Brent Handler: Okay. Let me go ahead and take the Saks question, and I’ll have Web do your question regarding December results. First of all, we’re incredibly excited about the Saks relationship. It’s an amazing brand. I spent a lot of time with the team there. I spent a lot of time with the folks at Hudson Bay who are the private equity firm that’s involved in that. And we share a ton of the same values and we obviously sell to the same customers, but in a non-competitive way, which we have found to be somewhat difficult in the travel space to be able to find a luxury partner that could really be complementary for both of us. Our members being able to get access to SaksFirst and their millions of customers being introduced to travel, a category that they’re not really involved in at all.
And so, I think there’s a great meeting of the minds there and there’s tremendous opportunity. Again, none of that is put into our plan for the year, but we’re both very excited about the opportunity there. We’re also excited that Saks has a great option to become a significant shareholder of Inspirato. So, walking through how this works. They receive performance warrants at $2.00 a share, and they can get up to about 15% ownership into Inspirato based on our current capitalization by referring their customers and selling their customers. And in simplistic math, Inspirato has roughly about 15,000 paying subscribers, give or take. And they would need to sell over the term of the five years of the relationship about 15,000 club memberships to get to that 15% ownership.
So, they receive a commission for all of their sales. And then, they also receive performance warrants for their sales. And they’re heavily motivated and want to be a big partner of ours. And we think that they would make for an outstanding equity partner. And there’s a lot of work now to go into training. There are nearly 3,000 salespeople. Just as a ratio, Inspirato has in the neighborhood, think of about 100 salespeople, they have about 3,000 salespeople, and we think that there’s just great opportunity for that relationship. Let me go ahead and turn this over to Web now.
Web Neighbor: Thanks, Brent. Mike, in response to your question with regarding our December, in particularly the — sort of the New Year’s Eve sales push that we have every year, we think about that in the context of our prior announcements on reallocating a meaningful portion of the sales force that Brent mentioned of approximately a third of the sales force, reallocated to our new initiatives in Inspirato for Good and Inspirato for Business. That began, I think we first announced it last August. And so, of course, that in total numbers then, one would anticipate our retail sales would diminish proportionately as we ramp up those new pipelines with that reallocated sales force. So, I think our year-end results, while we don’t disclose sort of month-by-month or day-by-day numbers, they were reflective of that trend.
You see that in the tapering of Pass that Brent mentioned. We still feel positive about the overall business mix and actually the diversification of these new demand channels we think are really important for the 2023 guidance and, overall, our path to profitability.
Mike Grondahl: Got it. Thank you.
Operator: Thank you. One moment, please. Our next question comes from the line of Brett Knoblauch from Cantor. Your like is open.
Brett Knoblauch: Hi, guys. Thanks for taking my question. I guess I have two. First, on the locking in customers into longer term subscription agreement but at lower pricing, can you just give some more color on what type of discount you’re getting for this longer-term commitments? How quickly you expect to ramp up those discussions with your existing install and maybe new customers you’re trying to add on to the platform? And then, secondly, could you maybe provide some color on cash burn for the year? I guess, if Pass sales are going to continue to be — or continue to — demand continue to be weak, is that going to really impact deferred revenue? Can negative working capital hit through on cash?