All-Star Rebel Takes On Goliath

[CookieMomster]

@SL&AM Varsity wouldn't allow competing vendors any exhibit space at NCA (or any other event that they produce for that matter). Nfinity went with a remote "pop up" store idea where they set up a retail location close by a comp but outside the proximity of the Varsity event (NCA they were not far away and at Indy they rented space in the mall that was attached to convention centre but that most hotels were connected to). Customers can look at products and purchase items just like would if Nfinity had been permitted to rent exhibitor space at the comp.

Rebel took it one step further. According to the terms and agreement, the only thing permitted nearby NCA were media trucks. So Rebel created a media company and decided to convert a bus into a "pop up" store and park it right outside the NCA venue. They were interviewing people in the bus and around the bus for their documentary on bullying (irony!!!!!) and inside the bus was set up as a 1950's dressing room where customers could first-hand see the garments and their products. They also cross-promoted/partnered??? with Rock Star Hair products on the bus from what I could see (as it's in a lot of promo shots of the bag and throughout their social media feeds all weekend). So they were basically on site but not breaking any laws because they were filming and just so happened to have a store with them too. They utilized social media with numerous draws for their new bag and gave shout outs to those that stopped by. By the end of the week cheerlebrities were announcing that they were going to be at the bus at certain times. Besides launching the bag (it was out before but was really promoted over the weekend) Rebel also rolled out their Look Book and featured real cheerleaders and had them on site to help promote. In November they announced the Rebel Alliance (a cheer industry coop with gyms, EP's, clothing, and cheer related products). I love the whole idea of the Rebel Alliance and creating a coalition to fight for fair competition. Wonderful play on words too.

Sheer genius!!!!!!

I don't blame Varsity in the slightest. They saw an opportunity and went for it. That's what any good business model would do. Kudos to them. If anybody wants to enter the cheer market they're going to have to do it with disruptive innovation - using a completely different business model and cater to a niche market. Varsity has a formula (and it works for them). They can't change their business model on a whim but anybody coming into the market has that luxury to be able to do so. So to compete with Varsity they'll need to determine their own target markets and hone in on it. Essentially Varsity is like the major airlines and their competition is like Southwest or WestJet Airlines. Economy airlines have a business model that major airlines can't follow due to their sheer size. They're able to inch into the market that's being underserved by the major airlines.

For Varsity competitors to succeed they're going to have to figure out the niche markets being underserved by Varsity and focus on them - trojan horse mentality (there's a reason Varsity isn't focussing on them). Couple that with super creative marketing and brand identity, and you'll start to see start-up's succeeding. Sadly from my few years in cheer many ideas are created but nothing takes root and most things have a mom/pop or homespun feel to it. Customers want to stand out and feel apart of the process, have a say (customization), want quality, and value. Eventually the tides can change but it'll take work and beating them at their own game.

I say go for it! Stand out and dream big.

 

[acecheermom]

They weren't exactly "on site". We walked past them everyday while walking from our hotel to the venue. They were maybe 1/3-1/2 a mile away. But it was right on the main drag that you go past to get to the convention center. It was a pretty cool set up.

 

[randomactsofcheer]

Section 2 of the Sherman Act makes it unlawful for a company to "monopolize, or attempt to monopolize," trade or commerce. As that law has been interpreted, it is not illegal for a company to have a monopoly, to charge "high prices," or to try to achieve a monopoly position by what might be viewed by some as particularly aggressive methods. The law is violated only if the company tries to maintain or acquire a monopoly through unreasonable methods. For the courts, a key factor in determining what is unreasonable is whether the practice has a legitimate business justification.
Single Firm Conduct | Federal Trade Commission

After reading the links under the table of contents, I still don't see how Varsity is not violating antitrust laws. While I don't think that Varsity acquired its monopoly through unreasonable methods, I do wonder if they are maintaining it through unreasonable methods.

I guess the question is, did Varsity "obtain a monopoly by superior products, innovation, or business acumen?" (which is legal). Or did they obtain or maintain their monopoly through exclusionary or predatory acts?

 

[CoachTamara]

Here is the frustrating thing to me... Nobody is forcing gym owners to use Varsity (unless the gym is owned by Varsity). You can complain, but if you don't like it change it! Are options limited? Yes, but the scare tactics that you cannot make a choice are not true. Gyms won NCA in Rebel and GK uniforms. They still get bids to Summit. You want a rebate? The money they give back with a rebate is your money. If you need that $15/uniform they give you at the end of the year, simply pick a uniform that is $15 cheaper and charge the same or charge $15 more. Go to IEPs, because honestly some of them put on better comps than Varsity anyway.

If nobody makes a stand, nothing will change. If you want more options, support the companies that are providing more options!

 

[oncecoolcoachnowmom]

I love seeing companies get into things that used to just be Varsity only.

Ex: For YEARS your only practice wear or uniform options for school teams = Varsity.

I'd love to see someone challenge Varsity brands in the area of CAMPS. We are okay with our camps as of late, but I'd love options.

 

[Official OWECheer]

Here is the frustrating thing to me... Nobody is forcing gym owners to use Varsity (unless the gym is owned by Varsity). You can complain, but if you don't like it change it! Are options limited? Yes, but the scare tactics that you cannot make a choice are not true. Gyms won NCA in Rebel and GK uniforms. They still get bids to Summit. You want a rebate? The money they give back with a rebate is your money. If you need that $15/uniform they give you at the end of the year, simply pick a uniform that is $15 cheaper and charge the same or charge $15 more. Go to IEPs, because honestly some of them put on better comps than Varsity anyway.

If nobody makes a stand, nothing will change. If you want more options, support the companies that are providing more options!

Thank you.

 

[BlueCat]

I love seeing companies get into things that used to just be Varsity only.

Ex: For YEARS your only practice wear or uniform options for school teams = Varsity.

I'd love to see someone challenge Varsity brands in the area of CAMPS. We are okay with our camps as of late, but I'd love options.

Cheer Athletics (and other AS gyms) offer summer camps for individuals and/or teams. We can send someone to your gym or you can come to a camp at our gym. I'm sure if you checked around, you would find a ton of other options.

 

[McKenna.M]

Off topic but I think they're talking about us..
"In October, Varsity--in a deal widely criticized on industry chat boards--acquired JAM Brands, the second-largest event producer and by far Rebel's most important marketing partner."

 

[AlwaysLearning]

Yes Varsity owns the Premier Athletics gyms. They have 10-11 gym in Ky, Tn, Fl, MI, & NC (that I know of). All of their products (uniforms, practice wear, warmups, bags, shoes) are from Varsity. The kids were told they were not allowed to wear Nfinity shoes because of their "poor quality". They do attend some non-Varsity (Jam Brands) comps which won't be an issue going forward since Varsity now owns Jammy too. I don't think the gyms got "preferential" treatment at comps or on products because they were owned by Varsity.

 

[tumbleyoda]

Yes Varsity owns the Premier Athletics gyms. They have 10-11 gym in Ky, Tn, Fl, MI, & NC (that I know of). All of their products (uniforms, practice wear, warmups, bags, shoes) are from Varsity. The kids were told they were not allowed to wear Nfinity shoes because of their "poor quality". They do attend some non-Varsity (Jam Brands) comps which won't be an issue going forward since Varsity now owns Jammy too. I don't think the gyms got "preferential" treatment at comps or on products because they were owned by Varsity.

A few years ago at a Varsity owned competition after all bids were handed out and everyone had gone home mysteriously another bid appeared three days later. Any guesses who it went to? A Varsity owned gym, that had not gotten a bid previously and that event was the last bid competition that they were attending that year. There were also several scoring issues at that event that if corrected that team wouldn't of gotten the bid. Preferential treatment does happen occasionally. We just don't always catch it because we only claim Premier to be the gyms owned by Varsity when the own or have a major stake in other gym franchises as well.

Now could it of been coincidental? Perhaps, but highly doubtful. Not to anyone that has followed or been a part of this industry for more than a couple of years. Other preferential treatment can be lower to no competition entry fees, free meeting rooms for the program, better compete times, etc. Those are labeled as incentives for that program to attend for marketing purposes. Many competitions may do this however, not just Varsity.

 

[AlwaysLearning]

A few years ago at a Varsity owned competition after all bids were handed out and everyone had gone home mysteriously another bid appeared three days later. Any guesses who it went to? A Varsity owned gym, that had not gotten a bid previously and that event was the last bid competition that they were attending that year. There were also several scoring issues at that event that if corrected that team wouldn't of gotten the bid. Preferential treatment does happen occasionally. We just don't always catch it because we only claim Premier to be the gyms owned by Varsity when the own or have a major stake in other gym franchises as well.

Now could it of been coincidental? Perhaps, but highly doubtful. Not to anyone that has followed or been a part of this industry for more than a couple of years. Other preferential treatment can be lower to no competition entry fees, free meeting rooms for the program, better compete times, etc. Those are labeled as incentives for that program to attend for marketing purposes. Many competitions may do this however, not just Varsity.

Very true. I guess my statement wasn't very clear. I know preferential treatment happens in the industry (and other sports too) and I wouldn't be surprised if PA gyms got some special treatment. As a consumer, any possible preferential treatment wasn't obvious - uniform pricing & delivery time seemed to be average, we rarely had team rooms at comps, etc. If comp fees were reduced then the gym was pocketing the fees since we paid for the full cost of comp fees.

Does Varsity have a stake in any gyms other than Premier?

 

[Official OWECheer]

A few years ago at a Varsity owned competition after all bids were handed out and everyone had gone home mysteriously another bid appeared three days later. Any guesses who it went to? A Varsity owned gym, that had not gotten a bid previously and that event was the last bid competition that they were attending that year. There were also several scoring issues at that event that if corrected that team wouldn't of gotten the bid. Preferential treatment does happen occasionally. We just don't always catch it because we only claim Premier to be the gyms owned by Varsity when the own or have a major stake in other gym franchises as well.

Now could it of been coincidental? Perhaps, but highly doubtful. Not to anyone that has followed or been a part of this industry for more than a couple of years. Other preferential treatment can be lower to no competition entry fees, free meeting rooms for the program, better compete times, etc. Those are labeled as incentives for that program to attend for marketing purposes. Many competitions may do this however, not just Varsity.

Your profile pic is killing me. XD

 

[AScheer]

Does Varsity have a stake in any gyms other than Premier?

Yes.

I think the article is really well done! I'm far from anti-varsity, and I think business is business. You can't fault Jeff Webb from making his company what it is today.

 

[tumbleyoda]

Very true. I guess my statement wasn't very clear. I know preferential treatment happens in the industry (and other sports too) and I wouldn't be surprised if PA gyms got some special treatment. As a consumer, any possible preferential treatment wasn't obvious - uniform pricing & delivery time seemed to be average, we rarely had team rooms at comps, etc. If comp fees were reduced then the gym was pocketing the fees since we paid for the full cost of comp fees.

Does Varsity have a stake in any gyms other than Premier?

Yes they do.

The gym I referenced was not a Premier gym but a different gym that is owned by Varsity. There are a few of them around once you know who is who and who works for who. Lately it seems the move s to be quiet/hidden owners. Someone else is the figurehead representative of the program but ownership belongs to Varsity.

As a business again i get it. But stop putting it out there that this is a fair sporting competition and everyone has an equally fair shot because they don't. You have a shot, yes. But an equally fair one...no way. Not for every gym.

 

[tumbleyoda]

Yes. Since I'm more on the school end as of late years though, I get most annoyed and frustrated at varsity owned/ran school competition teams.

I think the article is really well done! I'm far from anti-varsity, and I think business is business. You can't fault Jeff Webb from making his company what it is today. I think they hit the nail on the head though when they said it's not enough to have 95%, they have to have 100% and make it impossible for anyone else.

USASF
AACCA
NAB
USA Cheer
Numerous EP's
Numerous Gyms

The list goes on and on