NSGA NOW - July/August 2022

Volume 11| No. 43 | July/ August 2022

A PUBLICATION OF THE NATIONAL SPORTING GOODS ASSOCIATION

POIGNANT POINTS

Aaron Thomas’ Captivating Story at Management Conference Panels Tackle Hot Industry Issues Inside Look at 2022 Sports Participation Report

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TABLE OF CONTENTS

CEO NOW 4 Conference Panels Reflect Various

22

CONFERENCE NOW From left, Yvette Dalton, Monica Garrett, Ahmad Islam and John Scipio discuss the importance of Diversity, Equity and Inclusion during this year’s Management Conference & Team Dealer Summit.

>> ON THE COVER: Aaron Thomas delivers his Tuesday morning keynote at the 2022 Management Conference & Team Dealer Summit.

Industry Challenges

SSOCIATION NOW 6 AFreeman, Scipio Join Board of Directors INSIGHTS NOW 8 Examining 2021 Participation and COVID’s Impact ONFERENCE NOW 12 CScenes from Scottsdale NOW 14 CTheONFERENCE Road Ahead for Supply Chain Issues ONFERENCE NOW 16 CNIL’s Impact on Industry ONFERENCE NOW 18 CAaron Thomas On Overcoming Adversity GUIDE 24 2See022NewPRODUCT Products from NSGA Supporters RETAIL NOW 30 Winners vs. Losers OPERATIONS NOW 34 Taking Advantage of Employee Retention Credits EATURED CONTENT NOW 36 FQ&A With Augusta Sportswear Brands NDUSTRY NOW 38 IFrisk Steps Down at Under Armour; Adidas-Foot

40 43

Locker Partnership; Cap America Acquires Wear-A-Knit

LOCKER ROOM NOW

Latest NFHS, NCAA Rule Changes and Updates

MEMBER SPOTLIGHT NOW

Give Me Five With James Rogers, Sportstop NSGA NOW ®

>> July/August | 3

CEO NOW Education is always an important component of the NSGA Management Conference & Team Dealer

NSGA OFFICERS

Summit.

Chairman of the Board Pat Donnelley Donnelley Sports, Twin Falls, ID

At this year’s event we focused on three topics which are prominent in our industry and our daily lives. We put together panels of experts to share their insights

Treasurer/Chairman-Elect Greg Miller Game One, Bozeman, MT

with attendees on supply chain struggles, Diversity, Equity and Inclusion (DEI) and Name, Image and Likeness (NIL). We have an in-depth look at each

Past Chairman David Labbe Kittery Trading Post, Kittery, ME BOARD OF DIRECTORS Kevin Bezanson Cleve’s Source for Sports, Halifax, Nova Scotia, Canada Bob Fawley Capitol Varsity Sports, Oxford, OH Troy Freeman Play It Again Sports, Minneapolis, MN Gordon Geiger Geiger’s, Lakewood, OH Mick Montgomery Denver Athletic Supply, Englewood, CO Ron Rugal B&R Sporting Goods, Shelby Charter Township, MI John Scipio SV Sports, Pottstown, PA NSGA TEAM LEADERS Matt Carlson President & CEO Marty Maciaszek Team Dealer Division, Communications Julie Pitts Director, Public Affairs and President, NSSRA Nick Rigitano Director, Insights and Analysis Jennifer Shaffer Comptroller

subject in this issue of NSGA NOW. The ongoing supply chain issues are on the minds of everyone in our industry. How long will the challenges of getting products last? Will skyrocketing shipping and transportation costs return to pre-COVID levels? What impact will COVID and conflicts in other parts of the world have on the situation? The panelists analyzed some of the current problems and examined what you need to be prepared for in the months ahead.

Discussions about DEI are not always comfortable. According to Lt. Col. Waldo Waldman, “Your comfort zone is your danger zone.” Some people may view them as preachy and pushing some type of political agenda. The panel was led by sporting goods industry veteran and SV Sports CEO John Scipio and the objective was to get people in the industry to come out of their comfort zones. We wanted to explore ways to help everyone learn that making your team more diverse is a pathway to making your business even more successful.

If you are a fan of college football and basketball you are well aware of the impact of NIL in the last year. You also may be wondering why NIL was a topic of discussion at the Conference and how it effects the industry. Our panelists showed that getting involved with athletes and NIL is not just for big business owners. There are plenty of opportunities out there for local retailers and team dealers to enhance their brand by collaborating with local athletes.

Inspiration was also a big part of the Conference and we delivered it in different forms. Lt. Col. Waldman brought tremendous energy and shared with attendees the importance of having “wingmen” since you can’t succeed without the support of trusted allies. Aaron Thomas shared his poignant family tragedy on how to turn adversity into opportunity. Football legend Herm Edwards finished off the two days with a message that touched on his famous quote, “You play to win the game.”

The overall goal is for attendees at the Conference to return to their businesses with more knowledge, ideas and energy. Our mission for next May in Nashville is to continue delivering speakers and discussion topics to help you succeed during these challenging times. We look forward to seeing everyone next year in Music City!

Best regards, Matt Carlson | President & CEO

The National Operating Committee on Standards for Athletic Equipment (NOCSAE) will hold its Summer Standards Committee Meeting on July 22. NSGA will monitor the meeting and provide a recap.

4 | NSGA NOW ®

>> July/August 2022

NSGA NOW (ISSN 1045-2087) is published bi-monthly for members of the National Sporting Goods Association, 3041 Woodcreek Drive, Suite 210, Downers Grove, IL 60515. Phone: (847) 296-NSGA (6742); Fax: (847) 391-9827.

Subscription price of $50 per year is included in membership fee. Non-member subscription information available from publisher. Periodical postage paid at Downers Grove, IL 60515 and additional mailing offices. POSTMASTER: Send address changes to NSGA NOW,® 3041 Woodcreek Drive, Suite 210, Downers Grove, IL 60515. © NSGA 2022 all rights reserved. Printed in the USA.

www.augustasportswear.com

ASSOCIATION NOW Freeman, Scipio Join NSGA Board of Directors The National Sporting Goods Association (NSGA) made two

owned and led sporting goods

changes to its Board of Directors with the appointments of Troy

retailer and team dealer in North

M. Freeman (Winmark Corporation/Play It Again Sports) and John

America. He is providing the

Scipio (SV Sports). Their three-year terms took effect June 1.

strategic vision and overseeing

“Troy and John bring tremendous experience and insight from the

the organizational restructuring

sporting goods industry to the NSGA Board,” said Matt Carlson,

of SV Sports.

NSGA President & CEO. “Their passion, enthusiasm and desire

Scipio served in various leadership

to help the Association navigate the challenges ahead for our

roles during his 25-year career

members and everyone in the industry make them great additions.”

in the sporting goods industry.

Freeman has been Director of

He led the sales and marketing

>> John Scipio

functions for Nike and the innovative basketball brand AND1 and he

Operations with Play It Again

is a brand, sales and marketing strategist who clearly understands

Sports since 2018 and held

culture and its fiscal impact. Scipio also moderated a panel on

operations manager and senior

Diversity, Equity and Inclusion on May 23 at the NSGA Management

operations manager positions

Conference & Team Dealer Summit in Scottsdale, Arizona.

since he joined the company in 2004. He has played an integral

“Sports has been such a major part of my life and I’m thrilled to

role in supporting Winmark — the

share my passion and variety of experiences with the NSGA Board

Resale Company® and its focus on

of Directors,” Scipio said. “I am looking forward to bringing ideas

sustainability, value and providing

>> Troy Freeman

which will help retailers and dealers succeed in what is an extremely

Resale for Everyone™, by supporting franchisees in providing quality

challenging business environment. Their success is vital to one

used and new sporting goods in their local communities.

of the best aspects of our industry, which is our ability to help

Freeman’s close work with his team helped develop category

people of all ages and backgrounds participate and have successful

strategy with the buyers, establish operational excellence and solicit

experiences through sports.”

feedback from franchisees to help Play It Again Sports become the

Freeman and Scipio replace Jerry Williams (SV Sports) and David

leader as the No. 1 franchise in used sporting goods retail with

Lynn (Dunham’s Sports, Troy, Michigan) on the NSGA Board. Williams

more than 272 stores open and several in development.

and Lynn’s terms expired at the end of May 2022.

The Minnesota native received his degree from Winona State University

“We appreciate the dedication and service to NSGA from Jerry and

and spent 13 years in retail in the drug store industry serving all levels of

David to help the Association and the sporting goods industry,”

management. Throughout the early part of his career he touched every

Carlson said. “We are glad to have SV Sports continue to be

aspect of retail management including marketing, brand development,

represented on the Board and look forward to continuing to work

vendor relations, human resources, cash management and promotions.

with the Dunham’s Sports family.”

“I’ve always been a sports and fitness enthusiast with a lifetime love for playing and being involved in sports, in particular a passion for hockey,” Freeman said. “I’ve developed the mindset that sports are more than a ball or a puck! It’s the lives of people that are positively impacted by the joy of playing Little League or establishing a healthy lifestyle through sport through our Play It Again Sports brand, which helps bring ‘Resale for Everyone™.’ I’m excited to bring my professional experience and skill to the NGSA Board.”

Scipio is the CEO of SV Sports (formerly known as Schuylkill Valley Sports), a regional full-line sporting goods and team dealer based in Pennsylvania. When Scipio and his partners acquired SV Sports in August 2021 it made the company the largest African American 6 | NSGA NOW ®

>> July/August 2022

>> Jerry Williams (SV Sports), right, was recognized for his six years of service to the NSGA Board of Directors with a plaque presented to him by NSGA Board Chairman Pat Donnelley (Donnelley Sports) at the Management Conference & Team Dealer Summit in May.

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INSIGHTS NOW Changes and Drivers for Sports Participation in 2021

By Nick Rigitano NSGA Director of Insights and Analysis The latest edition of NSGA’s Sports Participation in the US report revealed which sports rebounded from pandemic-influenced losses in 2020 and which ones experienced continued trends for the team, individual and wheel sports segments. These are key areas for many sporting goods retailers, dealers and manufacturers.

Based on NSGA’s Total Participation Points (TPP) measure, the team sports segment remained flat (-0.6%), the individual sports segment increased 6.6% and the wheel sports segment decreased 3.2% in 2021 compared to the prior year. TPPs offer a more complete view

Figure 2 illustrates the changes seen among the individual and wheel

of participation because the number of people participating in each

sports segments by gender. Once again, pickleball (+25%) experienced

sport segment (reach) and the number of sports each person is

another strong year with gains split evenly between males and females.

participating in (depth) are considered.

Increases in bowling participation (+10%) were also split evenly across

In order to take a closer look into the changes and drivers behind the segment increases and decreases, we will use a perceptual map to help illustrate these changes (Figure 1). The y-axis indicates the

genders, providing a partial rebound from the steep declines occurring as a result of bowling center shutdowns during the height of the pandemic in 2020. A strong increase in female participation helped

overall percentage increase/decrease in team sports and the x-axis

swimming get back to its pre-pandemic level of 47 million participants.

indicates the degree to which the increase/decrease was driven by

Gains among females helped offset the slight decline among males for

youth (ages 7–17) or adult (ages 18+) participation.

the sport of tennis, allowing it to remain flat overall compared to the

To put things in perspective, baseball saw a 4% decrease in overall participation and the changes in youth vs. adult participation were nearly split down the middle, which is why the baseball icon is in the lower half of the map but located very close to the y-axis. Softball, however, is located in the far top

prior year. Also remaining flat were the activities of bicycle riding and ice/ figure skating, both of which saw slight increases in male participation cancel out the slight decreases in female participation. Finally, the slight decline in skateboarding (-1.5%) was driven by males whereas female participation played the biggest role in the decline in golf (-5%), in-line

right quadrant as the sport experienced a 10% increase in

roller skating (-4%) and off-road mountain biking (-20%).

overall participation, which was heavily influenced by a signif-

For more information on the report, please visit

icant increase in adult participation.

www.nsga.org/research.

The two team sports experiencing the largest increases in 2021 were softball (+10%) and volleyball (+7%) and they were driven by increases in adult participation. Both sports rebounded strongly after suffering sharp declines during the COVID-riddled year of 2020. Increased participation among adults also drove the modest gain seen by touch football and played a part in the similar-sized gain seen in cheerleading.

Increases in adult hockey and lacrosse canceled out the decreases in youth participation for both sports and allowed them to remain flat overall. For soccer, increases in youth participation were stifled by slightly larger decreases in adults. Decreases in youth participation, however, drove the declines seen among the team sports of baseball, basketball, flag football and tackle football.

8 | NSGA NOW ®

>> July/August 2022

Did Sports Rebound or Reset?

The 2021 Sports Participation Story SPORTS PARTICIPATION IN THE UNITED STATES EDITION

2022 nsga.org

Order the newly released NSGA Sports Participation Reports at nsga.org/research

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CONFERENCE NOW Scenes from Scottsdale There was a high level of energy and enthusiasm from attendees as the Management Conference & Team Dealer Summit returned to its traditional time slot on May 22–24.

Here’s a glimpse of what happened in Scottsdale, Arizona.

1 >>

2 >>

3 >>

4 >>

5 >>

12 | NSGA NOW ®

6 >>

>> July/August 2022

1 >> Lt. Col. Waldo Waldman gave a rousing opening keynote and quickly inspired the attendees by getting them to “push up.”

7 >>

2 >> M onday afternoon’s Speed Networking continues to be one of the most popular sessions of the event.

3 >> Getting together after the Sporting Goods Industry Hall of Fame Dinner and Induction Ceremony were, from left to right, Tom Raynor (Fleet Feet, Class of 2011), Hall of Fame Chairman Ken Meehan (Dunham’s Sports), Ronny Flowers (Athletic Supply, Class of 2019), Conny Klimenko (Sevylor, Class of 2005) and Stan Jurga (All-Star Sporting Goods, Class of 2018).

8 >>

9 >>

4 >> R ob Deer of Bat Geer gives a quick demonstration of his baseball training product to Chuck Adam of Second Time Sports. Deer hit 230 home runs during an 11-year Major League Baseball career.

5 >> Robb Stephenitch of CHAMPRO, left, talks with Harold and Gina Buell of Fitness First Sports during a networking break.

10 >>

6 >> Tyler Grogan (Grogan-Marciano Sports), left, catches up with closing keynote speaker, Herm Edwards. Grogan’s father, Steve, played quarterback against Edwards in the NFL. 7 >> F rom left, Michael Gotfredson Sr., the founder of Road Runner Sports, shares his induction into the Sporting Goods Industry Hall of Fame with chairman Ken Meehan (Dunham’s) and his son, Michael Gotfredson Jr.

11 >>

8 >> Jim Chandley, President of NBS, shows he’s gotta wear shades during his Speed Networking meeting with Jerry Manderhjelm of BLIZ. 9 >> Lynn Burghardt, President of Chipply, gives a presentation to attendees on Tuesday morning.

10 >> J ohn Davenport and Troy Freeman (The Winmark Corporation/Play It Again Sports) listen to the presentation by Mueller Sports Medicine’s Tim Jahnke, far left, and John Cayer, far right, during Speed Networking. Mueller sponsored the Team Dealer Summit and Speed Networking.

11 >> OrderMyGear has a Speed Networking discussion with Amber and Mike Lotocki (All Pro Sports).

NSGA NOW ®

>> July/August | 13

CONFERENCE NOW The Elephant in the Room: Supply Chain Complexities and Challenges Ahead

By Tom Van Jacobs NSGA Marketing Coordinator The National Sporting Goods Association hosted a panel at the

How to protect yourself and your company going forward was a

2022 Management Conference & Team Dealer Summit to talk about

question brought up by the attendees. Hunt mentioned moving toward

the elephant in the room in “Unlocking Supply Chain Complexities

booking more orders than relying on Just In Time ( JIT) inventory. Ferri

and Challenges.”

said to focus on narrowing down products and reaching out to your

Leading the discussion was Chris Lee, a lecturer in the nationally

vendors to understand where they are at with products and order from

recognized Supply Chain Management Department at Arizona

manufacturers who they know they will have inventory in the future.

State University’s W.P. Carey School of Business. Lee has 25

Lee encouraged the attendees to prepare and understand that lead

years of supply chain management experience and 20 years of

times will be longer, so you might have to risk and take in more

logistics experience with the U.S. Navy. Lee was joined by Ryan

inventory not knowing how long it will take to get that inventory

Hunt, President of CHAMPRO, and Michael Ferri, Executive Vice

in. It is important to order products earlier than you have in the

President of Sales at Founder Sport Group.

past so you are ready for the specific sports on the horizontal. A

Lee opened with a five-year perspective, discussing supply chains

common theme from the panel was communication and building

before and during COVID and then providing a look into the future.

your relationships with your clients.

The biggest difference from pre-COVID to now is going from Just-

The increased cost of products was a concern for all members in

in-Time (JIT) inventory to having to place more booking orders. This

attendance. The panelists believe costs will stabilize but do not

is mainly from supply being tougher to forecast and the inability

see them decreasing in the future. The cost drivers are vast with

to order inventory on a quicker basis.

inflation and the increased prices of raw materials as examples.

Lee also discussed the major price increase for shipping containers because of the economic and business environment. He does not see the price of containers returning to pre-COVID numbers of roughly $2,000, but he does predict them decreasing from the current $20,000 range to around $5,500-$8,000 in the next 18 months.

Another change coming from COVID is a shift to more near-shoring or re-shoring. This means having products made either in Mexico, Canada, South America or even in the United States. A positive note from Lee was the passage of the Infrastructure Bill that will help make transportation more efficient over time. This bill will also

Raw materials costs are increasing more from labor shortages than agricultural reasons. Lee believes it will take about 18 months to recover as far as shortages, but this does not mean all products and raw materials will recover in this time frame as some could take longer. Lee views the stabilization of costs as a positive because there should not be more price increases ahead.

History has shown that we have become more efficient and inventive after struggles and challenges like we are facing now.

The industry will have to continue to work through the difficulties and adapt with the changing aspects of the supply chain.

help update roads and ports, have a greater dependence on rail transportation and will hopefully alleviate the costs of transportation as well as transportation lead times. Lee sees it taking 10–15 years for the overall benefits of this bill to be achieved.

Hunt shared that equipment and hardgoods for CHAMPRO are the most worrisome as far as inventory. He stated that “small ripples take a long time to smooth out,” which is why it is hard to expect what is to come and how long it will take to correct itself. Shipping ports everywhere are saturated and it is hard to get product delivered to their end destination because of the port bottlenecks. Ferri expressed trust and communication are crucial and are even more important now because of the ongoing changes in the supply chain.

14 | NSGA NOW ®

>> July/August 2022

>> Ryan Hunt of CHAMPRO, center, makes a point during the supply chain panel discussion with Michael Ferri of Founder Sport Group, left, and moderator Chris Lee of Arizona State University.

CONFERENCE NOW

>> Megan Curry of WME Sports and Mike Spangenberg of State Forty Eight discuss the intracicies of NIL.

NIL Opportunities in the Sporting Goods Industry

By Marty Maciaszek NSGA Director of Communications NIL has rapidly become an acronym as familiar as NFL, MLB, NBA,

“Think about your business, or if you are a manufacturer, think about

NHL or NCAA to die-hard sports fans.

ways you might be able to partner with them. The big question is,

Understanding how Name, Image and Likeness (NIL) works for

‘How do I get started?’”

amateur athletes is still developing. Stories of college football

Curry said you can go to Opendorse (www.opendorse.com) and

and basketball stars getting lucrative deals and learning about

open an account to learn more about working with athletes. It is

“collectives” of boosters and businesspeople preparing to spend

also important to contact the local university of an athlete you

millions of dollars to keep athletes at their schools makes fans

want to work with to ensure the NIL program is compliant and

wonder if there are any rules regarding NIL.

within the rules.

What does it all mean for the sporting goods industry? For smaller

Spangenberg started State Forty Eight in 2013 and worked to

retailers, team dealers or manufacturers who wonder how NIL could

build licensing deals with Arizona State University, the University of

help their business? The panel discussion, “Understanding the Impact

Arizona, Northern Arizona University and Grand Canyon University.

of Name, Image and Likeness,” examined the intricacies of NIL and

Spangenberg’s first NIL deal was with Jayden Daniels, who was

made the case it is not just for large businesses with deep pockets and

entering his third year as Arizona State’s starting quarterback in 2021.

connections to big-time college football and basketball powerhouses.

“With Jayden having a lot of upside and ASU expecting to be really

Megan Curry, the Director of NIL – Business Development and

good, who wouldn’t want to work with the starting QB of the local

Marketing for William Morris Endeavor (WME), and Mike Spangenberg,

university who I’m a fan of,” Spangenberg said. “It was a no-brainer

the co-founder and CEO of Arizona-based lifestyle apparel brand

to reach a new audience.

State Forty Eight, shared their thoughts and experiences on how NIL can work for anyone.

“Whether you have a big budget or a small budget, it’s a way to impact your community or even an athlete who you are a big fan of,” said Curry, who works with the WME Sports division to build NIL platforms, strategy and implementation and lead its sales and marketing efforts. “Think of a hometown or college town and think of a player you follow, maybe a kid you watched grow up playing travel baseball or softball.

16 | NSGA NOW ®

>> July/August 2022

“When things are going well you have T-shirts that sell a lot. That was the whole vision and meaning behind wanting to work with Jayden Daniels.”

Daniels also had NIL deals with local car dealerships and restaurants.

Daniels promoted some of State Forty Eight’s ASU apparel and a pair of T-shirts exclusively designed for Daniels were created.

Spangenberg said Daniels received a portion of all the sales and was compensated for two social media posts a month.

“I started with the (ASU) athletic department and they were really excited to get it going,” Spangenberg said. “The athlete could have millions of followers. You have to be strategic. It’s smart to start small.”

Curry has seen NIL deals from $50 to $500,000. No matter how big or small the NIL deal, the key is to make sure it is reported to the athletic department of that athlete’s school.

“Everybody can play in this space,” Curry said. “You have all these athletes from small towns and schools who purchased uniforms and equipment from a team dealer. There’s a story there for all of you in this room.

“How can team dealers partner with all these athletes? You could do a video with screen printing and it goes viral. You have to find a way to connect with the kid and it’s important to do it right. The school’s athletic department will always lead you to water.”

Louisiana State University gymnast Olivia Dunne is the highest-paid

>> Megan Curry

media influencers can have a significant impact on NIL deals even

NFHS’ Niehoff Shares Concerns on NIL

if the athlete is not in a high-profile sport.

By Lizz McCrindle

NIL athlete, according to Curry, because Dunne has 1.6 million followers on Instagram and 5.8 million followers on TikTok. Social

“Go after any athlete if they can help promote your brand,” Curry

The National Federation of State High School Associations

said. “Any athlete of any caliber in any sport can be involved in NIL.

(NFHS) indicated that each state high school athletic

“You can do group licensing and you can do something for an

association can determine guidelines for its high school

entire team. It doesn’t just have to be for one athlete. Every state is different from a business perspective. The best thing to do is contact the school’s compliance department. Compliance is your best friend.”

Spangenberg was asked about his return on investment with Daniels, who transferred to LSU in April.

“It was a learning experience and it wasn’t as great as I expected it to be,” Spangenberg said. “But for us, any new person who becomes a fan of State Forty Eight is a win for us. The experience really taught us what not to do on the next opportunity but it was definitely a return.”

Spangenberg and Curry said there is a lot for everyone involved to continue learning since it’s been a little more than a year since NIL became part of the sports landscape.

“I think the opportunities are endless,” Spangenberg said.

“If this is the foundation then I think we all did a heck of a job in the first year of navigating it,” Curry said. “Was it perfect? It wasn’t but nothing’s perfect.

“There is room for growth and there are ways to get your businesses

regarding Name, Image and Likeness (NIL). Dr. Karissa Niehoff, CEO of the National Federation of State High School Associations, recognized the entrepreneurial prowess of many young student-athletes and the right they have to profit off their athletic ability.

However, in a media session in early June, Niehoff emphasized that while the NFHS believes student-athletes should be able to profit off their athletic ability, they cannot profit off things they do not own such as the high school they attend, jerseys they wear, etc. Athlete endorsements cannot be affiliated with their schools.

Eleven states currently permit NIL for high school studentathletes - Alaska, California, Colorado, Connecticut, Kansas, Louisiana, Minnesota, Nebraska, New Jersey, New York and Utah.

When asked about her greatest concern regarding NIL in high school sports, Niehoff responded, “at the high school level, I am concerned about the breakdown of the high school locker room. NIL can be very disruptive to high school sports, there is a breakdown in the pathway

here involved. There are ways to tap on the shoulder of your

to education and the sensitive climate and culture that

neighbors at home and say, ‘Have you looked into this? This might

is high school sports.”

help you with your marketing.’”

NSGA NOW ®

>> July/August | 17

CONFERENCE NOW Aaron Thomas Shares Powerful Message on Overcoming Adversity

By Marty Maciaszek NSGA Director of Communications Aaron Thomas understands he has a nice side gig.

“I never, ever thought I would be a public speaker,” Thomas said. “I used to make extra money detasseling corn. If anybody here has done that, they know this is better.”

Even if the reason Thomas speaks in front of groups, such as this year’s NSGA Management Conference & Team Dealer Summit for his session “Finding Opportunities After the Greatest Adversities,” is a result of the worst moment of his life on June 24, 2009.

Thomas’ father Ed was a beloved and successful high school teacher and football coach in the small Iowa town of Parkersburg.

Ed Thomas won 292 games and two state titles and spent 34 of his 37 years as a head football coach at Aplington-Parkersburg High School. He coached four players who went to the NFL and he was selected the NFL’s national high school coach of the year in 2005.

Ed Thomas was also a pillar in the Parkersburg community who led the rebuild and recovery from a devastating EF-5 tornado which killed eight residents in 2008. That’s why it was such a shock when Mark Becker, one of Thomas’ former players who was struggling with mental illness, shot and murdered Thomas as he was supervising a weight training session for the team.

“You never know when you’re going to have a platform and you never know when you’re going to have an opportunity and you have to make sure you are ready for those things,” said Aaron Thomas, who is now the principal and head boys basketball coach at AplingtonParkersburg. “I always thought they came from good things.

“That platform and opportunity came on what was easily the worst day of my life. We all go through tragedy and we’re all going to experience it. Not everyone deals with it the same way and that’s

>> Aaron Thomas’ compelling story of overcoming adversity had a significant impact on Conference attendees.

“Dad stopped and said, ‘Everyone can lead when things are going

OK, as long as you are dealing with it.”

well. True leadership shows when you’re faced with adversity.

Aaron Thomas had a good guide in his father to prepare him for

People want to see how you’re going to respond in this moment.’”

handling this tragic situation. Aaron recalled one of the many media

Now, millions of people turned to Aaron to see how he would

interviews Ed did in the wake of the 2008 tornado.

respond to a tragedy that was a national story. It had the potential

“The day the high school was being bulldozed the Des Moines Register was there,” Aaron Thomas said. “There was an assembly line of football equipment to get ready. The reporter thanked dad for his time and I said to him, ‘Why do you keep doing all these interviews?’

18 | NSGA NOW ®

>> July/August 2022

to fracture the small Parkersburg community since Becker’s father Dave was one of the first players Ed Thomas coached. There were also 22 other teenage boys who witnessed the horror of the town’s first murder since 1923.

Aaron Thomas could have easily prepared a written statement for the 100-plus media people who descended on Parkersburg.

Instead, he went to the gym of the school where he once starred in basketball and used it as an opportunity to begin the healing process.

“I tried to say exactly what my dad would have said as if he was there himself,” Aaron said. “It’s easy being Ed Thomas’ son when you’re the national coach of the year. It’s not as easy on the day he was murdered.

“Dave and Joan Becker are good people and the last thing they wanted was for their son to kill my dad. The first 30 years of my life couldn’t have been any better and couldn’t have been easier.

The tornado was an inconvenience.

“You do get to choose how you honor these people. I still want to make him proud and he’s been passed for 13 years. Not a day goes by I don’t think of June 24, 2009. The question is do these

>> NSGA Board Chairman Pat Donnelley (Donnelley Sports), left, chats with Aaron Thomas after his session.

“Does your attitude make people better or does it make them worse because it will have an impact. Are you an energy taker or an energy

moments define us or make us stronger?”

giver? Only you can answer that,” Thomas said. “Do we care about

Aaron Thomas honored his father by coming back to the place

other people or are we in this thing for ourselves? In your line of

where he touched so many lives to become the principal and

work, relationships are such an important piece of what you do.

basketball coach. Many of the lessons he learned from his father

“Folks, if I went in your office and talked to your newest employee,

he shares with others in his travels to speak across the country.

“As a principal it’s easy when things are going well,” Thomas said.

“Anybody can lead when your sales are out of this world and sales

your lowest-paid employee, your receptionist, your custodian, what would they say about you? Are they proud to be a part of your team, are they valued or are you nothing more than a paycheck?

are going great and the supply chain isn’t a factor. What is your

There’s a big, big difference.

leadership like in the toughest of times?

“My question is what makes you the best and why should I buy

“My dad was huge on servant leadership. He believed in making

from you? If you can’t tell me why then I probably shouldn’t. What

everyone else around him better. That’s leadership. Great people

makes you different is you have that pride that’s special. If you are

want to get better and they want feedback. As a leader you want

up front and honest people don’t forget about that. My dad has a

to ask others, ‘How can I help?’”

legacy, not because of money, because of relationships.”

One of the parts of Thomas’ job he enjoys is the opportunity to work with members of the sporting goods community.

“This group excites me because I get to work with folks like you each and every day,” Thomas said. “There’s nothing better than getting new basketballs and uniforms. It’s very exciting.

“What I’ve learned with passion is you can’t fake it and you can’t hide it. You’re either passionate about what you do and the company you represent and what you sell or you’re not. The deal is when you come to call on my school, and I hope you call, and I see that, who do you think I want to buy from? The person who is going for a paycheck or the person who absolutely believes in what they are doing each and every day.”

Thomas emphasized the importance of attitude and relationships toward success because they were a big part of the legacy he learned from his father.

>> Bob Eberly (Game One), left, shares some thoughts with Aaron Thomas.

NSGA NOW ®

>> July/August | 19

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CONFERENCE NOW Making the Business Case for DEI

By Lizz McCrindle NSGA Communications and Social Media Manager It is no secret that communities around the world are becoming more

invest in diverse areas and

diverse. While accepting diversity in our communities, workplace,

neighborhoods because

schools and families can be intimidating or uncomfortable at

they can make a difference

first, embracing diversity and differences of opinion, experience

and lift an entire community.

and background only serve to make us more informed and

“Get involved with social im-

understanding members of our community and world around us.

pact programs, there is an

The same concept is true for business, especially those with an

expectation as a business-

emphasis on sports and sporting goods. At this year’s Management

person in the community

Conference & Team Dealer Summit, a distinguished group of

that you give something

experts on the panel, “How Diversity, Equity and Inclusion Enhances

back... employees want to

Your Business,” made the case to attendees that while DEI is the

feel good about the orga-

socially and morally right thing to do, it is also the right path for

nization that they work for...

your business.

make a commitment to the

The panel was moderated by John Scipio, CEO of SV Sports, the

community, they are watch-

largest African American-owned and led sporting goods retailer and team dealer in North America, and builds upon the concept shared by Duncan Wardle at the 2021 Conference. Diversity and inclusion is a strategy for innovation. Innovation is the key driver for business growth.

“Look at the audience consuming sports or sporting goods like Nike products, the majority of them are African American,” Scipio said. “We recognize that there needs to be change, the key is to start the conversation.”

This doesn’t just apply to consumers. It expands to hiring practices and the culture within the business. Being deliberate about how to speak to employees and customers must be ingrained in your business and marketing efforts.

The Importance for Businesses to Leverage DEI “Culture impacts the purchase habits of consumers. Be ahead of it,” said Ahmad Islam, CEO of TEN35 and a marketing and DEI expert.

“Diversity is a competitive advantage. By having diverse perspectives and experiences, it allows you to use a different lens on the world.”

While it is not always feasible to hire new employees, there are other ways to support DEI in the community. Today’s consumers care about the social impact that brands and local businesses make in their communities. Brands and local businesses should 22 | NSGA NOW ®

>> July/August 2022

ing,” said Monica Garrett, >> Yvette Dalton of Charles River Laboratories Director of Community Relations for LexisNexis Risk Solutions. “It is almost the cost/benefit of doing business. Innovation is another reason to expand and look at diverse communities in terms of where you operate new products, new markets and new talent. There should be a strong correlation between a good bottom line and socially investing in the communities where you do business.”

For most businesses, decisions are made by what helps to move the needle, advance the brand and, of course, make money.

Garrett adds, “in this role in business, what I have learned over the years is that there has to be a business case for it, and you’re going to hear about talent, retention and the marketplace but there is a really strong business case for this (DEI)… you look at these agencies that talk about social impact programs, not just for large corporations, but also for small businesses.”

Before investing in the community, Garrett encourages businesses to identify their “why.” Why are you investing in this community?

What are you trying to get out of it?

Garrett emphasizes, “it is important to recognize the gaps. Who do you want to reach and how do you want to reach them? Be thoughtful in your research. Keep a scorecard to ensure that what matters gets measured to determine if your efforts are successful.

What matters to you and the causes you to choose to seek out will determine how you translate changes to your business.”

The Importance of Diverse Business Teams Running a diverse business is

How to Engage with Diverse Communities to Build Your Brand

important because you want

When marketing your business or brand to a diverse community, Islam

your business to be able to speak

emphasized it is important to “understand your ‘why’ and who you are

to different cultures and groups.

as an organization, what your value proposition is, what you have to

“When you think about the busi-

offer consumers and then understanding your consumer … in a way where it’s not only about what they say what they want, but it’s also about

ness case for diversity, the Harvard Business School came out with a

being able to read between the lines to understanding their needs.”

report a few years back saying that

Without making a concerted effort to engage in the communities

when a company is more diverse, it

with which you do business, it is hard to build that understanding.

is 20% more profitable. There have

“I think at times, the important part of it is finding that common

been other studies since that time

ground between who you are as an organization, your value

that go as high as 46%. The busi-

oderator John Scipio of ness case for making your com- >> M

pany more diverse is there,” said

SV Sports

Yvette Dalton, Senior Diversity Specialist at Charles River Laboratories.

“You want your company to be an employer of choice. The more diverse you are at the foundation, internally facing, when you externally face out and you want to attract people from diverse backgrounds that are qualified and excited about your company and want to invest in your company and see it as a place that they want to grow their career, it’s important. You want to attract diverse talent and appeal to them … people want to be seen, heard and to feel like they matter.”

Acquiring great employees requires employers to not only understand what is important to their employees but also what makes them tick. While it is important to hire diverse employees from a business perspective, there should be some internal data surrounding what makes people stay or leave your business. Adjust your program to appeal to a more diverse workforce and find time to visit local schools and universities on career days.

“If kids don’t know your path exists, they won’t be looking to join the line of work or profession,” said Garrett.

proposition, your consumers wants and needs and finding ways to add value to their lives,” Islam said, “where it is through community impact, providing products and services, creating a corporate culture or company culture within the community that makes people drawn to you and makes people want to be a part of what you’re doing and support your business.

“As you start to create communications, those need to be insightbased as well. You cannot take a one-size-fits-all approach to connecting with consumers. Take the time to step away from what you think, what’s important to you, what you know and putting yourself in the mind frame of the consumer or bringing people into your organization that can help with that.”

There are consequences these days for businesses that do not embrace Diversity, Equity and Inclusion.

“They miss out, it is a good thing to do ethically, but it is also good for your business,” said Dalton.

“You need a plan and vision to move toward DEI because your competitors are. It is now a business imperative,” adds Islam.

The most important step in

“I always spent time at high schools and with kids to let them know

learning more about or im-

they don’t have to end their love of sports when the playing stops,”

plementing a DEI process for

Scipio said. “It is on us to show them that there is more to sports

your business is the first one

than just being on the field.”

and that’s getting started. This

There needs to be a solid business infrastructure in place to support

entails having an honest con-

and help your diverse workforce thrive.

“Know your data and know what your company is all about and then make small changes, because when you adapt in small pieces, then change comes organically. Sometimes people try to do things all at once, and sometimes your organization is just not ready for that.

Make measurable, small changes that will yield over time,” said Dalton.

“Look for organizations that exist that are diverse and tap into what they are doing, there are many voices for diverse perspectives.”

versation about where your business is right now with regards to DEI. Going through that process is the only way to know where you can improve. It requires an honest look. Once you identify where you are, you can get started on improving.

>> Rhett Johnson, President of Johnson-Lambe Company Raleigh, North Carolina, poses a question to the DEI panel NSGA NOW ®

>> July/August | 23

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>> July/August | 25

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>> July/August 2022 4/25/22 11:43 AM

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The Difference Between Winning and Losing

By Ritchie Sayner Advanced Retail Strategies “Show me a good loser and I’ll show you a loser.”

Those words, most often attributed to legendary Green Bay Packers coach Vince Lombardi, whose name adorns the prized Super Bowl trophy, have unfortunately become the iconic default cliché used by some professional athletes and coaches to justify post-game tantrums. Readers might be interested to learn the original version of the “loser” saying is actually credited to Knute Rockne, the famous Notre Dame football coach who died in 1931. Rockne’s original quote, which didn’t appear until 1943, several years after his death was, “Show me a good loser and I will show you a failure.”

I think it would be safe to say that most competitive people don’t like to lose. Losing stinks! It reminds us that our efforts were inferior to that of the competition. Who, in their right mind, enters into a competitive situation, be it a sport or business dealing, thinking it will be just fine to end up at the bottom of the heap? No one ever remembers who came in second and no one cares.

30 | NSGA NOW ®

>> July/August 2022

Think how that might apply to your retail or team business. My guess is you want winners in your organization. If not, why then do we have contests for sales associates to identify the top salesperson?

What are incentive-based sales programs designed to do if not to reward the best salespeople for superior results? During the hiring process, are you looking for someone who has demonstrated success or do you settle for someone who’s been plagued by the incompetency of their past? When scouting a new location, do you fight for the A spot or do you settle for the less desirable B or C area?

Reflect for a moment on the not too distant past. What did you do to survive in 2020?

You had choices. Many found creative ways to do business, from

“But show me a gracious loser and I’ll show you someone who will

curbside pickup to developing a stronger online presence. You

always be a winner.”

applied for assistance when it was offered, and you negotiated

This half of the quote completely redirects what many believe to be

aggressively with landlords and vendors. You didn’t do that to lose, you did it to survive, which is to say you WON! You are still here and many are not. Some took this as the perfect time to “retire” and in some cases it might have been. Others, lacking the willpower

the ultimate intent of the first half of the quote. You have not lost if you have done everything to the very best of your ability and your actions were not met with the success you anticipated. Assuming you reviewed what you could have done differently and learned from the

to put up a fight, simply threw in the towel and closed their doors.

experience, then in my opinion, you are a gracious loser and possess

How do you handle a situation when told that a competitor has

the traits of a winner by gaining wisdom. Losing traits on the other

a line you would love to have? You have two options as I see it, 1)

hand, are ambivalence, nonchalance, inflated ego and continually

you can wait until the competitor closes or loses interest in the

blaming others when things don’t work out as you had wished.

line or 2) you can remain in constant contact with the resource,

You can decide what it is you want to be, a winner, a gracious loser,

demonstrating the many reasons why your store is the better choice to represent the line. Option 1 is passive and potentially

or just a loser. Which best describes your organization?

costly while option 2 is what winners do.

Ritchie Sayner

How do you win when it comes to controlling your inventory?

Sayner has spent the past four

Are you open to new ideas and outside input that has proven to maximize ROI and outperform industry benchmarks? Or, would you rather maintain the status quo and choose to do the same thing you have always done even if sales are declining and cash flow is a constant challenge? Do you seek out independent, outside, unbiased counsel or does your ego rule the day and convince you that you have all of the answers and no one could possibly know anything that could help your business. How you answer these questions oftentimes reveals if you possess a winning or losing approach to business.

“Winning brings happiness, losing brings wisdom” - Dan Bauer Unfortunately, the second half of the Lombardi’s quote is not nearly as widely known as the first part. The coach continued by saying,

decades helping independent retailers improve profitability.

In addition to speaking to retail groups nationwide, Sayner is a regular contributor to retail industry publications. Prior to embarking on his retail consulting career, he was the general merchandise manager for an independent department store in the Midwest. Ritchie is a graduate of the University of Wisconsin-LaCrosse. He is also the author of the book, “Retail Revelations-Strategies for Improving Sales, Margins, and Turnover.” He can be reached through his website at www.advancedretailstrategies.com.

NSGA NOW ®

>> July/August | 31

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Still Time to Determine Employee Retention Credit Eligibility

By James R. Thomas JD, CPA, Principal | CliftonLarsonAllen LLP (CLA) If you have not yet explored your organization’s eligibility for the Employee Retention Credit (ERC), it is not too late!

What is the ERC? The ERC is a fully refundable payroll tax credit for qualified wages that eligible employers pay their employees. Qualified wages include allocable health plan expenses. The ERC is available to employers

Who is Eligible for ERC? The first step in the ERC process is to determine eligibility.

There are two ways an employer can qualify for ERC eligibility: • Fully or partially suspended operations due to orders from an appropriate governmental authority that limits commerce (i.e. travel restrictions, in-person meetings, etc.).

for the seven calendar quarters beginning with the first calendar

• Experienced a significant decline in gross receipts for the

quarter of 2020 and concluding with the third calendar quarter

calendar quarters under consideration. For 2020, gross receipts

of 2021. In general, an employer must determine eligibility on a

for a calendar quarter must have declined by 50% or more in

quarter-by-quarter basis.

comparison with the same calendar quarter in 2019. For 2021,

The credit amount for 2020 is 50% of qualified wages up to $10,000

gross receipts for a calendar quarter must have declined by 20%

of qualified wages for each employee, per eligible calendar quarter, or a maximum credit of $5,000 for each eligible 2020 calendar quarter.

The credit amount for 2021 is 70% of qualified wages up to $10,000 of qualified wages for each employee, per eligible calendar quarter, or a maximum credit of $7,000 for each eligible 2021 calendar quarter.

34 | NSGA NOW ®

>> July/August 2022

or more in comparison with the same calendar quarter in 2019 (the base year remains 2019). Gross receipts are determined on the same basis of accounting the employer uses in preparation of its annual income tax return that is filed with the Internal Revenue Service.

The statute of limitations for filing Form 941-X is three years from the due date of Form 941. For example, if an employer is eligible for the ERC for the first calendar quarter of 2020, the Form 941-X should be filed by April 30, 2023 (three years after the original due date of April 30, 2020). So, there is still time to request the ERC.

How Long will it take to Receive the ERC Refund?

There is no definitive timeline for the receipt of the ERC refunds.

Experience with employers who have received the ERC refunds indicates a minimum waiting period of several months. Experience also indicates that employers who complete and file multiple Form 941-Xs receive the ERC refunds in separate checks.

What Information Should be Gathered to Start the ERC Process?

• Order from an appropriate governmental authority that limits commerce.

• Calendar quarter gross receipts beginning with the first calendar quarter of 2019 and concluding with the third calendar quarter of 2021.

What are some ERC Calculation Considerations?

The second step in the ERC process is to calculate the ERC amounts.

The calendar quarter ERC calculations are done on an employeeby-employee basis, so you will need to have access to detailed historical payroll information. Payroll reports that can be produced

• Detailed wage information by employee, by eligible calendar quarter.

• PPP loan applications and forgiveness applications with detailed supporting expenses.

• Originally prepared and filed Form 941 for each eligible calendar quarter.

from your payroll system, internal or external, are typically a good start but will likely require some amount of customization to align

Jim Thomas

with the detailed ERC calculation guidelines.

JD, CPA, Principal –

Probably the most common customization items are to account

CliftonLarsonAllen

for the interplay between ERC and the Payroll Protection Program

Jim Thomas is a Nonprofit

(PPP). The same expenses cannot be used for both ERC and PPP

Principal with the accounting

purposes. For example, if an employer used wages for a specific

firm of CliftonLarsonAllen.

employee to support a PPP loan, those same wages cannot be used

Jim has spent all 34 of his

in the ERC calculation. The ERC and PPP interplay can be complex as the calculation is done by employee, by calendar quarter.

How is the ERC Refund Requested?

The third step in the ERC process is to request the ERC refunds.

years in public accounting with CliftonLarsonAllen, which has over 60 years of experience and serves over 150,000 clients in 120-plus locations throughout the United States. Jim is also an attorney who provides a variety of services to clients

The vehicle used to request the ERC refunds is to complete and file

and he handles non-traditional services which include

Form 941-X (Adjusted Employer’s Quarterly Federal Tax Return of

cash flow and budgeting consulting. Contact Jim at

Claim for Refund) that amends the originally completed and filed

www.CLAconnect.com.

Form 941 (Employer’s Quarterly Federal Tax Return).

NSGA NOW ®

>> July/August | 35

FEATURED CONTENT NOW Q&A With Derek Ernst, Augusta Sportswear Brands Derek Ernst is the Chief Commercial

throughout COVID. Anecdotally, most dealers have told me that it

Officer of Augusta Sportswear Brands,

now represents well over 50% of their uniform sales, up from only

which is a Platinum Supporter of the

5 to 10 percent just 4 or 5 years ago.

NSGA Management Conference & Team Dealer Summit. In this Q&A, Ernst provides an update on the fire at one of its facilities in Mexico and shares his thoughts on sublimation, supply chain >> Derek Ernst

Q: A:

challenges, buying patterns and more.

Can you share the latest with us from the fire at one of your factories in Mexico?

As many of our customers know, in April, we had a fire in one of our Mexico manufacturing facilities. For perspective,

we have four separate facilities in Mexico and the damage was limited to only a portion of one of these facilities. Still, it did impact

the majority of our sublimation capacity, in addition to our wool and custom football manufacturing work centers.

The growth has been driven primarily by three factors: First, sublimation manufacturers have gained enhanced costs and speed over the past few years, driven by faster equipment, lower cost components, learning efficiencies and larger scale. As a result, pricing and lead times are now on par with traditional decoration in the vast majority of situations. Combined with the advantage of limitless designs, it’s now a powerful solution for any team or league looking to differentiate themselves.

Next, the supply chain crisis accelerated this explosive growth even further. Because the sublimation base product is white, manufacturers only need to carry white sublimation fabrics to create a limitless number of colored uniforms. As a result, it became a very reliable uniform solution for dealers in a market that has historically relied on manufacturers to carry a wide variety of colored

The good news – in January, we started sublimating in our brand-

garments to serve the needs of teams and leagues.

new, state-of-the-art facility in Merida, Mexico. In fact, we already

Finally, the current labor market situation has added even more fuel

had a plan in place to move all sublimation capacity into this facility by the end of the year. The fire simply accelerated this plan. Our operations teams have done an incredible job rebuilding that capacity in record time. We’re now on track to have 90 to 95 percent of our pre-fire capacity in place by August.

to sublimation growth. Because sublimation is performed by the manufacturer, it provides dealers with an alternative solution that doesn’t create an additional burden on its decoration operations.

This is particularly valuable if dealers are struggling to find labor for its decoration operations or otherwise faced with much higher labor

Additionally, in wool and football, we will be restarting production in

costs. Together, all three forces have driven the sublimation market

both of those areas by August. For wool specifically, we’ve already

to become the dominant decoration technique for uniforms today.

opened up a new ordering window for certain qualifying customers and fully expect to deliver orders by the all-important Christmas season. In all cases, we plan to build our operations back bigger and better than before. Across the board, we’ve taken this opportunity to upgrade our equipment and enhance our manufacturing flows to drive faster and more efficient operations going forward.

The last few years have been anything but predictable for sure.

We’ve never before been faced with the types of issues we’ve faced over the past few years - COVID, supply chain crisis, labor shortage, and now a factory fire. Yet, we remained more committed than ever to our core service promise and to the team dealer market. We’re looking forward to a strong finish to 2022.

Q: A:

How much and why has the demand for sublimation grown in the last two years?

It’s difficult to know how fast the sublimation market is

growing. At Augusta, we’ve experienced triple-digit growth

in sublimation consistently over the past several years, even

36 | NSGA NOW ®

>> July/August 2022

Q: A:

Do you see the demand for sublimation continuing to grow?

I do. The benefits are incredibly powerful and will become

even more compelling in the future. The core forces

I mentioned above – better equipment, increased scale, lower

component costs, manufacturing learning – will only continue to improve over time. Further, new fabric innovation is now enabling sublimation on softer fabrics with a cottony feel. More and more, we’re starting to see sublimation move to sideline and fanwear products as a result. It’s a technology that has transformed our industry and will continue to do so for the foreseeable future.

Q: A:

How has Augusta responded to the demand for sublimation?

Simply stated, we’ve gone all in. First, in January, we opened a new state of the art facility in Merida, Mexico that is fully

dedicated to sublimation. This facility has virtually all new equipment, with much more coming over the next several months. Plus, the

talent pool in Merida is strong and plentiful. With a population that is one of the wealthiest and most educated in Mexico, we’re in an ideal location to offer the best product at the lowest cost, and in the Western Hemisphere.

Second, we’ve created what we believe is the best uniform builder in the industry with our FreeStyle builder. Incredibly powerful, incredibly fast and incredibly realistic, anyone can create an amazing uniform in minutes with this technology. We’ve also expanded it into headwear as well. And we don’t have any plans to slow down.

We have several new innovations and expansions set for FreeStyle over the next several years.

Lastly, we continue to innovate on new solutions. We’ve recently launched a whole new slate of new, softer fabrics that we believe offer an incredibly compelling off-field solution. Further, we continue to innovate on our manufacturing techniques, which has allowed us to drive turn times down dramatically across all products. Every month, we add a significant number of styles to our Turbo solution, which is a five-day lead time after art approval.

Q: A:

Which categories have been the biggest challenge to

>> Sublimation machines at Augusta's new Merida, Mexico facility.

Q: A:

What changes have you seen in buying patterns the last two years?

Early buying is the norm. Our seasonal curves have flattened

dramatically. We’re seeing the early part of the season

growing as much as 20 to 30 percent faster than previous years,

fulfill in the current climate?

with the end of the season experiencing softer growth rates than

Any category that is sourced from the Far East, especially

we expected.

China. For us, that means headwear and some of our

outerwear products. Headwear, in particular, has been the most challenging, largely because of the massive spike in demand that we’ve seen at the same time. Our Pacific Headwear brand is tracking to be up 50 percent in revenues over 2019, which was also a record year for the brand. Virtually every headwear container we receive gets fully shipped out in a matter of weeks.

Q: A:

Why has headwear been such a challenge?

Initially, it was due to the limited number of suppliers in

Asia that manufactured caps. We’ve since solved that issue

by expanding our supplier base from three suppliers to nine. As

a result, in the six months from July to December 2022, we’re expecting to receive 2 million more caps than what we purchased during the entire year of 2019 – a massive increase in purchases.

The second critical issue has been visibility into where the product

Q: A:

How difficult has it been to determine buying patterns and do forecasting?

At first, the magnitude of this change in our seasonal curves surprised us. However, now with a few seasons under our

belt, our forecasting processes have caught up and we’re able

to predict our demand much better, resulting in better in-stock positions across the board. Our out-of-stock positions have declined dramatically over the last few months as a result. In fact, in most categories, we’re forecasting to be very close to pre-COVID out-ofstock levels by the end of the year.

Q:

How important is it in the current climate for dealers to do more planning and have product in stock rather

than relying on “Just-In-Time” purchasing?

A:

It’s less important than it was just a few months ago. However, I’d still recommend it if at all possible. If there’s anything we’ve

learned over the past few years, it’s how unpredictable this world is

was in the supply chain. This has made it extremely difficult to

at the moment. We may be out of the woods, so to speak, but we’ve

provide accurate estimated receipt dates for our customers, a huge

also gone from COVID pandemic to global supply chain crisis to labor

issue in a market that is entirely dependent on event dates and

shortage to plummeting stocks and recession predictions. I wouldn’t

season-start dates. Over the past 18 months, we’ve implemented

take anything for granted. Still, our capabilities are strengthening

several improvements to our systems that allow us much better

every day and we firmly believe we’ll be at pre-COVID strength by the

visibility into where that product is at any given moment. It’s

end of the year. Our business is “Just-In-Time.” That’s always been our

impossible to be perfect in this market, but we’re significantly

core strength and we continue to ship thousands of at-once solutions

better than we were at the start of the supply chain crisis.

every single day. If that’s your need today, we’re still here for you. ® NSGA NSGA NOW NOW ®

>> July/August July/August || 37 37

INDUSTRY NOW Frisk Steps Down in Transition Atop Under Armour

Cap America Acquires Wear-A-Knit Cap America acquired

Patrik Frisk stepped down as President

Minnesota-based Wear-

and CEO and as a member of the Board

A-Knit, which produced

of Directors at Under Armour on June 1.

knitwear for the pro-

Frisk will remain with the company as an

motional products and

advisor through September 1, 2022 and Chief Operating Officer

sporting goods indus-

Colin Browne was appointed as interim President and CEO.

tries. The acquisition by Missouri-based Cap America combines

On behalf of the board, I want to thank Patrik for his valuable contributions to Under Armour over the past five years," said Kevin

two companies with a total of 85 years of knit production experience in the United States.

Plank, Under Armour Founder, Executive Chairman and Brand

Wear-A-Knit was founded in 1977 and two previous expansions

Chief. "During his tenure, we made significant strides in advancing

included the purchase of Stitch-It Designs. Cap America operates

enterprise-wide operational excellence, and Patrik's steadfast

the largest knit production facility in North America and offered

leadership has been crucial to strengthening our foundation and

more than 20 different knit styles that include stock and fully

positioning the company for our next growth phase. As we search

customizable options.

for Patrik's permanent successor, Colin's experience as a seasoned

This is the first major acquisition for Cap America since Gammon was

executive in our industry and leading critical operational aspects of our business will serve Under Armour well as interim CEO. Frisk, who joined Under Armour in 2017, helped architect its longterm strategic plan that underscored its commitment to athletic performance by reengineering its structure, systems and go-tomarket process. Under his leadership, the company delivered industry-leading products, deepened relationships with consumers and customers, and advanced its purpose, vision, mission and values.

Adidas, Foot Locker Enhance Partnership Adidas and Foot Locker announced a new and enhanced partnership built around product innovation, elevated experiences, and deeper consumer connectivity. This enhanced relationship will establish Foot Locker as the lead partner for adidas in the basketball category, accelerate energy and hype launches, as well as include the development and expansion of key franchises across women's, kids and apparel.

Including all Foot Locker banners in North America, EMEA, and Asia-Pacific, the new strategic partnership will target over $2 billion in retail sales by 2025, nearly tripling levels from 2021. In 2022, adidas expects to generate incremental revenues of up to 100 million Euros because of the new partnership.

Foot Locker will lead adidas' basketball offering, led by Fear of God founder and designer Jerry Lorenzo, spanning the lifestyle and performance categories, and develop exclusive positions in both areas. In addition, the collaboration will focus on key Originals franchises including NMD, Superstar and Stan Smith, and on the adidas influencer partnership portfolio.

Foot Locker has been a NSGA member since 1990.

38 | NSGA NOW ®

>> July/August 2022

announced as CEO in December 2021. Cap America is a supporter of the NSGA Management Conference & Team Dealer Summit.

San Mar, Cap America win PPAI Supplier All-Star Honors San Mar and Cap America were repeat recipients of PPAI Supplier All-Star awards in 2022. San Mar won the Supplier Star in the $100 million and up category and Cap America won the Award of Merit in the $35 million-$50 million category.

The winning companies received the most votes in PPAI’s annual competition where distributors cast their votes for one supplier in each of 12 categories. San Mar and Cap America are supporters of the NSGA Management Conference & Team Dealer Summit.

NFL Mandates Some Use of Guardian Cap in Training Camp The NFL will require all offensive and defensive linemen, tight ends and linebackers to wear Guardian Cap helmet covers for every preseason practice from the start of the training camp contact period until the second preseason game. The soft-shell Guardian Caps attach to the outside of the helmet.

The first two weeks of training camp produce approximately 30 concussions per year and more overall head contact, according to NFL executive vice president of health and safety Jeff Miller, in a story in ESPN.com. The rate of head contact lowers after the second preseason game, when most teams go to a lighter practice load, and players will be encouraged but not required to wear Guardian Caps.

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LOCKER ROOM NOW Recap of 2022 High School, College Rules Meeting

By Marty Maciaszek NSGA Team Dealer Division Director Here is an update on upcoming and potential rule changes by

NCAA

the National Federation of State High School Associations (NFHS)

• The NCAA is proposing a rule that would

and NCAA. These are from the April 19 annual team sports rules

be more consistent with the NFL where

conference hosted by the Sports & Fitness Industry Association

the legs must be fully covered from the

(SFIA) and updates from the NFHS and NCAA.

waist down. NCAA rules liaison Ty Halpin

Football

covered with tights or socks. “We’ve struggled with enforcement

said the goal is to make sure the knee is and compliance means everything is covered,” Halpin said. If

NFHS • The number 0 is legal for uniforms for the 2022 season but the number 00 is not allowed. This is identical to the NCAA rule.

• It is permissible to extend the Team Box on the field from the 25-yard lines to the 10-yard lines for the

the change goes into effect it would take place in FBS and FCS in 2023 and Divisions II and III in 2024.

• The visibility of numbers and ability to tell teams apart by contrasting colors continues to be a concern.

• Halpin said there is no movement toward allowing tinted eye shields.

2022 season.

• For football gloves, the certification seals of NOCSAE or SFIA must be visible and appear legibly on the exterior wrist opening of the glove.

• I n a reminder, as of the 2024 season all varsity jersey numbers must be a solid and contrasting color to the jersey. No sublimation is allowed within the numbers.

• NFHS football liaison Bob Colgate said the football committee continues to look at issues with Vegas Gold color jerseys. He said sometimes light Vegas Gold is used as a home jersey. “It is still allowed but I wouldn’t be surprised if down the road it isn’t,” Colgate said.

• The football rules committee doesn’t want any change to football

• The number of available officials at the Division II and III levels continues to be a concern, according to Halpin.

Softball NFHS • The collaboration between NFHS, NCAA and USA Softball on specifications for the softball goes into effect January 1, 2025 for high school softball. This will make it easier to monitor and manufacture.

• Evaluation of the use of bat sensors continues but the NFHS membership has not favored their use in games, according to NFHS softball liaison Sandy Searcy.

visors remaining 100 percent clear, according to Colgate. The

• There have been some questions about the number of colors

reasons include safety measures and the ability to check on

allowed for gloves and mitts. Searcy said they are looking at

potential player injuries without removing the helmet.

updating some related language in the rule book.

• Searcy also said supply chain issues are causing some schools to use non-compliant balls in order to play.

• Searcy said NFHS will not mandate defensive face masks for pitchers or other positions (such as corner infielders) without a NOCSAE standard. ASTM has also been working on a standard for softball face masks. A few states, including Kentucky and Missouri, require players at certain positions to wear face masks.

40 | NSGA NOW ®

>> July/August 2022

NCAA • It is a non-rule change year in NCAA softball but the new softball specifications go into effect for the 2024 NCAA season. Using softballs with the new specifications is permissible now.

• There is some interest in looking at larger bases and a “double first base”, according to Dee Abrahamson, the NCAA equipment consultant to the softball rules committee.

• Regarding defensive face masks, Abrahamson said “the

Wrestling NFHS • Clarifying uniform requirements for female high school wrestlers were among the rules changes approved for the 2022–23 season. Changes to rules 4-1-1 and 4-5-7 clarified the uniform requirements for female wrestlers. Female wrestlers shall wear a sports bra that completely covers their breasts and minimizes the risk of exposure during weigh-ins and competition. Additionally,

committee is always interested in providing some type of

the change also clarifies that compression shirts may be worn

standard that makes it permissible.” She said she sees a fair

underneath a one-piece singlet and are not required for female

number of pitchers and infielders wearing them but said the

wrestlers unless needed to ensure complete coverage.

idea of a face mask attached to a full helmet “wouldn’t fly in the college softball world.”

Baseball NCAA • This is a rule-change year for NCAA baseball and there are a few equipment-related proposals.

NCAA baseball liaison Ben Brownlee said most of them are for swing sensors, which are currently prohibited for use on the bat.

• A look at possibly using larger bases is expected.

• An additional change to Rule 4-2-1 permits wrestlers to wear hair-control devices and other adornments in the hair that are securely fastened and do not present an increased risk to the wrestler or opponents.

• In the event a wrestler’s shoelace laces become untied or the shoe comes off during a match, a wrestler will now be penalized for stalling. Previously, this situation resulted in a technical violation. Shoe and shoelace infractions are no longer subject to injury time and the match will not be stopped to warn or penalize this instance of stalling. Additionally, any two-point stalling infractions and penalties will not cause the match to be stopped to warn or penalize a wrestler.

• Wrestlers may now have facial hair on the entire face and chin, provided a skin check can still be conducted. Previously, wrestlers were required to be clean shaven with the exception of sideburns and a neatly trimmed mustache. The revised procedure for facial hair is that the skin must be visible to allow

•T here is a movement from a few umpires to require numbers

for a skin check to be performed, as determined by the referee

on the front of the jersey. Brownlee said “it’s not a hot-button

or a designated onsite appropriate health-care professional

issue,” but the umpires believe it would help determine who is

overseeing skin checks. In the event a skin check cannot be

involved in on-field altercations.

performed, a wrestler will be permitted to trim the facial hair

•B rownlee said bat-testing resulted in 8 bats being pulled from use at the 2021 College World Series (CWS). There were 34 bats pulled at the 2017 CWS. Brownlee said not all these instances were compression-related and reasons included flat spots or dents in the bat.

• The baseball research panel has been expanded to help with the continued growth of bat testing. The goal is to make sure safe, legal equipment is being used and bat tampering is not occurring.

NFHS • NFHS baseball liaison Elliot Hopkins said there are only a couple of equipment-related rule proposals to be discussed at its June meeting and they are related to jewelry.

to within the guidelines and must do so before competing. A wrestler may also choose to wear a face mask in lieu of making adjustments to the facial hair.

Basketball NFHS • Adjustments were made to the Shot Clock Guidelines in the NFHS Basketball Rules Book as states begin to implement its use by state association adoption for the 2022–23 season.

The committee reiterated that the Shot Clock Guidelines are strongly suggested, but not required. Shot Clock Guidelines were simplified to suggest a full reset of the shot clock after a ball is intentionally kicked or fisted. However, states may choose to institute a partial reset in these instances, if desired.

Continued on page 42 NSGA NOW ®

>> July/August | 41

LOCKER ROOM NOW Continued from page 41 • Here are the latest updates regarding use of shot clocks throughout the country: Four states have adopted full use of the shot clock since last year’s rules changes: Iowa, Minnesota, Montana and Utah. Three others have adopted it for limited use: Nebraska, South Carolina and Florida. Ten state associations previously had implemented or approved a shot clock prior to the NFHS rule change: California, Georgia, Maryland, Massachusetts, New York, North Dakota, Rhode Island, South Dakota, Washington and the District of Columbia. Idaho has tentatively approved a shot clock with a second vote coming in June.

• One of the points of emphasis for the 2022–23 season reminds officials to first address illegal uniforms, equipment and apparel directly with the head coach and not players.

• The allowance of hair adornments made of hard material has been clarified in high school basketball. Adornments made of hard material are permitted provided they are securely fastened close to the head and do not present an increased risk to the player, teammates or opponents. The committee adjusted the rule to be inclusive of hair styles while maintaining that the risk of injury to the athlete and others not be compromised.

NCAA • A uniform required to be worn by all referees will be established by 2023. The only current requirement for the referees’ uniform is it is the same color and style for all officials. This has resulted in conferences establishing their own guidelines for what uniform shirt will be worn and the necessity for officials to purchase, in some cases, up to five different uniform shirts. This rule would provide for a consistent look in uniform across NCAA soccer.

Water Polo NFHS • Hair-control devices and other adornments, such as beads, are now legal in high school water polo if they are securely fastened and don’t present an increased risk to the player, teammates and opponents. Uniforms providing full-body coverage to be worn for religious reasons are permitted.

Girls Gymnastics NFHS • Gymnasts now have the option to wear black undergarments, unitards, ankle-length leggings, tights or fitted shorts that may be worn with the leotard provided the apparel meets color

Ice Hockey • Rules liaisons Dan Schuster of NFHS and Ty Halpin of the NCAA said there are no rules proposals or pushes from coaches requiring players to wear neckwear. They expect to get more information on the subject after a USA Hockey meeting in June.

A Connecticut high school player died in January after he fell and his neck was cut by another player’s skate blade.

NOCSAE • NOCSAE executive director Mike Oliver addressed the question about softball face masks for defensive players. Oliver said they want to protect defensive players at the same level as catchers and that’s why the current NOCSAE standard for face protection looks like a traditional catcher’s mask or anchors to something else to absorb the ball’s impact. “It’s difficult to write a standard that knowingly offers less protection than other positions and players on the field,” Oliver said.

• Head and face protection for touch and flag football is being looked at by NOCSAE. Oliver said a substantial percentage of injuries are facial and most are from contact with other players.

They include concussive injuries and skull fractures. “We’ll take the data and see if we can’t develop a standard to address the injuries we see in those sports,” Oliver said.

42 | NSGA NOW ®

Soccer

>> July/August 2022

requirements. Head coverings worn for religious reasons were added as part of the acceptable uniform. “The Girls Gymnastics Rules Committee adopted the new uniform changes to reflect current uniform trends in the sport as well as accommodate cultural and religious norms,” said NFHS gymnastics liaison Julie Cochran.

MEMBER SPOTLIGHT NOW

GIVE ME 5 WITH

James Rogers Owner, Sportstop, Little Rock, Arkansas

A Family Tradition Since the 1930s It was a natural transition for my grandfather to start the business after his baseball career was over (Lee Rogers pitched for the Boston Red Sox and Brooklyn Dodgers). Sports have continued to play a big part in our family with our involvement in the tennis community and several youth organizations through the years.

Changing to the Family Business Was Good After spending the first 15 years of my career as a CPA, it was refreshing for me to join the family business and get to work with my dad on a daily basis. It’s been rewarding for me to continue growing the business and to carry on our family legacy.

Why NSGA Membership Is Important As a long-time member of NSGA (since 1978) we have enjoyed the networking opportunities and various resources they offer. We also appreciate the times they have been a strong advocate for our industry regarding rules and policy making decisions.

Making Sportstop the Place to Stop for Nearly 45 Years Our success starts with our team at Sportstop. We have

Ongoing Supply Chain Challenges

always had great reps and inhouse staff and have had very

I sure wish it wasn’t the case, but we’re still dealing with supply chain

little turnover. My grandfather

issues every day. We are fortunate that we have strong relationships

and my dad instilled strong

with our key vendor partners and to have the backing of Sports,

values in our business and I

Inc. Being a small business allows us to be nimble and to quickly

believe that’s certainly been a

get answers to our customers and change their orders if needed.

key to our sustained success.

NSGA NOW ®

>> July/August | 43

See You in Music City!

nsga.org/conference2023