Shark Tank

[Stern]

I know it's easy for me to say since it's not my business, but the kids should have taken the deal. Hart and Cuban could have opened doors to get players on board with one tweet/phone call from them. They are the only two partners the business would ever need again. Any more money needed to be raised those guys would have been there supporting it.

Cuban could have had those kids at the NBA draft next to the stage talking to every player picked saying, hey let's sell your college gear and get you money that way. And honestly the long-term play is probably to build this business and sell it to a FANATICS (who is taking over the world in regards to sports gear, autographs, trading cards...etc) and cash out in time.

I admire the business they made, I think it can be successful, but I think its a long tough road they are on. They should have teamed up with Hart/Cuban at the end of the day. The deal wasn't that bad (especially with the insane valuation they came in with) and like those two said, 70% of a big pie is better than 100% of a small pie.

 

[dasher]

I know it's easy for me to say since it's not my business, but the kids should have taken the deal. Hart and Cuban could have opened doors to get players on board with one tweet/phone call from them. They are the only two partners the business would ever need again. Any more money needed to be raised those guys would have been there supporting it.

Cuban could have had those kids at the NBA draft next to the stage talking to every player picked saying, hey let's sell your college gear and get you money that way. And honestly the long-term play is probably to build this business and sell it to a FANATICS (who is taking over the world in regards to sports gear, autographs, trading cards...etc) and cash out in time.

I admire the business they made, I think it can be successful, but I think its a long tough road they are on. They should have teamed up with Hart/Cuban at the end of the day. The deal wasn't that bad (especially with the insane valuation they came in with) and like those two said, 70% of a big pie is better than 100% of a small pie

They couldn't take the deal. They got money from other white nights at a value far different from what Cuban and Hart were offering. To put it simply, if you paid $100 for 10% and found out they sold 30% for $60, what would you think of your partners? Other people can open the same doors as Cuban and Hart.

 

[cliftonparksufan]

Other people can open the same doors as Cuban and Hart.

Of course. But they have to be at or near the same level as one of the most famous NBA personalities and one of the most famous Black entertainers out there. If two of their investors doing it for a much lower valuation are Magic Johnson and Jay Z then I can understand but this business is not an easy one and will take a lot of boots on the ground for the sharks to make an impact. It's not an easy business and it's constantly evolving due to the nature of student-athletes graduating every year. These kids have their work cut out for them just based on the number of moving pieces.

 

[DoctorBombay]

Of course. But they have to be at or near the same level as one of the most famous NBA personalities and one of the most famous Black entertainers out there. If two of their investors doing it for a much lower valuation are Magic Johnson and Jay Z then I can understand but this business is not an easy one and will take a lot of boots on the ground for the sharks to make an impact. It's not an easy business and it's constantly evolving due to the nature of student-athletes graduating every year. These kids have their work cut out for them just based on the number of moving pieces.

Take the deal.
Businesses are finite. You go in expecting to milk the most that you can out of a good concept, but then ultimately your first priority is to pay back your investors and get bought out. Nothing wrong with that at all.
They’re young and can start plenty of other businesses in the future. The star power of shark tank is leverage, and in that arena if Mark Cuban makes an offer, unless it’s an absolute dog, you’d be hard pressed not to take it.

 

[Stern]

Other people can open the same doors as Cuban and Hart.

Good luck getting a meeting with them

 

[MadNY3]

Take the deal.
Businesses are finite. You go in expecting to milk the most that you can out of a good concept, but then ultimately your first priority is to pay back your investors and get bought out. Nothing wrong with that at all.
They’re young and can start plenty of other businesses in the future. The star power of shark tank is leverage, and in that arena if Mark Cuban makes an offer, unless it’s an absolute dog, you’d be hard pressed not to take it.

They (three founders) got the Shark Tank leverage by being on the show and defending - rightfully in my opinion - their worth.

Plus, 55% of the deals agreed-to on-air don’t go through post diligence.

Having met the team a couple months ago and seeing their numbers, they can do very well without giving up nearly a third of the business.

 

[DoctorBombay]

They (three founders) got the Shark Tank leverage by being on the show and defending - rightfully in my opinion - their worth.

Plus, 55% of the deals agreed-to on-air don’t go through post diligence.

Having met the team a couple months ago and seeing their numbers, they can do very well without giving up nearly a third of the business.

Fair enough, and it’s true that many businesses have come on that show, left w/out a deal and still thrived. But, imo, the goal should’ve been to get a Mark Cuban offer. Period.
With the doors he could open whatever shares you have would instantly skyrocket in value. Yes, they can still make their money and build the business, but there’s an old adage i always tell my clients: “Time kills all deals”.
What Cuban would have done is put them on the fast track to succeed, not 5 years from now, but maybe 6 months- 1 yr. That’s worth its weight in whatever equity they might lose.
Every successful mega-corp has had partners who leveraged their shares, created multiple other businesses, thaat enabled them to offer finance to other entrepreneurs starting out. I just think it would’ve been the better strategic move to take the deal. JMHO

 

[Capt. Tuttle]

Didn't ring leave without a deal. Now the guy has been on as a shark

 

[cliftonparksufan]

Didn't ring leave without a deal. Now the guy has been on as a shark

I think a lot depends on what the product is. Look at most things Lori brings to QVC. A lot of them are gold because Lori gets behind it 100%. I never saw Ring's shark tank pitch but if they had the patent and were selling a good amount on their own, the Shark Tank exposure probably got them legitimatecy with the Lowes and Home Depots of the world. The Players Trunk is not the same thing as a doorbell camera or a Scrub Daddy. You are dealing with a lot of schools, a lot of players (who change yearly) and a lot of different products. And a lot of growing pains geographically. Again, I wish them a lot of luck, but without that extra oomph they could be spinning a lot of wheels.

 

[OttoinGrotto]

You go in expecting to milk the most that you can out of a good concept, but then ultimately your first priority is to pay back your investors and get bought out. Nothing wrong with that at all.

EEEEEEEEEEEEEEEEEeeeeeeehhhhhhhhhhhhhhhhhhhhhhh man I don't know about that, that's a really crappy way to do business.

I know it's often the way business is done, but this line of thinking is problematic.

 

[DoctorBombay]

EEEEEEEEEEEEEEEEEeeeeeeehhhhhhhhhhhhhhhhhhhhhhh man I don't know about that, that's a really crappy way to do business.

I know it's often the way business is done, but this line of thinking is problematic.

Let me reiterate that that’s not always the first priority, ie: it’s not only about the money. There are many businesses that offer products and services that are a boon to society, and they should definitely maintain that perspective in whatever they do. But let’s be real here, this particular product is not one of them, imo.
To be sure, in my experience, most business as you noted is often done that way. And a business’s ethics do not need to change just because it’s first priority is to make profit. The two can be mutually exclusive. 90% of the clients i deal with fall into that category, and there’s nothing wrong w/ that at all. It’s what built this country. JMHO

 

[Stern]

Didn't ring leave without a deal. Now the guy has been on as a shark

When they went on it wasn't even called RING and the product looked nothing like it does now.

 

[SUFaninNJ]

That's why I said it really put them between a rock and a hard place. So assuming the four of them are equal partners, plus now they have raised three million at whatever valuation (10 million or so?). Where does that leave them? Four people who have to agree on everything and still have investors that will want results going forward.

The problem with this business is that it's going to be difficult to capture a large piece of the pie, but in their defense it can be a huge pie. Unless any of their current investors have the same cache as Cuban or Kevin Hart, they can be squashed in no time. It's not like it's something you can patent so someone can come along and be bigger and better.

And this market will be real hot and then turn cold and be very cyclical. What happens if we go into a real recession. Maybe far fetched but right now everyone's portfolio and/or disposable income is getting squeezed. Is the average Joe going to be buying collectibles when the price of gas and food keep rising.

I don't know whatever happened to Brandon Steiner and Steiner Sports. Not sure if he sold his business or retired or still maintains his business. He was a big fish, or so it seemed, doing great things but he wasn't four partners either. Would he have wanted to split his profits or answer to three other partners.

I wish these kids a lot of luck. Hopefully they can grow their business and make everyone rich. But are Kentucky kids or Duke kids or Texas kids going to sign with them when some bigger name is going to fast sell them.

Steiner’s new company is Collectibles Exchange. I got some stuff from them last year.

 

[cliftonparksufan]

Steiner’s new company and s Collectibles Exchange. I got some stuff from them last year.

Perfect. Did not know. So I see he is doing some "Athlete Direct" stuff in addition to his auctions and other things. Not a ton but some Boeheim-Jim, Jimmy and Buddy, Coughlin, Breanna Stewart and some other well known people like Mariano and Messier. It's a big pie but it's going to take a lot of hustle on these kid's behalf to make it sustainable and getting big name partners would only help.

Jim Boeheim

Since becoming Syracuse University's Men's Basketball Head Coach in 1976, Jim Boeheim has not looked back. With his largest feat coming in 2003 when the Orange won the NCAA Championship, Boeheim's accomplishments stand next to only a few, as he won the 2003 NCAA Championship and numerous Olympic...

collectiblexchange.com

 

[SUFaninNJ]

Perfect. Did not know. So I see he is doing some "Athlete Direct" stuff in addition to his auctions and other things. Not a ton but some Boeheim-Jim, Jimmy and Buddy, Coughlin, Breanna Stewart and some other well known people like Mariano and Messier. It's a big pie but it's going to take a lot of hustle on these kid's behalf to make it sustainable and getting big name partners would only help.

Jim Boeheim

Since becoming Syracuse University's Men's Basketball Head Coach in 1976, Jim Boeheim has not looked back. With his largest feat coming in 2003 when the Orange won the NCAA Championship, Boeheim's accomplishments stand next to only a few, as he won the 2003 NCAA Championship and numerous Olympic...

collectiblexchange.com

He had a half dozen episodes of a show on the YES network when it launched. I still see things on FB frequently.

 

[AZOrange]

Omg people don’t go on Shark Tank to find equity partners. Do you guys watch the show?

 

[AZOrange]

EEEEEEEEEEEEEEEEEeeeeeeehhhhhhhhhhhhhhhhhhhhhhh man I don't know about that, that's a really crappy way to do business.

I know it's often the way business is done, but this line of thinking is problematic.

Yeah this is the Tech line of thinking…