Thanks, everybody, for sticking around. I know the weather's changing on us a little bit, but we'll work through this presentation real quick. We'll try to make sure it's very informative. As it says, Kustom Entertainment, we'll try to make it a little entertaining as well. I do want you to know that I have cards that have been made that actually have the QR code. If we go through this rather quickly, know that this card will sit there and download the presentation for you. Just grab one from me.
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A little background on Kustom. My father was an absolute pioneer in the guitar amplifier business. As a matter of fact, that one picture that just scrolled up there, that is the equip my dad actually gave Johnny Cash to help him out when he was down on his luck. I did not grow up in a music store to say. My father really was the one that sat there and had probably, at one time, over probably 25% of the nation's business playing his Kustom amps. Everyone from, here is Kid Rock, there is Diana Ross, there are the Blues Brothers, ZZ Top, John Fogerty, of course.
I had a real nice blessed upbringing. The reason I point a lot of this out is because the last 40 years, I have been in different industries, people would think. The truth of the matter is, I grew up side by side with my father.
I made my first amp when I was 10. I had my first amplifier company when I was 12. Folks got divorced, then I moved out with my father to Colorado, where we started Ross Musical Products when I was 15. We built that up, he sold it. My passion for music kept me involved, so I did stuff with the Academy of Country Music Awards. I had my own record label. The guy that owns the Buffalo Bills, his brother bought me out of that. I put on concerts. I have helped people get concerts started. I went ahead and actually created and bought a country music festival.
This is sort of what we look like right now today, being a pure play entertainment company. We have five different music festivals that we own, and we also have two ticketing platforms, both TicketSmarter and Kustom Tickets, that is under the umbrella.
We recently have been quite busy. We cut a deal with Gilley's. Gilley's has a gaming facility in Park City, which is just north of Wichita. It is a real nice facility that allows me to more than double the capacity of what I had the capability of doing in the previous entity, where I had bought Country Stampede, and they had already entered into a three-year contract. We did have our event in June and set records there. We finalized the selling of the video division, the video that was known for the in-car video and body cameras for law enforcement. What I call the game changer is around the corner with the pending acquisition that we are working on with Tickets For Less.
Real quick by the numbers, TicketSmarter is one of those platforms that over 48 million tickets may be available any given day. They have relationships with numerous colleges and universities, whether it be partnerships on selling their tickets or sponsorship that include tickets.
As I mentioned, we hit a new record at Country Stampede, eclipsing over 42,000 in attendance. The Gilley's, which we have a video that I will show you here in a little bit, is sort of a blend of Country Stampede and what Gilley's will look like for us moving forward. The $6.1 million sale of the video division. Here is the game changer. Tickets For Less, I will get into quite a bit of detail on them because they truly are a piece that Kustom is missing. Kustom is very active in the music side of things. That is what we know. That is what we do.
We put on productions. We put on big productions in arenas. We go stadiums, and we could do them on just give us a parking lot. We could build it out. Tickets For Less is very strong in the sports side of things. They have relationships with the Chiefs, the Titans, Ohio State, Indiana, many others. What's really important with them, they also have an amazing procurement and distribution channel. So whether it's the stuff that we're creating, they can help us with the distribution side of it, or if we need some help, like with TicketSmarter, they also have an amazing back office. They're more of a ticketing platform versus something that you'd be familiar with, maybe a StubHub or SeatGeek or Vivid that's just flipping tickets. Here's TFL by the numbers.
The only reason I only go back to 2024 on the profitability is because of the fact that's all the further we needed to go back for the audits for this acquisition. But they've actually been around since 2004. They've been profitable through all that time, including they were profitable during the pandemic, where not very many companies were. They did see a 57% drop in revenue, but still, I think they made north of $4.5 million in 2020. They currently are on pace to hit their EBITDA numbers that we have on the chart. They also, as I mentioned, they're more of a ticketing platform. They have 25 different entities that use their software and to help them sell tickets and also take in the ticket inventory that they have, that they disperse.
Again, they're one of a few that are involved in both Major League Baseball and the NFL with some of their contracts they have in place. So for me, it's very exciting because while they're very connected on the sports side of things and we have the music side of things, venue's always a little bit of a problem. Finding a venue that you can go in, finding a venue that you can have some input on the food and beverage, the merch, the parking, all those other elements that sit there and really help you create that bottom line number that you're going to be looking for. This is going to be a great win-win. The relationships that I've been blessed to have in the music side of things will be able to open up a lot of doors.
The relationships I've had in the video side, where we've done work for people from NASCAR to Indy to law enforcement, Royal Caribbean cruise lines. We do MetLife Stadium, we do Arrowhead Stadium. So it's just going to be a great relationship that I think we're all going to enjoy very well. I mentioned Country Stampede. It has been around for 30 years. I bought it in March of 2024. I inherited it at the three years that it was at Azura Amphitheater. The first year, I didn't have much input on it. It was in March, and the show's in June. They did 18,000. Then the next year, I had a lot more input. We were able to get over 26,000. Then, as I mentioned, the third year where we really started to hit our stride, we did over 42,000 attended.
Again, almost 1,000 artists over the 30 years between Country Roots and the other in Country Stampede that we've created have been through our doors or we've had some involvement with. This is the mix that I'm going to tell you about. This is a little bit of Country Stampede, so you can see the party that's going on. This is a three day event. But you're going to see the magnitude of a Gilley's, because while I can only really do about 16,000 where I was at, this allows me, depending on seating and what I want to do, 25,000 to 35,000 per day. I was limited to 16,000 on the other.
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I talked about, obviously, our background is very strong in the music side of things. TFL is very strong in the sports side. This is just a couple of the big names that are out there that they have partnerships with, and also they have a tremendous amount of personal seat licenses. They actually have over $42 million in just personal seat licenses. Some really good names, and one in particular I want to point out on here, I am from Kansas City, and that is not who I am going to point out, is the Tennessee Titans. The reason I point that out is much like the Raiders. I do not know if you have ever had the chance to go to Allegiant Stadium in Las Vegas, but it is sold out every time.
It is not sold out by Raiders fans that want to go watch a three and 13 team. It is the people that travel there. So, it is a destination location. The Titans, which indirectly, I think TFL is going to end up controlling almost 8,000 seats. They are opening up a brand-new stadium, and it is going to actually have the Super Bowl there in 2030.
This is a venue that is really going to shine for them in 2027. So it is almost completed, and that is a 2027 on their roadmap. Again, as I mentioned, they are more of a ticketing platform. The things that they will be able to do to help out TicketSmarter, Kustom 440 and our production company, and many others that you can see these names. One of the things that TFL has a great relationship with the three of the largest, let us say, benefit companies.
Benefit as far as the 7-Elevens, the Lowe's, anyone that for their employees. It is more of an employee benefit. So their employees can get on one of these three sites and buy tickets cheaper. Sometimes the employees participate as a perk. There is just a lot of avenues to the biggest names that are getting funneled, honestly, back up to TFL on regards to buying the content that they will have listed. Roughly right now, of the Fortune 500, 71% of them use just these three at the top here. So that is an amazing relationship for us. Ticket Connect. This is the technology platform I was telling you about that they already have numerous white label entities out there using this. It is a real no cost to them outside of the engineering that they did.
You can see what their sales were in 2024 and how dramatically they have already jumped up in 2025, and they also still are making tremendous headway in 2026. Love this. There are essentially three mechanisms in regards to TFL's financing. One is, let us call it the TFL Connect, which sits there and brings and provides technology. Two, which is small, but it is a factor. Are people that buy tickets that are not going to be able to use them, so they resell them. So it is similar to just your everyday StubHub or SeatGeek or Vivid or something like that. You are just flipping tickets. Then three is the bigger partnerships that they have. That is about 70% of their total business.
[inaudible].
Here is what I like about this. As I keep talking about is the synergies here. Again, their content is very heavy in sports. Our content is very heavy in the music side of things. The overlap is the numerous relationships that we have, whether it be with universities, teams, just venues in generality.
When you start taking everything and we start putting them together, and we start opening up the doors of being able to take a TFL that is very well recognized in the industry, and you can go to an entity like Indianapolis 500, or you go talk to the guys that do the Breeders' Cup and say, "I would like to talk to you and make a proposal to us being able to potentially handle your ticketing for you." A lot of those big companies and those big events do not want to do that, because too much at risk. That is why you do have the bigger entities, which most of you know the 800-pound gorilla in regards to Ticketmaster. They get it, because they cannot dare have something go wrong or at least have someone behind them that could back it up. TFL is that strong.
They will not embarrass us, no matter who I take them in front of. They are very solid. If you look at the numbers, when we talk about just their numbers and our numbers, they are great numbers. Anticipating $18.3 million in just 2026. 2027, it will be a bigger number. But it is the synergies that we are going to be able to bring together and help each other that really give you a bigger number, the $23.3 million or what we are looking at right now, because we do believe we get this completed, is the $27.5 million. That is essentially only like a 7.0x Adjusted EBITDA in regards to the acquisition that we are making. If you look at the peers that are out there, all of them are trading at much higher, what do I want to say? Multiples.
That is why I put this one up here, because this is the page. This is the take-home page. Because if you go back and you look at a Live Nation, because essentially we are very similar. We will be very similar. You go back 10 years ago, their stock was roughly $25. Today, I think it was $174. But either way, great growth. I look forward to seeing you all here in 10 years from now and hopefully exceed that chart. Might as well have some expectations, right? The bottom line is, look at the numbers.
I think the synergies of us being able to work together, all the universities that we have relationships with, the seat licenses that they already have, the revenue numbers that we can have a pretty clear understanding of, and again, I think that is one of the real reasons that I got into going down this path, is because it was in June of 2022 that I heard Live Nation say that 2023 was going to be an all-time record year. It was. That is when I realized, man, they got 18 months worth of visibility. You need that because, again, the artists that we are booking right now, we have already got our offers out all for 2027. We are already looking at 2028, especially because we are going to do Country Stampede, Nevada.
The gentleman that owns Gilley's, he also owns Treasure Island and Circus Circus, so we are going to do Country Stampede on his 102 acres he has right behind Circus Circus on the Strip in 2028. There are just a lot of things that we are going to be able to do together, and they will make us a better ticketing company. We will make them a better entertainment company and look forward to a lot of success. I just want to point out, I know that I have talked a lot about my father, and I love that man, and I would not be where I am at without him. But I have been involved in the business. I never gave it up. There are a lot of recognizable faces on here. I want to continue to carry on what he started. This means a lot to me.
I am not doing this just because it is fun. I really want to sit there and build something much like he did. I feel a big responsibility here.
There's a question for our CFO. I don't want to give the raw answer in a report coming [inaudible] .
I'll be glad to answer any questions. We got a few minutes here if you all have any, and I think I know the one that I'll go ahead, just because if it doesn't get asked, it needs to be asked, is how are you going to finance this? We're small with big dreams.
I think it's one of those things when you have something that's attractive and you've got the capital markets people, the fund managers, and they too can recognize the entry point that they would be able to get involved in this at. It'll be very exciting to them. They would be very intrigued, and we have already had light discussions. Obviously, this is a step that has to take on. You have to go through the SEC, you got your filings. We've already done the audits and everything else. We've got everything pretty well lined up. I've got a great team around us. Hopefully, this is something that will be really publicly known, and the valuations will be set, just like taking anything public, and then it trades at what it's going to trade at.
I think we really have a shot at getting this pulled off in the next 30-45 days because we have been working on this behind the scenes for some time now. The financing will be something that'll be led by a couple of large institutions. Then we've got some backfilling that will be done as well. Yes, sir.
Can you talk more about the competition on the TFL side of things? Platforms like tickets.com [inaudible ] or others like that.
Yeah. You got your Ticketmasters, obviously, right? They got the rights too. This is sort of unique. They've got the rights with the NFL, right? That doesn't prevent TFL, Tickets For Less, to go in and negotiate a deal directly with the team as the official reseller or prevent them from going out and negotiating a deal on personal seat licenses. They could go about that. The others that are out there. That's a good point. If you look at the others that are out there, let me get back to TFL. Since 2004, they've been profitable even through the pandemic, and now they're still making $15 million, $16 million, $20 million at times. This is an LLC in Kansas City. We're based as well, some friends of mine, and they don't own a building. They don't own a company car. They have no depreciable assets, zero.
Here you go. Here's your tax bill, too. That's the other synergies that come into play. Nothing anyone should be proud of, but we do have some net operating loss carryforwards that will come into play and help with the cash flow right out of the gate for everybody. Instead of them having to be making payments to the government and everything else, the money stays in, and we can continue to build and grow the entity. The other thing that they have is their platform, their technology. Some very, very unique pricing tools that they have that the others do not have. I know they're working on it, but we're clearly. They were first to market, so that's out there. That gives them a little bit of competitive edge as well.
How profitable is just your music festival? If you strip out everything else, if all you had was that music festival, because I know I've read the stats showing Coachella is very profitable. A lot of other music festivals lose money every year. Can you tell us how profitable you are?
Yeah. Coachella, that is a great example. They essentially lease the ground, and there may be a little bit of an override to everybody, but that is the key. The deal that we originally had up there to where I am only going to get 25% of the concessions. I am only going to get X of the parking. I am only going to get. All that was already. I am going to have to pay how much per ticket? Let alone I am already renting the damn thing for a bunch of money. The difference is like a Coachella where you can actually control everything, versus someone that has to go into a facility to where all they are really plugging in there is the entertainment. Like the deal with Gilley's. I had to ride out the three years because I already had a commitment, but Gilley's, no problem.
We have got that worked out. We have real good concessions, parking, camping, all those rights. So it increases. So if you could sit there and just give me a parking lot, and all I have got to do is rent the parking lot, you are looking at 30%-40% margins for the event. I think Coachella did, what? $200 million and $70 million? Was it $70 million that they made on $200 million? Great numbers. So it really depends on the facility you are at and what you can do. I will tell you one more that TFL did. They sat there and worked with the Kansas City Chiefs, and they were able to rent Arrowhead, and they did more of a partnership. They did not take all the risk. They did a 50/50 deal. Then they had Cincinnati and Nebraska, two college football teams, come and play at Arrowhead.
Paid, I want to say, each of the schools like $3 million. Costs as such that was associated with it. Ended up and split $1.4 million a piece is what they split. But that is because they entered into a deal, cut a deal. We are just splitting this 50/50, and they both walked away with $1.4 million. So-
Thank you.
Yeah. Look, I've only got 20 seconds, but again, the presentation is on my card here if you'd like it, and I'm sure we've got it posted on our website, too. I thank you for your time today. Appreciate you.