Consumer Product Company w/All Major Pro & College Sports Leagues Licenses!
Los Angeles, CA
This consumer product company sells professional sports (NFL, NBA, MLB, NHL), college NCAA, PGA Tour, and Team USA Olympics branded products. As there are few competitors with branded items in their categories, the 5 year-old firm quickly grew to nearly $4.0 million in revenues prior to the onset of COVID. Product blanks are manufactured via Asian based vendors and finished stateside.
All of the company’s licenses, each renewed in the last 6-12 months, are for the customary 2.5 – 3 year term and will be included in the sale, together will its furniture, fixtures, equipment and goodwill. An estimated $1.0 ml in inventory will be sold at close. The 25,342 square foot facility, which leases for $22,187 per month, is on a lease until 6/30/25 with one 3 year option, though part of the premise has been subleased.
The firm boasts limited competition in its popular categories. The larger of the two competitors does branded clothing, bags, accessories and shoes for the NFL, MLB, NBA, NHL, MLS and NCAA, with only 2 overlapped products, at a significantly lower price point (e.g. $20-$55) and quality level. A second competitor offers a very limited number of overlapping products with select top-selling NFL, MLB and NCAA teams at premium price points ($170-$328). They focus on the female fashion market. Due to the difficulty in obtaining these coveted licenses, barriers to entry and threats from industry entrants is considered to be low.
While this opportunity provides coveted sports licenses and a broad range of product development and manufacturing expertise, they admittedly do not possess the same acumen in marketing. The company can tremendously benefit from digital marketing prowess, together with additional capital for marketing and inventory to accomplish their growth goals. Namely, they first intend to build consumer awareness as most sports fans do realize they can purchase branded products in these categories. Next, they intend to become recognized as the go to company for sports branded products in their categories (in the same vein that fans now associate Lids with branded caps). Finally, they plan to drive direct to consumer sales to their own online portal to realize greater margins.
Seller will train for 2 weeks at 20 hours per week or as negotiated