FOOD NETWORK FOOTBALL, INC.
FOR IMMEDIATE RELEASE
Cuban Purchases 5% Stake in Fantasy Football Franchise for $10, Will Serve on Board of Directors
“This is yet another chapter in our ongoing success story.” – Chairman and CEO Andrew Fletcher
“I think you can turn your club into a championship contender.” – Cuban
NEW YORK — FOOD NETWORK FOOTBALL, Inc.© Chairman and CEO Andrew Fletcher reached a deal with Mark Cuban, the outspoken owner of the Dallas Mavericks, during Friday night’s episode of ABC’s Shark Tank for a stake in the CUTTHROAT KITCHEN fantasy football franchise. Cuban will also serve on the company’s board of directors
Complete terms of the deal were negotiated privately, but the basic framework agreed upon during the broadcast had Cuban purchasing a 5% stake in the franchise for $10, Fletcher’s original asking price, valuing the club at $200.
Membership in Bobcats4Ever, CUTTHROAT KITCHEN’s home league, calls for a $40 entry fee to be paid prior to this summer’s draft.
“This is yet another chapter in our ongoing success story,” Fletcher said. “From 11th-to-fifth in one year, to forming my holding company, to sell a stake in the company to Mark Cuban. With Mark’s business acumen and success in the sports industry, we are going to be a force to be reckoned with. I can’t wait for this summer.”
Fletcher formed his FOOD NETWORK FOOTBALL, Inc.© holding company in January in preparation of the league’s entry fee increasing. A motion to increase the entry fee to $40 passed unanimously at January’s league owners meeting in Hamden, Conn.
“I think you can turn your club into a championship contender,” Cuban said during the broadcast.
As part of the deal, Cuban will also join FOOD NETWORK FOOTBALL, Inc.©’s Board of Directors comprised of Fletcher; Kenneth W. Lowe, Chairman, President and CEO of Scripps Networks Interactive, Inc.; Alton Brown, host of “Cutthroat Kitchen”; Ted Allen, host of “Chopped”; and Scott Conant, “Chopped” judge, chef and restaurateur.
Fletcher struck the deal with Cuban after the four other “Sharks” – Robert Herjavec, Lori Grenier, Kevin O’Leary and Daymond John – all bowed out for various reasons. Fletcher previously rejected O’Leary’s $10-for-51% offer, saying he couldn’t give up control of his franchise while also lowering its value. No other “Sharks” presented offers.
A full transcript of Fletcher’s segment is below.
TRANSCRIPT: FOOD NETWORK FOOTBALL, Inc.©’s SHARK TANK APPEARANCE
AIRED: Feb. 6, 2015
SHARKS: Robert Herjavec, Lori Greiner, Kevin O’Leary, Daymond John and Mark Cuban
PRESENTER: Andrew Fletcher, Chairman and CEO of FOOD NETWORK FOOTBALL, Inc.©
FLETCHER ENTERS THE TANK
FLETCHER: Hello, Sharks, my name is Andrew Fletcher. Allow me to introduce to you all CUTTHROAT KITCHEN, an online fantasy football franchise in the highly-competitive league known as Bobcats4Ever. We are a group of 12 Quinnipiac University alumni hoping to win the grand prize, a 70% share of the pot. With the entry fee going up to $40 starting this season, I am asking for $10 for a 5% stake in the franchise. Your investment will go a long way to building a perennial contender. I welcome your questions.
O’LEARY: You’re valuing yourself pretty high there – $200 to be exact. Do you have numbers to back up your claim?
FLETCHER: As a matter of fact, I do, Mr. Wonderful. Forbes and Sports Business Journal, two well-known business publications – as I’m sure you guys all know – ranked me fifth among the league’s 12 owners. While I know this is middle of the pack, you are also investing in my potential. I finished in 11th place during the 2013 season and parlayed those high draft picks into a fifth-place finish last year. I have a strong list of possible keepers and am excited to begin preparations for the 2015 season…
GREINER: …Let me stop you right there. I know nothing about sports, let alone fantasy football. Since this isn’t something I can sell on QVC, I won’t be of any help to you. I wish you luck, but for those reasons, I’m out.
FLETCHER: Thank you for your time, Lori. I appreciate it.
NARRATOR: One Shark is out. Four remain.
HERJAVEC: I’m not much of a football guy, but I am involved in several racing teams and do like to race every now and then. I like the thrill of competing, and quite frankly, I don’t think I would get that from fantasy football.
FLETCHER: That’s totally fair, and I respect your opinion. If you meet the guys I play against, you’d see how competitive the sport, and especially our league, could be.
HERJAVEC: I’m sure that’s true, but I don’t have any interest in meeting your friends or sitting behind a computer while watching football every Sunday. My time can be spent doing something more productive. For this reason, I’m out.
FLETCHER: Thank you, Robert. …I should say that earlier this year, I formed a holding company to manage my franchise’s finances. I made sure to cover all the bases. We are incorporated in Delaware under the name FOOD NETWORK FOOTBALL, Inc.© We were granted use of Scripps Networks’ trademarks for marketing purposes…
O’LEARY: I’ve got to be honest, I’m intrigued. You strike me as very bright…
FLETCHER: Thank you.
O’LEARY: …You obviously have a very good head on your shoulders…
JOHN: Would you stop blowing smoke already?
O’LEARY: …I just don’t know how valuable an asset I can be to your team, and what’s stopping me from starting “Mr. Wonderful’s Fantasy Football Team?” 5% is very, very small. I need something to wet my beak. Fifth place also doesn’t excite me. I only invest in winners.
FLETCHER: Completely understandable. First off, your team name can only be 20 characters (CUBAN laughs). I know you’re going to need a return on your investment, but as the general manager of the franchise, this is essentially a 24/7 job. I eat and breathe fantasy football from August through January. Fifth place doesn’t do it for me either, believe me.
O’LEARY: I’m going to make you an offer, take it or leave it, but it’s the only way I could do this. $10 for 51%. I need to make the investment worth my time. I like you, but I don’t like you for 5%.
FLETCHER: I’m sorry, Kevin. I can’t give up control of my team and severely undercut its value like that.
O’LEARY: Then you’re living in a fantasy world. I’m out.
NARRATOR: Three Sharks are out. Mark and Daymond have been quiet.
FLETCHER: Thank you, Kevin. Daymond, Mark, you guys have been awfully quiet.
CUBAN: We’re busy taking this all in. I can’t speak for Daymond, but I do see your potential. I think you can turn your club into a championship contender. 11th to fifth is a big jump in one season…
JOHN: …Yeah, but I’m with Kevin. I don’t like fifth place. I sure as hell don’t like 11th place. But tell me more about the holding company you’ve formed.
FLETCHER: I only started it a month ago. With our league’s entry fee going up and the prize pool increasing, I felt I needed a way to properly manage my finances and revenue.
JOHN: Do you sell anything? Ads, merchandise? Is anything proprietary at all?
FLETCHER: I do not. You are only investing in me as a GM.
JOHN: Well, with zero sales, I can’t possibly invest solely in potential. For that reason, I’m out.
FLETCHER: Well, thank you, Daymond.
O’LEARY: You’ve got one Shark left. Turn your attention back to Mark, who already said he likes your potential.
FLETCHER: Yes, right. Mark, I currently have Demaryius Thomas and Andrew Luck slated as keepers. If that’s not enough, I can replace one of those with Jamaal Charles, Jeremy Maclin or Julius Thomas. As a sports guy yourself, I can certainly use your input if you decide to come on board. And I hope you do.
CUBAN: That’s a great team you’ve built. How did you only finish in fifth place?
FLETCHER: Ha, that’s a great question. You see, we’ve broken the league into two divisions, the names of which are not appropriate for broadcast TV. Anyway, the division I was in was far and away the best, and we just beat up on each other all season. By the time the playoffs came, I was only 7-6 despite scoring the second most points in the league.
CUBAN: That’s tough. I bet someone in your league was calling for roto scoring?
FLETCHER: Yeah, there was one guy. But head-to-head is just so much more fun, you know?
CUBAN: Totally.
FLETCHER: Yeah, so that was tough to swallow, for sure. I know with just the right amount of luck and your backing, I can win this thing.
CUBAN: Why are you here? Why do you need the money?
FLETCHER: I feel like an investment from a Shark will take me to the next level. With your sports background, I know we’d make a great team. I just need that final push in the right direction.
CUBAN: Here’s what I’m going to do. Andrew, I like you…
FLETCHER: …I like you too, Mark…
CUBAN: …Ha. So, I’m going to offer you the $10 for 5% you’re asking for on one condition: You beat the hell out of all those guys.
FLETCHER: It’ll be a battle, Mark, but you’ve got yourself a deal!
CUBAN: Can’t wait to get started. Congratulations.
O’LEARY: Congratulations, guys.
GREINER: Good luck!
HERJAVEC: Go get ‘em.
FLETCHER: Thank you, everybody.
FLETCHER DEPARTS THE TANK
FLETCHER, to the camera: I just agreed to a deal with Mark Cuban! Wait until the guys in the league find out. Oh, they’re finished.