Volume 9 | No. 6 | November/ December 2020
A PUBLICATION OF THE NATIONAL SPORTING GOODS ASSOCIATION
Retailers Pivot and Prepare
Understanding PPP Loan Forgiveness Holiday Shopping Forecast Football Helmet Reconditioning Video
HOTRONIX THERE ARE HEAT PRESSES AND THEN THERE’S
I NT ROD U C I N G
®
T H E
HOTRONIX 360 IQ™ HAT PRESS ®
THE ONLY HAT PRESS YOU’LL EVER NEED Now you can print high-end, retail looks quickly and easily. The 360 IQ™ Hat Press with Dual Silicone Platen™ technology heats hats from underneath, making it the perfect solution for applying emblems, appliqué, and patches. Best of all, it comes equipped with advanced IQ® technology allowing you to track your business in real time.
GET YOURS AT bit.ly/stahls-360hp
stahls.com | 800.478.2457 1120
TABLE OF CONTENTS
10
RETAIL NOW A look at how retailers adapted during COVID-19 and their outlook for the holiday shopping season and 2021
CEO NOW 4 COVID-19 Has Not Stopped Focus on Other Areas NOW 5 AHallSSOCIATION of Famer Robert Gore Passes Away; Markwort Honored for Environmental Efforts
PARTICIPATION NOW 6 Survey on Kids Fall Sports Participation NSIGHTS NOW 8 IHoliday Shopping Forecast RETAIL NOW 12 Tumultuous 2020 Leads to Unprecedented
14 19 20 21 >> ON THE COVER: At the 2nd Time Sports new store in Northglenn, Colorado are, clockwise from bottom right, owner Anita Adam, daughter Maddy Adam, owner Chuck Adam, son Chet Adam. Chet works full-time and Maddy works part-time at the store.
23
Changes for Retailers
ADVOCACY NOW
Paycheck Protection Program Loan Forgiveness and Taxation
INDUSTRY NOW
Augusta, Perfect Game Partnership; MyHOUSE Signs Fourth Female Wrestler
TEAM NOW
NSGA/NAERA Video on Football Helmet Reconditioning
LOCKER ROOM NOW
Shock Doctor “Black Lives Matter” Mouthguards Permitted for High School Football Use
MEMBER SPOTLIGHT NOW
Give Me Five with Allen Van Valkenburg, Rinkside Sports NSGA NOW ®
>> November/December 2020 | 3
INow·
CEO NOW None of us could have envisioned the significant It is not a secret that many independently owned sporting impact COVID-19 would havesiege on our lives goods retailers and dealers have been under over thesince midlast several years.March. At times it has seemed overwhelming because there are so many uncertainties with how long the Consumers turn pandemic to the internet, thinking a bettereffects optionit will have will last and theit's long-term on our mental and business health. for their purchases. Thephysical, labor market is increasingly tight. Manufacturers try to go directly to the consumer and narrowat NSGA. COVID-19 has also dominated our thinking their distributionOur of products. concerns for you as business owners and for
NSGA OFFICERS Chairman of the Board NSGA OFFICERS Pat Donnelley ChairmanSports, of theTwin Board Donnelley Falls, ID David Labbe
Kittery Trading Post, Kittery, ME Treasurer/Chairman-Elect Greg Miller Treasurer/Chairman-Elect Universal Athletic, Bozeman, MT Cathy Pryor Hibbett Sports, Birmingham, AL
Past Chairman Past Chairman David Labbe RandyTrading Nill Post, Kittery, ME Kittery
Nill Bros. Sporting Goods, Kansas City, KS
BOARD OF DIRECTORS Kevin Bezanson BOARD OF DIRECTORS Cleve's for Sports, Kevin Source Bezanson Halifax, Nova Scotia, Canada Cleve's Source for Sports,
Halifax, Nova Scotia, Canada
Rhett Johnson Pat Donnelley Johnson-Lambe Co., Raleigh, NC
Donnelley Sports, Twin Falls, ID
David Lynn Rhett Johnson Dunham’s Sports, Troy, MI Johnson-Lambe Co., Raleigh, NC Jeff Miller Greg Miller Scholastic Sports Sales, Ltd., Manlius, NY Universal Athletic, Bozeman, MT Mick Montgomery Jeff Miller Denver Athletic Supply, Englewood, CO Scholastic Sports Sales, Ltd., Manlius, NY Ron Rugal John Oehler B&R Sporting Goods, Shelby Charter Dunham's Sports, Troy, Ml Township, MI Jerry Williams Jerry Williams Schuylkill ValleySports, Sports,Pottstown, Pottstown, Schuylkill Valley PAPA NSGA NSGATEAM TEAMLEADERS LEADERS Matt Carlson Matt Carlson President President&&CEO CEO Marty Maciaszek Marty Maciaszek Team Dealer Division, Director, Team Dealer Communications and HDADivision and HDA Julie Pitts Julie Pitts Director, Business and Research Director, Public AffairsDevelopment and President, NSSRA Larry Weindruch Director, Public Affairs Nick Rigitano Director, Insights Dan Wiersmaand Analysis Chief Financial Jennifer ShafferOfficer Comptroller
your employees have been paramount in an industry Those are a few of the biggest challenges independent retailers already facing significant challenges. At NSGA, those and dealers face. The effects are evident throughout the industry as struggling initial months during the pandemic were focused businesses consolidate or close their doors entirely. Our colleagues at to NSGA's benchmark on doing everything we could support you during associations, the American Booksellers Association and the North American Retail shutdowns and slowdowns that caused significant Hardware Association, echo those concerns, but us is throwing in the towel! strains onnone yourof business.
We lobbied forinyou in ongoing Washington, and made We always search for ways to help our core members their battleD.C., to succeed. sure you hits have most The up-to-date Our new 'Verified Independent Dealer Program" thethe bullseye. idea for information the possible on the CARES Act who and Paycheck program was sparked by a group of NSGA-member team dealers wanted toProtection Program. produced a variety them of helpful emphasize how their experience, knowledge andWe service differentiates fromreopening resource tips. And we made sure you have the most current details on what is occurring with their competition. youth sports and businesses across the country and Canada Getting the public to understand the of working withona the quality independent NSGA continues to keep a close eye onimportance COVID-19 and its impact industry. But we are dealer is one of the critical components to the NSGA Verified Independent Dealer not letting this slow our commitment to you in other important areas. Program. NSGA will assist Verified Dealers by sharing and explaining what it means to be NSGA’s Dealer Advisory increased meeting schedule to once a month part ofTeam this program with theirCommittee current and potentialits customers. to keep up with key issues and what is happening across the country in the world of team sports. The Hockey Dealers Association (HDA) The details about the criteria for the MVP andcreated All-Star an advisory committee which held its first two meetings to address concerns specific to hockey retailers. These committees help categories of the NSGA Verified Independent Dealer Program, NSGA understand areas it needs to focus on to help everyone in those areas and throughout along with applications and other important information, the industry. can be found at www.nsga.org/verified. You can also read
more it on 22 of this edition of NSGA We will about continue topage develop valuable research suchNOW. as ourWe Team Dealer Trends: Brand Ratings encourage team dealers, full-line retailers retailers report that offered members valuable insightand into specialty how retailers and dealers view manufacturers and brandsinofhockey, tackle football products. Concerns aboutto subjects involved skiing, running and other sports apply. from diversity to the continued emphasis on direct to consumer sales are just a couple of the important items on our radar. Another benefit of the NSGA Verified Independent Dealer Program will be programming NSGA is also moving ahead with the 2021 Management Conference & Team Dealer Summit for the group at the 55th Annual Management Conference & 21 st Annual Team Dealer in Naples, Florida. We received some valuable feedback from members of the industry that Summit. This will be an excellent opportunity for verified dealers to get together and will impact our planning so please stay tuned for more details. It is clear that people are eager share ideas and concerns with their peers. for the opportunity to connect and gain valuable insights that we all missed out on in 2020. AsThe we Management move into theConference final months of a year unlike any we have experienced, NSGA wants to & Team Dealer Summit held May 19-21 in Braselton, wish you, your families and in your a happy,ofsafe successful Georgia, is right around theeveryone corner. Some of business the best aspects the and sporting goods holiday season. We premier hope you enjoy them as much possible look Register toward better industry's event are illustrated onas page 11 of as thiswe issue. now bydays ahead incompleting 2021 and beyond. the form in the magazine, or, online at www.nsga.org/events. Weregards, hope everyone had a happy holiday season with family and friends and that you Best closed out 2018 on a high note. Don't forget that NSGA is here to support you in making Matt Carlson | President & CEO 2019 even better! Fight the good fightl Best regards,
NSGA STATEMENT OF OWNERSHIP
Matt Carlson I President & CEO 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 NSGA NOW® (ISSN 1045-2087) isprice published members of the National Goodssubscription of $50bi-monthly per year isfor included in membership fee.Sporting Non-member Association, 1601 Feehanville Dr.,information Suite 300, Mount Prospect, IL 60056-6035; Phone: (847)paid 296-NSGA (6742);Grove, available from publisher. Periodical postage at Downers Fax: (847) 391-9827. SubscriptionILprice of and $50 per year is mailing includedoffices. in membership fee. Non-member 60515 additional POSTMASTER: Send address changes to subscription information available fromNOW,® publisher. Periodical postage paid at Mount Prospect,Grove, IL 60056 and NSGA 3041 Woodcreek Drive, Suite 210, Downers IL 60515. © additional mailing offices. POSTMASTER: Send changesPrinted to NSGAinNOW,® NSGA 2020 alladdress rights reserved. the USA. 1601 Feehanville Dr., Suite 300, Mount Prospect, IL 60056-6035. © by NSGA 2019. Printed in the USA.
4 | NSGA NOW ®
>> November/December 2020
ASSOCIATION NOW Sporting Goods Industry Hall of Famer Robert W. Gore Passes Away at 83 Robert W.”Bob” Gore, a 2001 Sporting Goods Industry Hall of Fame inductee who helped change the way people enjoyed the outdoors with the development of GORE-TEX® Outerwear, passed away after a long illness on September 17 at 83. In 1969, Gore discovered a versatile new polymer form known as expanded polytetrafluoroethylene (ePTFE). The groundbreaking new material provided many new product applications, including GORE-TEX® Fabrics, the world’s first waterproof breathable outerwear and a product that has become synonymous with the outdoors. Prior to Gore’s discovery, rainwear was inadequate for active people outdoors because fabrics didn’t breathe and wearers got wet from the inside out, even when it was not raining. GORE-TEX® manufacturers had to adhere to strict design and production standards so consumers knew they could rely on GORE-TEX® outerwear for durable comfort and protection. “Mr. Gore’s inventive and entrepreneurial spirit led to significant changes for the sporting goods industry and anyone who is active outdoors,” said NSGA President & CEO Matt Carlson. “He fueled the tremendous growth and success of W.L. Gore & Associates and NSGA appreciated the company’s longstanding support. We are saddened to hear about Mr. Gore’s passing and extend our deepest condolences to his family and everyone with the company.” Gore became chairman emeritus of W.L. Gore in 2018 after 57 years on the company’s Board of Directors and 30 as chairman. Gore served as president from 1976–2000 and the company became a billion-dollar enterprise in 1996. Gore now generates $3.7 billion in annual revenues. Gore was born April 15, 1937 in Salt Lake City, Utah, as the oldest of five children of Wilbert L. (Bill) and Genevieve W. (Vieve) Gore, the founders of W.L. Gore & Associates. Bob Gore was a born entrepreneur and as a sophomore chemical engineering student at the University of Delaware he solved a technical challenge that helped spark the early success of his parents’ company. "Bob Gore appreciated that innovation can arise from many different places if entrepreneurial spirit is encouraged and fostered," said current Gore CEO Jason Field in a statement from the company. "Innovation as activity, doing things with your hands, experimenting, testing and observing, was instilled in our Enterprise consistently and productively throughout Bob's tenure as both president and chairman."
Gore also instilled focus and discipline into the innovation process, allowing the company to remain competitive in an increasingly complex, global business environment. His unequivocal promise that "our products will do what we say they will do" transformed Gore into a world-class product leadership enterprise. "Bob's innovative spirit shaped our enterprise from the very beginning, paving the way for W. L. Gore & Associates to improve lives and industries,” said current Gore board chair Bret Snyder, who is Gore’s nephew. “We will continue to build on his legacy with a commitment toward breaking new ground and developing solutions that make the world a better place." Gore is survived by his wife Jane and a large family of children, grandchildren and great-grandchildren as well as four siblings (Susan Gore, Ginger Giovale, David Gore, Betty Snyder) and extended family.
Markwort Sporting Goods Receives Green Business Award Markwort Sporting Goods was honored by the city of Creve Coeur, Missouri, for making sustainability a major part of its business practices. Markwort, an NSGA member since 1977 and longstanding supporter, received the 2020 Green Business Award as part of the fifth annual Creve Coeur Business Awards at a luncheon on September 17. The Green Business Award recognizes a Creve Coeur business that has made sustainability an integral part of its business practices. Markwort Sporting Goods was cited for its strong history
Brett Markwort, General Manager of Markwort Sporting Goods Company, the 2020 Green Business Award winner in Creve Coeur, Missouri.
of environmental initiatives and one of its biggest achievements was a packaging redesign for one of its best-selling products, a softball safety mask. Markwort redesigned the packaging to remove all use of plastic and created a new packaging design that uses a single piece of recyclable cardboard. Other factors for Markwort receiving the award include its dedication to reducing waste and exploring new ways to package products in an environmentally friendly way and its warehouse using smart thermostats and LED lighting to reduce overall energy use. Markwort, which was founded in 1931, was also one of a handful of businesses to receive Green Business Certification from the City of Creve Coeur earlier this year, a recognition only presented to businesses that meet a certain standard of green business practices.
NSGA NOW ®
>> November/December 2020 | 5
PARTICIPATION NOW Survey Analyzed Parents Plans for Kids Participation in Fall Sports By Nick Rigitano NSGA Director of Insights and Analysis According to a survey conducted in July by Morning Consult, 46 percent of parents whose children usually participate in fall sports planned to enroll their kids in fall programs during the COVID-19 pandemic. Conversely, 22 percent of parents said they would not let their kid(s) participate in fall sports, while 32 percent were unsure or had not decided yet. When asked if the benefits of youth sports participation outweigh the risks associated with the spread of COVID-19, 40 percent of respondents either agreed or strongly agreed with that statement. There were, however, slightly more people who disagreed or strongly disagreed with this statement at 48 percent. Only 11 percent said they did not know or had no opinion. Any amount of sports participation this fall was a welcome sight to sporting goods retailers, team dealers and manufacturers who saw spring sports virtually canceled across the country earlier this year. But not having a full customer base to sell products to may have led to increased competition among brands and retailers/ team dealers. Here is a look at youth (ages 7-17) vs. adult (ages 18+) participation in 2019 for a variety of sports often played in the fall in many parts of the country.
Tackle football and soccer would have been next in line as youths account for 55 and 51 percent of participation, respectively. Flag football (48%), touch football (43%) and volleyball (39%) could have been significantly affected as well with youth age groups accounting for more than a third of total participation. Tennis (21%) and golf (9%) would have been the sports least affected by parents’ potential decision to keep their kids out of sports this fall. So how can sports safely be played? The Centers for Disease Control and Prevention (CDC) has laid out specific guidelines for conducting sports practices and competitions in a way that minimizes the risk of spreading COVID-19. Guidelines include: • Stay home if sick. • Players should bring their own equipment, like gloves and bats, if possible. • Reduce physical closeness and keep 6 feet of space between players when possible. • Wear a mask if possible. • Players should clean their hands before and after practices, games, and sharing equipment. • Tell a coach or staff member if you don’t feel well. For more information on precautions to take in
According to NSGA’s Sports Participation in the US report,
order to safely conduct sports practices and competitions, as well
cheerleading has the highest percentage (73%) of youth participation
as a checklist for coaches to follow, please visit the CDC website
among selected fall sports and would have been affected most if a
at https://www.cdc.gov/coronavirus/2019-ncov/daily-life-coping/
portion of parents decided not to enroll their kids in youth sports.
playing-sports.html.
6 | NSGA NOW ®
>> November/December 2020
Win with Research! SPORTS PARTICIPATION IN THE UNITED STATES EDITION
2020 nsga.org
Determine feasibility, market size and composition. Support sales forecasting, inventory management and target marketing. Report includes: • Participation trends by sport, with 10-year overall trend lines (2010-2019) • Demographics for participants including gender, age, household income and US region • Sports Segment information with 5-year history including: fitness activities, individual sports, indoor games, open water activities, outdoor, team sports, shooting sports, snow sports and wheel sports.
Order the 2020 Edition of NSGA’s Sports Participation in the US report and other NSGA research at nsga.org/research
NSGA is proud to produce industry leading research for the last 35+ years
INSIGHTS NOW Retail Forecasts Signal Slight Growth for Upcoming Holiday Season By Nick Rigitano NSGA Director of Insights and Analysis With the 2020 holiday season quickly approaching, NSGA has been tracking the holiday sales growth forecasts released by multiple organizations. The overall sentiment from the retail holiday forecasts is slight growth expected for the upcoming season with the largest gains being driven by the e-commerce channel. According to Deloitte’s annual holiday retail forecast, holiday retail sales are likely to increase between 1–1.5 percent compared to last year. E-commerce is expected to play a big role this holiday season. The increase in e-commerce sales experienced during the COVID-19 pandemic is also expected to continue as the forecast calls for sales to increase by 25–35 percent year over year, much larger than the 14.7 percent increase in e-commerce sales experienced during the 2019 holiday season. RetailNext, Inc., a retail analytics company, forecasted an increase of zero to 1.5 percent in November and December retail sales vs. a year ago, driven largely by a 25–35 percent increase in yearover-year sales through digital channels. Brick-and-mortar store performance, however, is expected to suffer its largest holiday
NRF did launch a holiday campaign called “New Holiday Traditions” that encourages consumers to shop safe and shop early this year to
season decrease with decreases of 27 to 31 percent year over
ensure the gifts they want are in stock and can be delivered on time.
year. Shopper intent will be a bright spot, leading to brick-and
“We’ve seen surprisingly robust spending throughout holiday events
mortar store sales down less than traffic, projected at decreases
so far this year, including Mother’s Day and Father’s Day, and in
of 12 to 18 percent.
many cases at record levels,” said Bill Thorne, NRF Senior Vice
In addition, the International Council of Shopping Centers (ICSC) is predicting a 1.9 percent year-over-year growth in retail sales this holiday season. The ICSC also noted that 81 percent of US
President of Communications and Public Affairs, in a statement. “This illustrates how both consumers and retailers are adapting and finding innovative ways to safely celebrate the holidays despite this
adults plan to shop in a physical store during the holiday season.
year’s extraordinary circumstances.”
ICSC anticipates the shopping season will be longer this year,
For tips and best practices in preparing your store for the holidays,
with 77 percent of respondents expecting to start earlier than
be sure to check out NSGA’s Guide to a Better Retailing Experience.
they normally would. More consumers are planning to start their
This guide can help store owners enhance the retail experience at
shopping before Thanksgiving Weekend than in the past, with 67
their stores and includes ideas and suggestions for each aspect
percent saying they’ll begin before Thanksgiving Day — and 23
of a retail store including the storefront, cash wrap, floor and wall
percent as soon as October — as they look to take advantage
fixtures, graphics, floors, lighting, fitting rooms, and casual seating
of early sales and avoid shipping delays, crowded stores or out-
areas. The guide is free to NSGA members and is one of the most
of-stock items.
downloaded reports offered by NSGA.
The National Retail Federation (NRF) is waiting to release its holiday
NSGA members can download a copy of the report by visiting
forecast until it has more solid data to make an accurate forecast,
https://www.nsga.org/membership/resources/retail-audit-insights/.
according to a spokesperson for the organization. The timing is expected to occur in November and NSGA will share that information in its other communication platforms as soon as it is available. 8 | NSGA NOW ®
>> November/December 2020
Be sure to stay up to date on the latest COVID-19 sporting goods industry resources by visiting https://www.nsga.org/advocacy/ covid-19-resource-page/.
RETAIL NOW NSGA Roundtable: Retailers Pivoting and Preparing By Tom Van Jacobs NSGA Marketing Coordinator
Anita Adam
Ryan Ehrhardt
Eric Knudson
Owner
Owner
Owner
2 Time Sports
JT’s Slap Shot Hockey Shop
Gerrells/ Hockey World
Northglenn, Colorado
Windsor Heights, Iowa
Grand Forks, North Dakota
nd
No one could have envisioned the challenges sporting goods retailers would face in 2020. The onset of COVID-19 in mid-March changed everyone’s plans and forced an examination of the future. The National Sporting Goods Association asked three retailers to look back at adjustments made in 2020 and to look ahead at holiday shopping and 2021. NSGA: What physical changes did you make to your store(s)
NSGA: What areas of your retail operation did COVID-19 force
as a result of COVID-19?
you to evaluate and change?
Adam: We actually had been working on moving into our newly
Adam: We pivoted what we were selling as much as we could.
built location. We were informed that we would have to close
Selling more individual sports versus team. More golf, disc golf and
because of COVID and had one week to physically move. We put a
water sports. Our batting cage is an income filler that was much
sign on the door that day and started hauling product over in our
needed for additional revenue.
van. The new build was not quite finished, and still is not in some
Ehrhardt: We were forced to change how we think about retail.
areas, but we didn’t care. Our new location is on a very busy main street for our area. Someday, when we financially recover, we will
People like the convenience of shopping from home, so we have increased our efforts to get an operational website up and running.
finish the interior.
We also implemented curbside pickup, so customers who wish to
Ehrhardt: In-store we made numerous changes to the store’s
have a contactless shopping experience can achieve this. From a
layout. We completely redesigned our aisles to increase their width,
shipping standpoint we have been busier than ever – shipping has
stored more equipment as opposed to having it on the sales floor,
increased nearly 200% since COVID. Home delivery to our metro
and we put up numerous social distance and arrow stickers on the
area is something we offer to our customers as well. It typically is
floor. We added sanitizers throughout the store and purchased a
not too much of an inconvenience for us, however, the customer
filtration unit for our HVAC to help minimize risk for our staff and
genuinely appreciates it going above and beyond for them.
customers. There are signs as you enter encouraging mask use
Knudson: We had to reduce staff and our hours of operation. We
and all our employees wear a mask while working.
now have been able to hire back our staff and are back to normal
Knudson: Our retail space is laid out pretty good already, so
hours of operation. We also now carry a nice selection of face masks,
other than adding hand sanitizer stations we didn’t feel the need
both stock and custom, that continue to check out.
to change things. 10 | NSGA NOW ®
>> November/December 2020
NSGA: Have you seen any changes in shopping behaviors
We are concerned about inventory levels from our major suppliers
during COVID-19?
not being at the same level they were at this time last year.
Adam: The canceled spring sports had our regular customers
NSGA: How do you view the retail outlook for 2021?
holding out shopping for fall sports until the very last minute.
Adam: The larger view for retail in 2021 looks dull overall. My
Uniform orders that we normally do during June didn’t happen until late July and some even in August. Only half of the kids are playing since some leagues canceled their fall season and as such no shopping was done.
opinion, if manufacturers don’t produce or they tighten their payment terms, smaller new stores won’t have product to sell because the big boxes will get what inventory was produced. The larger stores will also price war to keep market share until life
Ehrhardt: The biggest thing we have noticed is people tend to
returns to normal, or the new normal. We are better-positioned
not linger and window shop. Our customers who come in and buy
because we sell new and used. Our “inventory” is already here in
are a record high percentage. We have always had a high ratio of
our neighborhoods if need be.
people entering our store and purchasing something, but post-
Ehrhardt: 2021 for us projects to be a good season. Typically, a
COVID we are at roughly a 99% sale rate for individuals that come into the store. People also tend to be more conscience of their own personal bubble, maintaining a distance between us, them and other customers. From a financial standpoint, our average sale has increased marginally by a couple of points. We believe this has more to do with an increase in costs of goods from the vendors as opposed to consumers looking to purchase more expensive product. Knudson: With some choosing to distance learn, or being forced to work from home, we are seeing customers of all ages shopping earlier in the day who in the past were more of an after-work or after-school shopper. We also see more people asking questions
family will purchase several items during the season, however, very rarely will they need everything. We believe that families who sat out this season due to COVID will come back and will need pretty much everything instead of just half of the equipment they typically do. The sales we are losing this season – while we aren’t expected to recoup all of them – we do believe we will make up a good portion in ’21. Lastly while we believe consumers will be wiser with their dollars, we believe a lot of families will be excited to get back to “normal” and will spend feverishly. I know my fiancée and I already have numerous things we are saving for next year; I expect that there would be many families doing the same. We have noticed an uptick
via emails and texts.
on high-end stick sales already, so we think there is some merit to
NSGA: What are your expectations and concerns with the 2020
this line of thinking.
Holiday shopping season?
Knudson: Our hope is with each passing month things will get
Adam: If, and that’s a big IF, ski resorts stay open for a full season
better and restrictions will ease. 2021 will bring another set of
we should do fine. If the opening of the limited sports we have now
challenges that we all have to find a way to overcome.
create a wave of COVID-19, and the vaccines do not work, we are concerned that any gatherings would be shut down until after the vaccines get proven out. Then we would want to stock products for playing in the snow in limited gatherings or individual use to hedge our bets. However, orders were placed last January so we may not have the time to pivot depending on when they announce gathering restrictions. Lastly, the big box stores are discounting to just get cash flow so prices will drop and then no profit is made. Ehrhardt: We expect a drop off in sales, based on the lower turnout for hockey this season. Our youth programs are down roughly 1520%, so we are expecting a drop off of roughly the same amount this winter in-store. Based on how consumers have been acting the last 6 months, we expect that trend to continue – for example, less in-store shopping, more demand for curbside or phoned-in orders and not wanting to come in during peak business.
Get the Latest COVID-19 Resources from NSGA Need information on the Paycheck Protection Program? Want to know the status of sports around the United States and Canada? Looking for tips on social media or suggestions from the supplier community? Check out NSGA’s COVID-19 resource pages at nsga.org/advocacy/covid-19resource-page/ and nsga.org/advocacy/covid-19resource-page/covid-19-video-resources/.
Knudson: I feel people will be shopping earlier this holiday season. NSGA NOW ®
>> November/December 2020 | 11
RETAIL NOW
Tumultuous 2020 Leads to Change for Retail By Ritchie Sayner Advanced Retail Strategies Since you are reading this in the fourth quarter of 2020, you have managed to endure and survive the many obstacles thrown your way during this unprecedented year. Economic shutdowns, riots and protests, mask mandates, social distancing requirements, as well as freakedout customers and concerned employees. What else can be added to the list that complicates an already challenging occupation, right?
My, my, how things have changed The financial ramifications of how to navigate these challenging times is surely a subject of focus as we close out this turbulent year and approach 2021 with hopes of “normalcy,” whatever that means going forward. Nowadays, I often find myself longing for yesteryear. Step back in time for a moment to the golden days of retail. A time when merchants actually traveled to markets and trade shows to physically meet with vendors and colleagues to exchange ideas and buy merchandise for the upcoming season. A time when customers could enter your store and be greeted with a welcoming smile, as opposed to being handed a mask, lest they absent-mindedly entered minus a required face covering. Returned merchandise was simply put back in stock and not subjected to mandatory quarantine and disinfection protocols. 12 | NSGA NOW ®
>> November/December 2020
Yes, back in the day, marketing efforts were actually measured by how many customers could be enticed to shop the store during a given event or promotion. Imagine doing that today as retailers are told to restrict the number of customers entering for their safety as well as that of the employees. Not so long ago you could actually shake someone’s hand or give them a gentle hug upon greeting them. Trying that today, in the world of social distancing and you could easily become the target of a negative social media campaign. Gone for now are the days when you entered a retail store and were offered a cup of coffee or a bottle of water. In 2020, those pleasantries have been replaced with hand sanitizer and masks. Whoever heard of curbside pickup prior to this year? And previously, hoteling meant finding a place to stay when traveling, not packing up this year’s goods to sell next year. Believe it or not, there was
even a time when employees were financially better off going to
reasonable sell through, it may make sense to “hotel” them for next
work rather than depending on unemployment and the weekly
year. Clearly, if done on a large-scale basis, this will affect turnover,
government bonuses that accompany it in many cases. I’ll admit to
just as liquidating new stock at drastic reductions has a profound
being a bit nostalgic, but I miss the good old days of retail…2019!
effect on margin. You have to decide, based on your own situation,
It's not all bad
which is the best route for you.
Though there are many horror stories to point to this year, there
Holiday shopping 2020 style
are several positive things that we can take away as well. One might
There are simply too many unknowns this year for anyone to be
compare this to a forest fire that may seem catastrophic at first,
able to predict how Holiday shopping will be impacted. Suffice to
but over time, green shoots of new life begin to appear through
say that the experience will be different from any other year for
the carnage.
reasons previously discussed.
Many retailers have stretched and grown to find new ways to do
What you won’t see is smiling customers and sales associates and
business that may never have been considered. Take for example
packed stores due to masking requirements and social distancing.
the retailer who, for whatever reason, didn’t feel the need for
What you might see is earlier shoppers and less discounting,
a shopping cart on their website. Clearly, without the ability to
perhaps due to leaner inventory levels and delivery interruptions.
purchase online during “pandemic times,” those retailers without
What you will see is an increase in online shopping.
such a vehicle were/are at a disadvantage.
It is being widely reported that more stores will be closed on
We have also seen retailers become more introspective with regard
Thanksgiving Day - which in my opinion, is a good thing! In such
to their largest asset - inventory. Some have been able to pick up
an unpredictable season, prudence would dictate that keeping
new lines of inventory that perhaps they couldn’t carry previously.
cash reserves plentiful and inventory levels lean would be the
In most cases they have realized that CASH is KING is more than
responsible thing to do.
a clever slogan, but a reality by which to live by. A good margin
Don’t be too hard on yourself. Play the cards you are dealt the best
percentage is important, but you can’t put a percent sign in the bank! It doesn’t mean a thing if no one is buying. Retailers have discovered that less is more. I can cite several examples where stores are selling more than last year with much less inventory and way fewer markdowns. Who would have thought? The 80/20 rule is still alive and well. Think of your own business as
that you can and move forward. And by all means, don’t hesitate to reach out for an outside opinion if you think there might be a better way. We are truly all in this together! I wish all of you a Happy and HEALTHY Holiday Season! Until next year…
you read this. Where do the majority of your sales really come from? If you take an honest look at your inventory position, you will undoubtedly find pockets of stock (or vendors) that you just don’t need to carry. These areas, overlooked for the most part when times are good, should be identified and eliminated as they contribute little to overall profitability. Now is the perfect time to again evaluate ALL vendors based on GMROI (Gross Margin Return on Investment) contribution so that you have the data to make the right decisions.
Ritchie Sayner Sayner has spent the past four decades helping independent retailers improve profitability. In addition to speaking to retail groups nationwide, Sayner is a regular contributor to retail
Give yourself a pass this year
industry publications. Prior
Few would argue that the path to retail success would likely be
consulting career, he was
revenue growth coupled with inventory turnover. This year however,
the general merchandise manager for an independent
for reasons that are all too obvious, top-line revenue growth is
department store in the Midwest. Ritchie is a graduate of
turning out to be a near impossibility for many.
the University of Wisconsin-LaCrosse. He is also the author
It’s human nature to compare to previous periods and want to
of the book, “Retail Revelations-Strategies for Improving
improve, but this year is an outlier. In some cases, where new goods never received the exposure that they should have for
to embarking on his retail
Sales, Margins, and Turnover.” He can be reached though his website at www.advancedretailstrategies.com. NSGA NOW ®
>> November/December 2020 | 13
ADVOCACY NOW
Preparing for Paycheck Protection Program Loan Forgiveness By Julie Pitts NSGA Director of Public Affairs As we move through the final quarter of 2020, many businesses have questions and concerns about Paycheck Protection Program (PPP) loan forgiveness. Business leaders preparing PPP loan forgiveness applications must carefully follow compliance guidelines and remember to consult with their tax preparers and lenders if they have questions specific to their businesses. On October 13, 2020, the U.S. Small Business Administration (SBA), which administers the PPP, provided significant, updated resources for businesses about loan forgiveness. The following excerpt is taken directly from the SBA’s Paycheck Protection Program (PPP) Frequently Asked Questions (FAQs) on Loan Forgiveness.
Q: If a borrower submits a timely loan forgiveness application, does the borrower have to make any payments on the loan prior to SBA remitting the forgiveness amount, if any?
A: As long as a borrower submits its loan forgiveness application within 10 months of the completion of the Covered Period, the borrower is not required to make any payments until the forgiveness amount is remitted to the lender by SBA. If the loan is fully forgiven, the borrower is not responsible for any payments. If only a portion of the loan is forgiven, or if the forgiveness application is denied, any remaining balance due on the loan must be repaid by the borrower on or before the maturity date of the loan. Interest accrues during the time between the disbursement of the loan and SBA remittance of the forgiveness amount. The borrower is responsible for paying the accrued interest on any amount of the loan that is not forgiven. The lender is responsible for notifying the borrower of remittance by SBA of the loan forgiveness amount (or that SBA determined that no amount of the loan is eligible for forgiveness) and the date on which the borrower’s first payment is due, if applicable. 14 | NSGA NOW ®
>> November/December 2020
Loan Forgiveness Payroll Costs FAQs Q: Are payroll costs that were incurred during the Covered Period (See Figure 1 on page 15), or the Alternative Payroll Covered Period (See Figure 2 on page 15), but paid after the Covered Period, or the Alternative Payroll Covered Period, eligible for loan forgiveness?
A: Yes, if the payroll costs are paid on or before the next regular payroll date after the Covered Period or Alternative Payroll Covered Period. Example: A borrower received its loan before June 5, 2020 and elects to use a 24-week Covered Period. The borrower’s Covered Period runs from Monday, April 20 through Sunday, October 4. The borrower has a biweekly payroll cycle, with a pay period ending on Sunday, October 4. However, the borrower will not make the corresponding payroll payment until the next regular payroll date of Friday, October 9. Under these circumstances, the borrower incurred payroll costs during the Covered Period and may seek loan forgiveness for the payroll costs paid on October 9, because the cost was incurred during the Covered Period and payment was made on the first regular payroll date after the Covered Period.
Q: Are payroll costs that were incurred before the Covered Period, but paid during the Covered Period, eligible for loan forgiveness?
A: Yes. Example: A borrower received its loan before June 5, 2020 and elects to use a 24-week Covered Period. The borrower’s Covered Period runs from Monday, April 20 through Sunday, October 4. The borrower has a biweekly payroll cycle, with a payroll cycle ending on Saturday, April 18. The borrower will not make the corresponding payroll payment until Friday, April 24. While these payroll costs were not incurred during the Covered Period, they were paid during the Covered Period and are
Figure 1 Definition of Covered Period The Covered Period is either (1) the 24-week (168-day) period beginning on the PPP loan disbursement date, or (2) if the borrower received its PPP loan before June 5, 2020, the borrower may elect to use an eight-week (56-day) Covered Period. For example, if the borrower is using a 24-week Covered Period and received its PPP loan proceeds on Monday, April 20, the first day of the Covered Period is April 20 and the last day of the Covered Period is Sunday, October 4. In no event may the Covered Period extend beyond December 31, 2020.
eligible for loan forgiveness. Q: Are borrowers required to calculate payroll costs for partial pay periods?
A: If the borrower uses a biweekly or more frequent (e.g., weekly) payroll cycle, the borrower may elect to calculate eligible payroll costs using the eight-week (for borrowers that received their loans before June 5, 2020 and elect this Covered Period length) or 24-week period that begins on the first day of the first payroll cycle following the PPP Loan Disbursement Date (referred to as the Alternative Payroll Covered Period). However, if a borrower pays twice a month or less frequently, it will need to calculate payroll costs for partial pay periods. The Covered Period or Alternative Covered Period for any borrower will end no later than December 31, 2020. Example: A borrower uses a biweekly payroll cycle. The borrower’s 24week Covered Period begins on Monday, June 1 and ends on Sunday, November 15. The first day of the borrower’s first payroll cycle that starts in the Covered Period is June 7. The borrower may elect an Alternative Payroll Covered Period that starts on June 7 and ends on November 21 (167 days later). Payroll costs incurred (i.e., the pay was earned on that day) during this Alternative Payroll Covered Period are eligible for loan forgiveness if the last payment is made on or before the first
Figure 2 Definition of Alternative Payroll Covered Period Borrowers with a biweekly (or more frequent) payroll schedule may elect to calculate eligible payroll costs using the 24-week (168-day) period (or for loans received before June 5, 2020 at the election of the borrower, the eight week (56-day) period) that begins on the first day of their first pay period following their PPP loan disbursement date (i.e., the “Alternative Covered Period”). For example, if the borrower is using a 24-week Alternative Payroll Covered Period and received its PPP loan proceeds on Monday, April 20, and the first day of its first pay period following its PPP loan disbursement is Sunday, April 26, the first day of the Alternative Payroll Covered Period is April 26 and the last day of the Alternative Payroll Covered Period is Saturday, October 10. In no event may the Alternative Payroll Covered Period extend beyond December 31, 2020.
A: Payroll costs include all forms of cash compensation paid to employees, including tips, commissions, bonuses and hazard pay. Forgivable cash compensation per employee is limited to $100,000 on an annualized basis. Q: What expenses for group health care benefits will be
regular payroll date after November 21.
considered payroll costs that are eligible for loan forgiveness?
Q: For purposes of calculating cash compensation, should
A: Employer expenses for employee group health care benefits that
borrowers use the gross amount before deductions for taxes, employee benefits payments, and similar payments, or the net amount paid to employees?
A: The gross amount should be used when calculating cash compensation. Q: Are only salaries or wages covered by loan forgiveness, or can a borrower pay lost tips, lost commissions, bonuses, or other forms of incentive pay and have such costs qualify for loan forgiveness?
are paid or incurred by the borrower during the Covered Period or the Alternative Payroll Covered Period are payroll costs eligible for loan forgiveness. However, payroll costs do not include expenses for group health care benefits paid by employees (or beneficiaries of the plan), either pre-tax or after tax, such as the employee share of their health care premium. Forgiveness is not provided for expenses for group health benefits accelerated from periods outside the Covered Period or Alternative Payroll Covered Period. If a borrower has an insured group health plan, insurance premiums paid or incurred during the Covered Period or Alternative Payroll NSGA NOW ®
>>
Continued on Page 16 November/December 2020 | 15
ADVOCACY NOW Continued from Page 15
Covered Period qualify as “payroll costs,” as long as the premiums are paid during the applicable period or by the next premium due date after the end of the applicable period. As noted, only the portion of the premiums paid by the borrower for coverage during the applicable Covered Period or Alternative Payroll Covered Period is
Loan Forgiveness Nonpayroll Costs FAQs Q: Are nonpayroll costs incurred prior to the Covered Period, but paid during the Covered Period, eligible for loan forgiveness?
included, not any portion paid by employees or beneficiaries or any
A: Yes, eligible business mortgage interest costs, eligible
portion paid for coverage for periods outside the applicable period.
business rent or lease costs and eligible business utility costs
Q: What contributions for retirement benefits will be considered payroll costs that are eligible for loan forgiveness?
A: Generally, employer contributions for employee retirement benefits that are paid or incurred by the borrower during the Covered Period or Alternative Payroll Covered Period qualify as “payroll costs” eligible for loan forgiveness. The employer contributions for retirement benefits included in the loan forgiveness amount as payroll costs cannot include any retirement contributions deducted
incurred prior to and paid during the Covered Period are eligible for loan forgiveness. Example: A borrower’s 24-week Covered Period runs from April 20 through October 4. On May 4, the borrower receives its electricity bill for April. The borrower pays its April electricity bill on May 8. Although a portion of the electricity costs were incurred before the Covered Period, these electricity costs are eligible for loan forgiveness because they were paid during the Covered Period.
from employees’ pay or otherwise paid by employees. Forgiveness
Q: Are nonpayroll costs incurred during the Covered Period,
is not provided for employer contributions for retirement benefits
but paid after the Covered Period, eligible for loan forgiveness?
accelerated from periods outside the Covered Period or Alternative
A: Nonpayroll costs are eligible for loan forgiveness if they were
Payroll Covered Period. Note: Owner health insurance information and retirement benefits questions can be found at sba.gov/documents/support-frequentlyasked-questions-ppp-loan-forgiveness
incurred during the Covered Period and paid on or before the next regular billing date, even if the billing date is after the Covered Period. Example: A borrower’s 24-week Covered Period runs from April 20 through October 4. On October 6, the borrower receives its electricity bill for September. The borrower pays its September electricity bill on October 16. These electricity costs are eligible for loan forgiveness
SBA: Email Scams Target COVID-Related Loans The Small Business Administration (SBA) has sent cyberwarning alerts to loan applicants seeking federal aid in response to the COVID-19 pandemic. Email phishing campaigns where malicious actors are impersonating the SBA and its Office of Disaster Assistance to collect personally identifiable information (PII) for fraudulent purposes have surfaced. Applicants for SBA’s Paycheck Protection Program (PPP) loans and its Economic Injury Disaster Loan (EIDL) Program have been targeted by scam emails asking them to verify their accounts using a third-party online platform to collect PII. NSGA recommends you contact your lender if you have questions related to your SBAbacked COVID-19 relief loans. For more details go to https://www.nsga.org/advocacy/ covid-19-resource-page/sba-loan-email-phishing-scam/.
because they were incurred during the Covered Period and paid on or before the next regular billing date (November 6). Q: If a borrower elects to use the Alternative Payroll Covered Period for payroll costs, does the Alternative Payroll Covered Period apply to nonpayroll costs?
A: No. The Alternative Payroll Covered Period applies only to payroll costs, not to nonpayroll costs. The Covered Period always starts on the date the lender makes a disbursement of the PPP loan. Nonpayroll costs must be paid or incurred during the Covered Period to be eligible for loan forgiveness. For payroll costs only, the borrower may elect to use the Alternative Payroll Covered Period to align with its biweekly or more frequent payroll schedule. Q: Is interest on unsecured credit eligible for loan forgiveness?
A: No. Payments of interest on business mortgages on real or personal property (such as an auto loan) are eligible for loan forgiveness. Interest on unsecured credit is not eligible for loan forgiveness because the loan is not secured by real or personal property. Although interest on unsecured credit incurred before February 15, 2020 is a permissible use of PPP loan proceeds, this expense is not eligible for forgiveness.
16 | NSGA NOW ®
>> November/December 2020
Loan Forgiveness Reductions FAQs Q: Will a borrower be subject to a reduction to its forgiveness amount due to a reduction in employees during the Covered Period, if the borrower offered to rehire one or more laid-off employees, but the employees declined?
A: In calculating its loan forgiveness amount, a borrower may exclude any reduction in FTE employees if the borrower is able to document in good faith the following: 1. an inability to rehire individuals who were employees of the borrower on February 15, 2020 and 2. an inability to hire similarly qualified individuals for unfilled positions on or before December 31, 2020. Borrowers are required to inform the applicable state unemployment insurance office of any employee’s rejected rehire offer within 30 days of the employee’s rejection of the offer. The documents that borrowers should maintain to show compliance with this exemption include the written offer to rehire an individual, a written record of the offer’s rejection, and a written record of efforts to hire a similarly qualified individual. Q: Are payments made on recently renewed leases or interest payments on refinanced mortgage loans eligible for loan forgiveness if the original lease or mortgage existed prior to February 15, 2020?
Q: If a seasonal employer elects to use a 12-week period between May 1, 2019 and September 15, 2019 to calculate its maximum PPP loan amount, what period in 2019 should be used as the reference period for calculating any reductions
A: Yes. If a lease that existed prior to February 15, 2020 expires
in the loan forgiveness amount?
on or after that date and is renewed, the lease payments made
A: A seasonal employer that elects to use a 12-week period between
pursuant to the renewed lease during the Covered Period are eligible for loan forgiveness. Similarly, if a mortgage loan on real or personal property that existed prior to February 15, 2020 is refinanced on or after February 15, 2020, the interest payments on the refinanced mortgage loan during the Covered Period are eligible for loan forgiveness. Example: A borrower entered into a five-year lease for its retail space in March 2015 and it was renewed in March 2020. For purposes of determining forgiveness of the borrower’s PPP loan, the March 2020 renewed lease is deemed to be an extension of the original lease, which was in force before February 15, 2020. As a result, the lease payments made under the renewed lease during the Covered Period are eligible
May 1, 2019 and September 15, 2019 to calculate its maximum PPP loan amount must use the same 12-week period as the reference period for calculation of any reduction in the amount of loan forgiveness. Q: For purposes of calculating the loan forgiveness reduction required for salary/hourly wage reductions in excess of 25% for certain employees, are all forms of compensation included or only salaries and wages?
A: For purposes of calculating reductions in the loan forgiveness amount, the borrower should only account for decreases in salaries or wages.
for loan forgiveness. Q: Are electricity supply charges eligible for loan forgiveness if they are charged separately from electricity distribution charges?
A: Yes. The entire electricity bill payment is eligible for loan forgiveness (even if charges are invoiced separately), including supply charges, distribution charges and other charges such as
For the complete list of PPP Loan Forgiveness FAQs and comprehensive information, including owner compensation forgiveness guidance, refer to https://www.sba.gov/document/supportfrequently-asked-questions-ppp-loan-forgiveness.
gross receipts taxes. NSGA NOW ®
>> November/December 2020 | 17
ADVOCACY NOW Taxation of Forgiveness of PPP Loans By Chris Hesse Chair, AICPA Tax Executive Committee The CARES Act included a new federally guaranteed Small Business Administration (SBA) loan program called the Paycheck Protection Program (PPP). The maximum PPP loan was based upon two and one-half months’ average payroll costs for the prior 12 months. If the business pays qualifying costs over the eight-week period or 24-week Covered Period beginning with the funding of the loan, the entire debt may be forgiven. Usually, the forgiveness of debt generates taxable income for the borrower. After the IRS released additional guidance, it appears that may not be the case with PPP loan forgiveness. The PPP is designed as a federally guaranteed loan program that becomes a federal grant to the extent of the debt forgiveness.
Taxation of PPP loan forgiveness The CARES Act provides that the debt discharge of a PPP loan is excluded from the gross income of the business for federal income tax purposes. Forgiveness is limited, based upon the payment of qualifying expenses and the maintenance of employee count and compensation. Businesses shouldn’t assume full exclusion from taxable income, however. On April 30, 2020, the IRS issued Notice 2020-32, which provides that borrowers cannot deduct otherwise deductible expenses that they paid using funds from a PPP loan that was subsequently forgiven. In effect, the IRS eliminated the tax benefit of PPP loan forgiveness. Several bills have been submitted in Congress to
Businesses need to understand the taxation of the forgiveness of debt.
overturn the effect of the IRS notice. In addition, the American
Loan forgiveness
allow deductions for the qualifying costs.
PPP loan forgiveness is granted based upon paying qualifying costs during the eight-week period week or 24-week Covered Period beginning with the initial funding of the loan. The sum of the following enter into the forgiveness computation: payroll costs; health insurance for paid sick, medical, or family leave; mortgage interest payments; rent; and utility payments.
Institute of CPAs (AICPA) is on record supporting legislation to
How we can help CLA’s team continues to keep a pulse on the CARES Act and related guidance, including the documentation you must provide to help your organization qualify for PPP loan forgiveness. CLA professionals are available to help you navigate these uncertain times.
The mortgage, rent agreements, and utility agreements must have been in place before February 15, 2020. For the sole proprietor and partner, 8/52nds of the 2019 self-employment income is considered the forgiven amount if the eight-week Covered Period is chosen. If the 24-week Covered Period is used, the forgiven amount associated with the proprietor’s earnings is 2.5 divided by 12 of the 2019 self-employment income. These limits also apply to the wages of employee-owners of an S or C corporation. The SBA interim final rules stated that at least 75% of the forgiveness amount must relate to payroll costs. Congress lowered the threshold to 60% of payroll costs upon enactment of the PPP Flexibility Act. Payroll costs should include compensation, health insurance, retirement pay and state and local payroll taxes. In addition to the foregoing limitations pertaining to expenses, the PPP reduces the loan forgiveness amount unless the business satisfies two tests: employee count and employee wages.
18 | NSGA NOW ®
>> November/December 2020
This article was provided to the National Sporting Goods Association (NSGA) by CliftonLarsonAllen LLP , an audit, tax and consulting firm in Oak Brook, Illinois. It was originally published on April 22, 2020 and updated on July 10, 2020 to reflect the latest information from the IRS on taxation of Paycheck Protection Program Loans. The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting, investment, or tax advice or opinion provided by CliftonLarsonAllen LLP (CliftonLarsonAllen) to the reader. For more information, visit CLAconnect.com. CLA exists to create opportunities for our clients, our people, and our communities through our industry-focused wealth advisory, outsourcing, audit, tax, and consulting services. Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor
INDUSTRY NOW Rawlings Acquires Easton Diamond Sports Rawlings Sporting Goods and Easton Diamond Sports, LLC announced they have entered into a definitive agreement for Rawlings to acquire Easton. The transaction will strengthen the Rawlings and Easton brands, enhance product innovation and enable investments to grow the games of baseball and softball. “Over the years, Rawlings and Easton have shared a dedication to being best in class, which is the one constant that ultimately inspired our coming together and what will create the best baseball and softball company in the world,” said Mike Zlaket, President and CEO of Rawlings. “Whether it’s our products, innovation and technology, relationships with our customers, players and consumers, or our service to the game, Rawlings has never compromised. That will be especially true moving forward with the many opportunities and advantages our new integrated operation will provide everyone who loves baseball and softball.”
Augusta, Perfect Game Announce Apparel Partnership NSGA member Augusta Sportswear
Brands
and Perfect Game, the world's largest elite youth
ranked No. 2 at 68 kilograms/149.6 pounds on Team USA and is a part of the Titian Mercury WC. “We are thrilled to welcome Alexandria into the MyHOUSE group of athletes,” said Tim Pane, MyHOUSE CEO. “Alexandria has shown true dedication to wrestling with her passion for the sport and her competitive attitude. Alexandria is determined and dedicated. She fits in great with her personality and her mindset. We are excited to grow women’s wrestling with adding Alexandria onto the team.” In 2018, Glaudé was the U23 National Champion. In 2019, she was the World Team Trials (WTT) Challenge Tournament Champion and the Women’s Collegiate Wrestling Association (WCWA) national champion at 155 pounds. Glaudé was the NCAA national champion at 155 pounds in 2020.
Herzog Succeeds Haizmann as German Sports Retailers President Stefan Herzog was appointed the new president of the Association of German Sports Retailers (VDS). Herzog succeeds Werner Haizmann, right, who was appointed the first honorary president in the history of the 110-year-old VDS. Herzog is managing director and owner of Herzog SportsConnection and
baseball and softball platform and scouting service, entered a new
is an investor in Keller Sports.
multi-year apparel and uniform partnership agreement in early
Haizmann has been a member of the VDS board since 1983 and
September. Augusta Sportswear Brands is best known for its leading
spent 25 years as president of the association. He promoted
baseball and softball brands such as Russell Athletic, Holloway and
medium-sized sports shops’ interests in Germany as well as large
Pacific Headwear. This commitment to its leading sport category of
industry associations in Intersport and Sport 2000. He is also a
baseball includes recently welcoming Baseball Hall of Fame legend
major supporter of ISPO Munich and NSGA.
Andre Dawson as Brand Ambassador. levels, we quickly realized our foundational beliefs from the diamond
True Sports Acquires Hockey Goalie Manufacturer
to the community align with each other's," said Dave Elliott, CEO of
TRUE Sports acquired
"We are thrilled to be partnering with Perfect Game on so many
Augusta Sportswear Brands.
Canadian-based goalie
"Perfect Game is excited to partner with Augusta Sportswear. Their
equipment manufacturer Lefevre Inc., in late September in a move
commitment to quality apparel is extremely impressive," said Jerry
that will expand TRUE Hockey’s reach in the goalie equipment
Ford, founder and president of Perfect Game.
segment. The terms of the deal were not disclosed.
MyHOUSE Signs Fourth Female Wrestler
As part of the agreement, TRUE Sports will continue to manufacture Lefevre goalie equipment in Canada. All Lefevre employees will be
Custom wrestling brand
retained and will be moving forward with the business.
MyHOUSE Sports Gear, a
TRUE Hockey will be rolling out a detailed strategic plan to its
member of NSGA, continued to display its investment in the sport as it announced its fourth signing of a female wrestler, Alexandria Glaudé. Glaudé is
valued retail partners and consumers for the Lefevre Goalie line in 2021, which will include a retail consumer experience with select TRUE Hockey retail partners.
NSGA NOW ®
>> November/December 2020 | 19
TEAM NOW NSGA, NAERA Video Discusses Challenges of Football Helmet Reconditioning During COVID-19 By Marty Maciaszek NSGA Team Dealer Division Director This is normally a time of growing excitement and drama in the football season.
• How will so many schools and programs trying to play in the spring of 2021 affect the entire reconditioning process?
Youth leagues and high schools are heading into their playoffs. Colleges are gearing up for big rivalry, conference championship and postseason games. The National Football League is moving into its second-half drive toward the Super Bowl. But 2020 has been unlike any other year since the COVID-19 pandemic took hold in the United States in mid-March. It will have a significant impact on a key safety aspect of the sport – football helmet reconditioning. With so many questions surrounding seasons, the National Sporting Goods Association (NSGA) and the National Athletic Equipment Reconditioners Association (NAERA) teamed up on “Football Helmet Reconditioning in Unprecedented Conditions,” a 45-minute video which looks at many of the challenges ahead for football helmet
• What should schools and programs do if their seasons are shortened or canceled because of COVID-19? • Why is it important to get shoulder pads reconditioned? • How quickly should equipment be given to a reconditioner? • Why is it important to use a NAERA licensed reconditioner? • How did COVID-19 impact the reconditioning process this spring and summer? • How does the reconditioning process work and why is it important? Fawley owns Capitol Varsity Sports in Oxford, Ohio, which has been one of the country’s leading sporting goods equipment sellers, team dealers and equipment reconditioners since 1954. Capitol Varsity
reconditioning during the pandemic.
Sports was a founding member of NAERA in 1975 and is one of 15
NAERA Executive Director Tony Beam and NAERA President Bob
licensed NAERA reconditioners nationwide.
Fawley shared their expertise in a Q&A on how the reconditioning process will be affected by teams playing shorter fall schedules, some switching to spring schedules and others opting not to play at all.
“Capitol Varsity and other reconditioners have coaches and athletic directors asking how various scenarios from COVID-19 could affect the reconditioning process,” Fawley said. “’Football Helmet
“We are grateful that NSGA could work with NAERA and two highly
Reconditioning in Unprecedented Conditions’ looks at all the issues
respected and knowledgeable people in the reconditioning field in
ahead and it is a great way for anyone involved with football to get
Tony Beam and Bob Fawley,” said Matt Carlson, NSGA President &
all the answers they need.”
CEO. “They do an excellent job of breaking down all of the challenges ahead with reconditioning and the COVID-19 pandemic. This is a forward-looking resource for sporting goods retailers and team dealers, football coaches at any level, athletic directors, school and youth league administrators and members of the media.” “There have been a lot of questions directed to NAERA and NAERA reconditioners since mid-March when COVID-19 started affecting everyone’s lives,” Beam said. “We are excited to have the opportunity to work with NSGA to share this very important safety-related information with supporters involved in the football community.” Among the questions covered in “Football Helmet Reconditioning in Unprecedented Conditions” are: • What needs to be done for a program planning to play in the spring of 2021 and return to a traditional fall schedule a few months later? 20 | NSGA NOW ®
>> November/December 2020
“Football Helmet Reconditioning in Unprecedented Conditions” is available for viewing on NSGA’s COVID-19 Reopening Resources page at nsga.org/advocacy/covid19-resource-page/covid-19-videoresources/. It is part of a series of resources for NSGA members and the sports industry in response to the pandemic.
LOCKER ROOM NOW Shock Doctor “Black Lives Matter” Football Lipguards Permissible for High School Use
emphasis and restore confidence on the part of all stakeholders
Shock Doctor has released three
NCAA Implements Rules for Commemorative/Memorial Uniform Patches in 2020–21
new football lip guard designs that feature “Black Lives Matter” and 100% of profits from sales will be donated to the United Negro College Fund (UNCF). The UNCF has an illustrious history of supporting students with scholarships to historically Black colleges and universities. These products would be permitted for use under 2020 National Federation of State High School Football Rules, according to Bob Colgate, NFHS Director of Sports and Sports Medicine and liaison to the Football Rules Committee. Colgate said individual state associations could be more restrictive and not allow tooth and mouth protectors with any design, logos or words printed on
that the sport is, in fact, more focused on risk minimization than ever before.
In an effort to allow NCAA student-athletes the opportunity to use their uniforms to voice and/or express support of racial and social justice, the Playing Rules Oversight Panel (PROP) reviewed the current uniform rules across all sports. Although the rules currently vary from sport-to-sport, PROP voted to direct all playing rules committees to implement the following policies for all sports effective with the 2020–21 seasons: • As authorized by the institution or conference, allow a commemorative/memorial patch (e.g., names, mascots, nicknames, logos, and marks intended to celebrate or memorialize persons, events, or other causes). • The patch must not exceed 2¼-square inches and must be
them in football.
placed on the front or sleeve of the uniform and may not
The “Black Lives Matter” lip guards have been worn by NFL players,
interfere with any required markings.
including the Los Angeles Chargers' Austin Ekeler, the Philadelphia
• While not all team members are required to wear the patch, the
Eagles' Boston Scott and the Baltimore Ravens' James Proche.
patch must be identical for those who choose to wear the patch.
They, and other players, will continue to wear them during the 2020 season. The three football lip guards are available on ShockDoctor.com. All
• As authorized by the institution or conference, allow other names/words intended to celebrate or memorialize persons, events, or other causes on the back of the jersey/uniform where
profits from their sale will be donated to the UNCF, whose mission
the player name is traditionally located. The names/words may
is creating equality in education.
vary by team member.
NFHS, NFL Partner to Promote High School Football
NCAA Clarifies Baseball Bat Inspection Protocols
The National Federation of State High School Associations (NFHS)
The NCAA Baseball Rules Committee clarified visual bat inspection
and the National Football League (NFL) have announced a
protocols since the panel delayed implementation of regular-season
partnership aimed at promoting the growth, understanding and
bat barrel compression testing in Divisions II and III due to budget
support for football at the high school level.
constraints from the COVID-19 pandemic.
A major focus of the NFHS-NFL partnership will involve surveying
The protocols are:
of state high school association administrators, high school student-athletes, parents, coaches and officials with regard to their experiences in football and the benefits of participation. While boys participation in 11-player football has exceeded
• Ensure the bat model appears on the approved bat list. • Ensure the bat model does not appear on the NCAA noncompliant bat list.
one million participants every year since 1999 and remains
• Ensure the bat does not have flat spots.
overwhelmingly the most popular boys high school sport, there
• Ensure the bat does not have an audible rattle.
have been concerns about slight declines in past years. Through this partnership, the NFHS and NFL hope to better understand participation trends, identify areas for potential educational
• Ensure the bat does not have cracks, attachments, or a loose knob or end caps. NSGA NOW ®
>> November/December 2020 | 21
MEMBER SPOTLIGHT NOW
GIVE ME 5 WITH
Allen Van Valkenburg Owner, Rinkside Sports, Tampa, Florida
Biggest Challenges From COVID-19
Impact of Lightning Striking Twice
Better Late Than Never I played quite a few sports growing up, but
Other than closing our doors for quite
Just like 2004 with the Lightning’s first Stanley
being here in Florida, I wasn’t introduced to
a while, the biggest challenge is and
Cup Win, we would expect to see overall
hockey until after I graduated high school. I
will continue to be the uncertainty of
participation grow even more. The surge in
didn’t even see a live hockey game until I was
how things are going to look moving
novelty item purchases and Lightning fan gear
18! Wanting to be involved with athletics and
forward. Trying to speculate on how
will help business initially, but we also expect
seeing first-hand how it helps kids, I went to
and when things may return to “normal”
more people to get involved with hockey
college to become a teacher. At 21, I started
is quite difficult. Managing inventory
that hadn't previously played the game. The
playing roller hockey and met the owners of the
overages from the shutdown has also
pride and excitement in the air right now is
local pro shop who asked me to help because
been an added headache.
definitely drumming up more interest!
they were opening a store in a new ice rink.
Selling Hockey in Florida It took a very long time for the sport to gain popularity here. A southern state like ours naturally focused more on football and baseball. The first 15 years were pretty slow. We relied heavily on our northern transplants to grow the game in our area. With time, the younger generation has grown up with hockey, more rinks are open and more people have the opportunity to play.
Membership Benefits The networking with other like-minded retailers is invaluable and being a Hockey Dealers Association member, and participant in the collaboration with Sports Distributors of Canada, allows us to have exclusive products that many competitors are unable to acquire. The membership has provided many valuable resources, especially during the pandemic. We appreciate the ongoing open lines of communication and insight to help us with our business. NSGA NOW ®
>> November/December 2020 | 23
Happy
Holidays and a
Prosperous New Year From all of us at