This document serves as a high-level, non-binding overview of the proposed business terms for licensing and implementing the Power Ball Inning. It is intended to provide MLB with a clear understanding of the structure, rights, and financial framework associated with the innovation prior to drafting formal legal agreements. The goal of this term sheet is to align both parties on the core commercial principles—such as exclusivity, royalty structure, and implementation approach—so that further negotiation and contract development can proceed efficiently and transparently.
The Licensor agrees to grant Major League Baseball (MLB) the right to test, use, implement, and commercialize the Power Ball Inning (PBI) subject to the terms set forth herein.
MLB may, at its discretion, conduct a pilot program within any designated Minor League Baseball classifications for the purpose of evaluating competitive, operational, and commercial performance of the Power Ball Inning.
If MLB elects to conduct a pilot:
MLB will hold exclusive rights to test and use the Power Ball Inning within all participating Minor League classifications.
The Licensor will not authorize any other professional baseball league to test, implement, or commercialize the Power Ball Inning during the pilot period.
Royalty obligations will apply during the pilot at the same 5% rate used for Major League implementation.
All pilot-phase royalties will be credited toward MLB’s total financial obligation (“Royalty Cap”) under this agreement.
This pilot structure preserves MLB’s optionality while ensuring exclusivity and contributing toward eventual ownership.
The license will include no upfront fee.
Compensation will be delivered exclusively through a 5%
royalty applied to all Power Ball Inning–specific
advertising revenue, as defined below.
Royalty obligations begin upon:
MLB’s first Minor League pilot activation, or
MLB’s first Major League implementation,
whichever occurs first
Royalties apply solely to gross advertising revenue generated exclusively during Power Ball Inning activations, including but not limited to:
Broadcast and streaming advertising inventory
Digital overlays and inning-specific on-screen graphics
Scoreboard and stadium signage activated only during the Power Ball Inning
Sponsorships or presenting rights directly associated with the Power Ball Inning
No additional MLB revenue categories are included in the royalty calculation.
Royalties will be calculated and remitted quarterly, accompanied by statements detailing all revenue included in the royalty calculation.
All royalty payments—including those generated during any Minor League pilot—will be credited toward MLB’s total financial obligation (“Royalty Cap”) required for perpetual acquisition of the Power Ball Inning intellectual property.
Royalty obligations will continue until cumulative royalty payments
reach the Royalty Cap.
Upon reaching the Royalty Cap, all royalty obligations will cease, and
MLB will be deemed to have satisfied its financial obligation.
MLB will have a period of ten (10) years from initial Major League implementation to meet the Royalty Cap.
(The specific Royalty Cap amount is intentionally omitted and will be communicated separately by the Licensor.)
Exclusivity begins upon the earlier of:
MLB’s first Minor League pilot activation, or
MLB’s first Major League implementation.
From that date forward, MLB will hold exclusive rights to use, implement, broadcast, commercialize, and integrate the Power Ball Inning across all Minor League and Major League Baseball properties.
Exclusivity remains in effect until MLB fully satisfies its total financial obligation. Upon completion, MLB will receive perpetual exclusive ownership of the Power Ball Inning intellectual property.
Ownership of all Power Ball Inning intellectual property will transfer to MLB only upon full satisfaction of MLB’s total financial obligation.
Until completion, all rights remain licensed, non-transferable, and retained by the Licensor.
MLB will provide quarterly revenue statements detailing all Power
Ball Inning–specific revenue.
The Licensor may conduct one independent audit per calendar year.
Any royalty underpayment exceeding ten percent (10%) will require MLB to
remit the corrected amount plus reasonable audit costs.
MLB and the Licensor will mutually determine timelines for Minor League pilot execution (if elected) and Major League implementation.
This Term Sheet is non-binding and intended solely to outline principal business terms for negotiation of a definitive agreement.