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Old 08-01-2012, 09:45 AM   #281
Donald Clarkson
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Re: Stop Anthos from Taking over CrossFit

I can never repay Coach, Dave, Jimi and others for all they have done for me personally and what they have done for this Nation's Service Members.

I am proud to count them among my friends and I am loyal to them and CrossFit until the end.

I will stand by them, defend what they have created, do my upmost to protect it and provide them any and all support I am able.

Whatever it takes.

Don
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Last edited by Donald Clarkson : 08-01-2012 at 09:48 AM.
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Old 08-01-2012, 10:41 AM   #282
Ben Elizer
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Re: Stop Anthos from Taking over CrossFit

In the spring of 1999 during a very bleak and difficult time in my struggle with cancer I had the immeasurable good fortune to meet Greg Glassman and be introduced to CrossFit. Greg's program of exercise and nutrition changed the course of my disease and quite literally extended my life. There is no dollar amount imaginable nor price tag high enough I can place on all of these years of being a father to my children and watching them grow, thrive and prosper from young infants to young adults. Greg, I owe you a debt of gratitude that can never be repaid.
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Old 08-01-2012, 10:56 AM   #283
Drew Nadeau
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Re: Stop Anthos from Taking over CrossFit

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Originally Posted by Ben Elizer View Post
In the spring of 1999 during a very bleak and difficult time in my struggle with cancer I had the immeasurable good fortune to meet Greg Glassman and be introduced to CrossFit. Greg's program of exercise and nutrition changed the course of my disease and quite literally extended my life. There is no dollar amount imaginable nor price tag high enough I can place on all of these years of being a father to my children and watching them grow, thrive and prosper from young infants to young adults. Greg, I owe you a debt of gratitude that can never be repaid.
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Old 08-01-2012, 11:07 AM   #284
Russell Greene
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Re: Stop Anthos from Taking over CrossFit

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Originally Posted by Brian De Mio View Post
I have some questions and opinions regarding this topic. Iím not an affiliate but have a vested interest as a client in this program. My ignorance in business matters is relatively high so if these questions appear redundant or out of place please understand.

1. What is the difference between Crossfit working with Reebok versus Anthos? How is Reebok associated? Do they have any controlling interest? Are they not both looking to make a profit? This country runs on Capitalism so it makes sense that a company that wants to invest into a company has an expectation to get a return on their investment.

2. What is assumed if Anthos gets 50% of the controlling share? Affiliates annual fee would increase thus my monthly fee? Direction would be given to change the way we the client works out? Affiliates would be forced to change their personal work ethic? Buy supplements, material, and equipment they donít want? Did or does Reebok have the ability to make this happen? (I assume they donít have controlling shares?)
a. As a side question to #2 after having read the boards, Do you assume as an affiliate that Anthosí expectation after taking 50% control would force you the affiliate to increase their profit margin by providing to the consumer these products and supplements without your consent?

4. Hypothetically lets say Anthos gets 50% controlling stock, and most of the affiliate owners still have their ďcontractĒ with Crossfit, would they have the power to tell the affiliate who wants to drop the name that your business belongs to them? (assuming its now a franchise?)

5. My understanding of Crossfit affiliate means you pay them money every year to keep a name. Other than that the business model is pretty much up to you correct? Have any of the affiliate owners contacted a lawyer to determine their rights under this agreement and what options you have? Personally my opinion on this matter is that if you own a business and do not have personal legal counsel then you donít understand what it means to own a business. No offense to Coach Glassman, his team, or affiliate owners but I donít think it is enough to let them fight this battle and the affiliate wait for ďcome what mayĒ. Sounding off on a message board is all well and good but how well protected are you legally and what do you folks do about it?
a. If you are not worried about this I would suggest you think about the guy that sued the affiliate after developing Rhabdomyolosis. Granted itís a different scenario but in the legal world you can get sued for just about anything. Is there a potential for Anthos to be able to sue an affiliate who decides to drop the Crossfit name for example?

6. I donít personally know much, if anything, about the Glassmanís nor is it my business but thinking from a personal point of view I believe most of us have a greedy nature in that we want to make money, do well, and receive recognition for our accomplishments. Itís not necessarily a bad thing to want to profit from your experience, knowledge, or whatever. This is an interesting quandary as you have two people of differing opinions, equal partners in a business, and going through a divorce at the same time. For each of them this is a personal matter better left resolved between the two of them. Unfortunately you the affiliate (and we the client) are being thrust into this based on the future of Crossfit. Each of those partners wants to profit whether it be through monetary gain, recognition, or advancement of future goals etc. Ultimately the courts will decide. Why not look for the end result of every possible scenario, make a plan, consult your lawyer, and know where you stand in the end?
Brian,

Thanks for your questions.

1. Reebok does not own any shares in CrossFit. They have a 10-year title sponsorship deal for the CrossFit Games, but absolutely no equity in CrossFit Inc.

2. We know what Anthos would try to do with a stake in CrossFit. Greg and CrossFit HQ staff repeatedly rejected their ideas and advances. Bryan Kelly of Anthos fundamentally does not understand CrossFit and he made this painfully clear in these meetings. While CrossFit HQ seeks to extract minimal licensing fees from affiliates (the Least Rents Model), Bryan Kelly thinks our business model is leaving "money on the table." He sees CrossFit as a vehicle to sell T-shirts, supplements, equipment, business management tools, etc.

Now, there are independent companies that currently supply CrossFit affiliates with all of those products. Think Rogue, Again Faster, MBO, SFH, etc. Why does Anthos need the power associated with owning half of CrossFit in order to sell stuff to CrossFit affiliates?

Bryan Kelly of Anthos keeps ducking this question, because the answer is obvious. As Greg has said, "The existential threat to affiliates resides in the $20,000,000 desire to control them".

4 and 5. With a 50% share of CrossFit, Anthos would have as much power as Greg Glassman. They would be able to either deadlock the company or get their way with the affiliates. With control of CrossFit HQ they'd have the power to change the affiliate contract. Affiliates that decided not to sign the new contract would lose the right to carry the CrossFit brand. In other words, affiliates would have the choice to either concede to Anthos' schemes, or cease existing as CrossFit affiliates.
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Old 08-01-2012, 11:15 AM   #285
Daniel Scarnecchia
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Re: Stop Anthos from Taking over CrossFit

I have a question for the lawyers here, and perhaps for everyone involved as an affiliate to seriously think about.

What I've taken away from this thread is: in an attempt to protect the interests of one of the owners, as well as the culture of Crossfit, HQ Staff, along with Coach Glassman, are engaging in a deliberate attempt to devalue the business (in dollar terms) in an attempt to poison the well vis-ŗ-vis Lauren Glassman's attempt to sell her 50% to a private equity firm.

How is this not either a breach of Greg Glassman's fiduciary duties or at the very least tortious interference?
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Old 08-01-2012, 11:19 AM   #286
Greg Light
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Re: Stop Anthos from Taking over CrossFit

Good questions and even better responses. So great to see so many people from HQ on here explaining the situation. Keep fighting the good fight guys!

Quote:
Originally Posted by Russell Greene View Post
Brian,

Thanks for your questions.

1. Reebok does not own any shares in CrossFit. They have a 10-year title sponsorship deal for the CrossFit Games, but absolutely no equity in CrossFit Inc.

2. We know what Anthos would try to do with a stake in CrossFit. Greg and CrossFit HQ staff repeatedly rejected their ideas and advances. Bryan Kelly of Anthos fundamentally does not understand CrossFit and he made this painfully clear in these meetings. While CrossFit HQ seeks to extract minimal licensing fees from affiliates (the Least Rents Model), Bryan Kelly thinks our business model is leaving "money on the table." He sees CrossFit as a vehicle to sell T-shirts, supplements, equipment, business management tools, etc.

Now, there are independent companies that currently supply CrossFit affiliates with all of those products. Think Rogue, Again Faster, MBO, SFH, etc. Why does Anthos need the power associated with owning half of CrossFit in order to sell stuff to CrossFit affiliates?

Bryan Kelly of Anthos keeps ducking this question, because the answer is obvious. As Greg has said, "The existential threat to affiliates resides in the $20,000,000 desire to control them".

4 and 5. With a 50% share of CrossFit, Anthos would have as much power as Greg Glassman. They would be able to either deadlock the company or get their way with the affiliates. With control of CrossFit HQ they'd have the power to change the affiliate contract. Affiliates that decided not to sign the new contract would lose the right to carry the CrossFit brand. In other words, affiliates would have the choice to either concede to Anthos' schemes, or cease existing as CrossFit affiliates.
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Old 08-01-2012, 11:25 AM   #287
Vickie Ellickson
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Re: Stop Anthos from Taking over CrossFit

Quote:
Originally Posted by Daniel Scarnecchia View Post
I have a question for the lawyers here, and perhaps for everyone involved as an affiliate to seriously think about.

What I've taken away from this thread is: in an attempt to protect the interests of one of the owners, as well as the culture of Crossfit, HQ Staff, along with Coach Glassman, are engaging in a deliberate attempt to devalue the business (in dollar terms) in an attempt to poison the well vis-ŗ-vis Lauren Glassman's attempt to sell her 50% to a private equity firm.

How is this not either a breach of Greg Glassman's fiduciary duties or at the very least tortious interference?
I'm not a lawyer, but I don't think affiliate owners choosing not to remain affiliated if the contract changes is interference with the brand. If the brand (affiliation contract changes), it's their choice and right to decide if they want to be associated with it. If the brand is subsequently devalued, that's on the ownership that changed the contract, not those who chose to no longer be associated with it.
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Old 08-01-2012, 11:28 AM   #288
Daniel Scarnecchia
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Re: Stop Anthos from Taking over CrossFit

That makes sense, and I doubt affiliates would be liable in any way, I'm more curious about the liability incurred by HQ for deliberately encouraging it beforehand.
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Old 08-01-2012, 11:43 AM   #289
Patrick Walsh
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Re: Stop Anthos from Taking over CrossFit

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Originally Posted by Russell Greene View Post
4 and 5. With a 50% share of CrossFit, Anthos would have as much power as Greg Glassman. They would be able to either deadlock the company or get their way with the affiliates. With control of CrossFit HQ they'd have the power to change the affiliate contract. Affiliates that decided not to sign the new contract would lose the right to carry the CrossFit brand. In other words, affiliates would have the choice to either concede to Anthos' schemes, or cease existing as CrossFit affiliates.
Which one is it? How would they have control of HQ?
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Old 08-01-2012, 12:05 PM   #290
Russell Greene
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Re: Stop Anthos from Taking over CrossFit

Patrick,

It's the sentence in the middle:

"They would be able to either deadlock the company or get their way with the affiliates."

And that's not even talking about lawsuits...
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