Grind Basketball Machine
DEAL
EPISODE SUMMARY
🕓 Air Date: May 7, 2021
Asking For:
$250,000 for 5%
Investor:
Mark Cuban, Barbara Corcoran (50/50)
Deal:
$250,000 for 25%
PRODUCT SUMMARY
Grind has created the Grind Machine, a portable basketball shooting machine that rebounds the ball for you, making it easier for aspiring basketball players to practice and improve their skills.
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Background Story
Thomas Fields, the founder and CEO of Grind, grew up with dreams of becoming an NBA player. However, multiple ACL injuries shattered his chances of making it to the professional basketball league. Determined to stay connected to the sport, he recognized the need for an affordable, portable basketball shooting machine.
Fields realized that existing machines were expensive and not easily accessible to aspiring players, inspiring him to create the Grind Machine. With a background of overcoming challenges and a deep love for basketball, Fields embarked on a journey to bring this innovation to life.
The Product
The Grind Machine is a revolutionary basketball shooting aid designed to help players improve their shooting skills. It automatically rebounds the ball to the shooter, allowing them to practice solo without the need for a rebounder.
The key features of the Grind Machine include its portability and ease of setup. It can be assembled under any basketball goal and collapses down to the size of a duffel bag in just 90 seconds, making it convenient for transportation and storage.
The machine rotates 190 degrees and can pass the ball to five different positions on the court, enabling players to practice from various shooting spots. It is powered by pneumatics and requires access to a power source for operation.
Grind aims to make professional-level basketball training accessible to consumers by offering the machine at a significantly lower cost compared to other professional-grade options on the market. The Grind Machine is priced at $1,495.
How It Went
The company’s position before Shark Tank
Grind launched in March 2020 and managed to presell $215,000 worth of units within the first five months of operation, primarily through e-commerce on its website. They adopted a word-of-mouth marketing strategy, leveraging the basketball community and social media to generate interest in their product. The company’s product had not been delivered to customers at the time of the pitch, but they had received payment upfront for 125 units.
The cost of manufacturing each unit was $977, resulting in approximately 35% profit margins. Grind was operating with limited working capital and had overcome significant challenges during the pandemic, highlighting its determination and resourcefulness. The company’s structure and specific partnerships or wholesalers were not mentioned in the provided transcript.
The Negotiations:
During the pitch, Thomas Fields initially sought $250,000 in exchange for a 5% equity stake in Grind. However, the Sharks expressed concerns about the product’s high retail price and questioned the margins and scalability. Mark Cuban, Barbara Corcoran, and Alex Rodriguez all showed interest in the product.
Ultimately, Mark Cuban and Barbara Corcoran joined forces to make a joint offer of $250,000 for a 25% equity stake in the company, which Fields accepted after some negotiation. Although Fields hesitated momentarily, he recognized the value of having Mark Cuban and Barbara Corcoran as partners. This deal allowed Grind to secure the funding needed to further develop and market its product.
Thomas Fields made a counteroffer of $300,000 for a 25% stake, emphasizing his belief in the company’s potential. However, Fields chose to accept Mark Cuban and Barbara Corcoran’s offer of $250,000 for 25%, valuing the company at $833,333. The negotiations highlighted the importance of securing experienced partners in the sports industry and showcased Fields’ determination to bring affordable basketball training solutions to aspiring players.
