,000.

Summary

• Agassi Sports Entertainment Corp. (ASE) has engaged IBM Norge AS to support the launch of a state-of-the-art racquet sport experience, focusing on design and digital product concept services.
• The Statement of Work (SOW) outlines project responsibilities, timelines, and milestones for the 'Agassi Pickleball Experience'.
• The project is expected to commence on July 7, 2025, and conclude on or before October 30, 2025.
• ASE has agreed to pay IBM $75,000 for services rendered, payable upon the completion of specific project milestones: $25,000 for Screen Design completion, $25,000 for Digital Experience Roadmap completion, and $25,000 for Working Demo completion.
• The SOW covers Phase 1, which includes envisioning the future digital experience, creating high-level designs (up to 6-10 screens), outlining a strategic roadmap, and designing pitch collateral for investors and partners.
• IBM will also translate an earlier created demo of 'Agassi Intelligence' into the web platform, including a Watsonx-based conversational chatbot, as an unpriced IBM investment.
• The collaboration aims to utilize AI technology to analyze player performance, provide actionable recommendations, and create innovative digital tools for training, performance tracking, and fan engagement.
• A press release announcing the engagement was issued on July 9, 2025.

Sentiment

Score: 7

Explanation: The sentiment is positive due to the strategic partnership with a reputable technology leader like IBM and the innovative use of AI in sports. However, the company's OTC PINK listing, small initial contract value, and explicit mention of funding needs and potential dilution temper the overall score, indicating a promising but early-stage and higher-risk venture.

Positives

• Strategic partnership with IBM, a global leader in technology, which is expected to elevate the company's innovation capabilities.
• Planned utilization of AI technology, branded as 'Agassi Intelligence', to provide personalized experiences, insightful data, and technique improvement advice for players.
• Focus on enhancing player engagement, performance, and fostering a vibrant community of racquet sports lovers.
• IBM is making an additional investment by translating an earlier 'Agassi Intelligence' demo into a web platform with a Watsonx-based chatbot, which is not priced in the current SOW.
• The initiative aims to grow accessibility to racquet sports worldwide, aligning with broader health and wellness goals.

Negatives

• The initial fixed price for the SOW is $75,000, which is a relatively small amount for a major technology partnership, suggesting this is a preliminary phase.
• The company is an OTC PINK listed entity, which typically carries higher risks and less liquidity compared to major exchanges.
• The company's forward-looking statements highlight a need for additional funding to finance operational plans, which could lead to dilution for existing shareholders.

Risks

• Ability to raise funding to support operational plans, and the terms of such financing, including potential dilution caused thereby.
• Ability to complete the steps necessary to undertake the current operational plan, the costs associated therewith, timing relating thereto, and the ability to generate revenues.
• Concentration of ownership of the company's securities.
• The outcome of the engagement of IBM.
• The market for the company's planned services, including the market for pickleball and padel.
• Competition in the company's industry.
• Ability to fully comply with numerous federal, state, and local laws and regulatory requirements.
• Current negative operating cash flows and a need for additional funding to finance operating plans.
• Terms of any further financing, which may be highly dilutive and may include onerous terms.
• Increases in interest rates which may make borrowing more expensive and increased inflation which may negatively affect costs, expenses, and returns.
• Geopolitical events and regulatory changes.
• The effect of changing interest rates and inflation, economic downturns and recessions, declines in economic activity or global conflicts.

Future Outlook

The company aims to enhance the way people engage with racquet sports and elevate the sports' overall accessibility and enjoyment through cutting-edge technology. It plans to harness AI to analyze player performance and provide actionable recommendations, branded as 'Agassi Intelligence', which is expected to revolutionize how players play and compete. The collaboration also seeks to create groundbreaking tools for training, performance tracking, and fan engagement, fostering a vibrant community of racquet sports lovers and prioritizing inclusivity to reach a global market of enthusiasts. The company believes there are significant opportunities to grow accessibility to racquet sports worldwide through multiple avenues in fast-moving markets.

Management Comments

• Ronald Boreta, CEO of Agassi Sports Entertainment, stated: "We are incredibly excited to work with IBM to develop new technology for the racquet sports industry. Our mission has been to work with best in class operators and as a global leader in the technology sector, we believe IBM enables us to reach new heights toward innovating in this field. It is our belief that there are significant opportunities to grow accessibility to racquet sports worldwide through multiple avenues in these fast moving markets and we look forward to working closely with IBM and other best of class companies on these goals."
• Andre Agassi, World Number 1, 8-time Grand Slam winner, and Olympic Gold Medalist, stated: "Our ultimate goal with Agassi Sports Entertainment is to grow the racquet sports industry while promoting health and wellness. We are excited to work with a global powerhouse like IBM and believe this is a big step towards achieving that goal. We see huge opportunity in growing these sports worldwide and are excited to work with partners who share our values and vision."
• Jonathan Wright, Managing Partner, Northern, Central and Eastern Europe, Consulting at IBM, stated: "We're proud to collaborate with Agassi Sports Entertainment and excited to see AI technology used in such an innovative way to enhance the racquet sports experience. This collaboration reflects our commitment to improving the player experience, elevating sports to a new level globally, and helping players become better versions of themselves through the use of AI tools."

Industry Context

This announcement positions Agassi Sports Entertainment at the forefront of integrating advanced technology, specifically AI, into the racquet sports industry. It aligns with a broader trend of digitalization and data-driven insights in sports, aiming to enhance player performance, fan engagement, and overall accessibility. The focus on pickleball and padel reflects the rapid growth and increasing popularity of these sports globally, indicating a strategic move to capitalize on emerging market opportunities within the sports entertainment sector. The partnership with IBM, a major technology player, lends significant credibility and technical capability to Agassi Sports Entertainment's ambitions in this evolving landscape.

Comparison to Industry Standards

• The document does not provide specific comparable companies, projects, or results to benchmark against industry standards.
• Agassi Sports Entertainment believes the collaboration will create an 'unrivaled digital experience' and that IBM, as a 'global leader in the technology sector', enables them to 'reach new heights toward innovating in this field'.

Stakeholder Impact

• Shareholders: Potential for increased company value through strategic growth and innovation, but also exposure to risks such as dilution from future capital raises and the inherent volatility of an OTC PINK listed company.
• Players and Fans: Expected to benefit from an enhanced digital experience, personalized insights, technique improvement advice, and a stronger community connection within racquet sports.
• Partners: The SOW allows for design adjustments for up to two separate partner brands, indicating potential for future collaborations and expanded reach.
• Employees: The focus on innovation and growth in the racquet sports industry could lead to new opportunities and a dynamic work environment.

Next Steps

• The project is expected to start on July 7, 2025.
• The project is targeted for completion on or before October 30, 2025.
• IBM and ASE will jointly assess if presence of IBM personnel at client or partner location is required for future phases.
• Prior to beginning a subsequent phase, IBM will reassess and potentially adjust the scope, schedule, and charges, documented as Project Change Requests (PCRs).
• IBM will proceed with work on subsequent phases once Client has provided written agreement of such PCR(s).
• IBM will work with ASE on a joint PR requiring sign off and approvals from both parties.

Key Dates

Recommendation

Keywords

Agassi Sports Entertainment, IBM, racquet sports, pickleball, padel, AI, Agassi Intelligence, sports technology, digital experience, sports entertainment, SEC filing, Form 8-K