Dear Shareholders:

When we look back to the top moments of the past two seasons, naturally they were dominated by Stephen Strasburg, the phenom who took the baseball world, and our community by storm in 2010 then returned here this year following surgery as the most closely watched pitching prospect in the history of baseball.

But the Syracuse Chiefs’ story for 2011 goes far beyond the field or the clubhouse. We reached an important financial milestone, established a variety of community and minority community initiatives and paved the way for improvements in concessions and the overall fan experience.

We are currently in final negotiations with Onondaga County for the maintenance, operations and management of Alliance Bank Stadium. When completed, we expect to announce the purchase of a new video scoreboard and improvements to the family picnic area and in our ticketing technology, among other improvements in the coming years.

The staff of the Syracuse Chiefs Baseball Club is ready to continue building upon its 50 years of successful management, operation and marketing of the facility. We take great pride in our 100 years of bringing Minor League Baseball to Syracuse and take seriously our role in providing a positive economic impact for our community.

We are pleased to outline our 2011 accomplishments in this report, as well as look ahead to an exciting 2012 season.

Sincerely,

Ron GersbacherPresident

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Key Accomplishments During 2011

Final Loan Payment On September 30, 2011, the Syracuse Chiefs made the 180th consecutive and final payment on a $4 million loan issued in 1996 as part of the team’s original lease agreement with Onondaga County. The grand total of all payments made by the ball club over the 15-year term was $6,396,136. During the initial planning for the construction of Alliance Bank Stadium, the Chiefs Board of Directors agreed to a yearly rent payment schedule with Onondaga County officials. However, as the project costs escalated, county leaders asked the ball club to make a one-time, up-front payment rather than the previously agreed-upon monthly payment schedule. By taking that course of action, we sacrificed short-term profits in the interest of long-term existence.

New Concessions Agreement

The Syracuse Chiefs have selected Ovations Food Services, LP, a nationally recognized leader in providing high-quality food and beverage services, to provide exclusive concession and catering services at Alliance Bank Stadium.

Ovations will begin operations on Opening Day, April 5, 2012. Renovations will be made to existing concessions and capital improvements to existing food service facilities will support Ovations’ introduction of new menu items, many of which feature regional specialties and flavors.

Outreach Effort to Minorities

Syracuse has been identified as having one of the largest minority communities with a Minor League Baseball franchise. As such, and as part of Minor League Baseball’s commitment to minority programs, the Chiefs have embarked on an outreach initiative to these groups by:

• Hiring Otis Jennings, former Syracuse parks director, to make connections with minority communities

• Establishing a non-profit foundation for programs supporting minority outreach, among other programs

• Sending players into city schools and minority communities. (Players visited six Syracuse elementary schools in May and June).

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Establishment of a Charitable Foundation

The Syracuse Chiefs Charitable Foundation, Inc., a 501 (c)3 corporation, was formed in 2011 and is dedicated to providing opportunities for children in Central New York.

Community Engagement

Hospital visit (Golisano Children’s Hospital at Upstate): For the 44th consecutive year Chiefs players, coaches, and members of the team’s front office made a visit to children at the Golisano Children’s Hospital at Upstate. 10th Mountain Division at Fort Drum visit (United States Army): Chiefs players, coaches, and members of the team’s front office took a two-

hour bus ride to visit with United States Army soldiers at Fort Drum. The Chiefs delegation learned about the daily life of a

soldier, took a tour of the facility, and signed autographs for the soldiers.

Baseball clinic (Inner City Little League RBI program): Chiefs players put on a free baseball clinic for children in the Syracuse Inner City Little League on the field at Alliance Bank Stadium. Children learned the basics of throwing, fielding, and hitting from the players. The players also gave brief talks about the importance of school

and family.

Whiffle ball game (First Tee of Syracuse): Children from the First Tee of Syracuse were invited to participate in a game of whiffle ball on the field at Alliance Bank Stadium with Chiefs players and LPGA Futures Tour

Golfers. The mission statement of The First Tee of Syracuse is to impact the lives of young people by providing learning facilities and educational programs that promote character development and life-enhancing values through the game of golf. National Anthem/Team Recognition Fundraisers (Various): The Syracuse Chiefs offered local sports teams and school music groups the opportunity to sell tickets to select games as a fundraiser. The groups sold the tickets at the group rate of $9.00 each and kept $4.00 from each ticket as their profit. The Chiefs also contributed $0.50 for each ticket used on game night to the organization. The music groups that participated in a fundraiser performed the National Anthem

on the night of the game that they sold tickets for. The sports teams were recognized on the field prior to the game that they sold tickets for.

Outreach and charitable programs for 2011

Big Brothers Big Sisters Day (Big Brothers Big Sisters)

Homers for Hillside (Hillside Family of Agencies)

Home runs over the manual scoreboard (Francis House)

Doubles for Diabetes (Juvenile Diabetes Research Foundation)Raised over $100,000 over the past 22 years!

Strike Out the Overpopulation of Pets (Spay and Neuter Syracuse)

Syracuse Kidney Walk (National Kidney Foundation of Central New York, Inc.) Strike Out Lou Gehrig’s Disease High School Baseball Classic (The ALS Association)

The Autism Awareness Day (Families for Effective Autism Treatment of CNY) Volunteerism Fair (Various) Safe Kids Upstate New York Night (Safe Kids Upstate New York)

AAA Safety Patrol Night(AAA of Western & Central New York)

Armed Forces Celebration (Adopt a US Soldier)

Longhouse Council BSA Night (Boy Scouts of America) Girl Scouts of NYPENN Pathways Day (Girl Scouts of America) Volunteer Firefighter Night (Onondaga County Volunteer Firefighter Association) Little League Night (District 8 Little League)

United Methodist Night (Crossroads District United Methodist Men)

Lions Club Night (Lions Club of Syracuse)

Breast Cancer Awareness Night (Carol M. Baldwin Breast Cancer Research Fund of CNY, Inc.) Christmas in July collection (Salvation Army of Syracuse)

Syracuse Fire Department Night(Syracuse Fire Association Local 280)

Prostate Cancer Awareness Night (Ed Randall’s Bat for the Cure) Onondaga County Public Library Night (Onondaga County Public Libraries)

Mystery Baseball Night (Syracuse Chiefs Charitable Foundation, Inc.)

Jersey Raffles (Syracuse Chiefs Charitable Foundation, Inc.)

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Looking Ahead to 2012—Our Business Model for Success

Marketing Partnership with Syracuse University

The Syracuse Chiefs have entered into an on-going partnership throughout 2012 with the David B. Falk College of Sport and Human Dynamics at Syracuse University. Through this partnership, S.U. students and our staff will engage in a variety of research activities in an effort to identify new marketing initiatives, audience research, advertising strategies, increase attendance through ticket sales programs and improve the overall fan experience. The Sports Management faculty consists of world-renowned individuals with a wealth of experience in economics, marketing and event management.

East Coast Professional Baseball Showcase

The Syracuse Chiefs, Syracuse Convention & Visitors Bureau (SCVB) and Syracuse Sports Corporation (SSC), announced that Syracuse will host the 2012 East Coast

Professional Baseball Showcase at Alliance Bank Stadium, July 31 through August 4, 2012. Event organizers signed a three-year

contract, ensuring the showcase will call Syracuse home through 2014.

Marketing

Public &CommunityRelations

Operations &Management

• Syracuse University Sports Management• Plan B. Branding• Time Warner Cable• Cumulus Broadcasting• Syracuse Chiefs

• Baseball Advanced Media• Baseball Internet Rights Company• Syracuse Chiefs Charitable Foundation, Inc.

• Ovations Food Services, LP.• Washington Nationals• Onondaga County

Syracuse Chiefs Business Model SYRACUSE UNIVERSITY ORANGE

NOTE: The marks of Syracuse University are controlled under a licensing program administered by The Collegiate Licensing Company. Any use of these marks will require written approval from The Collegiate Licensing Company.

FEBRUARY 4, 2009PAGE 1

Yes No Restrictions• University seal permitted on products for resale:• Alterations to seal permitted:• Alterations to Block S permitted:• Overlaying / intersecting graphics permitted with seal:• University licenses consumables:• University licenses health & beauty products:• University permits numbers on products for resale:• Mascot caricatures permitted:• Cross licensing with other marks permitted:• NO USE of current player's name, image, or likeness is permitted on commercial products in violation of NCAA rules and regulations.• NO REFERENCES to alcohol, drugs, or tobacco related products may be used in conjunction with University marks.• Use of the “Aggressive Otto” mark will be approved on a case-by-case basis. Licensees will be required to sign to an addendum to their current license agreement with CLC for Syracuse University to use this logo. All merchandise featuring this mark will garner a 10% royalty rate.

Special approval required.

Special approval required.

ORANGE NAVY BLACK

ORANGENAVYBLACKWHITE

PANTONE 1655PANTONE 282PANTONE PROCESS BLACKWHITE

MADEIRA 1078MADEIRA 1242BLACKWHITE

RA 2236RA 2613BLACKWHITE

Vintage 44 helmet can only be used with permission from Syracuse licensing.

NOTE: The marks of Syracuse University are controlled under a licensing program administered by The Collegiate Licensing Company. Any use of these marks will require written approval from The Collegiate Licensing Company.

LOCATION: SYRACUSE, NYMASCOT: ORANGEMASCOT NICKNAME: OTTO

ESTABLISHED DATE: 1870CONFERENCE: BIG EASTSECONDARY TYPEFACE: FACET EXTRA BOLD REGULAR

Syracuse ®Syracuse University ®Syracuse U ®SU ®Syracuse Basketball ®Syracuse Football ®Syracuse Lacrosse ®

Orange ®Carrier Dome ®Orange Pack ®'Cuse ®Go Orange ®We’re Orange™Together

Yes No Restrictions• University seal permitted on products for resale:• Alterations to seal permitted:• Alterations to Block S permitted:• Overlaying / intersecting graphics permitted with seal:• University licenses consumables:• University licenses health & beauty products:• University permits numbers on products for resale:• Mascot caricatures permitted:• Cross licensing with other marks permitted:• NO USE of current player's name, image, or likeness is permitted on commercial products in violation of NCAA rules and regulations.• NO REFERENCES to alcohol, drugs, or tobacco related products may be used in conjunction with University marks.• Use of the “Aggressive Otto” mark will be approved on a case-by-case basis. Licensees will be required to sign to an addendum to their current license agreement with CLC for Syracuse University to use this logo. All merchandise featuring this mark will garner a 10% royalty rate.

Special approval required.

Special approval required.

Preferred mark forfashion colors

RESTRICTIONS:You may not alter, skew, or distort any logos

You may not place any other graphics on top of or obstructing any school logosYou may not place any logos against overly distracting backgrounds or textures

LOCATION: SYRACUSE, NYMASCOT: ORANGEMASCOT NICKNAME: OTTO

ESTABLISHED DATE: 1870CONFERENCE: BIG EASTSECONDARY TYPEFACE: FACET EXTRA BOLD REGULAR

Syracuse ®Syracuse University ®Syracuse U ®SU ®Syracuse Basketball ®Syracuse Football ®Syracuse Lacrosse ®

Orange ®Carrier Dome ®Orange Pack ®'Cuse ®Go Orange ®We’re Orange™Together

ORANGE NAVY BLACK

ORANGENAVYBLACKWHITE

PANTONE 1655PANTONE 282PANTONE PROCESS BLACKWHITE

MADEIRA 1078MADEIRA 1242BLACKWHITE

RA 2236RA 2613BLACKWHITE

SYRACUSE UNIVERSITY ORANGEFEBRUARY 4, 2009PAGE 2

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The showcase has the capability of launching the Major League Baseball careers of 150 elite high school baseball players from the East Coast in attendance, and draws hundreds of

college coaches and scouts from MLB teams each year.

This event will generate 5,000 hotel room nights in August and $1 million for the local economy.

Ten Yankees Games Added to the Schedule

Due to the reconstruction project at PNC Field, 10 Scranton/Wilkes-Barre Yankees home games will be played at Alliance Bank Stadium in 2012 - eight against the Chiefs and two others against the Buffalo Bisons. Scranton/Wilkes-Barre will be the home team in Syracuse on April 14- 15, June 14-17, and July 14-15 against the Chiefs. The Yankees will host the

Bisons on July 7-8. The additional games will complement the 72 Syracuse Chiefs games scheduled to be played at the Alliance Bank Stadium.

New video scoreboard and facility improvement on tap for 2012

Pending the outcome of our lease discussions, we are committed to installing a new state-of-the-art video scoreboard, improving the group hospitality and luxury suite areas and

renovating the popular family park located behind right field. Our ticketing system and technology will also be updated and improved.

Plan B. Branding Partnership & Chiefsville U.S.A.

We will be partnering with Plan B. Branding Company developing a “theme kit” for the use in many of our marketing events for the 2012 season. Plan B. Branding is an industry leader in professional baseball that has previously re-branded the logos used by Major League Baseball to market its post-season events and re-created the brand for many Major League and Minor League teams. As part of our initiative to attract younger and more diverse audiences to baseball, we are branding the Chiefs’ experience at the stadium as Chiefsville U.S.A. Look for new Chiefsville graphics and signage in and around the stadium in the upcoming year.

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