With a string of
acquisition of local dealers over the last decade, BSN Sports has solidified
its position as the dominant direct marketer and distributor of sporting goods
to school and league markets.

 

Formerly called Sports
Supply Group, BSN Sports received a boost in its consolidation efforts with the
2013 acquisition by Herff Jones, which was rebranded last year to Varsity
Brands. Best known to the general public as the maker of the rings for Super
Bowl and Indy 500, Varsity Brands is a top supplier of cheerleading uniforms,
class rings, diplomas, maps, globes and other items that – like BSN Sport –
target the “K-through-College” crowd. Varsity Brands last year was
acquired by
Charlesbank Capital.

 

Internally, BSN Sports
continues to rapidly partner with local team dealers. With its late-May
acquisition of B&B Athletics in Waco, TX following several others, BSN
Sports has added over 110 sales professionals over the last twelve months and
now has over 500 road reps across the country.

 

Here, Adam Blumenfeld, president of BSN Sports, discusses
BSN Sports expansion
efforts as well as the challenges and opportunities in the team channel.

 

The team channel
seems besieged by a number of challenges, including declining sports participation,
related-concussion concerns and over-use injuries, tight high-school budgets
and other issues. Overall, how is the team dealer channel?
The market is in
major flux in my view. All the trends you mention are real. Further, the
customer trends towards speed of service and delivery, customization and
personalization will only increase with the prevalence of the Millennial
generation and how Amazon is redefining customer care. Historic ways of
decorating and embellishing product will likely feel archaic in a few years.
The technology is changing so quickly you have to be very agile in terms of how
and when you invest. It also places a new premium on choosing partnerships
wisely in all parts of the customer service and supply chain. I think thriving
in this marketplace going forward will require more than just brute force and
intestinal fortitude (both which are prerequisites anyways). I think it will
require significant capital, unique and proprietary barriers to entry, and a
ton of creativity.

 

How has your
partnerships with Varsity Brands and Charlesbank Capital helped position BSN
Sports for the future?
The recent transactions have given BSN tremendous
financial flexibility and firepower to fuel future ambitions. But perhaps more
importantly they gave BSN a strategic advantage in that we now have an entirely
different type of scale: ways to touch the schoolhouse or fieldhouse at
multiple entry points; ability to cross-pollinate the entire community and
millions of shared student, player and family names with compelling offers, and
a way to work together when needed as a cohesive team to deliver solutions for
sport, spirit and achievement that no other company can offer. I feel like this
is more than a competitive advantage, it is a total paradigm shift in the way a
community or school can and should be serviced in the future. A way to make a
genuine difference that touches so many more parts of the ecosystem than we
could've ever dreamed of before.

 

Are you still in
acquisition mode?
We will remain in aggressive acquisition mode for as long
as there is high quality talent out there we don't have, and so long as there
are customers we aren't servicing or markets we aren't reaching. We are far
from perfect. We have so much room for improvement in our existing markets let
alone new ones. We will relentlessly pursue more connected relationships where
we already are and I think for a long while to come continue to add best-in-class
talent to the platform. That can take on a lot of forms but in the end it needs
to answer only one question: What's the best possible way to serve that
customer and community? If we keep the customers' needs front and center, we
are heading true north.

 

Some other major
companies have faced some challenges rolling up the team space. What’s been the
key to BSN Sports success?  
Spending
lots of money to hire people or buy companies is not hard. That just requires a
checkbook – in any industry. People – that's what makes our efforts a success.
It sounds trivial but you've never seen so many people that understand our
vision and help fuel the internal passion and energy needed to find more people
that share a similar desire to “be part of something bigger than themselves.” The
key here is that it's not about any one person. It's about genuinely loving the
idea that a diverse group of humans and personalities can come together around
a common cause and make a difference in the lives of 70 million kids. Sounds
corny. I get it. But that's our culture. It seems to work ok. And I think the
fever is contagious. It feeds off itself. If the energy is positive and healthy
it becomes attractive to others. Then you aren't “rolling something up.”
You are inviting others to join a mission that feels right and adds fulfillment
and joy to their lives, and their family.

 

Technology has
certainly changed how team selling is done.

How do make sure the
“human touch” is still there?
First, BSN Sports has 1,200 employees all
dedicated to “team” and we are absolutely nothing without our people.
Not only is the human touch essential but we think doubling down on personal
relationships is the road to the promised land. However, “getting more
personal” is also about adaptation and that's where technological
investment and vision is so important. Fortunately I'm smart enough to know how
much I don't know, and that's where the incredible team here and throughout our
network is so valuable. We want to know as much about our customers and prospects
as a retailer does. If you can walk down an aisle at Best Buy and get a text
message for a special on that aisle, or if your box of Tide from Amazon has a
button on it for automatic re-orders and delivery in 2 hours (all true), we
want to incorporate that level of shocking service and proprietary analytics
into the team sports experience. It will take risk, capital, and probably some
luck, but I'd like BSN Sports to lead in this new age of personalized service,
and I'm quite sure Terry Babilla, our president and my long time partner,
shares this vision as well. Marrying these kinds of capabilities with flawless
execution at the user and customer level is the challenge that keeps it fun
after 24 years of doing this.

 

How is the company
performing?
Looking at pure metrics, the company is performing about as
well as I could hope as a manager. That's nice but it would be a mistake to get
hung up there. We are focused on what this company might look like in 5 to 7
years. What decisions will we make today that will change the game a decade
from now? Some of the solutions take a while to implement. But the payoff can
be huge. As an example we launched BSN Sports Billing about two months ago but
it took years to craft the right system. We think revolutionizing the way
schools can serve themselves, pay bills, and stay organized is at the heart of
what both customers and sales pros need to be more efficient. Challenges are
always execution. We have no patience for weak links in the supply or service
chain. We are hard on ourselves but I think the customer benefits from it.

 

What categories or
activities do you see promising growth on the team side?
We remain
interested in growth sports like lacrosse; certainly women's sports, and all
the new and interesting ways to connect to the individuals – not just the
coaches who play every sport or participate in physical education programs
around the country.

 

Much has been made of
the U.S. Women’s World Cup win. Is women’s still a largely untapped opportunity?

It's incredibly untapped. People are creatures of habit. They call on coaches
that look like them, talk like them, think like them. I bet 80-percent+ of all
sales pros in America are men. I think there is a tremendous opportunity to
have both a more balanced and inclusive workforce, and more attention and
education around what is needed to properly serve women's sports.

 

What should be the
focus on improving youth participation?
My biggest concern is that as kids
get bigger faster and stronger, old-school ways of understanding
“protection” and what works will need to get challenged. I think the
best solution is collaborative education. We all love sports – want to play
them and serve them. If we want to keep it up, we have to keep it the
incredibly healthy mind-body-spirit experience that is has always been. And
that means learning how to best protect each body!

 

How do you see
technology impacting team sports play and the channel?
It is what it is. It
will redefine the traditional team dealer experience and the new needs of the
customer base. Kids and coaches want it to be theirs, they want it right, they
want it on their phones, and they want it yesterday. It's a new world. It's
totally driven by retail experiences and expectations. And it's here to stay.

 

Whom do you see as
BSN Sports biggest competitors?
The biggest competitor we have is the one I
can't see yet! I spend no time thinking about what's already out there. We are
better served thinking about our customers. If we take care of the customer the
rest works itself out  But in this age of
new technology and a flatter globe, the next challenge will likely come from
places we can't imagine just yet. That's always invigorating to think about.

 

Do you see Amazon as
a threat to the channel?
We view Amazon itself as an innovator and someone
that will force every one of us to get better. We also view them as a valued
partner. But Amazon has a proven track record of disrupting markets. I admire
that. And honestly, I have no clue how it plays itself out over time. The
biggest immediate impact I see from them is a redefinition of the customer
service expectation – and that's healthy pressure

 

You’ve spoken up
about the challenges of Asian suppliers selling directly into the U.S. market.
Can you elaborate?
Like it or not these players are already part of
“our industry.” There is nothing “domestic” about serving
the team markets. The only change is that manufacturers are thinking about not
sharing with the distributors. I think this strategy has its challenges but the
walls are down. I think that's why they call it the World Wide Web

 

Do you see the
opportunity to take the BSN Sports model international one day?
Our sister
division Varsity Spirit has successfully taken cheerleading to many countries
around the globe. I think we can learn a lot from their success and ongoing
efforts. Stay tuned!

 

Local team dealers
are often asked how they compete against a huge player like BSN. What
recommendations would you offer?
We are lovers not fighters. Why compete
when you can join the party! I'd invite dealers that embody the same characters
of heart, integrity, teamwork and resourcefulness that we do to call me or Terry
(we answer our own phones). And let's make a difference together. Either way –
with us or against us -buckle up! It's going to be a fun ride.