All-Star Interesting Agreement

[BlueCat]

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

Uniforms are surprisingly difficult to produce efficiently and effectively. They obviously make money on them, but I'd bet the margin isn't as high overall as it is in other retail endeavors. The "cost per uniform" would also vary wildly depending on how much of the company's other costs (rent, payroll, utilities, research/development, etc.) you include.

 

[King]

Uniforms are surprisingly difficult to produce efficiently and effectively. They obviously make money on them, but I'd bet the margin isn't as high overall as it is in other retail endeavors. The "cost per uniform" would also vary wildly depending on how much of the company's other costs (rent, payroll, utilities, research/development, etc.) you include.

A large part of that is there is no standard cut though. To make every uniform really custom and size them all requires a lot of infrastructure and manpower. Then with that barrier to entry the price can fluctuate as desired. If the cut for all uniforms was standardized more and just varied on the design prices could drop.

 

[catlady]

Honestly, I don't think much will change on the domestic front, they have the events and merchandise. Where I think the bigger checkbook is needed is Internationally.

ETA: I'm basing my opinion on the quote: "These include unparalleled customer reach, leading brands with prominent market positions, and multiple avenues for future growth."

 

[f5forever]

I guess I always think of Varsity as all-star cheerleading and forget about the school aspect. Once I remember they have the "K-College" aspect also, the $1.2 billion is almost understandable....almost.

 

[MomMomMamaMom]

I am also wondering about how this will change things for non-varsity brands. Seems pretty clear that Varsity aims to expand and compete, so I worry for them. (Though I , admittedly, know very little about who finances competing brands.)

 

[Keep_Believing]

They sell a ton of cheer t-shirts! They definitely mark the t-shirts up!

 

[The Sixth]

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.

Pretty much this. It's just a holding company, who's goal is to pick up other companies becoming successful/profitable or one's on the dirty cheap they can turn around and make successful/profitable, and make money off them.

You could look at it as Varsity's "reward" for being such a dominant figurehead. It probably will have little effect on anything. Even with additional capital, I don't know that there are any more areas of expansion within cheer that Varsity already doesn't have it's fingers in.

 

[Keep_Believing]

I don't know that there are any more areas of expansion within cheer that Varsity already doesn't have it's fingers in.

I have some awesome ideas!!!!! I wish they would contact me!!!!!!

 

[Ashley]

I guess I always think of Varsity as all-star cheerleading and forget about the school aspect. Once I remember they have the "K-College" aspect also, the $1.2 billion is almost understandable....almost.

Again. It's not just cheering. Varsity spirit is only one of 3 companies under varsity brands. They also have Herff Jones which does yearbooks, class rings, etc. And some other sports company.

 

[John Butler]

Honestly, I don't think much will change on the domestic front, they have the events and merchandise. Where I think the bigger checkbook is needed is Internationally.

ETA: I'm basing my opinion on the quote: "These include unparalleled customer reach, leading brands with prominent market positions, and multiple avenues for future growth."

Excellent point. There is no question they will need deeper pockets to continue to infiltrate the international marketplace. It is astounding how big cheer is growing outside of this country. As for apparel, my guess is that an equity firm will likely have connections to cut production costs on any apparel being made. They often have manufacturing connections from other projects and this will allow them to shortcut the process. Most likely, if it's not already happening, this function will be shipped overseas somewhere as labor is much cheaper. It will certainly make for an interesting future. I was also intrigued about the concept of taking the company public. Should be interesting to see how the broader scale changes affect the more minor issues within the sport.

 

[Eyes On The Prize]

I have some awesome ideas!!!!! I wish they would contact me!!!!!!

Why not contact them?

ETA: I hope one of your ideas is customizable wine bras in your team colors.

 

[catlady]

Excellent point. There is no question they will need deeper pockets to continue to infiltrate the international marketplace. It is astounding how big cheer is growing outside of this country. As for apparel, my guess is that an equity firm will likely have connections to cut production costs on any apparel being made. They often have manufacturing connections from other projects and this will allow them to shortcut the process. Most likely, if it's not already happening, this function will be shipped overseas somewhere as labor is much cheaper. It will certainly make for an interesting future. I was also intrigued about the concept of taking the company public. Should be interesting to see how the broader scale changes affect the more minor issues within the sport.

Agree. If you look at the Charlesbank website, they have a pretty clear mission statement. They aren't looking for weak companies that are on the downtrend to sell off, they are looking for major investment opportunities and growth. Straight from their website:
Investment Philosophy | Charlesbank
Investment Criteria | Charlesbank
Partnering With Management | Charlesbank
Value Creation | Charlesbank

 

[Keep_Believing]

Why not contact them?

ETA: I hope one of your ideas is customizable wine bras in your team colors.

Mine are kid focused, kid friendly! LOL I don't know who I would contact? I will let @Mamarazzi run with that idea! LOL

 

[Mamarazzi]

Mine are kid focused, kid friendly! LOL I don't know who I would contact? I will let @Mamarazzi run with that idea! LOL

I think it's been done, but if it wasn't already a thing I'd be all over that patent.

 

[CheerMomNTx]

Again. It's not just cheering. Varsity spirit is only one of 3 companies under varsity brands. They also have Herff Jones which does yearbooks, class rings, etc. And some other sports company.

I just wonder if they are going to start pushing Del Taco stands in all of the venues