With the acquisition of Tomark Sports at the beginning of the Year, Collegiate Pacific became a vertically integrated company, controlling everything from the manufacturing process to the distribution channels. The company is already leveraging this advantage, as well as a small boost from the political scene in California.
California represents more than 10% of Collegiate Pacifics sales and prospect base making it their largest single market. “With the passage of Propositions 55 and 57 in California, we believe a significant backlog of funding for new school and park projects may be released,” said Adam Blumenfeld, President of Collegiate Pacific. “In particular, Proposition 55 allows for a $12.3 Billion California School Bond Package with monies ear-marked for repair and new construction of schools.”
Collegiate Pacific has created a separate business unit to capitalize on this opportunity. The company plans to provide message centers, scoreboards, backstops, bleachers, wall padding, and “a host of other items” to the California public school and park system. The average size project being targeted is $200,000 – $400,000.
BOO is looking at ways to expand this strategy beyond California, and may have some federal political help. In late January, the U.S. Senate gave final approval to the Fiscal Year 2004 omnibus appropriations bill. This bill included substantial funding for public schools and $70 million for the Carol M. White P.E. Program.
In related news, Collegiate Pacific has executed an agreement with Amazon.com to sell its products through the Amazon.com Sports & Outdoors store. Blumenfeld said that the consumer direct distribution channel is a “new and untapped market,” and that this deal allows his company, “to enter this space without exposure to the traditional costs and burdens associated with direct marketing to millions of potential consumer accounts.”
