All-Star Interesting Agreement

[tumbleyoda]

Varsity Brands Enters Into Definitive Agreement To Be Acquired... -- INDIANAPOLIS, MEMPHIS, Tenn., and DALLAS, Nov. 3, 2014 /PRNewswire/ --

How does this affect the cheerleading industry or will it?

Consider this quote from the article:

Jeff Webb, Varsity Brands' Chairman and Chief Executive Officer, stated, "Over the last several years, Varsity Brands has made steady progress towards serving as the single source for every customer's sport, spirit, and achievement needs. We now look forward to accelerating this work in partnership with Charlesbank – a preeminent partner that brings unique investment acumen in the education market – and to building on Varsity Brands' key competitive strengths. These include unparalleled customer reach, leading brands with prominent market positions, and multiple avenues for future growth."

 

[Official OWECheer]

That's what I'm wondering.

 

[tumbleyoda]

That's what I'm wondering.

Distilling it more....

Serving as single source for every customers sport, spirit, and achievement needs....building on Varsity Brands' key competitive strengths. These include unparalleled customer reach, leading brands with prominent market positions, and multiple avenues for future growth."

 

[Official OWECheer]

Distilling it more....

Serving as single source for every customers sport, spirit, and achievement needs....building on Varsity Brands' key competitive strengths. These include unparalleled customer reach, leading brands with prominent market positions, and multiple avenues for future growth."

I'm not liking "single source".

 

[tumbleyoda]

I'm not liking "single source".

= monopoly #notthegameeither

 

[John Butler]

I was more blow away by this figure... "With combined sales in excess of $1.2 billion, Varsity Brands' three businesses"... now that's some greenbacks!

 

[King]

There's a lot of money in cheer uniforms and apparel yo

 

[Ashley]

Varsity Brands also includes Herff Jones and some other sporting company. That's not all cheerleading money.

Being bought by a PE firm isn't really going to change much. They'll pump capital in and collect on their investment selling down to the road or taking the company public.

That's my (minor) understanding of PE. I don't think much will change. Varsity is nothing more than an investment for Charlesbank.

 

[tumbleyoda]

There's a lot of money in cheer uniforms and apparel yo

True. And more material in full tops than in crop tops. Make it mandatory to cover the midsection and make more $$$ at the same time.

 

[King]

True. And more material in full tops than in crop tops. Make it mandatory to cover the midsection and make more $$$ at the same time.

The markup on uniforms from everyone is so high honestly that extra fabric ain't a big deal.

 

[Official OWECheer]

The markup on uniforms from everyone is so high honestly that extra fabric ain't a big deal.

I knew it! I wonder how much it actually costs to produce a uniform that would sell for say, $300.

 

[dawgshow]

True. And more material in full tops than in crop tops. Make it mandatory to cover the midsection and make more $$$ at the same time.

Our full top uniforms were actually cheaper than the crop top.

 

[uhhlyssa01]

I knew it! I wonder how much it actually costs to produce a uniform that would sell for say, $300.

Probably like $10

 

[King]

I knew it! I wonder how much it actually costs to produce a uniform that would sell for say, $300.

How much does it actually cost to produce a $1,000 dollar Louis purse? The market decides what the value of the uniform is. If people were upset at the higher cost over fashion they would start going to cheaper uniforms. They don't because they would rather pay for the bling. Not a bad thing about how much they cost.

 

[John Butler]

There's a lot of money in cheer uniforms and apparel yo

You can say that again. I would assume major events are where the bulk of their profit margin is made, but it's no wonder the sport is increasingly being driven by money rather than by need and/or purist intent. It's much like the world we live in today... if there's money at the root of it, you can bet your bottom dollar the direction always follows the money. It's happening in every aspect of our lives today. It should be interesting to see how a private equity firm affects Varsity's position. With deeper pockets they should be able to grow even bigger at a much faster pace. The question is how much of that will trickle down to the local gym and in what form. Buckle up... cheer is a billion dollar business and growing!