Volume 6 | No. 4 | July/August 2018
A PUBLICATION OF THE NATIONAL SPORTING GOODS ASSOCIATION
Making the Right Connections at NSGA’s Speed Networking Michigan State Basketball Coach Tom Izzo A Deeper Look at Manufacturer and Retailer/Team Dealer Relationships NSGA NOW®
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TABLE OF CONTENTS
12 Conference Now
NSGA’s Speed Networking Helps Attendees Make the Right Connections
4 5 6 10
Members of the Sporting Goods Industry Hall of Fame get together after this year’s induction ceremony and dinner. From left, David Gochman and Molly Gochman, the son and daughter of the late Arthur Gochman, Conny Klimenko, Curt Mueller, Randy Ruch, Barbara Longstreth, Tom Raynor and Stan Jurga.
18 20
CEO Now
Competition in the Marketplace
Association Now
Ken Meehan Elected Chairman of Sporting Goods Hall of Fame Committee
Insights Now
018 NSGA Sporting Goods Market Report Shows Growth 6 | 2 urveys Say A Lot About Manufacturer and Retailer/Team 8 | S Dealer Relationships
Conference Now
etter Understanding Teen and Young Adult Employees 10 | B with Author and Psychologist Dr. John Duffy egendary Michigan State Basketball Coach Tom Izzo 11 | L Provides Impassioned Tip-Off Look Back at the Conference in Pictures 14 | A ecap of the Team Dealer Summit 16 | R
Advocacy Now
NSGA Applauds Supreme Court Ruling on Remote Sales Taxes
Locker Room Now
Rules Updates and Industry News NSGA NOW®
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CEO NOW
Knowing your competition has always been important in business and sports. Competition in the sporting goods industry has evolved significantly in the last few decades as former colleagues find themselves fiercely contending for consumer preference. The source of that competition has changed as well.
NSGA OFFICERS Chairman of the Board David Labbe
Kittery Trading Post, Kittery, ME
Treasurer/Chairman-Elect Cathy Pryor
Hibbett Sports, Birmingham, AL
Past Chairman Randy Nill
Nill Bros. Sporting Goods, Kansas City, KS
BOARD OF DIRECTORS Kevin Bezanson
Cleve’s Source for Sports, Halifax, Nova Scotia, Canada
Pat Donnelley
Donnelley Sports, Twin Falls, ID
Rhett Johnson
Johnson-Lambe Co., Raleigh, NC
Greg Miller
Universal Athletic, Bozeman, MT
Jeff Miller
Scholastic Sports Sales, Ltd., Manlius, NY
John Oehler
Dunham’s Sports, Troy, MI
Jerry Williams
Schuylkill Valley Sports, Pottstown, PA
NSGA TEAM LEADERS Matt Carlson
President & CEO
Marty Maciaszek
Director, Team Dealer Division and HDA
Julie Pitts
Director, Business Development and Research
Larry Weindruch
Director, Public Affairs
Dan Wiersma
Chief Financial Officer
Retailers and team dealers have encountered increased competition from the brands they are selling. Brands sell direct to the athletes, coaches, schools and parents, or, partner with specific retailers to showcase only their products. Professional Leagues such as the NHL have done this as well, selecting one retailer as a distribution point for their grow youth hockey initiative. Excluding all others makes them want to support expanding youth hockey, right? It seems counterproductive and doesn’t align all industry sellers behind the “good goal.” In some instances, brands produce exclusive programs with youth teams and organizations, sending the message to retailers and dealers that they are not important components of the distribution chain. A previous NSGA NOW® editorial warned that this practice places all the suppliers’ distribution faith in a few large baskets…it’s a dangerous strategy. NSGA has taken a stance with the state high school associations across the country that having one official ball per sport is restrictive, and in some cases, cuts retailers and dealers out of the process. We have also expressed our concerns about the legality of public employees accepting free goods through all-school deals. Another major issue is with the professional sports leagues and major brands limiting the distribution of authentic and replica jerseys. NSGA members and other retailers who have sold these products for years find they are no longer able to sell these products with the availability limited to a select few retail partners and the retail operations run by the teams and leagues. If this is the new normal in the sporting goods industry, then communication between the retailers and dealers and the brands is more important than ever. It is important to have conversations not only about how to work together on selling products but to discuss problems and concerns both sides face. It is one of the reasons our second annual Speed Networking session at the NSGA Management Conference & Team Dealer Summit in May, which you can read more about in this issue of NSGA NOW,® was another big hit. One familiar phrase we hear from those who have been in the industry for a long time is, “It’s not as much fun as it used to be.” A lot of that stems from the competitive issues taking place. All these examples lead to a simple question: at what point do we cross over from good business practices to bribery? What does fair competition look like in the sports industry? A majority of our industry representatives come from athletic backgrounds and are highly competitive by nature. Those who are most successful have no problem with competition. They just want to know they are in a fair fight. Best regards, Matt Carlson | President & CEO NSGA NOW® (ISSN 1045-2087) is published bi-monthly for members of the National Sporting Goods Association, 1601 Feehanville Dr., Suite 300, Mount Prospect, IL 60056-6035; Phone: (847) 296-NSGA (6742); Fax: (847) 391-9827. Subscription price of $50 per year is included in membership fee. Non-member subscription information available from publisher. Periodical postage paid at Mount Prospect, IL 60056 and additional mailing offices. POSTMASTER: Send address changes to NSGA NOW,® 1601 Feehanville Dr., Suite 300, Mount Prospect, IL 60056-6035. © by NSGA 2018. Printed in the USA.
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ASSOCIATION NOW
Nominations Now Being Accepted for Induction Class of 2020 Ken Meehan, President of Dunham’s Sports and a former Chairman of the NSGA Board of Directors, has been elected Chairman of the Sporting Goods Industry Hall of Fame Committee. The Committee meets annually prior to the NSGA Management Conference & Team Dealer Summit to evaluate nominations for the Hall of Fame and elect those worthy of this high honor. Meehan succeeds Cathy Pryor of Hibbett Sports, who completed her second term as Chairman this year. Hall of Fame Committee rules limit the Chairman to two terms. Greg Baldwin of Schuylkill Valley Sports was elected Vice Chairman. The Hall of Fame Committee is comprised of 15 veteran leaders representing the retailer/dealer, manufacturer, sales agent and media components of the industry.
Ken Meehan Elected Chairman of Hall of Fame Committee
In addition to the elected chairman and vice chairman, committee members are Greg Baldwin (Schuylkill Valley Sports); Jim Chandley (Nation’s Best Sports); Fran Davis (Twin City Knitting Co., Inc.); James Hartford (SportsOneSource Group); David Heath (formerly of Nike); Jim Hoff (BSN Sports); Michael Jacobsen (Formula4Media); Don Leonard (Crown Sport Sales, Inc.); Brett Mueller (Mueller Sports Medicine); Gary Niland (Schutt Sports); Ralph Parks (RT Parks); Tom Raynor (formerly of Fleet Feet); and Pete Schneider (Athletic Dealers of America). “Now that we have completed our evaluation and election of the 2019 Hall of Fame inductees, our work begins for next year’s meeting,” Meehan said. “It is important to the committee to have a strong group of nominees to consider for this honor. “The qualifications are intentionally stringent to maintain the high quality of our inductees,” Meehan added. “We ask everyone in the industry to consider submitting a nomination of someone they believe to be worthy of this honor.” Deadline to submit completed nomination forms for the Class of 2020, along with the required three letters of recommendation and other backup materials, is Feb. 22, 2019. Names of all Sporting Goods Industry Hall of Famers and nomination forms can be found at the NSGA website, nsga.org/events/recognition/hall-of-fame. There are three distinct classifications in which a person may qualify: Retailer/Dealer, Manufacturer/Representative and Industry Influencer. If you have any questions, please contact Larry Weindruch, NSGA Director of Public Affairs and Hall of Fame Committee Secretary at lweindruch@nsga.org.
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INSIGHTS NOW
2018 Edition of NSGA Sporting Goods Market Now Available; Shows Consumer Retail Dollar Sales Growth By Nick Rigitano, NSGA Research & Information Manager
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Total Consumer Retail Sales Dollars % Change vs. 2016 Largest gains are in the gym/fashion sneaker segment Growth in camping, fishing and bicycle equipment
1%
2%
1%
THE
SPORTING GOODS MARKET Top dollar generator in the apparel category was swimming
0% Total
Equipment
Footwear
A statistical study of retail purchases in 2017 for representative categories of sporting goods www.nsga.org
ISSN: 0193-8401
Apparel
NSGA released the 2018 edition of its Sporting Goods Market report — a must-have document for any organization looking for key insights into the Sporting Goods Industry to support sales forecasting, inventory management and target marketing decisions. The report shows consumer retail dollar sales of sporting goods equipment, footwear and apparel increased 1% in 2017.
A deeper look into the report indicates dollar sales increased by 2% for athletic footwear, while equipment increased by 1% and athletic clothing remained flat vs. 2016. The footwear category once again experienced the largest dollar gains in the gym/fashion sneaker segment. Walking shoes were a close second followed by the cross training and hiking segments. The equipment category benefitted from growth in the camping, fishing and bicycle equipment segments. The top dollar generator in the apparel category was swimming. Two outdoor-related categories in camping and hiking were also top performers with weightlifting and bicycle riding rounding out the top five.
In the footwear segment, a continued drop in sporting goods stores has now put this outlet type behind online sites for the top spot. Discount stores and specialty footwear stores are now just behind sporting goods stores and are tied for the third spot. In addition to reporting sales trends for more than 130 product categories, NSGA’s Sporting Goods Market report also includes insights into the channels of purchase and the demographics of the key users for the majority of these product categories.
For more information on each report and to purchase your copies today, please visit nsga.org/research.
From a channel of purchase perspective, full-line sporting goods stores were once again the leading channel of purchase for sporting goods equipment. Within the segment, online sites have continued to gain momentum while specialty sport stores have continued to slip. Both are now tied for the No. 2 spot. NSGA NOW®
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INSIGHTS NOW
2017–2018 Industry Relationship Surveys: Viewpoints from Retailers/ Team Dealers and Manufacturers By Nick Rigitano, NSGA Research & Information Manager
With all the changes, innovations and transformations that have occurred in the sporting goods industry over the last few decades, the business relationships an organization builds and maintains are critical components for success which has remained constant. To gain a current pulse on these relationships and to identify current issues, NSGA conducted brief surveys among industry retailers, team dealers and manufacturers. The survey to retailers and team dealers was executed in February and March of 2017 and the survey to manufacturers was executed during the same months in 2018. The results from both surveys were presented during the Speed Networking sessions of the NSGA Management Conference & Team Dealer Summit in 2017 and 2018.
The results from the 2017 survey indicated that overall, 58 percent of retailers/team dealers were satisfied or very satisfied with the industry’s manufacturers. The results from this year’s survey indicated a slight difference as 46 percent of manufacturers were satisfied or very satisfied with the industry’s retailers/team dealers. To dive deeper into specific business activities, survey participants were asked to rate their level of satisfaction pertaining to several key business attributes. The surveys uncovered some key opportunities for improvement for
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both sides. Customer service and marketing-related issues were key opportunity areas for manufacturers, whereas merchandising and brand-support issues were opportunities for improvement for retailers/team dealers. Communication and merchandising were the biggest opportunity areas for both sides as shown in Figure 1. Another topic covered in the surveys was the No. 1 frustrations for each side. Among retailers/team dealers, the top frustration with manufacturers was clearly selling direct to consumers.
The primary frustration among manufacturers was not as clear, however. Upon further analysis, multiple themes emerged from the responses, centering on retailers/team dealers not supporting the brand, not adapting to change, not understanding products and/or not merchandising products in the proper manner (Figure 2). During these times of change, the hope would be for these survey results to generate productive discussions between the industry’s retailers, team dealers and manufacturers. The issues will not be resolved overnight, but changes and improvements stemming from these discussions will be a step in the right direction to strengthening the relationships between business partners.
FIGURE 1
Manufacturers Ratings on Retailers/Team Dealers
Retailers/Team Dealers Ratings on Manufacturers
Attribute
Satisfied or Very Satisfied
Attribute
Satisfied or Very Satisfied
They have great communications with me
35%
They have great communications with me
31%
They properly merchandise my products
13%
They properly merchandise my products
29%
Trustworthiness/stick to their word
57%
Trustworthiness/stick to their word
41%
They address issues in a timely manner
48%
They address issues in a timely manner
35%
They deliver payments in a timely manner
61%
They deliver payments in a timely manner
44%
FIGURE 2
Retailers/Team Dealers Top Frustrations
CUSTOMER
DISTRIBUTION
TIMELY
ORDER
MANUFACTURERS
CONSUMERS SELL
SELLING
DEALER GETTING
SMALLER
Manufacturers Top Frustrations
PRICING WANT DON’T BIG CONSUMER
DIRECT SALES BUSINESS POLICIES
INTERNET
Not Supporting Our Brand Not Adapting to Change Not Understanding Products Not Merchandising Products
TIMES STORES
GOING REPS
SMALL
END OUT
INVENTORY ISSUES PRODUCTS PRODUCT DEALERS LINE COMPANIES LACK SEASON ORDERS
CUSTOMERS
BOOKING
MANY MUCH
TIME DISTRIBUTION
COMMUNICATION
WANT SHIPPING POOR
DELIVERY BACK
TEAM
ONLINE
NSGA NOW®
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CONFERENCE NOW
Connecting with Young Employees; A Different Challenge By Marty Maciaszek, NSGA Team Dealer Division Director
Young employees care about their “bank account.” However, it may not be the traditional monetary type many people would expect. That is the belief of nationally acclaimed psychologist and author Dr. John Duffy, who shared his thoughts during the “Sell More with Engaged Employees: Understanding Teen and Young Adult Staff” session which kicked off Tuesday’s program at the NSGA Management Conference & Team Dealer Summit. “Every single relationship has an emotional bank account,” Duffy told the Management Conference attendees. “Focus on the emotional bank account. It is critical with young people you are trying to hire and retain.” Duffy shared some of his own early employment experiences from his first teenage job at a local grocery store and a post-college job with a major accounting firm. Duffy recalled being berated and belittled at times and it proved ineffective for him, his bosses and their companies. A lot has changed since Duffy held those jobs 25 to 35 years ago. “Why doesn’t fear work anymore? Because today’s kids are not afraid,” Duffy said. “Fear is a bad motivator. “For kids now, money is esoteric to them. The difference between $110 and $140 to an 18-year-old is negligible. Fear and money are not going to be our primary motivators.” That is where striking the emotional chord makes the big difference, especially with teenagers, according to Duffy. “There is a lot of low self-esteem and low self-worth,” Duffy said. “They are a bit lost. The words I hear from young people are, ‘I don’t feel good enough.’ “What I ask you to do is give your young employees an opening and opportunity
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to be successful and they will stay and they will work for you. Work is a respite for them from the chaos of their lives. This is their sanctuary if you do it right.” Duffy said that includes how younger new hires are welcomed. How everything starts for a younger new employee could have a big impact on how everything finishes in this relationship.
“Day one with new hires is an important one,” Duffy said. “A lot of young people have told me their first day at work is forgettable. It’s drab. It’s unceremonious. “Give them a little bit of ceremony. Make sure your bar is high and they know you expect a lot out of them.” It could be the initial deposit toward big dividends for employers with their teenage and young employees.
“What they need is that emotional bank account,” Duffy said. “They need a reason and the reason is to be a part of this team.”
Tom Izzo Shares Insights Gained Through Early Struggles By Marty Maciaszek, NSGA Team Dealer Division Director
There was some doubt if Michigan State basketball coach Tom Izzo would be rewarded for the risk he took early in his career. Izzo left a full-time assistant coaching job at his alma mater, Northern Michigan University, to take a part-time assistant coach’s job at Michigan State in 1983. A few months later a full-time spot opened up and that ultimately paved the way for Izzo to replace the legendary Jud Heathcote in 1995. But, as Izzo described in his Monday morning keynote speech at the 2018 Management Conference & Team Dealer Summit, he faced a nightmare scenario early in his dream job. He was headed to lunch one day and on the radio there was a push for his dismissal after two mediocre seasons and a slow start in his third year. So, when Izzo got back to the Michigan State campus in East Lansing, he called a staff meeting. Not just coaches, but everyone involved in some way with the program. The Spartans turned that season around and started their current streak of 21 NCAA tournament appearances. A year later they made the first of seven Final Four appearances and in Izzo’s fifth season they were NCAA champions. “We had a rocky first couple of years but I stayed with the values I had,” Izzo said to a packed ballroom in Bonita Springs, Florida. “It made me realize that collectively we can get a lot of stuff done.
“Sometimes you think you don’t need certain people, but one thing I realized is you need every person. In business there is no room for dead weight. You need every person.” Izzo said building a team for short-term success is easy. Building a program for the long haul is a lot tougher. Izzo has his players write five goals on an index card and then has a 20-minute meeting with each player to discuss them.
“The greatest thing I think I do is spend time with my players,” Izzo said. “Think about your employees and kids and how much time do you spend with them?
basketball, football, baseball and I ran track. I worked diligently at every sport because it kept you active. “People in general don’t want to be involved in something they can fail at and the goal of working toward something is foreign language to people.” That was something Izzo learned a lot about from the tough-minded Heathcote, who coached Magic Johnson to the 1979 NCAA championship. “The first few years I worked with Jud I got fired more times in a three-year period than I could imagine,” Izzo said with a laugh. “He believed in people working and earning their way and that has changed so dramatically.”
“I do some things that are off the wall but I have to convince them that I care. Make sure you spend time with your employees or the people you are selling to. Spending time is the key.” Izzo understands life is a lot different from when he grew up playing multiple sports in the Upper Peninsula of Michigan with good friend and former NFL coach Steve Mariucci. “It’s a shame listening to Matt (NSGA President & CEO Carlson) and everyone else that it’s more about the games that are non-active, more than the games that are active (for kids),” Izzo said. “Back then I played every sport,
Top: Performing before full houses is nothing new for Michigan State men’s basketball coach Tom Izzo. A packed ballroom enjoyed the stories and inspirational messages from Izzo to start the Management Conference on Monday morning. Above: Michigan State men’s basketball coach Tom Izzo and his wife Lupe catch up with old friends Mike Stewart, second from left, and Bob McArthur, far right, of Johnny Mac’s Sporting Goods at the NSGA Management Conference & Team Dealer Summit.
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CONFERENCE NOW
Speed Networking Hits it Big Again at NSGA Management Conference By Larry Weindruch, NSGA Director of Public Affairs
A packed room took part in the second NSGA Speed Networking session on Monday afternoon at the 2018 NSGA Management Conference & Team Dealer Summit. Speed Networking gave retailers and dealers a series of ten 12-minute appointments to create new relationships and strengthen established ones. Forty manufacturers participated in the event, with more on a wait list, to meet with retailer and team dealer attendees. “The response to the first speed networking last year was positive, and this year, it was overwhelming,” NSGA President & CEO Matt Carlson said. “To accommodate everyone who wanted to participate, we completely filled the ballroom and added several tables in the foyer outside the room.” Carlson opened the session by reporting on the results of a survey conducted to identify and quantify manufacturer opinions of their retailer and dealer customers. This is the companion piece to last year’s survey of retailers and dealers to identify their opinions of their product suppliers. The two surveys produced insights that showed retailers, dealers and manufacturers how they can improve their relationships, communicate better and merchandise products in a more effective manner.
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Because there was such a large demand to participate in the second year of NSGA Speed Networking the main ballroom was filled to capacity and more tables were needed outside.
“The NSGA Speed Networking is a unique opportunity for hard-to-get and invaluable access to key decisionmakers,” said Dave Smallwood, National Sales Manager of Bronze Sponsor company Scenturion. “It gives us the chance to make a presentation and have one-on-one discussions in a relaxed atmosphere. “It is one of the most productive activities we have at any event and it has led to great results,” Smallwood said. NSGA Speed Networking is an opportunity for Johnny Mac’s Sporting Goods to find potential products for its nine retail stores in Missouri, Michigan and Illinois. “The speed networking event provides an excellent space to learn about new products and trends in the industry,” said Candace Bingham, Director of Purchasing at Johnny Mac’s. “The short opportunity to sit with a manufacturer representative opens a more poignant dialogue than the traditional walking booth-to-booth experience, providing ample time to ask questions and share ideas.” The NSGA Speed Networking also gives retailers, dealers and manufacturers the chance to have some frank discussions about the industry. “The NSGA ‘Speed (Networking)’ roundtable discussions are a great idea,” said Chad Clark, Senior Vice President of Bronze Sponsor company Cliff Keen Athletic. “It gives dealers and retailers a chance to ask manufacturers questions they may not normally ask. “The casual setting lends itself well to some great discussion,” Clark said. “I think both dealer and manufacturer feel at ease in this setting, and level with each other on perhaps a deeper level, than they may in a more formal presentation setting. “Also, I think the NSGA did a great job this year matching up dealers
with appropriate vendors; lines they actually sell or lines they can potentially generate more income from,” Clark added.
Another positive aspect of Speed Networking is additional exposure for innovators who have a new product they are trying to get into the retail or team dealer channels. Having the opportunity to visit with 10 retailers and dealers in one place in one afternoon saves a lot of time and money instead of trying to travel across the country to make similar connections. It was a “very productive afternoon,” said Ken Meehan, President at Dunham’s Sports. “We saw some interesting new product like Zorbitz Stadium Bags, The Short Shot and Wicked Rags Sock Jock, which will make hockey moms’ life better. “We also saw some early prototypes of some electronic training aids and apps,” Meehan said. “We met with some current suppliers and saw some new innovative products.” After just two years, Speed Networking has become a key component to the Management Conference & Team Dealer Summit. “As a team dealer, it proved to be a very beneficial event for myself and the various vendors that I met with,” said Jeff Miller, President of Scholastic Sports Sales, Ltd. “It was a great opportunity to see and learn about new products in our ever-changing industry. “(I’m) already looking forward to next year’s Speed Networking event at the 2019 Management Conference.”
Top: Caterpy Laces Operations Director Anthony Pong, left, and Marketing Director Mike Collins, center, meet with Dunham’s CEO Jeff Lynn and Senior Vice President of Finance David Lynn. Middle: From left, co-owners David Lentz and Tom Van Dixhorn talk about ShortShot with Bruce Bohan of Fish Hawk Sporting Goods. Above: Anna Malkan, center, the Vice President of Sales for Swedish-based Volumental, talks with Johnny Mac’s President & CEO Bob McArthur and Director of Purchasing Candace Bingham.
If you have any questions, please contact Julie Pitts, NSGA Director of Business Development and Research at jpitts@nsga.org NSGA NOW ®
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CONFERENCE NOW
A Look Back at the 2018 Management Conference & Team Dealer Summit 1 Mendy Moseley, Strategic Account Manager of Sporting Goods for SanMar, and Michael Ferri, Executive Vice President of Sales for Badger Sport. 2 Stan Jurga of All-Star Sports, center, is congratulated on his induction into the Sporting Goods Industry Hall of Fame by Pete Schneider of Athletic Dealers of America, left, and Fran Davis of Twin City Knitting, right. 3 Jeff Zimmerman, Chief Operating Officer of Clearent, during his session on The Future of Payments. 4 Ken Meehan, the newly elected Chairman of the Sporting Goods Industry Hall of Fame Committee, from left with Class of 2018 inductee Barbara Longstreth and her brother Dick Heylmun. 5 Retail industry expert Phil Chang provides his insight to attendees during his session on how to compete with Amazon. 6 Celebrating their NSGA Golf Tournament team victory are, from left, Carter Newman (Augusta Sportswear), Brad Reagan (OC Sports/Outdoor Cap) and Dan Burke and Tina Tolitsky (Burke’s Sport Haven). NSGA President & CEO Matt Carlson gets credit for an assist since he loaned his golf clubs to Burke, whose set was lost (and eventually found) by the airline he took to Florida. 7 Attendees catch up with old friends and make new connections during the Sunday evening reception.
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8 Mark Konkle (Wicked Rags), Karen Bezanson (Cleve’s Source For Sports), Travis Amburgey (Wicked Rags) and Kevin Bezanson (Cleve’s Source For Sports) were one of the foursomes that battled the elements to finish the annual NSGA Golf Tournament at Raptor Bay Golf Course. 9 NSGA Chairman of the Board Dave Labbe of Kittery Trading Post earned closest to the pin honors in the annual NSGA Golf Tournament. Labbe, left, is with NSGA Research & Information Manager Nick Rigitano.
4
10 Honoring the induction into the Sporting Goods Industry Hall of Fame of the late Arthur Gochman are, from left, Becky Gochman, Molly Gochman, David Gochman and Michael Armilio. 11 Bill and Laura Gump of Swax Lax get ready for a busy session in the Innovations Arena.
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CONFERENCE NOW
20th Annual Team Dealer Summit Covers a Variety of Bases Josh Ellsworth, Vice President Sales — Dealer Channel for Stahls’, talks with team dealers during the Innovative Decorating Techniques session.
The 2018 Team Dealer Summit included presentations on the importance of recovery products, innovative decorating techniques for team uniforms and fan gear, youth development models currently being implemented by Major League Baseball (MLB) and USA Football and advocacy activities performed by NSGA in recent years. All of the sessions were very informative and allowed insights to be drawn on how team dealers can take advantage of current industry trends and opportunities to help grow their business. To kick off the team dealer sessions, Roy Choquette of RAD Roller highlighted the importance of recovery — the process of getting waste out of the body after athletic activity to be ready to compete again. Choquette identified that improper recovery is a major cause of overuse injuries and demonstrated how to properly use two of RAD Roller’s recovery products, the RAD Rod and the RAD Helix. How does all of this translate to sales? Education. Choquette stressed the importance of team dealers taking the time to educate consumers and coaches about the importance of recovery and the use of recovery products. The Monday team dealer sessions concluded with a presentation from Stahls’, with Josh Ellsworth, John Loucks and Mark Schwarb demonstrating innovative techniques for team uniforms and fan gear live from the NSGA’s Innovations Arena. One of those techniques, the pre-aligned SimStitch, was designed to save team dealers time and increase productivity by masking individual pieces and intricate designs for fast, single placement and application. Other innovations explored
By Nick Rigitano, NSGA Research & Information Manager during the presentation were Stahls’ silicone dye-block, flex-style, economy reflective, thermo film and glitter decorating products. To jumpstart the Tuesday team dealer sessions, Beth Porreca of USA Football and David James of MLB discussed the youth development models of their respective organizations. Porreca explained how the introduction of Rookie Tackle has filled the gap between flag and 11-person tackle football with the use of a short-sided field, position sampling and smaller rosters. James explained how the Fun At Bat program, USA Baseball’s primary program designed for mass engagement in schools with the overarching goal of promoting fun and active lifestyles for children while teaching them the fundamentals of baseball and softball, is on track to reach 1 million kids in 2018 and how the Prospect Development Pipeline, in partnership with USA Baseball, is revamping the high school showcase circuit. The Tuesday team dealer sessions closed with a presentation from NSGA’s Matt Carlson and Marty Maciaszek highlighting a few of the NSGA advocacy activities that have taken place in recent years. One of the highlights included NSGA’s letter to NFHS that successfully helped reduce the fee increase on NFHS’s authenticating mark program from 186 percent to 43 percent. Maciaszek also touched on the issue of exclusivity and restricted access by jersey providers and leagues for the NBA and MLB, making it clear that NSGA strongly opposes these distribution models and is willing to speak up on behalf of its members. The session ended with a call to action for all NSGA members to keep the association informed about issues or potential problems they are experiencing with their business.
NSGA would like to thank Mueller Sports Medicine, a sponsor of the Team Dealer Summit since its inception, for its support of the event.
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55TH ANNUAL Management Conference & 21ST ANNUAL Team Dealer Summit
May 19–21, 2019
Château Élan Winery & Resort | Braselton, Georgia NSGA NOW ®
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ADVOCACY NOW
NSGA Applauds Supreme Court for Ending Unfair Sales Tax Loophole By Larry Weindruch, NSGA Director of Public Affairs
The National Sporting Goods Association (NSGA) applauded the United States Supreme Court’s decision that will permit states to require out-of-state Internet sellers to collect and remit the sales taxes that are due. In a 5-4 ruling in South Dakota v. Wayfair, the court overturned a 1992 court precedent barring states from requiring businesses that have no physical presence in the state to collect their sales taxes. Delivering the opinion of the court, Justice Anthony Kennedy said the physical presence rule in that previous case, Quill Corp. v. North Dakota, is unsound and incorrect. “Between targeted advertising and instant access to most consumers via any Internet-enabled device, ‘a business may be present in a state in a meaningful way without’ that presence ‘being physical in the traditional sense of the term,’” he said. NSGA President & CEO Matt Carlson praised the court for its ruling.
“This decision benefits brick-and-mortar retailers, who have been collecting sales taxes,” Carlson said. “It removes the unfair price advantage that many remote Internet sellers have, by not collecting the state sales taxes that are due.”
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South Dakota’s 2016 law, which the court upheld, requires out-of-state online sellers to collect the state’s sales taxes if the companies have more than $100,000 in annual sales of products to South Dakota residents or more than 200 separate transactions for the delivery of goods and services to state residents. NSGA has argued for fundamental fairness for more than a decade and would like to thank the more than 230 other organizations comprising the Marketplace Fairness Coalition, who helped advance this cause. In addition, appreciation is extended to NSGA members who lobbied to advance this issue and Senators Dick Durbin (D-IL) and Mike Enzi (R-WY), along with all supporters who either voted in favor of sales tax fairness or co-sponsored legislative remedies. To see the House of Representatives co-sponsors go to: https://www.congress.gov/bill/115th-congress/housebill/2193/cosponsors To see the Senate co-sponsors go to: https://www.congress. gov/bill/115th-congress/senate-bill/976/cosponsors To see the Senators who voted for Marketplace Fairness Act in 2013 go to: https://www.senate. gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm. cfm?congress=113&session=1&vote=00113 For more information, please contact Larry Weindruch at lweindruch@nsga.org.
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LOCKER ROOM NOW
NOCSAE Standard for NFHS Baseballs Delayed to 2020 The National Federation of State High School Associations (NFHS) Rules Review Committee announced that the implementation date for baseballs to meet the new NOCSAE standard had been pushed back to January 1, 2020. All baseballs with the NFHS Authenticating Mark will be legal for use during the 2018–19 season. The NFHS requirement of baseballs used in varsity games meeting the NOCSAE standard was supposed to go into effect March 1, 2019. The revision of Rule 1-3-1 was recommended by the NFHS Baseball Rules Committee and approved by the NFHS Board of Directors in the summer of 2017.
Russell Athletic, Augusta Sportswear Partner on Return to Team Sports Channel Russell Athletic and Augusta Sportswear formed a strategic partnership to bring Russell Athletic uniforms back to the Team Sports Channel. Augusta Sportswear becomes the Official Team Sports Partner of Russell Athletic and has the exclusive right to manufacture, market and sell team uniforms and other team-specific products. Augusta Sportswear will offer Russell Athletic uniforms for basketball, baseball, softball and football. The partnership will also allow Augusta Sportswear to distribute Russell Athletic workout apparel including fleece, tees and performance products. The categories will be phased in during the next 12 months, starting with the debut of basketball uniforms and workout apparel Aug. 1, 2018.
Newell to Sell Rawlings; Major League Baseball Will be Co-Investor Newell Brands Inc. announced it signed a definitive agreement to sell Rawlings Sporting Goods Company, Inc., to a fund managed by Seidler Equity Partners (SEP), a private investment firm based in Marina del Rey, California. Major League Baseball will co-invest with SEP. Rawlings, founded in 1887 and based in St. Louis, Missouri, comprises the Rawlings, Miken and Worth brands. The sale is part of Newell Brands’ previously announced Accelerated Transformation Plan, designed to create a simpler, faster, stronger portfolio of leading brands. Gross proceeds from the divestiture are expected to be approximately $395 million, subject to customary working capital and transaction adjustments. Rawlings’ 2017 net sales were approximately $330 million.
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Bain Capital Purchases Varsity Brands Bain Capital announced in late June it would purchase Varsity Brands for $2.5 billion. Varsity Brands has three divisions — BSN Sports, Varsity Spirit and Herff Jones. Bain purchased Varsity Brands from Charlesbank Capital Partners. Charlesbank purchased Varsity Brands four years ago for nearly $1.4 billion. Leonard Green & Partners purchased Varsity Brands for $131 million in 2003.
NFL, NFLPA Ban 10 Helmet Models Based On Study Results The NFL and NFL Players Association (NFLPA) will prohibit 10 helmet models from being worn by players this season based on the results of an annual laboratory study used to assess the performance of helmets being worn by players. New NFL players and players who didn’t wear the prohibited helmets in 2017 won’t be allowed to wear them in 2018. Full phaseout is expected after 2018, per Jeff Miller, NFL Senior Vice President of Health and Safety Policy. About 200 players wore helmets last season that now would be in the prohibited category. The NFL and NFLPA expect many of those players will stop wearing those helmets immediately, per NFL Network’s Tom Pelissero. The manufacturers of the prohibited helmets are either no longer manufacturing NFL helmets or have made improved models (Riddell, Schutt) and have worked toward getting players to wear the newer models. Helmets no longer being currently manufactured (six models) will be banned immediately. The other four models can still be used by players if worn in 2017. The NFL prohibited helmets are: SG Varsity, Rawlings Quantum, Schutt Vengeance Z10 (204100), Rawlings Impulse +, Rawlings Tachyon, Schutt Air XP Pro (789102), Riddell VSR-4 (R41133), SG 2.0, Rawlings Impulse, Schutt Air XP (789002).
Connecticut’s Niehoff Selected New NFHS Executive Director
All DeMarini CF Zen Bats Removed from USSSA Disallowed Bats List
Dr. Karissa Niehoff, executive director of the Connecticut Association of Schools-Connecticut Interscholastic Athletic Conference (CAS-CIAC) the past seven years, has been selected as the next executive director of the National Federation of State High School Associations (NFHS), effective August 1. Niehoff will succeed Bob Gardner, who is retiring this summer after eight years as NFHS executive director and 48 years in secondary education, including the final 18 years on the NFHS staff in Indianapolis. She will be the first female to lead the NFHS and the sixth full-time executive director of the organization.
All models of the 2018 DeMarini CF Zen 2 ¾ (-10) bats have been removed from USSSA’s Disallowed Bats List and are allowed in USSSA sanctioned play. The 28-, 31- and 32-inch model bats were removed from the list on June 6 and the 29- and 30-inch models were removed from the list in May.
A.D. Starr Named Official Ball Supplier of Little League World Series Dick’s Sporting Goods and Dick’s Team Sports HQ announced its bulk baseball and softball equipment business A.D. Starr has been named the official ball supplier of the Little League® World Series. The deal went into effect during the 2018 season.
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