Business Profile: U-Sports
Monday, September 1st, 2008
Company: Perimeter Consulting, parent of U-Sports
U-Sports launched: 1996
Last week’s open to college football season marked “the start of a new era of college football.” So said Knight Commission co-chairs William E. Kirwan and R. Gerald Turner in their Los Angeles Times op-ed piece decrying the fall of amateurism as brought on by college fantasy sports.
Actually, though, 2008 is the 13th year in which these poor athletes will be so horribly exploited by those who wish to track their stats for competition.
“Most of the people I knew had a passion for college sports that pro sports couldn’t come close to equaling,” says Nathan Karp, director of U-Sports, referring to the site’s genesis in the mid-1990s. “We had a few MLB and NFL fantasy leagues going, but the only reason we followed those sports was because of our fantasy teams. We decided to start our own spreadsheet-based college fantasy football league and we soon realized there was a lot of demand for people to join our league or start their own similar one.”
In 1996, that spreadsheet birthed an online college football fantasy league that supported a modest 50 players and gave the developers of Perimeter Consulting something to do for fun when they weren’t building websites or online applications for clients.
“We started demoing some of the technical features to prospective clients and found that it was actually a distracting demo because the clients had more questions and enthusiasm about college fantasy football than for what we were trying to highlight,” Karp says. “We eventually cleaned it up and opened it up to the public to join. It had some mild success that first year but has been growing by leaps and bounds ever since, both in terms of the quality of the application and the user base.”
From the initial group of 50 players, Karp says that U-Sports has grown to a base of 10,000 users, which means an average of 50 percent more business a year. That’s a rate well ahead of even the tremendous growth of the fantasy industry as a whole, which has added about 23 percent to its user base a year over the past five.
Because it began as a side project of an already established business, U-Sports never required any startup capital, and Karp says the site has never required any outside funding. He says that U-Sports will generate roughly the same amount of revenue this year as the rest of Perimeter Consulting’s business and that they expect the league-hosting site to soon pass its parent company.
“Except for the first few years of breaking even, we have been profitable ever since,” Karp says.
Users can create a private league and then enter teams for $14.95 apiece, or individual players can throw down $16.95 and join a public league. Teams are scored against each other, and teams ranked in the top 25 at the end of the season.
The draw - other than the sheer ability to play fantasy college sports (the site also offers basketball) -seems to be the design of the site and all the customizable settings.
“It is very easy to find the features, set your lineup and get the latest stats and fantasy points for all of the players,” says Steven Lassan, an editor with Athlon who has been covering fantasy college football for eight years (previously for our sister site ProFantasySports.com) and playing on U-Sports for six. “I think U-Sports is easily the best college fantasy site on the market. With the ability to customize the lineup positions, scoring and overall league setup, it is clearly head and shoulders above the rest. Not to mention, U-Sports has partnered with Mock Draft Central to provide an excellent live draft interface, and every season, they listen to the participants on how they can improve.”
And, of course, U-Sports has given its players names from the very beginning. That’s part of what makes the whole controversy over CBS Sports adding names to its games this year so amusing (and, at times, frustrating). At the same time, all the attention paid to CBS Sports’ announcement has drawn great publicity for that site’s free game and led to situations such as the incorrect assumption that this is the first season people can play such a game.
That kind of attention for such a large competitor could mean trouble for smaller companies. However, despite attributing some of U-Sports’ success to the fact that the Perimeter Consulting folks “worry about everything,” Karp says the CBS hubbub has actually helped in a way.
“In the past we have had to market to both the merits of college fantasy sports and the merits of U-Sports,” Karp says. “One of the benefits of increased competition is that we can focus more on what makes U-Sports unique. U-Sports offers more customization options and features than any fantasy service, of any sport, and we have long ago tackled the issues that trip up most college fantasy providers in their first few years.”
Who: Brett Baker
