Fledgling golf lifestyle media company Back9Network is raising an additional $15 million to expand and support its content and employee base as the startup searches for a television deal.
The Hartford-based company, which has its 13,000-square-foot headquarters in downtown’s iconic Boat Building and is erecting a digital production studio on Constitution Plaza in the former Spris restaurant space, is in its third fundraising round. If the company raises the money it will bring its total capital contributions to $37 million, said Back9Network CEO James Bosworth.
Bosworth said the new funds will help the company, which has received a $4 million loan from the state, expand its content mix including covering license fees for programs to air on its network or website. Back9 acquired the rights to more than 15 original programming concepts, and several have been produced already, Bosworth said.
The company hopes to launch a 24/7 TV channel and developed a full year’s worth of programming that it’s showcasing to satellite and cable providers. Landing a deal, however, has been a challenge, Bosworth said.
“Most networks are part of a huge media conglomerate,” Bosworth said. “It’s a lot harder for an independent network to get launched.”
Still, Bosworth, who hoped to have a TV deal as early as last year, said he remains optimistic Back9 will eventually get on TV, although he didn’t provide a specific timeline for when that may happen. He said he and his executive team remain in contract talks with four major cable and satellite providers.
Once a deal is signed, it will take about 100 days to get ramped up and officially on air, said Carlos Silva, Back9Network’s president.
The network is meant to be an alternative to the Golf Channel, which caters largely to golf fans. Back9 isn’t interested in broadcasting live golf tournaments. Instead it aims to target the golf consumer by offering TV programming related to travel, fashion, and equipment that is attractive to a wider ranging audience. That includes women, kids, minorities, new golfers as well as the avid fan. Programming will be a mix of original shows including celebrity profiles, reality shows, and comedic series centered on and around golf.
Bosworth said the company has made progress expanding its digital platform, which includes its website where much of its content is available. He said the site has gone from 20,000 unique visitors a month about a year ago, to getting that many eyeballs daily. Back9 also started to generate advertising revenue from its website, including sponsorships on daily email newsletters and videos.
The targets in raising capital are high-net-worth individuals, Bosworth said, and about 60 percent of their investors live in Connecticut. Some of the new funds will also help Back9 pay for its expanding workforce. The company now has about 40 employees. If it lands a TV deal, an additional 50 or so new jobs will be created, he said.
Progress has also been made on the digital studio. Most wiring and technical infrastructure is in place, Silva said, although the space hasn’t been outfitted. They’ve spent about $4 million on the studio so far and the total investment will be $8 million, Silva said.
Back9 has faced controversy recently, including a lawsuit by a former vice president — Steve Shaw — who accused the company of stiffing him out of $80,000. In the suit, Shaw, who was a consultant for Back9, said he was promised a full-time job with benefits but was laid off instead.
Bosworth said the accusation is “baseless,” and the company is fighting the claim. He said Back9 paid Shaw $200,000 in consulting fees and that Shaw had other clients while he was working with the golf lifestyle network.
The suit, however, has created a distraction for management, Bosworth said.
