Case Study: XOS technology gives major US sports teams a competitive edge  

Sports teams in the US are looking to technology to provide an advantage over their rivals, writes Dan Williams, president of US investment advisory and business development firm Imperial Partners, and they are increasingly looking to a company in Orlando, Florida named XOS Technologies.

Americans like to think they invented competition. This is evidenced by the ever increasing stakes of winning in American sport. This competitive spiral has impacted virtually every aspect of sport, including player salaries, bowl game and tournament receipts, tickets prices, team naming rights and television contracts, to name a few. But sometimes this competitive spirit comes in conflict with Americans' sense of equality. For example, why should a team like the New York Yankees, who are in the largest media market in the US, be able to carry a payroll that is more than double that of some competitors?
As a result of such inequalities, both professional and amateur organisations have been implementing restrictions to literally 'level the playing field' between teams. Such mechanisms include free agency, salary caps and revenue sharing. At the college level (a breeding ground for future pros), the National Collegiate Athletic Association (NCAA) has added restrictions to the recruiting process, the number of scholarships a school may grant, as well as the amount of time players can spend with coaches. Since the stakes for winning continue to rise, though, teams at both the pro and amateur levels must find new ways to overcome these restrictions. In many cases, these teams are now looking to technology to provide an advantage, and they are increasingly looking to a company in Orlando, Florida named XOS Technologies.

XOS to the rescue

Founded in 1999, XOS started out as an audio/video integration company, building the networks and video rooms for some of the country's newest stadia and arenas. XOS has since added video editing software to its product portfolio and this technology offering has contributed to the company's growth.
The company's video editing software allows a coaching staff to breakdown video of each individual play and sort them in any manner they choose. XOS' video editing solution, called XOS Director, helps solve several key business issues for teams, since they must deal with very large volumes of video and perhaps thousands of pre-planned plays. In addition, teams must be able to manage and review video content in a timely basis during their hectic playing schedule, and be able to distribute this information just as quickly to the coaching staff and team. This schedule therefore places a premium on time and the efficient use of resources.
Since the company's solution is native to the MPEG-2 compression format (the same format used by DVDs), the team can create DVDs in faster than realtime and distribute them quickly to the coaching staff and team. XOS uses its proprietary technology to take advantage of the MPEG2 format. The XOS Director is also integrated with each team's book of play diagrams. This allows the coach to toggle back and forth between pre-set plays and actual game video to help prepare for an upcoming opponent. All of this can be presented to the team on large screens, along with teleprompting and presentation software.

Rapid growth continues

XOS primarily sells into the US hockey and basketball markets - claiming 75% of the NBA teams as clients. This is XOS' first full year selling into the American professional football market, and the company is experiencing record growth, expecting to double 2002's sales. While XOS has managed to double sales every year since its founding, the company has been able to grow profitably - a rare feat for high growth technology companies.
A large contributor to XOS' success has been the company's strategy to provide a complete product offering, including hardware, software and complete facilities design and integration. To continue its growth, XOS will continue to add new solutions for professional and amateur sports teams. In addition, the company will continue to explore new sports markets such as soccer, both domestically and internationally.

For additional information, contact Dan Williams at +1 407 677 6580
www.xostech.com

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