All-Star An Article About Varsity Brands...

[randomactsofcheer]

How long before the NY Times picks up on this? TBH the article hasn't been taken down and none of it is being called slander. It is blanket statements about it being misleading or false, which any journalist will tell you it probably has a lot of truth to it. So what happens if this becomes the next major news story?

It would be pretty easy for parents, coaches, gym owners, vendors, etc to contact the Associated Press bureau for their area...

Bureaus

 

[Official OWECheer]

How long before the NY Times picks up on this? TBH the article hasn't been taken down and none of it is being called slander. It is blanket statements about it being misleading or false, which any journalist will tell you it probably has a lot of truth to it. So what happens if this becomes the next major news story?

As usual, no one will give a crap (sadly).

It has felt for years that the majority of medium and smaller gyms were simply waiting for the large gyms to say walk away and they would gladly follow. That hasn't happened.

In talking with some coaches today the consensus was with many of the small gyms is that they are tired of hearing talk of a revolution year after year and nothing happens. So many of them are throwing in the towel, not because they agree or support Varsity but because they see no other option and they are tired of the talk but no action.

Another point was made that if as a small gym owner you are reluctant to turn away from a 4000.00 rebate check what makes you think the mega gyms that are getting really really big rebate checks are willing to walk away from that just to prove a point

If we had done something years ago, we would not be at this point. We didn't listen. We were so worried about drinking the teal kool aid that no one paid close attention to what was flowing in gallons out of Memphis. People sounded the alarm and it was summarily ignored. We been had. We were hoodwinked. Bamboozled. Led astray. Run amok.

Varsity is a monopoly. Anyone and anything that rises against them, they crush it or buy it. With athlete registrations they can now market their services directly to the athlete and parent and as a coach you have no control over it. They can place a gym (or be the silent partner in a gym) in your town and pull an instant mailing list from every gym in your area with a few clicks of a mouse. Put in a couple of high profile celebrities that they also help build up and a couple of name coaches and what do you think is their intention for your gym? All because you gave them the info. They didn't steal it. I am glad I just teach tumbling and am branching out away from USASF so I can speak clearly on some of these issues without having their sword over my head.

You gave them the power that they have. And now you are too scared to do anything about it.

Huh?

People often never listen until it's too late. Now, well. It's probably too late.

And that is what enrages me.

The rebate check might sound great now, but what are they going to do when 99% of families can no longer afford cheer and the gym bubble pops? All-star could (read: most likely will) suffer a massive collapse. What is a sport without an abundance of athletes? Who will coaches be able to instruct? Who will gym owners be able to hire? This isn't equestrian, you need a sizable number of kids to be form a team and even more for a gym.

I would love to see #WeChooseChildren as a hashtag and as the basis for a code of ethics in this sport, but I guess that that will never happen.

 

[Official OWECheer]

Same thing it has always been...to try to take over the world....BWHAAAAA!

Sorry. Couldn't resist.

The issue is that we have allowed them to have such a stranglehold that many don't see a feasible way to extricate themselves AND offer quality competitive opportunities for their athletes with meaningful end of year opportunities. I mean if you are not going to their comps, you are buying their uniforms, you are using their resources. Many are waiting on rebate checks to supplement what they are not making through gym programming. Programming that they took advice from them to implement in the first place.

This year there are numerous gyms offering competitions locally in an attempt to take back part of the market share. The overwhelming issues are how Varsity/USASF will respond if any of them are deemed a true threat and are gym owners sick and tired of it enough to say no to Varsity/USASF and yes to going back to competing in HS gyms, college gyms, and smaller older venues? No Worlds Bids, no Summit Bids. But returning to sport back to the athletes and parents and making it affordable once again?

If this is too hard for people, then I think we know EXACTLY where they stand.

I searched the #WeChooseVarsity hashtag, and it was interesting to see who did and didn't tweet it.

 

[mstealtoyou]

Thanks for the shout out @mstealtoyou. Dinosaur and a few others that were run from the boards as being conspiracy theorists, troublemakers, cheer ignorant, and my personal favorite if you haven't coached a winning Worlds team you have no need to speak on these types of things. Look at the things that were denied over again including by people who would of known they were lying/covering up/keeping mum when they were attacking people on previous board. Now these things are well known by most who have been in the industry.

Varsity/USASF is one in the same
Inadequate coaches safety registration
Bids regularly given to programs bringing more teams to a bid competition over a program only bringing one-two teams
Tracing the money circle: Varsity gives money to EP who gives money to bid winner, who gives money to USASF which is really Varsity.
Untrained and inexperienced judges being used in major competitions over the well trained judges - who all seemed to be more independent and not willing to alter/change scores
Major registration discounts given to major programs to attend EP events thereby making it very affordable as a program for them to travel and attend a marque event, where small gyms couldn't catch a break.
CheerSport owned by Varsity/USASF
Banning Crop Tops and shifting to one piece
Tumbling restrictions being placed and being blamed on small gyms that are never named but always blamed.
Being connected to Varsity/USASF typically gave more favorable competition results
Varsity owns/runs USA Cheer
The rise of mega gyms (some with Varsity backing) becoming like in gymnastics Regional Training Centers and pulling talent away from smaller gyms trying to survive.
Varsity/USASF Buying of independent EP's to give consumers less affordable and viable competitive options.
STUNT created to lock that market away from NCATA. There was no interest in this format until NCATA started getting traction
Athlete registration fees
The spies on the boards who never disclosed they worked with the EP's, vendors, regulating bodies, etc, so everything that was said was reported back to them - even without many of the previous board admins knowing who they were.
Cheer is a business First and Foremost. That will be protected at all costs.

So far the only thing we have been wrong on (and I still reserve judgement on this one) is USASF moving to a different location. It is still window dressing IMHO until the staffing is completely separate and are not run by Varsity.

The big question what is coming next?

Long slow clap

 

[tumbleyoda]

While I agree with your entire post and we all know those things and more have happened, I separated this part out in particular because not all that long ago (think tryout season) a scenario pretty close to this description is rumored to have taken place. Wasn't a new gym that moved in, but an existing gym given a mailing list and contacts.

I am pretty sure I am aware of a couple of others that this same thing has happened to. Something is just not right with some of these "surprise" mergers, new gym locations, new gyms just popping up conveniently located near other gyms that are known not to be big Varsity/USASF supporters.

 

[catlady]

I guess I'm one of those big bad parents that truly believe Varsity is not the enemy we make them out to be. I worked for a Fortune Five that was extremely cash rich for many years and received a lot of criticism because it was so wealthy, right up until the point it was taken over by a bigger and wealthier fish in the pond.

There's enough business for everyone? Yes, if you want to keep it small but, that's not what people are wanting. Vernon and Pearl can't put on an NCA or Cheersport. I would love for a college student to call the GWCC or the Kay Bailey Hutchison Convention Center and see what they have to provide to get a date reserved. Then go to hotels and make sure they have 18,000-20,000 rooms available for that weekend and find hotels willing to trust someone to block off that kind of money without anything in return.....But, I used to be able to find my own room for half the price. No kidding, back in the good ol' days when it was half the size. Last year I rented a car for $17 per day, this year $38. Last year my flight cost 7,000 points per ticket, this year 12,500. Varsity doesn't control them, what happened? We happened.

I'll go ahead and be odd parent out, my kids love the events, they have fun, they rarely feel judging isn't what it should be, and that's what I pay for. Except for those moments of bad weather, I have found the venues to be clean and staff helpful. Varsity hires many young people that truly seem to love what they're doing, and IMO, do a great job. You want bigger and better but, you also want all the Vernon and Pearls to have room in the industry, too. It doesn't work that way, financially they can't keep up with our demands, and if they try, that's when they start knocking on the big guys door to take them over because they're in debt to their eyeballs. "How greedy can they be." are the last words of every single person right before they watch the corporation across the pond take them over.

 

[King]

And just like that I get PMs about interest from the AP. Hah. This could be big.

 

[CharlotteASMom]

@catlady I think there is a lot of truth to many of your posts. I do believe that Varsity has taken advantage of parts of this industry but many times it is a result of things that parents or the gyms have requested. It's easier to point the finger at Varsity then at ourselves. Some of the biggest anti-Varsity gyms out there have multiple uniforms, practice wear, and warm ups, pricey gifts for their athletes before leaving for each competition, required spirit wear for each competition, and then travel to multiple competitions across the country. Throw in the makeup, tanning, bows, hired stylists, gas money to drive 3+ hours to the gym, kids willing to fly into a gym every week, or for that matter relocate and pay for a second residence and you've got an industry that begs to be taken advantage of. Why would I not charge you extra every night for STP when you have so clearly shown you're willing to pay big money for all these other "necessities"?

 

[Michael White]

I have tried to do some research, but it's very hard with Varsity Brands. Of the $1.2 Billion dollars in Revenue, Varsity (one of three branches of Varsity Brands) boasts a total revenue of $400 million dollars and is labeled "The workhorse of Varsity Brands". Now, from my years as an Engineering student (hooray for graduating), I know that revenue is total money in. Profit = Revenue - Expenses. Too bad there appears to be no way to check the number for profits or expenses. The information just isn't available. I do know this, like most Billion Dollar CEOs Jeff Webb isn't stupid. He isn't going to take too big a risk, (so you can bet the $2 million they're spending in China is pocket change). When transparency isn't available, it really makes you wonder what lurks behind the glass. If their profit was anywhere between one and two million, which is about average for a half a billion dollar company (remember that this is after payroll, renting of venues, cost of materials, advertising, etc.), I would agree that this is kind of a witch hunt. If profit is any higher, then they are overcharging and abusing their monopoly-like status. If anyone can find any information to add to this, I'd enjoy seeing it.

Top 100: Varsity squad leader Jeff Webb rallies billion-dollar spirit brands - Memphis Business Journal

 

[Michael White]

@catlady I think there is a lot of truth to many of your posts. I do believe that Varsity has taken advantage of parts of this industry but many times it is a result of things that parents or the gyms have requested. It's easier to point the finger at Varsity then at ourselves. Some of the biggest anti-Varsity gyms out there have multiple uniforms, practice wear, and warm ups, pricey gifts for their athletes before leaving for each competition, required spirit wear for each competition, and then travel to multiple competitions across the country. Throw in the makeup, tanning, bows, hired stylists, gas money to drive 3+ hours to the gym, kids willing to fly into a gym every week, or for that matter relocate and pay for a second residence and you've got an industry that begs to be taken advantage of. Why would I not charge you extra every night for STP when you have so clearly shown you're willing to pay big money for all these other "necessities"?

I think that a company that is based on a sport that millions of young athletes (and old athletes ) love, it should want to build and nurture that love. If I were running a cheerleading company, I wouldn't be charging more money "just because I could". I don't want to see this sport collapse, I want to see it grow, and become available to everyone, not just the wealthy elite. I want to see some give AND take, not just all take.

But what do I know, I'm just a tumbling instructor and coach who's trying to cheer full time instead of using my engineering degree. I'm already giving all that I can.

 

[kristenthegreat]

I think that a company that is based on a sport that millions of young athletes (and old athletes ) love, it should want to build and nurture that love. If I were running a cheerleading company, I wouldn't be charging more money "just because I could". I don't want to see this sport collapse, I want to see it grow, and become available to everyone, not just the wealthy elite. I want to see some give AND take, not just all take.

But what do I know, I'm just a tumbling instructor and coach who's trying to cheer full time instead of using my engineering degree. I'm already giving all that I can.

Varsity is a business, pure and simple. One could argue it's in their best interest to have as many cheerleaders as possible, but that's not necessarily true.

I'm taking an online business-starting course, and there's this idea called 'profit matrix'. You have four quadrants (stick with me, this is about to get nerdy):
Labor of Love- Low profit, few customers
Mass Market- Low profit, many customers
High End- High profit, few customers
GOLDEN GOOSE- High profit, many customers

Cheer has been, to a certain point, mass market. HOWEVER- as a business, you're searching for that *Golden Goose* point. Meaning the maximum amount you can charge while retaining a large portion of customers. Which is what Varsity is searching for. The other issue is loyalty- you want people to love you (or in Varsity's case- give them no other choice). If you can have 100,000 customers (as an example) and make $1 million OR 10,000 HIGHLY dedicated customers and make $1 million, which would you choose? Less customers, less focus, less hassles, same amount of money? If they're pricing out what they believe to be the 'flakes', somehow holding onto average families to some extent, AND getting those big higher-end checks? Why would they change? You want that Golden Goose quadrant, but if you're just shearing off the "non-dedicated" (in your mind) it's no big deal. Higher End is still a great market if they keep coming back!

Now- if the loss of those mid-market families doesn't mesh with the attainment of higher-end ones and they lose a STEEP revenue drop, then they'll have to change. But why would they now? We keep dutifully chugging along at their clip and don't complain.

 

[catlady]

@catlady I think there is a lot of truth to many of your posts. I do believe that Varsity has taken advantage of parts of this industry but many times it is a result of things that parents or the gyms have requested. It's easier to point the finger at Varsity then at ourselves. Some of the biggest anti-Varsity gyms out there have multiple uniforms, practice wear, and warm ups, pricey gifts for their athletes before leaving for each competition, required spirit wear for each competition, and then travel to multiple competitions across the country. Throw in the makeup, tanning, bows, hired stylists, gas money to drive 3+ hours to the gym, kids willing to fly into a gym every week, or for that matter relocate and pay for a second residence and you've got an industry that begs to be taken advantage of. Why would I not charge you extra every night for STP when you have so clearly shown you're willing to pay big money for all these other "necessities"?

We have very different views of STP. Not that I'm a supporter but, we had a parent that worked for Sheraton who basically stated the common link for STP are those sports/activities such as soccer, baseball, cheer, etc. that rely on city property for competitions and need certain time slots for championships. We can argue this point until the cows come home but, I agree with her this is not all about Varsity. Do they receive spiffs? Probably, just like you and I would if we reserve a block for a wedding, you get a room or two comped for a day or two. I don't have a problem with that if it is going to offset the cost of doing business such as housing judges or staff. So, why do they have to reserve blocks? Eighteen thousand rooms are a lot to come by and people are complaining about being 20 miles away. Can you imagine if they didn't reserve rooms? According to Sheraton mom, hotels are the ones that state the demands of how long and how much, not Varsity. Contrary to belief, Varsity does not control all other businesses.

Conflict of interest can get quite murky when you have things such as uniforms that have to be turned around in a VERY short amount of time for your industry to keep it's clientele happy. If outside industries can't meet your industry deadlines for comps, what is the best solution? You find a way to do it yourself. But, the little guy can't sell product at their venues? This is where I'm going to call people out on the carpet and ask if they have to pay for the square footage and charge a price to these vendors that they often don't make in a day, do you then come in and provide the service with your own merchandise to fulfill that need? Parent, athletes and coaches alike mocked the whole "National Champion" thing and now that we are presented with a few options, they're evil and taking advantage of parents because it costs a lot? No kidding. Practice wear? Don't even get me started on parents wanting more merchandise for their kids. Parents complain and want the uniforms to be more modest, so they go to full tops.....Varsity did that just so they could get more orders.

I was a customer service exec for years Varsity, I get it. You're the big guy, no one is going to like you now even if you do what they ask you to. Protect your interests, protect your employees, protect yourself from the guy across the pond. People will complain right up until it is taken from them and then it's all, "What happened? I loved them. I guess it was poorly managed."
:splat:

 

[catlady]

I think that a company that is based on a sport that millions of young athletes (and old athletes ) love, it should want to build and nurture that love. If I were running a cheerleading company, I wouldn't be charging more money "just because I could". I don't want to see this sport collapse, I want to see it grow, and become available to everyone, not just the wealthy elite. I want to see some give AND take, not just all take.

But what do I know, I'm just a tumbling instructor and coach who's trying to cheer full time instead of using my engineering degree. I'm already giving all that I can.

Thank goodness we have people such as yourself dealing with our kids, we are quite blessed as parents to have so many coaches like you in the business. My background is corporate business, and unfortunately, "nurture and love" won't pay the bills if the person charging you rent, insurance, utilities, etc. doesn't live by the same philosophy. I love your heart though, I wish the world was made up of people like you.

 

[Michael White]

Varsity is a business, pure and simple. One could argue it's in their best interest to have as many cheerleaders as possible, but that's not necessarily true.

I'm taking an online business-starting course, and there's this idea called 'profit matrix'. You have four quadrants (stick with me, this is about to get nerdy):
Labor of Love- Low profit, few customers
Mass Market- Low profit, many customers
High End- High profit, few customers
GOLDEN GOOSE- High profit, many customers

Cheer has been, to a certain point, mass market. HOWEVER- as a business, you're searching for that *Golden Goose* point. Meaning the maximum amount you can charge while retaining a large portion of customers. Which is what Varsity is searching for. The other issue is loyalty- you want people to love you (or in Varsity's case- give them no other choice). If you can have 100,000 customers (as an example) and make $1 million OR 10,000 HIGHLY dedicated customers and make $1 million, which would you choose? Less customers, less focus, less hassles, same amount of money? If they're pricing out what they believe to be the 'flakes', somehow holding onto average families to some extent, AND getting those big higher-end checks? Why would they change? You want that Golden Goose quadrant, but if you're just shearing off the "non-dedicated" (in your mind) it's no big deal. Higher End is still a great market if they keep coming back!

Now- if the loss of those mid-market families doesn't mesh with the attainment of higher-end ones and they lose a STEEP revenue drop, then they'll have to change. But why would they now? We keep dutifully chugging along at their clip and don't complain.

I've had my share of business classes, I'm no spring chicken. My stance is they should be mass market, simply because it provides opportunity to all, which is where I stand on the matter from a moral standpoint. This isn't simply a business. It's SO much more than that. If you think it's all about the money, then I'm sorry that you feel that way. It's about the smiles that light up an athletes face when they get that new skill. The screams when they win at competition, the long practices in 80 degree heat in the pursuit of perfection. The life-long lesson of setting a goal and working to achieve it. Learning about disappointment and how to accept criticism, making friendships, becoming part of a family. That's what cheerleading is. It shouldn't really be about the money. Again, that is my opinion and I understand that it's a business! We all need to make money and survive, and I get that.

 

[gofriars610]

I'm not AP, but I am in the journalism industry. I've been toying around a piece re: Title IX and cheerleading safety, but nothing has stuck yet.

Stay tuned, maybe?