Stop Anthos from Taking over CrossFit

[Jason B Cox]

Thank you, Coach, for making a statement.

[Brian Mulvaney]

Originally Posted by Craig Howard

Anthos' investors require a return on their investments. Anthos will challenge the Portfolio Manager for a return on the $20million investment. Anthos will not sit quietly allowing their $20m to ride on CF. This is NOT what they do

Precisely correct Craig. Private Equity firms don't make passive investments. Assertions to the contrary are rank nonsense. A Private Equity investment proposal absent a plan for management control is a complete non starter.

Wikipedia has some good material on the nature of Private Equity:

http://en.wikipedia.org/wiki/Private_equity

Typical private equity investment strategies include supplying growth capital and facilitating leveraged buyouts. Covert hostile takeover is NOT a typical private equity strategy.

Bryan Kelly of Anthos Capital actually does have a track record as a successful entrepreneur from well before he became a financier. It's one of the reasons we were willing to listen to his profoundly misguided notions on the proper business of CrossFit, Inc. Ironically, Bryan has no track record of success as a Private Equity investor. He is unlikely to have present or future success given his fundamental confusions over value creation and his aggressive use of short cuts. His engagement with the CrossFit owners has been nothing short of duplicitous: unethical at a minimum, and very likely illegal. I encourage him to take inspiration from every CrossFit Affiliate and return to the honest work of being an independent business owner free from outside capital and control.

[Chris Sinagoga]

Originally Posted by Andrew Stemler

I have trusted Greg and the head office staff since 2005. What ever they decide is Ok by me.

Agree 100%.

[Skip Chase]

Originally Posted by Chris Sinagoga

Agree 100%.

Ditto.
I am going to continue to enjoy the rest of my weekend, have a restful night of sleep. In the morning, God willing, I will wake, jump out of bed, drive to the gym and once again, thank God that I discovered this thing called CrossFit. Coach said he would always protect and support the affiliate, and I believe him. I will do whatever I can, whenever I am asked to continue to support the affiliate community.

[John Swanson]

Originally Posted by Brendan McNamar

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.

This was the exact thought that came to my mind. Why not let us have a chance to really buy in?

[Russell Berger]

Originally Posted by John Swanson

This was the exact thought that came to my mind. Why not let us have a chance to really buy in?

John,
Greg's partner began this with a far better offer from us... Sadly her motivation appears to be something other than money. If it were that simple this would be over.

[Brian Mulvaney]

Skip:

I had the good fortune recently of running into a young lady at your local Five Guys burger. She looked at my CF shirt, smiled, and asked, "Are you people allowed to eat here?" She then proceeded to tell me that her parents are devoted members of your gym and that her dad has lost over one hundred fifty pounds and her mom over one hundred pounds and that their lives have been remade.

You couldn't do anything more important, sir, than continue the ongoing miracle of a difference you make for your members.

[Russell Berger]

John,

Also, I think you should think through the proposition in that quote you provided. The CrossFit Affiliate system, which is based on the freedom and independence of Affiliates who are allies in spirit and yet almost all diverge in approach, method, and business model, would be just as threatened by your proposition as any other interest looking for standardization and control (external and internal alike). CrossFit will not allow this, and will fight to preserve the model that has brought us such success.

[Richard D Thompson]

Thanks Russ/Russ and most importantly Coach. It was also good to read Lauren's post. I haven't been on these boards for quite a while. Shot over here from FB...today...good to see some of the old guard posts. My prayer is that this gets resolved off the boards. I am "all in" as an affiliate. If we have to drop the CF in our name to retain independence that will be tough, but we will. I assume that our membership will continue, and we will grow the biz...but in truth, we are CrossFitters.

BTW...we just cleaned the bathrooms, and the floors, and the bars and just about everything else.

[Jamie Gowens]

Originally Posted by Russell Berger

John,

Also, I think you should think through the proposition in that quote you provided. The CrossFit Affiliate system, which is based on the freedom and independence of Affiliates who are allies in spirit and yet almost all diverge in approach, method, and business model, would be just as threatened by your proposition as any other interest looking for standardization and control (external and internal alike). CrossFit will not allow this, and will fight to preserve the model that has brought us such success.

What would be defined as a suitable partner?