The Sports Authority and Global Sports Expand Relationship
The Sports Authority, Inc. (NYSE: TSA), the nation’s largest full-line sporting goods retailer, and Global Sports, Inc. (NASDAQ: GSPT), a leading developer and operator of e-commerce sporting goods businesses, today announced the enhancement and extension of their existing e-commerce agreement, as well as expansion of their relationship to catalogue and kiosk related services.
The agreement between The Sports Authority and Global Sports has been streamlined by replacing their previous joint venture with a simplified revenue sharing arrangement. The new 19-year agreement provides Global Sports with a structure more consistent with its business model, while providing The Sports Authority with a more meaningful economic participation based on revenues. In addition to covering end-to-end e-commerce services, the agreement also has been expanded to cover operational services by Global Sports in support of The Sports Authority’s multi-channel expansion into catalogues and in-store kiosks.
Marty Hanaka, Chairman and Chief Executive Officer of The Sports Authority stated, “Our alliance with Global Sports maximizes the strength of two leaders within their respective industries: The Sports Authority is the #1 brand in sports retailing and Global Sports is the leading sporting goods e-commerce provider. We are proud that in 1999 we had the vision to partner with Global Sports to become the leading sporting goods e-tailer. We have generated positive returns for our shareholders without using our own capital and under our new agreement expect an enhanced revenue stream going forward.”
“In line with our strategy to become a true multi-channel leader, we have expanded our relationship to also cover catalogue and interactive kiosk operational support. We are committed to service our customers with any product, any time and any way they choose to shop” concluded Hanaka.
Michael Rubin, Chairman and CEO of Global Sports stated “We are excited about this expanded relationship with the nation’s leading full-line sporting goods retailer. I am particularly pleased with the enhancements in our relationship evidenced by a longer term, more extensive promotional commitments from The Sports Authority and the incremental volume that the addition of catalogues and kiosks can bring. Lastly, we view the expansion of our relationship with The Sports Authority as a validation of our business model and the clear win-win proposition that it represents to our partners.”
The Sports Authority plans to launch its first catalogue in the fourth quarter of 2001 and will handle designing, printing and mailing of the catalogue, while Global Sports will handle all operational support including fulfillment, customer service and order processing. The catalogue will also include significant promotion of the e-commerce business intended to drive incremental online revenues. Interactive kiosks will be tested in five stores.
About The Sports Authority
The Sports Authority, Inc. is the nation’s largest full-line sporting goods retailer operating 198 stores in 32 states.
About Global Sports
Global Sports, Inc. is a leading developer and operator of e-commerce sporting goods businesses.
Forward-Looking Statements
All statements made in this release, other than statements of historical fact, are forward-looking statements. The words “anticipate”, “believe”, “estimate”, “expect”, “intend”, “will”, “plans” and similar expressions typically are used to identify forward-looking statements. Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business of The Sports Authority and Global Sports and the industry and markets in which they operate. Those statements are not guarantees of future performance and involve risks, uncertainties and assumptions which will be difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied by those forward-looking statements. Factors which may affect The Sports Authority’s and Global Sports’ business, financial condition and operating results include the effects of changes in the economy, the stock market and the sporting goods industry generally, changes affecting the Internet and e-commerce, the ability of the companies to maintain relationships with strategic partners and suppliers, the ability of the companies to timely and successfully develop, maintain and protect their technology and product and service offerings and execute operationally, the ability of the companies to attract and retain qualified personnel and the ability of Global Sports to successfully integrate its recent acquisition of Fogdog, Inc. More information about potential factors that could affect The Sports Authority and Global Sports can be found in their most recent Form 10-K and Form 10-Q and other reports and statements filed with the Securities and Exchange Commission. The Sports Authority and Global Sports expressly disclaim any intent or obligation to update those forward-looking statements except as otherwise specifically stated by The Sports Authority and Global Sports.
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Contact:
The Sports Authority Contact:
George Mihalko
Executive Vice President & Chief Financial Officer
(954) 677-6360
george_mihalko@sportsauthority.com
Global Sports Contact:
Jordan Copland
Executive Vice President & Chief Financial Officer
(610) 491-7000
coplandj@globalsports.com
