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Need to manipulate type in this fashion for some pennants.........I do not use illustrator much, mostly InDesign so need some step by step help.
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For a quick and dirty solution you could create a polygon and use it as an envelope. Please refer to the documentation for step by step instructions:
Distort or reshape using envelopes in Illustrator
But if you want the text to look really good in this, it will be a lot of manual pushing anchors around.
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i think the best way to get something like this exactly right would be to draw the individual characters with a set of guides
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i already showed you how to do this..lol