NSGA NOW - March/April 2019

Volume 7 | No. 2 | March/April 2019

A PUBLICATION OF THE NATIONAL SPORTING GOODS ASSOCIATION

RETAIL AUDITS FINDINGS

® 55th Annual NSGA Management Conference & 21st Annual Team Dealer Summit Stahls’ Legacy of Innovation eSports as a Business Opportunity?

LEADERS IN SPORT UNIFORM CHOICE.

TABLE OF CONTENTS

6 CONFERENCE NOW Looking at the Retail Audits with Matt Nurre, Who is Pictured Above During His Presentation at the 2018 Conference & Summit, and Will Return to This Year’s Event

On the cover: Athletic House in Southaven, Mississippi changed its look after a retail audit.

4 5 10 12 14 18 20 22

CEO NOW

Is Exclusivity Good for the Industry?

ADVOCACY NOW

Remote Sales Tax Rules Update

CONFERENCE NOW

eSports Making an Impact on High Schools

SPONSORED CONTENT NOW

Customers Drive Innovation with Stahls’

INDUSTRY NOW

2UNDR Gains Rickie Fowler Endorsement and Other News

LOCKER ROOM NOW

NFHS Volleyball, Football Uniform Changes

ASSOCIATION NOW

Larry Weindruch Retires After 33 Years at NSGA

RETAIL NOW

A Cautious Outlook for 2019 Retail

NSGA NOW ®

March/April 2019 | 3

INow·

CEO NOW The word exclusive has a connotation of receiving

It is not a secret that many independently owned sporting because is available only goods something retailers and special dealers have beenitunder siege over theto a select group of people. last several years.

Consumers turn to the internet, thinking it's a better option The use of exclusive as an adjective can have a for their purchases. The labor market is increasingly tight. harshertry tone, limited, Manufacturers to gohowever. directly toRestricted, the consumer and narrow their distribution products. excluded of and not admitted are terms that come

NSGAOFFICERS OFFICERS NSGA

Chairman ofthe theBoard Board Chairman of DavidLabbe Labbe David KitteryTrading TradingPost, Post,Kittery, Kittery, Kittery MEME Treasurer/Chairman-Elect Treasurer/Chairman-Elect

Cathy Pryor

Cathy Pryor Hibbett Sports, Birmingham, AL Hibbett Sports, Birmingham, AL Past Chairman

Past Chairman Randy Nill Nill Bros.

Randy NillSporting Goods, Kansas City, KS Nill Bros. Sporting Goods, Kansas City, KS BOARD OF DIRECTORS BOARD OF DIRECTORS Kevin Bezanson

Kevin Cleve'sBezanson Source for Sports, Cleve's Sports, Halifax,Source Nova for Scotia, Canada Halifax, Nova Scotia, Canada Pat Donnelley

Donnelley Sports, Twin Falls, ID

Pat Donnelley Donnelley Sports, Twin Falls, ID Rhett Johnson

Johnson-Lambe Co., Raleigh, NC

Rhett Johnson Greg Miller Co., Raleigh, NC Johnson-Lambe

Universal Athletic, Bozeman, MT

Greg Miller Miller Jeff Universal ScholasticAthletic, Sports Bozeman, Sales, Ltd.,MT Manlius, NY Jeff Miller John Oehler

Dunham's Sports, Troy, Ml Manlius, NY Scholastic Sports Sales, Ltd.,

Jerry Williams John Oehler

Schuylkill Valley Sports, Pottstown, PA

Dunham's Sports, Troy, Ml

Jerry NSGAWilliams TEAM LEADERS Schuylkill Valley Sports, Pottstown, PA Matt Carlson

President & CEO NSGA TEAM LEADERS Matt Carlson Marty Maciaszek President &Team CEO Dealer Division and HDA Director,

Gwen Pitts Biasi Julie

Director, Business and Development and Research Director, Marketing Communications

Larry Maciaszek Weindruch Marty Director, Team Dealer Division and HDA

Director, Public Affairs

to mind with exclusivity.

Those are a few of the biggest challenges independent retailers and dealers face. The effects are evident throughout the industry as struggling NSGA has consolidate been highly exclusivity with state high schoolbenchmark ball businesses or opposed close their to doors entirely. Our colleagues at NSGA's associations, Many the American and the North American Retail on adoptions. statesBooksellers in NSGA’s Association Official Ball Listing, which is available Hardware Association, echo those concerns, but none of us is throwing in the towel!

the NSGA website, align themselves with one ball manufacturer.

We always search for ways to help our core members in their ongoing battle to succeed.

Our new 'Verified Dealer Program" hits the The idea forof the NSGA has askedIndependent state high school associations tobullseye. consider the idea program by a group NSGA-member dealers who wanted to multiplewas ballsparked agreements.

Weofbelieve it wouldteam ensure competition that emphasize how their experience, knowledge and service differentiates them from would not only help those associations generate additional revenue, but it their competition.

would provide more business opportunities for ball manufacturers retailers,

Getting the public toof understand the importance of working with a quality independent and dealers.

One NSGA’s biggest concerns is a state association aligning dealer is one of the critical components to the NSGA Verified Independent Dealer with a ball manufacturer whose products are available through a limited Program. NSGA will assist Verified Dealers by sharing and explaining what it means to be distribution chain with – thus shutting other retailers and dealers. part of this program their current out and potential customers.

The details about the criteria forprevalent the MVP and All-Star Exclusivity has become more with officially licensed professional sports categories of the NSGA Verified Independent Dealer Program, apparel, because pro leagues have narrowed their distribution chains. You may along with applications and other important information, no longer beat able to sell the jerseys of your favorite players in your stores. can be found www.nsga.org/verified.

You can also read more about it on page 22 of this edition of NSGA NOW. We encourage team dealers, deals full-linewhere retailers and specialty retailers How about all-school a high school or college strikes a deal with involved in hockey, skiing, running and other sports to apply.

a brand to be its exclusive apparel provider? These deals turned into ninefigure cash cows forNSGA someVerified of theIndependent country’s most prominent schools to solely of the Dealer Program will be programming Another benefit st th Annualof Team Annual Management Conference & 21 for the group at the 55But display one brand. the danger was fully exposed as some the Dealer highestSummit. This will be an excellent opportunity for verified dealers to get together and profile brands and college basketball programs wound up intertwined with share ideas and concerns with their peers. coaches paying players in an ongoing scandal that involves the FBI and The Management Conference & Team Dealer Summit held May 19-21 in Braselton, prison time for the offenders.

Georgia, is right around the corner. Some of the best aspects of the sporting goods industry's premier event are illustrated on page 11 of this issue. Register now by All of these and other challenges out there do not make it easy for new faces completing the form in the magazine, or, online at www.nsga.org/events.

to break into the industry as familiar names continue to disappear. Options

Dan Wiersma

We everyone a happy holiday season familyshrinking and friendsfor and that you for hope products andhad where to get them seemwith to keep consumers. closed out 2018 on a high note. Don't forget that NSGA is here to support you in making Is it good for the industry if one of the key causes is exclusivity?

2019 even better! Fight the good fightl

Dan Wiersma Chief Financial Officer

Best regards, Best regards,

Julie ChiefPitts Financial Officer Director, Business Development and Research

Matt Carlson I President & CEO

Matt Carlson | President & CEO NSGA (ISSN 1045-2087) publishedbi-monthly bi-monthlyfor formemebrs members the National Sporting Goods NSGA NOW® NOW (ISSN 1045-2087) isispublished ofof the National Sporting Goods Association, IL 60056-6035; Association, 1601 1601 Feehanville Feehanville Dr., Dr., Suite Suite 300, 300, Mount Mount Prospect, Prospect, IL 60056-6035; Phone: Phone: (847) (847) 296-NSGA 296-NSGA (6742); (6742); Fax: Fax: (847) (847) 391-9827.

391-9827. Subscription Subscription price price of of $50 $50 per per year year is is included included in in membership membership fee. fee. Non-member Non-member subscription frompublisher. publisher.Periodical Periodicalpostage postagepaid paidatat MountProspect, Prospect,ILIL60056 60056and and subscription information information available avaible from Mount additional additional mailing mailing offices. offices. POSTMASTER: POSTMASTER: Send Send address address changes Changesto toNSGA NSGA NOW,® NOW,® 1601 Feehanville Dr., 1601 Feehanville Dr., Suite Suite 300, 300, Mount Mount Prospect, Prospect, IL IL 60056-6035.

60056-6035. © © by

by NSGA NSGA 2019.

2019. Printed Printed in in the the USA. USA.

4 | NSGA NOW ®

March/April 2019

ADVOCACY NOW

More States Enact Remote Sales Tax Rules Nearly 60 percent of states have enacted remote transaction sales tax regulations as of mid-February with more nearly completing their process. Notably, in the last month, New York and Wyoming are the latest to take effect. New York is of concern because its guidance can be interpreted to include all sales beginning on June 21, 2018.

(1) A bill that would prohibit New Hampshire from entering into an agreement with a foreign tax jurisdiction.

West Virginia is considering legislation that would expand its collection requirements to marketplace vendors that facilitate sales in excess of the the state’s threshold ($100,000 in annual sales or 200 transactions).

(3) A bill that would require an act of Congress prior to allowing the state’s remote sellers from collecting other states’ sales tax.

New Hampshire has resurrected a bill that failed in a special session last year despite having bipartisan support. The bill would prohibit tax agencies from other states to impose sales and use obligations on New Hampshire sellers without first registering with the state’s attorney general.

The bill faces strong opposition from Republicans who believe it would legitimize sales tax obligations on New Hampshire businesses and might be in violation of the constitution. The state’s Republicans have offered three alternatives:

(2) A bill that would prohibit other tax jurisdictions from imposing sales and use tax collection obligations on state retailers.

Tennessee is considering a bill that would impose South Dakota-style requirements on out-of-state vendors. The bill provides the option to pay a flat local tax rate instead of each municipality’s rate, in addition to the state’s 7 percent rate. Officials have already promised they will not require retroactive collection.

The final update is from the state of Washington. A state bill with more than 20 provisions has bipartisan support and is moving through the legislature. The bill sets a threshold of $100,000 or 200 retail transactions on retailers and marketplace facilitators.

NSGA NOW ®

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CONFERENCE NOW

Above: After Athletic House had its retail audit, owner Doug Morgan installed new wood flooring and LED lighting and painted the ceiling black.

On the Road with NSGA and Matt Nurre

By Julie Pitts NSGA Director of Business Development and Research Matt Nurre understands the challenges retailers face with store design.

Nurre, the President of Retail Design Source, gave a presentation on the topic at the 2018 NSGA Management Conference & Team Dealer Summit entitled “The Wow! Factor Creating the Right Shopping Environment.” Building on that session, NSGA offered three complimentary retail audits to members through an application program.

Because of the large volume of applications received, NSGA dispatched Nurre to 14 member locations in the U.S. and Canada to meet with store leadership and assess the shopping environments.

While each location had unique challenges, Nurre likes simple, universal design strategies for every retailer to increase sales.

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“The easiest thing a sporting goods retailer can do to improve its in-store experience is to follow some basic consumer-centric design principles,” Nurre said. “‘Retail is detail so making sure that product categories are wellmarked, branded and properly merchandised is imperative.

Brick-and-mortar stores need to be compelling for the guest, this promotes dwell time and the brand experience.

Brand loyalty and experience promote higher percentage of return visits, which equals conversion.”

Nurre will return to the 2019 Management Conference & Team Dealer Summit on Tuesday, May 21 to recap some common findings in the audits. Specific stores will not be discussed, but the session will highlight themes for improvement in sporting goods retail, such as the store’s “brand” and customer experience, better product merchandising and catering to the female shopper.

“In terms of retail design, the biggest challenge for sporting goods retailers is presenting the store as a brand itself, not just a host of many individual brand offerings in a box,” Nurre said. “The retail ‘experience’ is what drives commerce, the physical ‘place’ is what drives the brand.”

He believes retailers must create an easily navigable and pleasant shopping environment.

When great shopping environments are complemented with an expert staff, stores can grow in the marketplace.

Customer experience is also dependent upon product merchandising. Nurre witnessed a variety of opportunities to enhance visual merchandising, including the implementation of better store displays, signage and improved lighting. In many cases, store fixtures lacked common design elements or were brandspecific displays cluttered with a variety of products and competing brands. The entire store should reflect order, cleanliness and easy brand and product identification.

Athletic House in Southaven, Mississippi used Matt Nurre’s retail audit to open up its meeting space area so customers would feel more comfortable.

“The easiest thing a sporting goods retailer can do to improve its in-store experience is to follow some basic consumercentric design principles.”

One of the retail audits Nurre performed was Athletic House, a team dealer and retailer in Southaven, Mississippi, which is about 20 miles southeast of Memphis.

Athletic House owner Doug Morgan faces some restrictions because he is located in a city-owned building but he followed through on some of Nurre’s suggestions.

“He had some great ideas,” Morgan said. “A lot of things I had been thinking about over the years but didn’t have the gumption to do it.”

Morgan installed wood floors and LED lighting and painted the ceiling black. He also opened up some meeting space with a couch and chairs and a refreshment area.

Continued on Page 8 NSGA NOW ®

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CONFERENCE NOW For more information about NSGA’s retail audit program and its findings, and to hear directly from Matt Nurre about his travels meeting with sporting goods retailers, plan to attend the 55th Annual Management Conference & 21st Annual Team Dealer Summit May 19-21, 2019 at the Château Élan Winery & Resort in Braselton, Georgia. www.nsga.org/conference Retail Design Source President Matt Nurre will speak about the pace of change in retail, and supercharging store design and presence at the 2019 NSGA Management Conference & Team Dealer Summit, May 19-21 in Braselton, Georgia.

“The best part of completing the NSGA audits was meeting the owner operators and their dedicated teams of employees. There is such a passionate group professionals supporting the team and retail channels and we are thrilled to have NSGA sponsor the audits.”

– Matt Nurre, President, Retail Design Source 8 | NSGA NOW ®

March/April 2019

Continued from Page 7

“It’s all about the customer experience and making them want to come back,” Morgan said. “You want to create an atmosphere where they feel relaxed instead of feeling pressured and give them that home feeling.

“The response has been great by everybody coming in. They ask, ‘Did you expand?’ I say, ‘No, it’s the same building.’

“The ideas Matt had that probably wouldn’t work for me would work for others. I highly recommend him.”

According to NSGA research, females account for 50.8% of all sporting goods purchases. Nurre recommends keeping female shoppers top-ofmind, offering an assortment of products geared toward that demographic, such as yoga products, accessories and athletic apparel.

“While doing the audits, I was surprised to learn that the female shopper represents the higher percentage of in-store purchases,” Nurre said. “The stores were not catering to this demographic and is a missed opportunity in our opinion.”

Don’t miss the premier networking event in the sporting goods industry!

55th Annual NSGA Management Conference & 21st Annual Team Dealer Summit

Château Élan Winery & Resort Braselton, Georgia

Meet face-to-face during Speed Networking Discuss industry issues and trends Experience new products in the NSGA Innovations Arena

Register Today!

NSGA.org/conference

May 19-21, 2019

CONFERENCE NOW

eSports Showing Significant Growth from High Schools to Pro Leagues

By Marty Maciaszek NSGA Team Dealer Division Director

There are sports which are established in our culture such as the “big four” of baseball, football, basketball and hockey.

And last spring, the National Federation of High School Associations (NFHS) announced it would begin sanctioning eSports competition across the country.

Then there are sports such as pickleball, which has been around for more than 50 years, but has really started to gain momentum with the public in the last decade.

“It’s exciting and very innovative for NFHS to pick up something like this,” said Mark Koski, the NFHS Director of Marketing and CEO of the NFHS Network after the announcement was made.

“Schools were putting pressure on state associations, who were in turn putting pressure on us so eSports would be as consistent as possible.”

And then there are eSports. While certainly not a traditional sport by any means - and some people would argue not a sport at all - eSports have exploded from a competition standpoint in the last few years on professional, collegiate and high school levels.

High-profile leagues such as the NBA, NFL and MLS have gotten directly involved in eSports.

The NBA 2K League starts its second season this spring and has 21 teams operated by NBA teams. The NFL formed a new Vice President of Gaming and eSports position last summer.

The National Association of Collegiate Esports (NACE) was formed in the summer of 2016 and now oversees more than 125 member schools with nearly 3,000 student athletes. There is approximately $15 million in scholarships and financial aid available through eSports, according to NACE.

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The NFHS partnered with PlayVS, an online gaming provider, to start eSports with high schools and nearly 20 state associations last fall. There will be two eSports seasons – one from October to January and the other from February to May – with a preseason, regular season and then a state championship series. Games will be approved by the state associations and there will be no duplication of game titles. Participating schools are must have a faculty advisor.

“The key is capitalizing on the team atmosphere so they feel like they are a part of the school community. What we believe is great about eSports in the school setting is we are bringing them back inside the school walls where their peers have a sense of community.”

Koski said one of the reasons for NFHS getting into eSports was the opportunity for some students who have not been involved in a school-sanctioned sport or activity. According to a Pew Research Center study in September of 2018, a survey of people ages 13-17 showed 84 percent of teens have a game console in their home or have access to one and 90 percent play video games on a computer, game console or cellphone.

While it is not a requirement that players on a high school eSports team wear jerseys, especially since most teams will play at their own school and compete through the online platform of PlayVS, it is definitely an opportunity to help build a sense of team camaraderie.

Some believe that eSports and video games are a factor in the decline of traditional youth sports participation of grabbing a bat and ball and engaging in strenuous exercise. Koski was a track and field athlete at the University of New Mexico. He also taught high school and coached football and track and field at a high school in Albuquerque.

A lot has changed since Koski joined the NFHS staff in 2007. The NFHS started studying eSports more than two years ago and saw a way to get more kids into a much different type of team game.

“We felt now was the time to do this and start rolling it out and the feedback has been unbelievable,” Koski said. “What I love about it is you are getting more students involved. We’re getting them involved behind our educational walls from 2:30 to 5:30 (after school) every day and that’s a win-win in our mind.

And the eSports community figures to be another area of opportunity for team dealers when they call on their schools. Koski will provide more insight about the about the potential opportunities through eSports as part of a panel discussion at NSGA’s 55th Annual Management Conference & 21st Annual Team Dealer Summit on May 19-21 in Braselton, Georgia.

eSports Growth • More than 125 colleges and universities have varsity eSports programs. When the National Association of Collegiate Esports (NACE) was formed in July 2016 there were seven.

• Nearly 3,000 studentathletes are participating in collegiate eSports.

• More than $15 million is available in college eSports scholarships and financial aid.

• The NBA 2K League, now in its second year, has 21 teams operated by NBA teams.

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SPONSORED CONTENT NOW

A Stahls’ demonstration from 1988

What Drives Innovation at Stahls’?

We Owe It All To You

STAHLS’® has been a recognized name for team uniform names and numbers since 1932, when Ted Stahl’s grandfather first introduced the concept of die-cut felt lettering to the sporting goods world. His parents, Ernie and Ricki Stahl, took the business to the next level when they introduced Plasti-Bak, a thermo-plastic adhesive that allowed decorators to seal letters to garments before sewing.

But when Ted and Brian Stahl bought the business from their parents, STAHLS’® reputation as an industry innovator really started to bloom. What drives the innovation at STAHLS’® that continues to this day? Here is the back story:

By Ted Stahl 2011 Inductee to the Sporting Goods Industry Hall of Fame When you're a business owner, you may find yourself doing jobs you didn't originally sign up for, such as sweeping the warehouse floor or fixing toilets. We grew up in a family business where everyone was expected to pitch in no matter what. Which means by the age of 10, I was learning to create custom lettering dies; at 15, I was accompanying my dad on trips to equipment manufacturers.

Looking back, a day never went by when my skills in carpentry or pneumatics weren't used. I also became a pretty skilled electrician. But the best education I ever received were the years after college when I took a break from Stahls' and dabbled in the world of retail.

As the owner of four jewelry stores in the mid-1970s, I was responsible for everything from purchasing and accounting to display and marketing.

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Ted Stahl has worked for decades to bring innovation to his customers

A Purpose In Mind

My experiences in retail taught me many valuable lessons, all of which gave me an extreme appreciation for the challenges Stahls' customers face -- and we didn't have the Internet to deal with back then. When I returned to develop the family business, it became clear what Stahls' main purpose should be. It wasn't about a product. It wasn't about simply selling. We would focus on helping our customers be successful.

That being said, of course there were many products and services along the way, but they were all designed with one end in mind -- to make our customers lives easier. It started with Thermo-FILM®. Today Thermo-FILM® is the world's most popular team numbering material, but it wasn't always that way.

The First Game-Changer

When we introduced Thermo-FILM® in 1977, it wasn't immediately accepted as the revolutionary material we knew it to be. At the time, vinyl was the top-selling precut material in the sporting goods world. Sporting goods retailers and T-shirt shops everywhere were used to the thick, almost indestructible nature of heat-press vinyl. If you grew up in the ‘60s or ‘70s you probably had jerseys that featured heavy vinyl numbers and letters. You had to be careful about putting those shirts in the dryer, remember?

We invented Thermo-FILM® because we knew once consumers realized the benefits of lighter, more screenprint like numbers and letters, the demand would grow.

Once sporting goods stores realized how much easier it was to work with a lightweight polyurethane film with a polyester adhesive backing, it was a no brainer.

When my brother Brian and I first started manufacturing and marketing the product, people thought we were crazy.

It was thin and everyone questioned its ability to hold up on sports uniforms. Today, the benefits of Thermo-FILM® are widely known and there's not much explaining we need to do. It's still the fastest, easiest, most cost-effective way to number a jersey and that explains much of its staying power. It's still making the lives of Stahls' customers easier.

Thermo-FILM® is just one of the examples of Stahls' product innovations driven by a desire to help our customers. It was a true game-changer in the world of custom team uniform decoration.

by the masses. While heat printing graphics, such as hotsplit transfers and Thermo-FILM® were becoming more high-tech, one important part of the equation wasn't keeping up -- the heat press.

Stepping Up For the Customer

In the early ‘80s, customers often complained about ruined garments because of cold spots, uneven pressure and inaccurate temps. As a company, Stahls' reached out to heat-press manufacturers of the day, imploring them to improve the reliability and accuracy of their oversized irons.

When no one responded positively or recognized the need, we decided to forge ahead with the development of our own more accurate heat press. Why? Because our customers were increasingly frustrated with inconsistent results when using Thermo-FILM® or applying transfers. And most of the time, the culprit was a shoddy heat press, incapable of providing accurate time, temperature or pressure.

To make a long story short, the result was the introduction of the Hotronix® Swinger in 1986. Our technology team, led by heat-press guru Ron Anderson, re-invented and re-engineered the heat press, making it the first press in the world with digital controls for time, temperature and pressure. Today Hotronix® has grown to be the world's largest manufacturer of heat presses, still leading the way with innovations designed to make our customers’ lives easier. This includes the Bluetoothenabled Hotronix® Fusion IQ™, which provides real-time production data from the shop floor, including number of prints, type of prints and much more.

A Culture of Innovation

People often ask me how we foster a culture of innovation at Stahls'. The truth is, we owe it all to our customers. Our ideas come from listening to what challenges you have and we have many experienced team members who have owned shops and production facilities. As the fabrics your customers want become thinner and stretchier, we develop materials that work on performance wear. When high temperatures caused scorching that isn't acceptable, we introduced lower heat platens to make your results more perfect. It's about listening, it's about responding in a timely manner and most importantly, it's about putting ourselves in your shoes.

Keep in mind this was decades before heat printing was acknowledged as a garment printing technology accepted Go to www.stahls.com for more information.

Ted Stahl NSGA NOW ®

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INDUSTRY NOW brands. It provides maximum comfort on and off the course and allows me to focus on winning golf tournaments.”

Under Armour, Virgin Galactic Partner on Space Apparel and Astronaut Performance Training Program

Virgin Galactic and Under Armour announced a partnership to create a new generation of space apparel and footwear, as well as an astronaut performance training program.

Pro golf star Rickie Fowler has entered an endorsement agreement with 2UNDR

Innovations Arena Exhibitor 2UNDR, Golf Star Rickie Fowler Enter Global Endorsement Agreement

2UNDR™ has entered into a long-term global endorsement agreement with PGA Tour player Rickie Fowler. The eight-time professional champion will be prominently featured in a myriad of marketing campaigns across the globe for the high-performance men’s athletic underwear.

2UNDR will be an Innovations Arena exhibitor at the 2019 Management Conference & Team Dealer Summit in Braselton Georgia.

“Working with Sir Richard and Virgin Galactic is an opportunity of a lifetime, one that has the entire Under Armour team across the world excited,” said Under Armour CEO Kevin Plank. “This is a great opportunity to test our innovation at the highest level and continue to push the limits of human performance.”

“Our partnership is built on the firm foundations of shared values, and it will be an absolute privilege to wear an Under Armour astronaut space suit on Virgin Galactic’s inaugural commercial space flight,” said Virgin Galactic’s Sir Richard Branson. “I have followed Under Armour’s progress through a personal friendship with its CEO, Kevin Plank and via the great relationships it has established over the years with various Virgin companies.

“Rickie’s reach and influence not only in the game of golf, but across the sports and lifestyle landscape, will enable us to grow much quicker.

Rickie has been a friend of the brand and has worn our product on tour for many years. We are excited to tell the world about our relationship and collaborate on future product lines together,” said Dave Williams, President & Co-Founder of 2UNDR. Fowler has won four times on the PGA Tour – most recently in 2017 at The Honda Classic. He finished second last year at the Masters and has tied for second in the U.S. Open and British Open. In 2014, Fowler joined Tiger Woods and Jack Nicklaus as the only players to record top-five finishes in all four major championships in one year.

“Nobody can see it on TV, but I consider underwear to be an essential element of my wardrobe and styling,” said Fowler. “2UNDR has mastered the perfect combination of comfort, fit, and design that is missing from other underwear 14 | NSGA NOW ®

March/April 2019

From left, Under Armour founder and CEO Kevin Plank, Virgin Galactic’s Sir Richard Branson and Under Armour lead spacesuit designer Nick Cieski

“I’ve loved its determination to push technical boundaries in order to improve performance, so could not have been more pleased when Kevin and his talented teams stepped up to the considerable task of creating a range of space apparel and performance programmes for Virgin Galactic.”

Since 1994, New Era Cap has been a dedicated partner of Little League Baseball and Softball at every level of the international program, serving as the official on-field cap of the Little League World Series.

Bass Pro Shops–Cabela’s Announces Mike McDermott as Incoming President

Michael P. McDermott was appointed as President Omni-Channel Retail for Bass Pro Shops-Cabela’s on January 25 and replaced longtime President Jim Hagale.

OrderMyGear CEO Dave Dutch

OrderMyGear Names Dutch New CEO OrderMyGear appointed Dave Dutch to the position of Chief Executive Officer on January 1. Dutch was most recently CEO of PayLease, where he helped the company grow to over 200 employees during his seven-year tenure.

“We have big ideas for the future of OrderMyGear, so it just made sense to hire someone with a track record of thinking big,” said OrderMyGear President and Founder Kent McKeaigg. “Dave Dutch is a proven leader and innovator with a long history of scaling growth-stage businesses off-the-charts. We couldn’t be more excited to welcome him to the team.”

“I’ve always been drawn to entrepreneurial potential,” Dutch said.

“OrderMyGear has shown themselves year after year to be a company committed to creating exciting, innovative products for their customers, but also helping their customers move the needle in terms of sales. I’m thrilled to have the opportunity to partner with this amazing team in order to make the next leap forward.”

Little League, New Era Cap Extend Sponsorship Through 2022 Little League® International and New Era Cap Co Inc., the official on-field cap of the Little League World Series, have agreed to a four-year extension as an official sponsor of Little League Baseball and Softball. The extension will be effective through 2022.

“For nearly three decades, New Era Cap has been a tremendous supporter of the Little League Baseball and Softball program and has gone above and beyond to make the Little League experience special for millions of kids around the world,” said Liz DiLullo Brown, Little League Senior Vice President and Chief Marketing Officer.

For the last five years, McDermott held multiple high-level positions at Lowe’s, one of the world’s leading retailers, a $70 billion Fortune 47 company with 310,000 employees. Lowe’s serves more than 25 million home improvement customers a week in the United States, Canada and Mexico. Most recently he served as Executive Vice President and Chief Customer Officer and supported a multi-billion dollar investment strategy and marketing budget.

“The success of Bass Pro Shops and Cabela’s is based on exceptional customer service, great products and highly creative marketing. That’s Mike’s wheelhouse,” said Johnny Morris, founder/ CEO of Bass Pro Shops and 1998 inductee to the Sporting Goods Industry Hall of Fame. “Mike is a humble man of great character who will be true to our core values while leading us to new heights in full-spectrum Omni Channel to maintain our position of leadership. Mike has earned a reputation of being a good listener and we are truly honored to have such an experienced, yet down-to-earth, customer focused leader join our company.”

“I couldn’t be more excited or honored than I am today,” McDermott said. “To join Bass Pro Shops and Cabela’s and have the opportunity to work with the outdoor retail visionary, Johnny Morris, and the tens of thousands of wonderful outfitters and team members is a dream come true. I have always believed Continued on Page 16 NSGA NOW ®

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INDUSTRY NOW Continued from Page 15

that nothing in business is more important than putting the customer at the center of everything, and I’m thrilled to be joining a company that has set the standard for customer experience.”

Morris lauded Hagale for his 17 years of service to Bass Pro Shops and its customers.

Jonathan Epstein, President of Fila North America, Passes Away at 63

Jonathan G. Epstein, who spent nearly 40 years in the athletic shoe industry, died Feb. 15 at his St. Louis home a week after undergoing heart surgery. Epstein was 63.

Epstein served as the president of Fila North America since 2007 and was also president and CEO of the company from 1998-2003. He finished his 21-year tenure at adidas America as its national sales manager.

“In Jon Epstein, Fila has lost a great friend, leader and champion of the brand, not just in the U.S. but worldwide,” Fila Korea Chairman Gene Yoon said in a statement. “His entrepreneurial spirit was a perfect match for our vision of growth, and his passion for both our heritage of authenticity and our potential as a brand innovator drove Fila’s resurgence over the past decade.”

Epstein inducted the late Arthur Gochman, the founder of Academy Sports & Outdoors, into the Sporting Goods Industry Hall of Fame at the 54th Annual NSGA Management Conference & 20th Annual Team Dealer Summit on May 22, 2018 in Bonita Springs, Florida.

Bass Pro Shops founder/CEO Johnny Morris flanked by Jim Hagale (left) and Mike McDermott (right)

SG Helmets Rebrands as Light Helmets Safer Sports, LLC is rebranding SG Helmets as LIGHT Helmets. Safer Sports acquired the assets of SG Helmets on September 1, 2018.

SG Helmets was the fifth-largest manufacturer of football helmets in the world and a longtime leader in sports helmet safety technology.

LIGHT Helmets’ first product, set for release this spring, will be a completely redesigned football helmet (the LS1) using much lighter but stronger materials for the outer shell, liner and face mask from technology and manufacturing techniques used by the military, aviation and auto racing industries.

“Football and other contact sports are being heavily scrutinized today – by worried parents, players at all levels and anxious league executives – over player safety and concussion concerns,” said Nick Esayian, CEO of LIGHT Helmets. “By significantly cutting helmet weight while exceeding professional league safety standards, LIGHT Helmets is able to provide key performance and safety advantage to football players of all ages and abilities. Our goal is to build the safest football helmet available on the market while allowing the athlete on the field to perform better by carrying significantly less weight.”

While the majority of football helmets weight between 4 to 6 pounds, LIGHT Helmets’ football helmet will weigh just more than 2½ pounds depending on how it is configured. After its initial focus on lightweight football helmets, LIGHT Helmets plans to expand its product offerings to other contact sports such as lacrosse, baseball and hockey.

16 | NSGA NOW ®

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Volleyball Uniform Changes for 2019-20 Season An overhaul of uniform-related rules was among the most notable rules changes identified for the 2019-20 high school boys and girls volleyball seasons.

The changes in uniform rules are a part of Rule 4-2, which reorganizes the uniform rule to improve understanding and eliminate solidcolored uniform requirements.

Rule 4-2-1, which permits teammates to wear like-colored uniform pieces, was expanded to include all uniforms and involves nine guidelines.

Rule 4-2-1a states that all uniform tops (with the exception of the libero, as noted in Rule 4-2-2) and bottoms shall be like-colored. Rule 4-2-1e permits the top and/or bottom of all uniforms to include the school’s name, nickname, logo, mascot and/or team member’s name. In doing so, a single mascot reference and/or school name may be placed on the sleeve(s), and shall not exceed either 4 inches by 4 inches or 3 inches by 5 inches.

“The rules committee was very deliberate and measured in their language choices to ensure that all currently compliant libero and team uniforms will be compliant under the new rule,” said NFHS’ Julie Atkinson. “The committee believes that this new rule will, in fact, be easier to apply and require less policing by both officials and state associations.”

In Rule 4-2-2, the libero’s uniform must clearly contrast from the predominant color(s) of the team uniform top, excluding trim. The libero’s uniform 18 | NSGA NOW ®

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top cannot be made up solely of the same predominant color(s) of the team’s uniform top, even if the like color(s) are placed differently on the uniform top.

Furthermore, numbers shall meet all specifications in Rule 4-2-4, which removes the option for players to wear No. 00 to eliminate confusion surrounding the signaling of the number.

Beginning July 1, 2023, a plain, Arabic numeral of a solid, clearly contrasting color from the body of the uniform will be required. The change eliminates the use of a border to create the number contrast, therefore, allowing officials and scorers to easily identify uniforms numbers while aligning the rule with that of other rules codes.

The committee made additional changes that impact officials, including aligning rules regarding the treatment by officials of a ball striking either the cables and/or the diagonal poles used to retract ceiling-suspended net systems. This change in Rules 2-3j, 2-4-1e and 2-4 PENALTY 3 treats cables and diagonal poles as restricted play at which time officials must determine if the ball was playable.

The committee’s change to Rule 5-9-2 NOTE places the line judge in a more appropriate position to watch for foot contact with the end line, as well as allowing him or her to quickly transition back into position for a view of the sideline.

Football Jersey Number Changes

A clarification of an existing rule and a new rule regarding numbers on high school football jerseys were among the rules revisions recommended by the NFHS Football Rules Committee and approved by the NFHS Board of Directors.

The NFHS Football Rules Committee clarified the size requirements for numbers on jerseys through the 2023 season and added a new requirement effective with the 2024 season. Clarifications to Rule 1-5-1c (in bold) that are in effect through 2023 state that the numbers, inclusive of any border, shall be centered horizontally at least 8 inches and 10 inches high on front and back, respectively.

In addition, the entire body of the number (the continuous horizontal bars and vertical strokes) exclusive of any border(s) shall be approximately 1½-inches wide. Finally, through the 2023 season, the body of the number (the continuous horizontal bars and vertical strokes) shall be either: (a) a continuous color(s) contrasting with the jersey color; or (b) the same color(s) as the jersey with a minimum of one border that is at least ¼-inch in width of a single solid contrasting color.

Effective with the 2024 season, the entire body of the number (the continuous horizontal bars and vertical strokes) of the number shall be a single solid color that clearly contrasts with the body color of the jersey.

“The purpose of numbers on jerseys is to provide clear identification of players,” said Bob Col gate, NFHS director of sports and sports medicine and staff liaison to the NFHS Football Rules Committee.

“In order to enhance the ability to easily identify players, the committee has clarified the size requirements for jersey numbers through the 2023 season and added a new requirement for the 2024 season.”

In an effort to establish a more consistent time period between downs in high school football, the play clock will start at 40 seconds instead of 25 seconds in many cases beginning with the 2019 season.

The play clock will continue to start at 25 seconds (a) prior to a try following a score, (b) to start a period or overtime series, (c) following administration of an inadvertent whistle, (d) following a charged timeout, (e) following an official’s time-out, with a few exceptions, and (f) following the stoppage of the play clock by the referee for any other reason. In all other cases, 40 seconds will be placed on the play clock and start when the ball is declared dead by a game official.

Another significant change approved by the committee was the addition of a note to Rule 1-3-7 to permit state associations to create instant-replay procedures for state postseason contests only.

This revision would allow game or replay officials to use a replay monitor during state postseason contests to review decisions by the on-field game officials. Use of a replay monitor would be on a state-by-state adoption basis, and the methodology for reviewing calls would be determined by the applicable state association.

Field Hockey Eye Protection Label Requirement Delayed The NFHS Field Hockey Rules Committee voted to delay a requirement for all eye protection to have a permanent ASTM standard label until the 2020 season. The change was approved by the NFHS Board of Directors.

“The Field Hockey Rules Committee continues to examine current trends of the game and work on overall consistency in the rules book,” said Julie Cochran, NFHS director of sports and liaison to the NFHS Field Hockey Rules Committee. “While the sport continues to prosper, there are areas such as eye protection where the committee feels it is best to continue to research options for the betterment of the sport.”

The Field Hockey Rules Committee voted to delay the requirement for all eye protection to be permanently labeled with the ASTM 2713 standard for field hockey at the time of manufacture. Rule 1-6-5, which previously had an implementation date of January 1, 2019, now will require permanent labeling beginning in the 2020 season.

“The adjusted date to permanently label goggles is a response to the limited supply currently on the market,” Cochran said. “The committee believed the extension of the timeline will assist production and distribution to help those purchasing new goggles.”

The committee also approved language stating the school’s name, nickname, logo, mascot and/or team player’s name are permitted on the uniform top and/or bottom (Rule 1-5-1b).

Illinois Relaxes Stance on High School Basketball “Rolled” Waistbands

The Illinois High School Association (IHSA) made “rolled” waistbands on basketball shorts a point of emphasis because of concerns for safety as well as adhering to an NFHS (National Federation of State High School Associations) rule that only one manufacturer’s logo can be visible. Issues with how the rule was being enforced led the IHSA to change its stance where players can roll the waistbands on their shorts as long as another manufacturer’s logo is not visible.

About five weeks into the season, the IHSA sent a memorandum out to officials and schools they were changing the stance on the zero tolerance policy on rolled waistbands. The modified rule now states the waistbands can be rolled as long as another manufacturer’s logo is not visible.

Players can roll their waistbands if they double roll them, or roll them inside their shorts instead.

Utah High School Football Champion Sanctioned for Uniform Violations

Orem High School won its second straight Utah Class 4A state football title in 2018. But it will face sanctions when it starts its quest for a three-peat for a uniform violation in the state championship game.

The Utah High School Activities Association (UHSAA) executive committee fined Orem $500 and forced its head coach to sit out the first two games of the 2019 season for a lack of institutional compliance. Orem was in violation of NFHS Rule 1-5-10 requiring home team to wear darkcolored jerseys.

The team wore white jerseys with blue numbers and white helmets.

The UHSAA committee discovered Orem officials “misrepresented communications with UHSAA officials regarding interpretations of NFHS rules,” according to a UHSAA statement.

Orem plans to appeal.

NSGA NOW ®

March/April 2019 | 19

ASSOCIATION NOW

Weindruch Retires After 33 Years at NSGA NSGA Director of Public Affairs Larry Weindruch has been a jack of all trades during his 33 years with the association. On March 1, Weindruch officially began retirement after a stellar career of service to the sporting goods industry.

Weindruch has served in his current role since 2012, and has led the association’s advocacy efforts at the state and national levels. Having served as director of the association’s Team Dealer Division, he worked with national rule-making organizations on regulations affecting uniforms and equipment sold to school and recreational sports teams. He has served as NSSRA President since 2010.

“Larry has contributed immensely over 33 years of service to NSGA and its members, and his achievements will not be forgotten,” said NSGA President & CEO Matt Carlson. “His work ethic, command of complex issues, and devotion to NSGA member issues have been exemplary. A mentor to many, his influence has made an indelible impact on NSGA’s success.”

During Weindruch’s tenure at NSGA, he played a critical role in leading a source tagging initiative, improving loss prevention across the sporting goods industry. He served as a champion for establishing partnerships with organizations such as the Marketplace Fairness Coalition, which addresses remote sales tax fairness, the PHIT Coalition and National Health Through Fitness Day, promoting physical activity, and Americans for Free Trade, in opposition of tariffs. He was key in forging alliances within the National Retail Federation, and Partnership for a Healthier America, advocating for physical fitness and healthy lifestyles.

He also served as NSGA’s director of communications, as a media spokesperson with several national television news appearances, representing the sporting goods industry. During the span of 33 years at NSGA, he drew on his sports journalism background, fulfilling the roles of publisher, editor, and publications manager, overseeing the association’s member magazine and newsletters.

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Larry Weindruch

Weindruch’s award-winning sports journalism career includes seven years as a daily newspaper reporter and columnist in Davenport, Iowa, two years as associate editor of Inside Sports magazine, and 28 years as a sports correspondent for the Daily Herald, Chicagoland’s third-largest newspaper. He earned recognition as a Certified Association Executive (CAE) in 2008 from the American Society of Association Executives (ASAE).

Gwen Biasi, CAE has joined NSGA as its director of marketing and communications. Biasi, with 17 years’ experience working in associations, will serve NSGA in an advocacy role and as liaison to the NSSRA.

The NSGA staff with diaper donations for 2018 and the 2017 Diaper Drive trophy.

NSGA Steps up to the Plate NSGA staff was involved in two philanthropic efforts in 2018. For the second straight year, NSGA won the Diaper Drive run by Chicago’s Association Forum and Tourism Vancouver. NSGA staff contributed 11,095 diapers to The Cradle, an adoption agency in suburban Chicago, NSGA also made a holiday donation of clothes, bed sheets, blankets, winter apparel and toys to a local shelter for abused women with children. “The NSGA staff did a wonderful job of supporting two great social causes.”

“NSGA believes in the importance of giving back to the community and supporting worthwhile initiatives,” said NSGA President & CEO Matt Carlson.

Tell Us Your Community Story Was your business involved in helping and making a difference in your community?

Please tell us about it.

We’re proud of how our members make a difference in their communities.

Send your story to: membership@nsga.org

NSGA NOW ®

March/April 2019 | 21

RETAIL NOW

A Cautious Outlook for 2019 Retail

By Nick Rigitano NSGA Research & Information Manager The beginning of a new year inherently brings about predictions for what is yet to come.

Regarding the retail world, NSGA looked at several sources focusing on a range of aspects from retail to sporting goods stores to small businesses. All things considered, NSGA suggests its members continue 2019 with caution.

Preliminary estimates show retail sales during 2018 grew 4.6 percent over 2017 to $3.68 trillion, exceeding the National Retail Federation’s (NRF) forecast of at least 4.5 percent growth. The number includes online and other non-store sales, which were up 10.4 percent at $682.8 billion. That met NRF’s forecast of 10-12 percent growth, and online is expected to grow by a similar rate of 10-12 percent range this year.

The figures exclude automobile dealers, gasoline stations and restaurants.

The preliminary numbers suggest that retail sales were strong for 2018. However, taking a closer look and isolating data for sporting goods stores, sales were down compared to the previous year. According to the US Census Bureau, as seen in Figure 1, overall retail sales for sporting goods stores from January through November* in 2018 were $37.5 billion, down 4.8 percent from $39.3 billion during the same time frame in the previous year.

Looking ahead to the rest of 2019, according to a mid-February forecast from NRF, overall retail sales in 2019 should increase 3.8 – 4.4 percent to more than $3.8 trillion. The increase is predicted

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Figure 1

Retail Sales for Sporting Goods Stores Jan – Nov (in billions) $39.3

$37.5

2017

2018

*Source: US Census Bereau Monthly Retail Trade Report

despite threats from an ongoing trade war, the volatile stock market and the effects of the government shutdown.

NSGA, however, suggests its members have a more cautious outlook for the rest of 2019. Last year marked the second straight year in which sales for sporting goods stores declined, according to the US Census Bureau’s Monthly Retail Trade report. Additional sources support this caution, as well. According to the MetLife & US Chamber of Commerce Small Business Index for Q1 of 2019, small business retailers are more cautious about the overall economy now than at the end of 2018, with only 48 percent having an optimistic outlook, down from 52 percent in Q4 of 2018.

The National Federation of Independent Businesses (NFIB) Small Business Optimism Index slipped 3.2 points in January, as owners continued hiring and investing, but expressed rising concern about future economic growth. *December figures for Sporting Goods Stores not available at time of printing for this issue of NSGA NOW.

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