Stop Anthos from Taking over CrossFit

[Zach Even - Esh]

Originally Posted by Steve Liberati

Ex-wives can be very revengeful.

AHAHAHAAAAAAA

Funny shyt, Steve!!!

[Zach Even - Esh]

Originally Posted by Coach

Friends,

The existential threat to affiliates resides in the $20,000,000 desire to control them. Bryan Kelly made the Anthos intent painfully clear to a room full of CF Staff Tuesday May 10, 2011, from 6:30-7:00 pm in the Tony Gwynn suite at the Omni Hotel in San Diego, California. Jeff and Miki Martin, Dave Castro, Brian Mulvaney, Karianne Dickson, Dale Saran, Tony Blauer, and I were present. There, Bryan Kelly explained in clear and concise terms that we were leaving billions of dollars on the table with our current affiliate relationship. We all remember lines like, "Every time I go into GNC, you are losing money". The talk, and several of us have heard it several times and on two coasts, revolved around "money left on the table". We are well acquainted with the Anthos plan and Bryan Kelly's intent. We've been preparing for this for almost a year.

Make no mistake about it, Anthos wants an equity share of CF in order to gain control of the affiliates. I stand squarely in the way. From the start, our promise to the affiliates has been to minimize rent extraction while providing the best education, protection, and brand development possible. Bryan Kelly sees 4,000 independently owned and operated gyms as 4,000 potential points of sale. The Anthos approach is short-term, rapacious, dishonest, entirely destructive of our culture, and toxic to the affiliates.

Anthos will NOT end up with an equity share in CrossFit. They're holding a losing hand and will eventually come to terms with that fact. I'm honored to fight this fight and consider the opportunity and responsibility to lead the affiliates as the most significant facet of my life. None of it is for sale - at any price. I don't care what this costs or how long it takes, we will keep our affiliates free.

======

Coach - I assumed you would see it this way, and, I also assumed the majority of affiliates would NOT want any part of being controlled, and, they would outrage enough to stop it from happening.

Very cool to see, thanks, Coach!

--Z--

[Stephen Baker]

It's a simple decision if it comes down to it.

Anthos says you have to be a franchise, my answer is "I won't do that."

Lose the brand, keep my gym.

[Joey Powell]

Link now works

WFS: https://www.facebook.com/notes/josep...36751696368212

[Ben Norris]

All of these people saying why dont affiliates just buy out the 50% share not owned by Mr Glassman? Well if the goal of this other partner is revenge then no amount of money put forth would be accepted. I am concerned that the other partner in Crossfit does not fully understand the consequences that selling to a VC company will lead to.

Allowing people whose ONLY concern is to increase profit in a short period of time disregarding all other factors is one of the worst business decisions possible. Imagine if a VC company had taken over Apple or Microsoft in its infancy. The creative ideas by its founders would be destroyed and the founder would have to set up another business if they wanted to make their dreams come true as I cannot see Steve Jobs or Bill Gates working under somebody else who does not care about the product and their dreams and only cares about the $$$$$$$$.

The solution to this problem really is to talk to the other partner and demonstrate to "them" that selling to a VC business has the possibility of destroying everything that "they" worked so hard to set up and the need for them to sell to Crossfit Inc to ensure that we are free of entitity whose goals are much more diverse that to only increase profits. We need to make it clear that there will be more lives affected that Mr Glassman's if this sale goes ahead. Thounsands of business owners lives will be affected, the millions of Crossfitters will be affected, our partnership with Reebok will be in serious jeopardy and we face the very real possibility of Crossfit crumbling if the VC company forces a takeover of Mr Glassmans 50% in a court of law.

[Pär Larsson]

If Anthos succeeds I'm not sure I'd really want to continue to be associated with the brand "CrossFit". Maybe just build a new brand called "CrossGreg"?

[Ben Norris]

Lets say the other partner does not accept this and is still intent on selling to Anthos.

They are a Venture Capital firm. Their list of priorities are as follows

1. Profit
2. Profit
3. Profit
....
....
....
....
100. Profit

The easiest way to ensure Anthos does not want to touch us with a large stick is to show them we would rather self destruct than be under their control. Get every affiliate to sign a document that says if Anthos takes over Crossfit they will renounce their "Crossfit" title. They loose 20 million dollars as they cannot force a Crossfit affliate to do what they want if there are no "Crossfit" affiliates and we loose "Crossfit". Doing this would guarantee they would not want to invest in Crossfit and would run the other way.

[Jason B Cox]

Originally Posted by Joey Powell

Link now works

WFS: https://www.facebook.com/notes/josep...36751696368212

Damn. That's unbelievable.

If that's how things went down, I am glad that 50% ownership of HQ is going elsewhere. Just wish it wasn't going where it's going.

Although with that kind of backstabbing, sounds like VC ownership either way.

[Brendan McNamar]

And now I am 100% convinced Anthos is totally full of **** about their motives.

"Dear CrossFitters:

My name is Bryan Kelly and I am a Managing Director at Anthos Capital. As you may have heard, we have entered into a definitive agreement to purchase Lauren Glassman’s ownership interest in CrossFit subject to court approval. I am writing to tell you about us, respond directly to misunderstandings about our objectives, and to tell you that we will be supportive, non-managing, value-add partners to CrossFit, the affiliates, and the community.

By way of personal background, I have been CrossFitting for the past two years and know and love the CrossFit community. Like many of you, CrossFit has had a profound positive impact on my wellness and life. Due to CrossFit, I’m in better shape at 34 than I was at 24 and I hope that I’ll be even healthier at 44 than I am now. Many of my colleagues are also active CrossFit participants, and feel the same way. I developed tremendous respect for Coach Glassman and the Affiliates in revolutionizing the fitness industry. This is what attracted our firm to consider investing in CrossFit.

We got to know the CrossFit team over several years, built a mutual respect, and became interested in the idea of investing. We learned of Lauren’s interest in selling her shares and reached an agreement with her that we believe will be beneficial to all. Our investment accomplishes several things: it provides Lauren with a fair and orderly transition out of CrossFit (consistent with her role of co-founder of CrossFit and her 50% ownership interest), it doesn’t create substantial financial obligations for CrossFit in connection with a buy out of Lauren’s interests, and it results in Greg having a partner who respects him and his vision and will support him in his efforts to further build the company.

Grossly inaccurate claims have been made about our intentions. For clarity, our plan is to help Coach Glassman professionally execute his vision by playing a supporting, hands off role. Greg will continue as CEO and we will be an investor with no managing responsibilities. We will own 50%, not a majority. We will be equal partners. We have absolutely no desire to change the affiliate model by turning them into Globo gyms. Our core philosophy as investors is to be supportive, non-control partners to the companies and teams we back.

I have met with Greg several times. It is my style to brainstorm and throw out a variety of ideas that the entrepreneur can take or leave as he/she pleases. After hearing feedback from several of you affiliates, my suggestion is that affiliates could benefit if CrossFit HQ (or a third party provider) offered optional technology services (website, member billing, member communication) to Affiliates that wanted them – those that wanted to could employ these initiatives, those that did not want to would conduct business as usual.

We raise ideas, but ultimately the decision is Greg’s and we view our role as one that helps, not directs. More broadly, the reason we are attracted to CrossFit is because of its important Affiliate model. We have absolutely no intention or desire to create a franchise model, tell you how to run your business, or force you to sell products you don’t believe in.

We know the affiliates are the lifeblood of the community and are critical to the long-term success of CrossFit – both as a fitness revolution and as a business. In short, why would an investor want to destroy the future of a company in which they invest? We want to do well in the future by you doing well in the future.

As we all know though, a core tenant of CrossFit is the relentless pursuit of betterment. We’re confident that our partnership can help do that.

Best Regards,

Bryan"

If Bryan was a member of my gym he would now be an ex-member of my gym.

[Jesse R james]

Originally Posted by Brendan McNamar

And now I am 100% convinced Anthos is totally full of **** about their motives.

What parts of what was posted convinced you that they're full of ****?