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Old 08-10-2012, 04:00 PM   #421
Jason Soteros
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Re: Stop Anthos from Taking over CrossFit

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Originally Posted by Joe Koltz View Post
With all the information posted on the Internet, lawsuits, counterclaims, PR videos, etc. There are a few questions that seem to be left unanswered.

First, my understanding of Crossfit's current model is that it is very geographically spread without a bunch of infrastructure that is self sustaining and has reasonable cash flow. In theory a VC firm could look at that model and say "wow, look at all that money that we could have a chunk of every quarter.". They also may say things like "wow, look at this captive market of 4,400 store fronts with an average of 100 customers that we could sell products into, or better yet charge someone a fee to sell their products into." almost a half a million customers isn't a bad market. Or they could try to centralize memberships and simply charge a small fee for billing and collections of said fee. Let's say just $1.00 per month per member. The Affiliate only loses $100 per month but saves a bunch of time and effort and VCCrossfit picks up an extra $5,280,000 a year. The question that I haven't seen answered yet is with the proposed deal can Anthos force their approach downstream to the affiliates or is the concern that their involvement simply halts the progress that Crossift is making?

Second, and by far more concerning is with relation to the actual Asset value. Let's say someone like a VC firm comes In and ends up with a 50 percent share of Crossfit, Inc. and then through whatever means creates a more marketable (ie. storefront, shoe depot...) product focused location, centralizes corporate control and membership and in the process creates a larger bottom line for the "corporate Crossfit, Inc.". What do you think the next move is going to be? I think Mr. Kelly already told us. He mentioned the holding period for an investment. That is a nice way to say exit strategy. Who is Anthos going to sell the new and improved GloboBox Crossfit to when their "holding period" runs out?

Finally, I can't believe that this "definitive agreement" isn't anything more than a deal that is subject to approval by the family court in AZ and as such could be completely disregarded by the judge if he found that their was another viable alternative presented to him that would put Ms. Glassman in the same position as she would be with Anthos. My experience has been that family court judges have a great way of seeing through all the talk about how "I just want what is best and only I know what that is so trust me even though I haven't been involved for 2 years" once a matching offer is on the table. As cynical as it may sound, divorces come down to money, every time. Has Crossfit, Inc. put that offer on the table?

My hope is that Crossfit stays true to what it is, a grassroots movement that is improving the way ordinary people move and live as well as providing us with the entertainment of watching extraordinary people show us what levels of performance the human body is actually capable of.

No matter how this all shakes out clearly Crossfit has reached its next level of evolution and as such I hope it takes steps to better protect itself, because like it or not Mr. Kelly was right about the 50/50 structure not working long term.
I have been silently keeping tabs on this thread but have been thinking this all along. If HQ can come up with an offer to match that of Anthos it makes sense that the court would give the HQ/Coach 1st option and avoid this debacle. So please.... HQ... be ready... I like things the way they are!!!
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Old 08-10-2012, 04:38 PM   #422
Rob Brown
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Re: Stop Anthos from Taking over CrossFit

I have a feeling it won't be that Athos tells you what to do in your own Box.

It will be that they will have free reign to open boxes as they see fit and where they see fit. With a few million bux, they will have a corp box in every town run by kids at minimum wage. They will feature 'real' CrossFit gear, suppliments, and equipment bought by the shipping container. They will enjoy larger profit margins that the personal box can't. They can operate at better margins, with lower fees.

..are you ready to compete with 29.99$ a month unlimited 24hr. CrossFit?
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Old 08-10-2012, 05:41 PM   #423
Nathan Holmes
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Re: Stop Anthos from Taking over CrossFit

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Originally Posted by Russell Greene View Post
I can't help but notice, however, the discrepancy in responses. With few exceptions, CrossFit Affiliate owners tend to think that outside intervention in their business is a horrible idea and a violation of CrossFit's covenant with its affiliates.

There must be something about owning your own affiliate that makes you hyper-vigilant to the perils of outside intervention.
Mr. Greene,

You might be jumping to conclusions, here. There have been several high profile departures from Crossfit in the past under less than ideal circumstances. In one way or another, these people had a dissenting opinions and were cut out of the organization like a cancer. I'm not saying the decision was right or wrong, but if I were an affiliate owner right now, I would be hesitant to say anything but the company line. Again, I agree that the ideal situation is to keep ownership in house. However, I'm guessing that any affiliate owners with dissenting opinions are keeping their opinions to themselves for the sake of their affiliates.

It is very likely that the majority of affiliate owners oppose the Anthos' actions. However, I would hesitate to draw conclusions based on the number of positive or negative responses on this message board.

-Nate
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Old 08-10-2012, 06:49 PM   #424
Rob Poling Jr
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Re: Stop Anthos from Taking over CrossFit

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Originally Posted by Rob Brown View Post
I have a feeling it won't be that Athos tells you what to do in your own Box.

It will be that they will have free reign to open boxes as they see fit and where they see fit. With a few million bux, they will have a corp box in every town run by kids at minimum wage. They will feature 'real' CrossFit gear, suppliments, and equipment bought by the shipping container. They will enjoy larger profit margins that the personal box can't. They can operate at better margins, with lower fees.

..are you ready to compete with 29.99$ a month unlimited 24hr. CrossFit?
I think first they will try to convert the existing affiliates into gouging the members on fees and forcing gear and supplements on them. If the affiliates are truly for teaching their members the CF lifestyle then Anthos has no chance of changing them. Since that won't work they will open watered down "family friendly" boxes that really won't get the members in better shape put pull money out of their pockets.
Lauren, unless just being spiteful per the divorce, comes across as not being very business smart or maybe just gullible and naive. Why would you turn down yearly payments and not pay taxes and in turn want the same amount in a lump sum where 40% of it will go to taxes?
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Old 08-10-2012, 06:59 PM   #425
Daniel Wheeler
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Re: Stop Anthos from Taking over CrossFit

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Originally Posted by Rob Poling Jr View Post
I think first they will try to convert the existing affiliates into gouging the members on fees and forcing gear and supplements on them. If the affiliates are truly for teaching their members the CF lifestyle then Anthos has no chance of changing them. Since that won't work they will open watered down "family friendly" boxes that really won't get the members in better shape put pull money out of their pockets.
Lauren, unless just being spiteful per the divorce, comes across as not being very business smart or maybe just gullible and naive. Why would you turn down yearly payments and not pay taxes and in turn want the same amount in a lump sum where 40% of it will go to taxes?
To the last part...she dislikes GG.

To the first part, Anthos is not omnipotent. Affiliates will go where the money goes with whoever ends up with the power.

How many more CF gyms can be opened anyway? There are a good 75 or so where I just moved from, that has to rival starbucks.

Whats gouging if 200-300 a month is standard? Thats some serious gouging if your gouging CF members.

Last edited by Daniel Wheeler : 08-10-2012 at 07:05 PM.
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Old 08-10-2012, 07:09 PM   #426
Daniel Wheeler
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Re: Stop Anthos from Taking over CrossFit

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Originally Posted by Bryan Kemper View Post
There are a great many companies that provide Crossfit related goods and services. If Anthos has such a great vision to make Crossfit better, then let them develop, market and provide a better product or service that the affiliates or individual client will use. When I hear "money left on the table", I do not immediately think that it is a novel or useful tool instead it is a way to get more money out of a fat cash cow. That is not the community that I joined.
There is a difference in not having money because thats not your goal, and not having money because it wasn't managed well. I guess its easy to claim the former after having done the latter though.
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Old 08-10-2012, 07:15 PM   #427
Daniel Wheeler
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Re: Stop Anthos from Taking over CrossFit

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Originally Posted by Joe Koltz View Post
My hope is that Crossfit stays true to what it is, a grassroots movement that is improving the way ordinary people move and live as well as providing us with the entertainment of watching extraordinary people show us what levels of performance the human body is actually capable of.
A grassroots movement is made such because everyone wants to be cool and counterculture. Eventually everyone else wants to be cool so they join the movement. Eventually that grassroots movement has to grow up, put down some legs, and realize its mainstream now, or fade like every other fad because it became too popular to be grassroots and couldn't cut it as a grownup.
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Old 08-10-2012, 07:31 PM   #428
Michelle Campos
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Re: Stop Anthos from Taking over CrossFit

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Originally Posted by Rob Brown View Post
I have a feeling it won't be that Athos tells you what to do in your own Box.

It will be that they will have free reign to open boxes as they see fit and where they see fit. With a few million bux, they will have a corp box in every town run by kids at minimum wage. They will feature 'real' CrossFit gear, suppliments, and equipment bought by the shipping container. They will enjoy larger profit margins that the personal box can't. They can operate at better margins, with lower fees.

..are you ready to compete with 29.99$ a month unlimited 24hr. CrossFit?
Wow, interesting way to look at it. I just cringed.
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Old 08-10-2012, 07:33 PM   #429
Nathan Holmes
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Re: Stop Anthos from Taking over CrossFit

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Originally Posted by Daniel Wheeler View Post
A grassroots movement is made such because everyone wants to be cool and counterculture. Eventually everyone else wants to be cool so they join the movement. Eventually that grassroots movement has to grow up, put down some legs, and realize its mainstream now, or fade like every other fad because it became too popular to be grassroots and couldn't cut it as a grownup.
You are confusing the term "grassroots" with "faddish" or "hipster-like". I think Crossfit is different. The majority of the fitness industry (24 hour fitness) is all about looking good. Other gyms are about lifting as much weight as possible. Very few (or none, in my hometown) advertised true fitness and being better prepared for whatever life might through at you. I think what Daniel is getting at is that Crossfit has that grassroots feeling...like you just discovered something amazing that rocks your world and you want to share it with everyone. There is a sense of excitement when you make measurable progress in so many aspects (the ten fitness domains that Crossfit focuses on....and lets not leave out body composition). In a time when America's obesity's rate is soaring, Crossfit IS counter to our (American) culture of fast foot and slow living. Maybe I'm putting my words into Daniel's mouth, but I'm guessing that's more like what he meant. Someday it might be mainstream in America. And to be honest, I sure hope so! Its becoming more so every day. When it becomes truly mainstream, maybe we'll have a healthier population and a better world. Also, we'll sing kumbaya and put flowers in each others hair.

-Nate
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Old 08-10-2012, 07:37 PM   #430
Nathan Holmes
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Re: Stop Anthos from Taking over CrossFit

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Originally Posted by Rob Brown View Post
I have a feeling it won't be that Athos tells you what to do in your own Box.

It will be that they will have free reign to open boxes as they see fit and where they see fit. With a few million bux, they will have a corp box in every town run by kids at minimum wage. They will feature 'real' CrossFit gear, suppliments, and equipment bought by the shipping container. They will enjoy larger profit margins that the personal box can't. They can operate at better margins, with lower fees.

..are you ready to compete with 29.99$ a month unlimited 24hr. CrossFit?
Rob,

I think that's a bit over the edge. They aren't trying to buy a majority share of the company. They couldn't do what you described without Greg's concurance. I'm sure he would have left the company (and taken ALL but a few of the 4000+ affiliates with him) long before he would let it be watered down like that.

This is a big deal, but lets not go too far; "Crossfit" is just a name for what we do. "Fran" by any other name would still kick my butt.

-Nate
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