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-   -   Stop Anthos from Taking over CrossFit (http://board.crossfit.com/showthread.php?t=76936)

Steve Liberati 07-28-2012 07:17 PM

Re: Stop Anthos from Taking over CrossFit
 
This same company contacted me back in November about becoming a potential partner of Steve's Original but I told them I was not interested.

This would be a very poor investment choice for Anthos as it would **** off thousands of people and most likely destroy the affiliate model.

If they tried to enforce me how to run my gym, I would simply not renew the license agreement.

Kevin Daigle 07-28-2012 07:20 PM

Re: Stop Anthos from Taking over CrossFit
 
It's like this,

If the affiliates and the community are aware of what's going on here, the "market" that this company is interested in "acquiring" vanishes instantly and they'll no longer have any interest in continuing.

This "market" actually doesn't exist now, but this company doesn't know that yet.

The community can easily make that happen by spreading the word about this. They don't yet understand that the CrossFit community isn't interested in doing business with them ... but we can make sure that they do.

Russell Berger 07-28-2012 07:21 PM

Re: Stop Anthos from Taking over CrossFit
 
Quote:

Originally Posted by Ben Norris (Post 1081734)
Correct me if I am wrong but if Greg Glassman owns Crossfit (does Crossfit have a board of Directors?) surely him or the board would simply knock back any offer made by this company? Assuming that Glassman and the board deny all takeover bids then this company would be powerless to take over Crossfit and as such take over the affilitates?

Ben,
Good questions. Greg Glassman is the CEO and president of CrossFit. His non-managing equity partner has left the gate open, and now we have a wolf to deal with in the form of Anthos. Anthos is not offering to buy Greg's ownership but his partner's ownership of the company. This would result in Anthos as a partner in CrossFit Inc.

Steve Liberati 07-28-2012 07:42 PM

Re: Stop Anthos from Taking over CrossFit
 
Just posted this on the affiliate board:

If this is really a serious threat, I would think Greg has enough influence around here to rally the troops against Anthos to take a stand and ultimately show our dissent for the deal…

If this is more than internet talk, I hope Greg steps up and writes a personal memo to the affiliates to address this serious issue and makes every effort to use his resources to ask the affiliates to take the necessary action to prevent this from happening.

As a long standing member of this community, I have witnessed a handful of issues come up over the years that threatened the brand name of CrossFit….but I think this one is by far the most serious threat to date.

I think it would be much more effective if Greg addressed this issue himself by writing a personal memo to the affiliate community. This would quickly get every affiliates attention so we can ALL rally together to tell Anthos to go pound sand.

Steve Rakow 07-28-2012 07:52 PM

Re: Stop Anthos from Taking over CrossFit
 
I agree 100% with Steve's comments above. Coach really needs to step in and rally everyone around his position with logical reasons not to go along with her position as the consequences are too extreme for the affiliate community to go along with.

We'd be better off if Reebok bought her out and became an equity partner. At least they're on the same page and appear to understand fully how we operate.

The board could also create a poison pill - if a takeover occurs, the name CrossFit will then be of free use by anyone and not subject to licensing or affiliation, dissolve all affiliations, and see what happens then when there are no affiliates to try to franchise. Or Coach could dissolve CrossFit Inc., payout the equity, and start over under a new name. Most, if not all, of us would follow. Painful route to go, but probably a safer one.

What does Reebok have to say about all this? I'm sure they're not happy given the millions they've invested in the CrossFit brand.

David Wallach 07-28-2012 08:25 PM

Re: Stop Anthos from Taking over CrossFit
 
Steve,

If they own a controlling/managing stake; they own control of the marks and all the goodies that go with it.

Fact is and I think we're on the same page here, I would de-affiliate in a New York second if what little has been told here ends up being substantive. I'm concerned by the notion that, regardless of how well intentioned the messenger, why is this being distributed this way? Why no mass emailing in Greg's own words to the Affiliate community?

Most of what we know is too vague to take action on and yet action is what is being requested. Looking forward to straight talk and what's really at stake here before the torches and pitchforks come out.

Show us what's really afoot and you've got an army that's armed with precisely what's needed most: information.

Quote:

Originally Posted by Steve Rakow (Post 1081746)
I agree 100% with Steve's comments above. Coach really needs to step in and rally everyone around his position with logical reasons not to go along with her position as the consequences are too extreme for the affiliate community to go along with.

We'd be better off if Reebok bought her out and became an equity partner. At least they're on the same page and appear to understand fully how we operate.

The board could also create a poison pill - if a takeover occurs, the name CrossFit will then be of free use by anyone and not subject to licensing or affiliation, dissolve all affiliations, and see what happens then when there are no affiliates to try to franchise. Or Coach could dissolve CrossFit Inc., payout the equity, and start over under a new name. Most, if not all, of us would follow. Painful route to go, but probably a safer one.

What does Reebok have to say about all this? I'm sure they're not happy given the millions they've invested in the CrossFit brand.


Jason B Cox 07-28-2012 08:30 PM

Re: Stop Anthos from Taking over CrossFit
 
I also agree that this is not the way to communicate this to us, the affiliate owners.

A legitimate threat deserves more than a message board post.

Forgive my ignorance, but how does buying a non-managing partner's share put them in the position to control how the business is run? Is it not still a non-managing share of the company?

And yes, like the other affiliates have mentioned, we'd leave if the model changes. Let's all assume someone from Anthos will read this, so we can speak directly to them.

Anthos: we, the affiliates, will generally all leave if you change how we operate. Period. You'll get nothing for your $20 million.

Justin Thibault 07-28-2012 08:41 PM

Re: Stop Anthos from Taking over CrossFit
 
Coach G, you have all 3000 of our email addresses. Two years ago I started my affiliate for the same reason as most if not all the others--to own a business using CrossFit to improve lives in a way that I saw fit, and an outside party can f**k with that over my dead body--and when we have a clear call to action, our rallying cry will be unanimous.
This too shall pass...but we need a good signal. I shouldn't be hearing about this via Facebook.

Joey Powell 07-28-2012 08:57 PM

Re: Stop Anthos from Taking over CrossFit
 
What a coincidence....
Almost a year ago a "a non-managing equity partner of CrossFit Inc." tried to walk off with my affiliate and 3 plus years of hard work. Looks like we were just a dry run.

Brendan McNamar 07-28-2012 09:03 PM

Re: Stop Anthos from Taking over CrossFit
 
If she wants to sell let us buy her out?

$20,000,000 when we all threaten to walk is a bit of a high valuation but I'm sure we can come to terms. 4,000 affiliates into $20,000,000 would be $5,000 an affiliate. Now let's say $10,000,000 is a fairer value for her stake that would bring it down to $2,500. What % does she own?

The real question is will Coach handle this in a mature manner. Get her bought out quickly at a reasonable price and let us go on about our business. Coach has a reputation for alienating people and burning bridges. This would be a bad time to do this.

Personally I would be very happy to buy a piece of HQ. I would be even happier if I was a voting share holder in HQ. I suspect a lot of affiliate owners would like a chance to own a piece of HQ particularly a voting piece. Then everyone interest are aligned.

Simply structure the deal so that if anyone wants to sell there share HQ and current share holder get what is call a right of first refusal. We get the first chance to buy any shares offered for sale. That way no one can accumulate enough shares to create this problem in the future.

When you have multiple owners in a company like this you need to create liquidity so they can cash out and do what ever they want with the proceeds. Otherwise you will get private deals like the one people are currently concerned about.


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