8-K: Agassi Sports Secures Stefanie Graf for Brand Partnership

Agassi Sports Entertainment Corp. has partnered with tennis legend Stefanie Graf to promote its global racquet sports initiatives, granting her warrants for 1,000,000 shares.

Summary

• Agassi Sports Entertainment Corp. (ASE) entered into a Brand Partner Agreement with Stefanie Graf on November 22, 2025.
• Ms. Graf will serve as an advisor, spokesperson, celebrity endorser, and brand partner for ASE, focusing on promoting the company's brand and content, particularly in racquet sports like pickleball and padel.
• Her role includes participating in company projects, promoting the brand through public appearances, interviews, and social media, and providing consultation.
• Ms. Graf has licensed her image, name, and likeness to ASE for worldwide use in public relations, advertising, and marketing, subject to her prior approval for each use.
• The Brand Partner Agreement has a five-year term, which can be extended by mutual agreement, and either party may terminate it with ten days' prior written notice.
• In consideration for her services, Ms. Graf received warrants to purchase up to 1,000,000 shares of ASE's common stock at an exercise price of $5.50 per share.
• The warrants vested immediately and have a five-year term, becoming void after October 31, 2030. Half of the shares are exercisable immediately, and the remaining half become exercisable one year after the grant date (November 22, 2025).
• The warrants can be exercised either by cash payment or through a cashless (net issuance) exercise method.
• The grant of these warrants was an unregistered sale of equity securities, claimed as exempt from registration under Section 4(a)(2) and/or Rule 506 of the Securities Act, as Ms. Graf is an accredited investor.
• A press release announcing this brand partnership was issued on November 25, 2025.

Sentiment

Score: 7

Explanation: The partnership with Stefanie Graf is a significant positive development, bringing a globally recognized sports icon to promote the company's initiatives in growing racquet sports. This enhances brand credibility and market reach. However, the equity compensation represents potential dilution, and the non-exclusive nature of the agreement, along with Ms. Graf's right of disapproval, introduces some limitations and risks.

Positives

• Securing a global sports icon like Stefanie Graf significantly enhances ASE's brand visibility, credibility, and market reach in the rapidly growing racquet sports industry.
• Ms. Graf's active involvement, particularly in promoting pickleball and padel, is expected to accelerate global expansion, especially in key markets like Europe and her home country of Germany.
• The partnership combines world-class athletic insight with ASE's existing technology initiatives, such as its recently disclosed multi-year partnership with IBM to develop an AI-powered digital platform.
• Ms. Graf's personal experience and enthusiasm for pickleball add authenticity and appeal to her endorsement.
• The five-year term of the agreement provides a substantial period for leveraging Ms. Graf's brand and influence.

Negatives

• The compensation package, involving warrants for up to 1,000,000 shares, represents potential significant equity dilution for existing shareholders if fully exercised.
• Ms. Graf's obligation to participate in specific projects is subject to mutual agreement on scope and compensation, and she retains the right to disapprove participation, which could limit her involvement.
• Her right to disapprove any use of her image or any sublicense to third parties introduces a potential bottleneck in marketing and promotional efforts.
• The agreement is non-exclusive, allowing Ms. Graf to license her image to other businesses, which could potentially dilute the impact and exclusivity of her association with ASE.
• The agreement can be terminated by either party with only ten days' written notice, introducing a degree of uncertainty regarding the long-term stability of the partnership.

Risks

• The value of the warrants and the underlying common stock is subject to market fluctuations and the company's overall performance.
• The company's ability to successfully expand globally in racquet sports, particularly pickleball and padel, is subject to market acceptance, competitive pressures, and effective execution of its strategy.
• Reliance on a single celebrity endorser, even a prominent one, carries risks related to changes in their public image, availability, or personal brand.
• The non-exclusive nature of the brand partner agreement means Ms. Graf can endorse other brands, potentially creating conflicts of interest or diluting ASE's brand association.
• The company must take all reasonable action to assure that warrant shares can be issued without violating applicable law or regulation, including obtaining necessary authorizations, exemptions, or consents from stockholders or regulatory bodies.
• The securities issued upon exercise of the warrants are unregistered and subject to transfer restrictions, which may limit liquidity for the holder.

Future Outlook

Agassi Sports Entertainment Corp. aims to become a leader in the global sports entertainment and media industry, with an initial focus on growing the pickleball and padel industries. The partnership with Stefanie Graf is expected to accelerate these efforts and provide value to investors interested in the rapidly growing global racquet sports industry.

Management Comments

• "Tennis has been a big part of my life, so the opportunity to grow racquet sports as a whole with Andre is very exciting. In the past few years, pickleball specifically has become such a fun way for me, Andre, and our family to stay fit, active, and competitive." Stefanie Graf
• "Pickleball is quickly becoming accessible in the U.S., but there is a significant opportunity to expand globally, particularly in Europe and my home country of Germany, where interest and enthusiasm is growing. I’m very excited at the prospect of helping to further that growth." Stefanie Graf
• "Our entire team is excited to be working with Stefanie Graf to grow and influence the racquet sport industry worldwide." Ronald Boreta, Co-Founder and CEO of Agassi Sports Entertainment
• "Agassi Sports Entertainment intends to work with best-in-class brands and partners, and the success Ms. Graf has seen both on and off the court exemplifies these ideals." Ronald Boreta
• "As a publicly traded company, we believe that this brand partnership accelerates our efforts to provide value to investors interested in participating in the rapidly growing global racquet sports industry." Ronald Boreta

Industry Context

The announcement positions Agassi Sports Entertainment Corp. to capitalize on the growing global interest in racquet sports, particularly pickleball and padel. By partnering with a globally recognized tennis icon like Stefanie Graf, the company aims to differentiate itself and gain a competitive edge in a market that is seeing increased participation and investment. This follows a trend of sports entertainment companies leveraging celebrity endorsements and technology (like ASE's IBM partnership) to expand their reach and engagement.

Comparison to Industry Standards

• The engagement of a high-profile athlete like Stefanie Graf for brand promotion is a common strategy in the sports industry, comparable to endorsements seen with major sports brands (e.g., Nike, Adidas) or other sports entertainment ventures.
• The focus on emerging sports like pickleball and padel aligns with broader industry trends of diversifying sports portfolios beyond traditional mainstream sports, similar to how other companies are investing in esports or niche athletic events.
• The equity-based compensation (warrants) for a celebrity endorsement is a standard practice, often used by smaller or growth-stage companies to align interests and conserve cash, similar to how early-stage tech companies compensate advisors.

Related Party Transactions

• Agassi Sports Entertainment Corp. entered into a Brand Partner Agreement with Stefanie Graf, who is the wife of Andre Agassi, a longtime significant shareholder and co-founder of the company.
• The compensation for Ms. Graf's services includes warrants to purchase 1,000,000 shares of the company's common stock.

Stakeholder Impact

• Shareholders: Potential dilution from the exercise of 1,000,000 warrants, but also potential increase in company value and share price due to enhanced brand recognition and accelerated growth.
• Customers/Community: Expected to benefit from increased promotion and development of racquet sports, particularly pickleball and padel, and potentially new content and initiatives.
• Employees: Potential for increased business activity and growth opportunities within the company.

Next Steps

• Stefanie Graf will participate in certain company projects and initiatives, subject to mutual agreement on scope and compensation.
• Ms. Graf will promote the company's brand and content through public appearances, interviews, and social media activity.
• Ms. Graf will provide advice and consultation upon company request regarding the company brand and content.
• The company will continue its efforts to consolidate, promote, and grow the racquet sports industry through organic and transactional efforts worldwide.
• The company will continue to develop its AI-powered digital platform for the global racquet sports community in partnership with IBM.

Key Dates

Recommendation

The strategic partnership with Stefanie Graf, a globally recognized sports icon, is a significant catalyst for Agassi Sports Entertainment Corp. Her involvement is expected to substantially boost brand visibility, credibility, and accelerate global expansion in the rapidly growing racquet sports market, particularly pickleball and padel. While the issuance of 1,000,000 warrants introduces potential equity dilution, the long-term value creation from this high-profile endorsement and strategic advisory role is likely to outweigh this. The company's existing partnership with IBM for an AI platform further strengthens its position. This move signals strong growth potential and strategic execution, making it an attractive 'buy' for investors looking for exposure to the evolving sports entertainment industry.

Keywords

Agassi Sports Entertainment, Stefanie Graf, Brand Partnership, Racquet Sports, Pickleball, Padel, Sports Entertainment, Celebrity Endorsement, Warrants, Equity Compensation, SEC Filing, Form 8-K, OTC PINK:AASP