Trophy Smack – Fantasy Football Trophies
DEAL
EPISODE SUMMARY
🕓 Air Date: January 8, 2021
Asking For:
$600,000 for 8%
Investor:
Mark Cuban
Deal:
$600,000 for 17%
PRODUCT SUMMARY
TrophySmack offers customizable fantasy sports trophies, blinged-out rings, and championship belts for fantasy sports leagues, allowing winners to proudly display their victory.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
The founders, Matt Walsh and Dax Holt, both shared a passion for fantasy sports and recognized the lack of impressive trophies for fantasy sports leagues. Matt had a background in supply chain and logistics, rising to the top of his company within two years, while Dax came from the entertainment industry, working in television and film.
The idea for TrophySmack was born when Matt couldn’t find a grand trophy to celebrate his fantasy football victory and decided to create his own. They noticed a gap in the market for customizable and unique trophies, and this prompted them to launch TrophySmack.
The Product
TrophySmack offers a wide range of customizable fantasy sports trophies, championship rings, and belts. Customers can visit their website and choose their sport, size, and color to create their dream trophy.
Unlike traditional trophies, TrophySmack’s products are designed to be bold and unique, featuring customizable elements that allow users to tailor their trophies to their preferences. The product range is not limited to just trophies.
They also offer blinged-out championship rings and over-the-top championship belts, adding a touch of extravagance to fantasy sports celebrations. These products are designed to make fantasy sports victories more memorable and enjoyable.
How It Went
The company’s position before Shark Tank
TrophySmack experienced rapid growth in its first few years. In their first year, they generated $850,000 in revenue, and by the second year, this figure jumped to $1.9 million. Their profit margins are impressive, with an average of 80%. The founders initially invested $250,000 in the business, which helped them get started and quickly sell out of their initial inventory.
Despite the challenges posed by the pandemic, TrophySmack’s revenues remained strong, with year-to-date revenues of $650,000 mentioned during their pitch. Their vision extends beyond fantasy sports, targeting corporate awards, employee recognition, and U sports. Their unique approach to e-commerce in the trophy and award space, particularly the efficient assembly process, sets them apart from competitors.
TrophySmack’s strategic goal is to 10x their growth, and they were seeking a partner on Shark Tank to help them achieve this ambitious target. They were specifically interested in opportunities such as product placement in arenas and expanding into commemorative rings.
The Negotiations:
The negotiation process on Shark Tank began with Matt and Dax seeking $600,000 for 8% of their company. Kevin O’Leary quickly dropped out, citing his disinterest in fantasy sports. Mark Cuban and Lori Greiner expressed interest, with Mark ultimately making an offer of $600,000 for 25% of the business, aimed at entering the corporate market. However, things took a twist when Matt and Dax seemed hesitant to accept Mark’s offer immediately.
Barbara Corcoran criticized Mark for not giving them enough time to respond, but Mark stood firm. Then, Matt and Dax surprised everyone by accepting Mark’s offer, leaving Lori with an unspoken offer on the table.Before sealing the deal with Mark Cuban, Lori briefly tried to make an offer, but Matt and Dax quickly decided to go with Mark’s deal.
The negotiation was intense and pressured, with Mark’s quick decision-making sealing the deal and making him their partner. In the end, Mark Cuban secured the partnership with TrophySmack, acquiring 17% of the company for his $600,000 investment.
