Varsity's Monopoly

Discussion in 'Allstar Cheerleading' started by SL&AM, Jan 15, 2020.

  1. Hoosea

    Hoosea I'm new. Don't Hurt Me

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    I’m not an expert on anti trust but I don’t think the MLB exemption applies here (nor do I understand how MLB gets away with this nonsense). I do think that there’s other perhaps less cumbersome and effective ways to dismantle Varsity’s lynch hold
     
  2. Hoosea

    Hoosea I'm new. Don't Hurt Me

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    Shhh... don’t wake the beast.
     
  3. Hoosea

    Hoosea I'm new. Don't Hurt Me

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    Do we have some sort of explanation of this policy. It’s not new and it’s been in effect for at least a couple seasons. I admit I never caught it but that whole section including possible sanctions for publicly criticizing Varsity is flat out scary stuff. Who thinks that’s ok? What, honestly, have we passively allowed to happen to a sport our kids love? Seriously.
     
  4. catlady

    catlady Slow your roll, Sparkle.

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    Oh that's the reason, this explains everything.

    Your posts are coming through no problem, go ahead and post your sources on uniform market share, the camp land they own, and Varsity's debt to income ratio and their buy out. It's sound like you have researched a lot and I can't wait to read it all.

    While it continues to be debated, I posted earlier in the thread, the Supreme Court actually deemed sport issues a Congressional matter and not anti-trust.
     
  5. coacha

    coacha I Fierce Board instead of work/study

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    But 90% of the market? That’s 9 out of 10 teams. I have coached at 2 rec programs (both over 100 kids) and 3 high schools in the last 20 years. Neither of the rec programs used Varsity at all and of the HS teams, only one did religiously with the other 2 only occasionally had Varsity (and that’s with the Title I discount...). Admittedly, my own personal uniforms were Varsity in college although I haven’t the foggiest idea what my HS ones were. That’s like a 50% market share there. I realize AS is a whole other beast, but is Rebel only accounting for 1 out of every 10 teams? It sure doesn’t look like it from the outside.
     
  6. catlady

    catlady Slow your roll, Sparkle.

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    Lol, I've already deemed her "Hoosaid."
     
  7. cheermomforever

    cheermomforever Slow your roll, Sparkle.

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    I just wonder how they can even do this....
     
  8. UCFKnights07

    UCFKnights07 Slow your roll, Sparkle.

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    but varsity has had control of so many of the comps those teams have been to and have never once pitched a fit over filming. Maybe because they dont see youtube views as profitable as netflix?!?! which yeah i guess makes sense, but i guarantee awesomenesstv has made a pretty penny from those videos over the years.
     
  9. Hoosea

    Hoosea I'm new. Don't Hurt Me

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    Whose going to tell them no?
     
  10. coacha

    coacha I Fierce Board instead of work/study

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    You can’t do a documentary on the NFL without getting their permission and paying them, so there’s some precedent. And yes I realize that’s professional versus youth sports, but I imagine the little league World Series is similar. Anyone know what USA Gymnastics rules are?
     
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  11. Hoosea

    Hoosea I'm new. Don't Hurt Me

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    They’ve been cherry picking and taking those videos down for years. Way back it was actually been against the rules to even bring video cameras into events. Security would stop you at the door. I remember when gyms were penalized for parents violating that rule. The opening finally came with cell phones and the implementation of Facebook Live. They tried their hardest to squash that to. That’s what they do and that’s been their business model for over a decade.
     
  12. catlady

    catlady Slow your roll, Sparkle.

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    Thank you! Unfortunately, it doesn't matter if it's a youth sport, all use the MLB and NFL as their business models for success. Like it or not, many youth sports have partnered with FloSports when it comes to their media rights. With that said, people really do need to be careful what they wish for. One great Netflix documentary does not mean they have the kids, parents, coaches, owners, or cheer in their best interest. @Hoosea mentioned the Penn and Teller documentary, which later on PennPoint, Penn said ShowTime made them do that segment thinking the mention of cheerleaders would get people to watch because of all the T&A and good jokes. Video Forward to 30 second mark for his exact words.


    USA Gymnastics Rules:

    Television/Video
    NBC Sports maintains the exclusive right to broadcast USA Gymnastics championship events. Local and non-rights-holding news crews must sign the guidelines that govern access to each event. They may be allowed the following access, pending approval of USA Gymnastics and NBC Sports

    • Tape or produce live segments on-site up to 20 minutes prior to the start of each session.
    • Interviews with athletes, coaches and other event personnel prior to and following competition in designated media areas.
    • Tape designated training sessions at competition venue only.
    • No live or taped competitive footage may be used without approval.
    Any use of competition video without written permission from NBC Sports is prohibited.
    In the event NBC is not present, USA Gymnastics may allow expanded event access to local news affiliates. Please contact a USA Gymnastics representative for broadcast restrictions and approved camera positions within the arena. USA Gymnastics reserves the right to restrict access to any video or audio recording devices at any time without notice. Prior approval and notification of presence is required in all cases. All interviews must be pre-arranged with USA Gymnastics.

    By applying for a credential, you are agreeing to the above policy. Application for credentials does not guarantee approval.
     
  13. Hoosea

    Hoosea I'm new. Don't Hurt Me

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    You are aware that BSN has been buying up uniform companies in earnest these last couple years.
    As I said I’m traveling but here’s some citations to get you started

    In 2019 Varsity controlled 80% of cheer events - both all star and high school - that’s 600 events in total. They control 90% (SHOULD STATE 80%) of uniform market

    The business of cheer | Fortune

    The Business Behind Cheerleading
    Tuesday, March 20, 2012 By Reid Van Mouwerik

    https://cheerwatchdog.wordpress.com

    Netflix cheerleading docuseries sheds light on $2B industry | Fox Business

    Meet Rebel Athletic, the $20 Million Custom Cheerleading Uniform Startup Living Up to Its Name | Inc.com

    Cheerleading has evolved into a billion-dollar business

    Varsity Brands Founder On The Big Business Of Cheerleading

    This is Not a Democracy, It's a Cheerocracy: The Cheerleading Monopoly Varsity Brands
    Matt Stoller, 2019
    This is Not a Democracy, It's a Cheerocracy: The Cheerleading Monopoly Varsity Brands - BIG by Matt Stoller

    https://www.investors.com/news/mana...ding-with-focus-on-athleticism-entertainment/

    “The outcome has been incredibly profitable — over $1.9 billion in sales, with 9,000 employees and independent representatives.”

    'A passion project:' Varsity Brands not only sells sports gear, but works to create school spirit | Generational Insights

    USA Cheer – 15 Board seats of which 9 are Varsity employees and 1, the Exec Direc was hired from a Varsity comp

    “USASF / 18 Board seats of which 12 are Varsity Employees (direct and contractual)”
    US All Star Federation: USASF Board and Committees

    IASF has removed their list of Board members from online. I have the list on my laptop. If memory serves Varsity controls roughly 70% of those seats.

    Varsity Brands Owns Cheerleading and Fights to Keep it From Becoming an Official Sport
    LEIF REIGSTAD | JULY 21, 2015 | 7:00AM

    https://cheerwatchdog.wordpress.com

    Varsity Brands Finds Bigger Growth Partner In Bain Capital
    Posted by SGB Media | Jun 20, 2018 |

    Chief Executive Magazine, 2018

    Varsity Financials SEC CIK #0000874786, 2003

    SEC Info - Varsity Brands Inc - S-1/A on 2/2/00

    Hoover’s, 2020

    Varsity Brands | The Fashion Industry Law Blog

    Private equity firm celebrates $2.5B sale of Varsity Brands
    By Richard Morgan, New York Post June 19, 2018

    Varsity Brands Finds Bigger Growth Partner In Bain Capital
    Posted by SGB Media | Jun 20, 2018 |

    “Varsity Brands charges $200 per camper for its four-day session, meaning participants and their parents shell out an estimated $54 million for the camps alone. There are also additional costs associated with the camp experience — including must-have apparel, photos, videos and late night pizzas — all which can add up to more than $500 per cheerleader.”

    Note: This was in 2002 BEFORE Varsity completed acquisitions of independent event producers and camps.

    Mellody's Math: Cheerleading Ca-Ching - ABC News

    “Bain Capital Private Equity bought Varsity Brands for $2.5 billion in 2018. Varsity Brands' annual revenues exceed $1.35 billion, according to the company. It has more than 4,000 full-time employees.

    “330,000 athletes in teams attend over 4,000 Varsity Spirit cheerleading training camps each summer.

    Varsity Spirit puts on over 600 cheerleading competitions across the country annually. The events attract some 900,000
    participants. The company has partnered with Disney for 25 years and hosts nearly 90,000 athletes at seven of Varsity Spirit's most premier events at the Walt Disney World Resort in Orlando, Fla.

    For the last 35 years, Varsity Spirit partnered with ESPN to broadcast their cheerleading competitions around the world. The broadcasts reach over 100 million homes and 32 countries annually.”

    Bain Capital Private Equity bought Varsity Brands for $2.5 billion in 2018. Varsity Brands' annual revenues exceed $1.35 billion, according to the company. It has more than 4,000 full-time employees

    DFW sports company acquired by Bain Capital in estimated $2.5B deal, 2018”

    https://www.investors.com/news/mana...ding-with-focus-on-athleticism-entertainment/

    The Battle for the Cheerleading-Uniform Industry Is Surprisingly Cutthroat and Appropriately Glittery
    By LEIGH BUCHANAN
    FEB 22, 20163:34 PM

    Honestly I could provide dozens more. These conversations (and sources) have been taking place, privately, for years.
     
  14. Hoosea

    Hoosea I'm new. Don't Hurt Me

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    I provided sources in another post with one correction - it’s 90% of the uniform it’s 80% which I indicated in an earlier post. It’s 90% of the cheer market over all.
     
  15. Hoosea

    Hoosea I'm new. Don't Hurt Me

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    Sources posted