Bauer Hockey going bankrupt

[Mackcanuck]

Bankruptcy may end Bauer endorsements for top NHL stars

 

 

Alex Ovechkin, Jonathan Toews, Patrick Kane and other high-profile NHL players may find their endorsement contacts with Bauer hockey cancelled as early as Monday because the equipment manufacturer’s parent company is preparing to file for bankruptcy protection, a person familiar with the matter told TSN.

Bauer’s parent company, Performance Sports Group Ltd., has been struggling in recent months. The Exeter, N.H.-based company, which also owns Easton, expects to end 2016 with $424 million (U.S.) worth of debt and its shares have been battered as the company’s own audit committee has been investigating PSG for undisclosed reasons.

PSG is also under fire from shareholders who have filed a class-action lawsuit in New York, charging the company has inflated its sales figures and misled the market about its future growth prospects.

PSG may file for bankruptcy protection as soon as Monday morning, both Reuters and The Globe and Mail reported on Sunday. A source close to the company later confirmed the reports to TSN.

Bauer spokesman Steven Jones did not respond to an email seeking comment.

PSG’s insolvency would be bad news for both NHL players and their agents.

Ovechkin, Toews and Kane each have deals worth between $300,000 and $500,000 per year for their endorsement contracts, a source close to Bauer said, while less established players such as Auston Matthews can have contracts valued at $200,000 annually.

Endorsement deals are similarly big business for NHL player agents. While agents typically charge players two to four per cent for negotiating a contract with a team, the fee can be as much as 40 per cent for helping land endorsement and sponsor deals, a person familiar with the matter told TSN.

“A bankruptcy judge can simply cancel those endorsement contracts and list the players as creditors, as easy as that,” the person said. “Bauer may simply not be in a position to be able to afford to pay those contracts.”

Toronto-based NHL player agent Don Meehan said he received a letter within the last week from Bauer executive Jim Geary addressing the company’s recent troubles.

“They said they had issues of course, but that they were moving ahead and it was basically business as usual,” Meehan said.

 

http://www.tsn.ca/talent/bankruptcy-may-end-bauer-endorsements-for-top-nhl-stars-1.596122

[Warhippy]

Whoa whoa whoa wait a second

 

You mean, sales slumped?  Shares tanked?

 

Who ever would have thought that $250 sticks and $650 shoulder pads would mean that less people were buying gear ensuring the slow and steady decline of a once great company.

 

I am shocked.  Shocked I tell you

[Stelar]

34 minutes ago, Warhippy said:

Whoa whoa whoa wait a second

 

You mean, sales slumped?  Shares tanked?

 

Who ever would have thought that $250 sticks and $650 shoulder pads would mean that less people were buying gear ensuring the slow and steady decline of a once great company.

 

I am shocked.  Shocked I tell you

Yup, the hockey gear industry is a scam. Waaaay too expensive these days.  They wonder why less kids are playing? 

[BabychStache]

Like the posters above stated, no surprise. Hockey is a rich persons game, when they started to cater to the upper echelon, Brands like Nike and RBK were already cemented into those households. Easton, Bauer etc didn't stand a chance. Amazing they lasted as long as they did.

 

Watch Canadian Tire scoop the brand and launch a successful product line based on value and targeted to enthusiasts not "gonna be NHLers."

[chon derry]

back in the day bauer ,winnwell,doust, koho, profinn, canadien, northland, louiseville, sherwood, were all smaller players in the hockey equipment market  cooper and ccm were the big guys ,but some of those small companies put out some really good stuff. and then the big corporations moved in and swallowed up everything.  there has been vast improvements in the protective end of things as well as the weight and durability, i still have all my old gear which i stopped using around 84/85, i compared the weight of my stuff to a duffle bag of a young player i know ,i would say his stuff is 1/3 the weight , lol  but 100 times more than i paid for my stuff,   kids from  less fortunate families really have to rely on hand me down stuff .  the kid from the other side of town has it that much harder, and no thanks to the big corporate greed factor! 

[Warhippy]

4 minutes ago, BabychStache said:

Like the posters above stated, no surprise. Hockey is a rich persons game, when they started to cater to the upper echelon, Brands like Nike and RBK were already cemented into those households. Easton, Bauer etc didn't stand a chance. Amazing they lasted as long as they did.

 

Watch Canadian Tire scoop the brand and launch a successful product line based on value and targeted to enthusiasts not "gonna be NHLers."

If brands could slip in with $25 sticks and $150 skates instead of the $749.99 skates in the US and $849.99 in canada I am sure that hockey would take off again.

 

But screw that nonsense of $2500 in gear for a single season provided NONE of it needs replacing, then registration, fees, travel and early mornings when people are struggling just to pay rent/mortgage

 

They did it to themselves with this outrageous price gouging.  I think we'll see a lot more of this in the years to come, former brands that priced themselves out of existence.

 

And judging by the claims, they cooked the books a fair bit so no sympathy at all

[BabychStache]

Totally agree. 

 

I have 3 sons ages 6, 3, 18 months. Not one plays hockey, they have shown zero interest in playing and are happy to cheer and be fans. My wifes family is a huuuuge hockey family and put the pressure on us when my eldest was 2 to get him started. We sat down and looked at it objectively and decided that neither of us are overly athletic, so the genetics to actually look at it as an "investment" isn't there. Also, we knew we wanted a big family so to make the time sacrifice didn't make much sense in our situation either, as i am spread thin already. My wife remembers getting up early and sitting at a Rink to watch her younger brother practice, not horrible memories, but not exactly ideal. 

 

What we decided to do, and have had success with early on is exposure to all sorts of extra curricular activities and seeing where our kids show the most interest. My eldest is really getting into music, art, storytelling, etc. My middle son loved blast ball (think beginner tee ball) and he's a rough and tumble kid, i can see football or wrestling in his future. 

 

With the money saved, we make monthly contributions to long term investments that can be utilized when they are 21 or older. 

 

[Gnarcore]

Since I played in the early 90s as a young kid there has always been $800 skates and $400+ gear pieces....but there was cheaper options.  These days you can buy good skates for $99 in the Bauer Vapors or CCM RBZ models.  My Tacks used to cost $450 back in the day and even those are $200 now. 

[brownky]

Hmm...

 

They moved their manufacturing to China, started making garbage quality stuff and selling it for primo pricing. And they're going broke.

 

I wonder how that happened?

 

Every Bauer thing I bought in the last 5 years has turned to crap within the season - I've sworn off of it, and I'm the 'buyer' they want.

[chon derry]

13 minutes ago, Gnarcore said:

Since I played in the early 90s as a young kid there has always been $800 skates and $400+ gear pieces....but there was cheaper options.  These days you can buy good skates for $99 in the Bauer Vapors or CCM RBZ models.  My Tacks used to cost $450 back in the day and even those are $200 now. 

for sure hockey gear has always been expensive comparative to the current rate of inflation at any given time frame, the sticks? their not cheap , when i played some of my kohos would last from season to season ($25) a bunch of guys rented some ice time late one nite and i tried a composite stick for the first time and ended up buying a new one  for the guy i borrowed it from , first shot the thing was in 2 pieces . 175 bucks naa , i'll take an old koho any day of the week ,maybe elder should too.

[Mackcanuck]

Bauer TUUK Blades revolutionized skates in 1976.

[Gnarcore]

8 minutes ago, chon derry said:

for sure hockey gear has always been expensive comparative to the current rate of inflation at any given time frame, the sticks? their not cheap , when i played some of my kohos would last from season to season ($25) a bunch of guys rented some ice time late one nite and i tried a composite stick for the first time and ended up buying a new one  for the guy i borrowed it from , first shot the thing was in 2 pieces . 175 bucks naa , i'll take an old koho any day of the week ,maybe elder should too.

 

The sticks have gotten out of hand.  I buy the discounted 3 year old ones at $40-$60 now ...just as good. Go hit a hockey store in the summer and the old stock is at least 1/2 price.   I recall back in bantam and midget rep I would have 3-4 sherwood cheap sticks that were $20 for practice and then 1-2 $35 (the high end) ones for games only.  

[logic]

I would have been able to play hockey if the gear wasn't so stupidly expensive. 

Hard to convince your parents to shell out a grand or two every year just for gear... let alone travelling, registration, and icetime fees.

 

Hockey has evolved from being truly every Canadians game to catering to the elite of society, the wealthy, the "future NHLers"

 

There is a reason our decline in world Juniors/ first round draft domination.

[Warhippy]

6 minutes ago, Gnarcore said:

 

The sticks have gotten out of hand.  I buy the discounted 3 year old ones at $40-$60 now ...just as good. Go hit a hockey store in the summer and the old stock is at least 1/2 price.   I recall back in bantam and midget rep I would have 3-4 sherwood cheap sticks that were $20 for practice and then 1-2 $35 (the high end) ones for games only.  

I wonder what would happen if a company or individual came out with single source wooden sticks like Hull used to use.  

[Gnarcore]

Honestly as a kid my parents spent far more on ice time than they did gear.  Most gear last 2-3 seasons except skates when you're growing quickly...and those you can buy used for a kid.  Once I hit 15 I got a job and bought my own gear ...$&!# I still have the same shoulder pads...that I haven't worn since i started playing men's league at 18

[chon derry]

11 minutes ago, Gnarcore said:

 

The sticks have gotten out of hand.  I buy the discounted 3 year old ones at $40-$60 now ...just as good. Go hit a hockey store in the summer and the old stock is at least 1/2 price.   I recall back in bantam and midget rep I would have 3-4 sherwood cheap sticks that were $20 for practice and then 1-2 $35 (the high end) ones for games only.  

when i went to buy my friends son this stick, i never looked around to much only because i've still got 10 sticks left ,2 of which are russian macter brand, very good sticks comparable to kohos . do they still make wooden sticks?

[Gnarcore]

12 minutes ago, chon derry said:

when i went to buy my friends son this stick, i never looked around to much only because i've still got 10 sticks left ,2 of which are russian macter brand, very good sticks comparable to kohos . do they still make wooden sticks?

 

A few companies do.  I actually prefer them for stick handling.  But I use the one piece for the snap shot....

[Lancaster]

52 minutes ago, logic said:

I would have been able to play hockey if the gear wasn't so stupidly expensive. 

Hard to convince your parents to shell out a grand or two every year just for gear... let alone travelling, registration, and icetime fees.

 

Hockey has evolved from being truly every Canadians game to catering to the elite of society, the wealthy, the "future NHLers"

 

There is a reason our decline in world Juniors/ first round draft domination.

 

Same story here as well.

Parents had to decide on whether to invest in my RESP or enroll me in hockey.

 

Might gotta do the same with my kids in the future too =(

[SaintPatrick33]

There was an interesting story on Matt Duchesne and how much his parents put into his hockey career. They estimated that by the time they added up all the expenses, they spend nearly 300,000.

 

http://news.nationalpost.com/sports/nhl/selling-the-dream-raising-the-next-great-hockey-star-comes-with-a-heavy-price-tag

 

Gotta be rich or send your parents to the broke house playing this game unfortunately. 

[RRypien37]

Time to scoop up some shares for cheap.