Team Insight

The PE investment in team sports is most apparent in the recent announcement that Augusta Sportswear Brands (ASB) and Founder Sport Group (FSG), the two apparel brands that were recently acquired by investment firm Platinum Equity, have formed a new corporate identity called Momentec Brands — along with the tagline "Outfitting Moments that Matter." The name Momentec pays homage to the rich traditions and legacies of both ASB and FSG with a nod to the momen- tum these companies created in the marketplace over the years. The name also embraces a spirit of innovation as the company strives to inject cutting-edge technology into all aspects of the design and ordering process. Its brands include Badger Sport, Alleson Athletic, Garb Athletic, Prosphere, Augusta Sportswear, Holloway, Russell Athletic, Pacific Headwear and High Five. It will operate augustasportswear.com and foundersport.com into 2025, at which time a combined momentecbrands.com will go live. Along with the new identity came a number of personnel moves, including naming FSG CEO John Anton as CEO of Momentec Brands and ASB CEO David Elliot as vice chairman. • ASB's current chief commercial officer, Derek Ernst, is promoted to Momentec's chief commercial officer. Ernst will preside over Momentec's strategic accounts, on- field, off-field, league and digital sales teams, as well as both marketing and product development departments. • Dave Binley, FSG's chief operating offi- cer (COO), is named Momentec's COO. • Julie Parker, FSG's chief human re- sources officer (CHRO), is promoted to Momentec CHRO. • ASB executive leadership member, Marty Bruce, is promoted to chief infor- mation officer. • Patrick O'Neill, FSG's senior VP–strat- egy and key accounts, is promoted to chief business development. 12 • Team Insight ~ May/June 2024 teaminsightmag.com Goebel says Roebling generally doesn't have a specific exit plan set for any of its in- vestments, adding that "we really aim to add enough value over five to seven years, which is a typical holding period for investment firms like ours." Not Everyone Is In The Game Despite the big money being thrown around, some fast-growing brands continue to resist the allure of PE investment. Among some trending brands in team sports, football brand Battle Sports remains self-funded with no plans to seek an out- side investor. CEO Chris Circo tells Team Insight, "People have expressed interest in us, but we're just not interested." Circo says Battle, which is part of the holding company C3 Brands Corp, contin- ues to seize market share with its apparel range expanding from 50 doors at Dick's Sporting Goods to 300 this year. "We're in a good position and we believe in our brand and the story," Circo says. ECD Lacrosse, another firm seeing rapid growth, is also not actively seeking any in- vestment. "It feels like investor sentiment in team sports is picking up; we are constantly getting contacted by PE firms or individual investors looking to get into the space," Michael Kenneally, VP & co-founder, tells Team Insight. "Sports are exciting, they are also key to the development of kids. ey teach discipline, toughens, and hard work. "It is a fun category to work in and I am sure that is why investors are interested in team sport," he adds. "It is great when you can mix passion and business, which team sports brings to the investing world." For owners, a PE firm may offer the highest selling price in a sale. For businesses, however, a sale can be a rocky experience. e PE firm is oen betting it can make the acquired business more valuable by over- hauling operations and/or combining it with other businesses. Replacing leadership, cost cutting, eliminating redundancies and seek- ing economies of scale are oen in the cards. On the positive side, a PE firm offers a wealth of experience in operating businesses and is incentivized to keep key personal and sometimes former owners engaged and motivated for the hopeful prosperous future exit. Nathan Pund, managing director in Houlihan Lokey's Consumer, Food & Retail Group, tells Team Insight the overall M&A market is "steadily improving," particularly for outperformers in the consumer space. However, he notes that Amer Sports' IPO came in below targets, highlighting investor concerns over near-term geopolitical events. Pund also believes some investors remain leery of team sports participation challenges. "Team sports has shown resilience, but one needs to have caution as the COVID boom exposed enthusiasts to many new and exciting outdoor pursuits that now compete with team sports for attention and their dis- cretionary dollars," says Pund. e NIL platforms and other technologi- cal-advances expected to drive participation are still emerging and additional funding heading around sports-related businesses is positive for growth. Still, some may see downsides as sports overall faces a bigger investor spotlight. "Some people would argue that sport has lost its purity and it's all about the money," points out KB Partners' Bank. "Others would argue, 'Hey, people work hard for what they do. ey're entitled to earn as much as they can earn.' "And its entertainment in addition to being sports," he continues. "It's a supply and demand society. If people are still willing to pay for tickets and pay for subscriptions, they're going to keep commanding the sala- ries and the pay that they get." And that is music to the ears of the PE and investment community in 2024. n TEAM TRENDS AUGUSTA AND FOUNDER SPORT GROUP BECOME MOMENTEC DESPITE THE BIG MONEY BEING THROWN AROUND, SOME FAST-GROWING BRANDS CONTINUE TO RESIST THE ALLURE OF PE INVESTMENT.

• Cover