WebMD, Global Sports, Inc. and the Sports Authority Partner to Build Comprehensive Sports Medicine and Fitness E-Commerce Channel
WebMD, Inc., a leading provider of healthcare information on the Internet, and Global Sports, Inc., (NASDAQ: GSPT) an e-Tail company that operates the Internet businesses of leading sporting goods retailers, under exclusive long-term agreements, including The Sports Authority (NYSE:TSA), today announced an exclusive partnership to create a comprehensive sports medicine and fitness e-commerce channel. The agreement will uniquely leverage WebMD’s relevant content and community and recently announced joint-venture with HEALTHSOUTH Corporation (NYSE: HRC) with Global Sports’ e-commerce sporting goods infrastructure and The Sports Authority’s more than 200 retail locations and extensive line of fitness and sporting goods products to create a new e-commerce offering. As previously announced, WebMD and Healtheon (NASDAQ: HLTH) agreed in May to merge to form Healtheon/WebMD.
Global Sports and TheSportsAuthority.com will build the health and fitness e-commerce store at WebMD, including a customized user interface, buying, warehousing, shipping and billing. WebMD has committed extensive promotional resources to specifically drive traffic to the new commerce channel, including leveraging its strategic relationships with MSN, Lycos, Excite, Readers Digest and CNN. Global Sports, through its TheSportsAuthority.com strategic alliance, will record 100% of the value of all transactions on the WebMD the health and fitness e-commerce store, and WebMD will receive a revenue share payment on all product sales. In exchange for pre-paid commission, WebMD has agreed to acquire 250,000 shares of Global Sports stock at the current market price, representing an approximate 1% ownership in the company.
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Creating New Sports Medicine and Fitness E-Commerce Channel
As previously announced, WebMD and HEALTHSOUTH have committed $50 million to promote and distribute this new sports medicine and fitness channel. This marketing investment will now also be leveraged to promote the new commerce element of the channel.
This partnership will fully integrate the largest full-line sporting goods retailer, sports medicine and fitness content, WebMD’s online and offline distribution and Global Sports’ e-commerce expertise - creating a new sports medicine and fitness e-commerce channel for consumers.
By partnering with The Sports Authority, Global Sports and through the recent relationship with HEALTHSOUTH, WebMD will create a comprehensive sports medicine and fitness channel, encompassing extensive content, affinity communities and e-commerce.
In connection with WebMD’s ongoing commitment to create loyalty programs for its users, the company has agreed to purchase at least $1 million of merchandise from Global Sports, Inc. over the next 18 months.
“This long-term alliance with Global Sports and The Sports Authority further demonstrates WebMD’s commitment to provide consumers a complete end-to-end, full-circle solution for their healthcare and fitness needs. We are creating an entirely new approach of contextual commerce by linking relevant information with the resources and reach of traditional retailers,” said Jeff Arnold, chairman and chief executive officer of WebMD, Inc.
“Our relationship with WebMD represents an important new partnership for Global Sports and TheSportsAuthority.com - one that distributes our ‘Common Engine’ sporting goods e-Tail platform to consumers as they research and enjoy sports medicine and fitness information at one of the leading content destinations on the Internet. Leveraging the meaningful assets of The Sports Authority will also significantly enhance this new agreement,” said Michael Rubin, chairman and chief executive officer of Global Sports, Inc.
“WebMD is the ideal partner to enhance our customers’ shopping experiences by integrating relevant information on TheSportsAuthority.com and in our stores via signage and radio broadcasts. Our partnership with WebMD not only will better educate our consumers but significantly extends our brand and reach on-line while enhancing shareholder value by driving growth for our e-commerce strategic alliance,” said The Sports Authority’s Chief Executive Officer Marty Hanaka.
Providing Trusted, Third-Party Information from ASMI
In addition to the sports medicine and fitness content and community that WebMD provides to consumers and physicians, the American Sports Medicine Institute (ASMI) will be providing trusted, third-party information on The Sports Authority’s product line to empower consumers to make the most informed buying decision.
Dr. James Andrews, chairman of the ASMI, said, “We will use the extensive reach of this new channel to equip the public to make informed sporting goods purchases. Working with WebMD and HEALTHSOUTH, we want to help consumers feel confident in making their online buying decisions at WebMD and TheSportsAuthority.com.”
Offering $10 Gift Certificates at 2000 HEALTHSOUTH Facilities
Bringing these companies together will change the way consumers address their sports medicine and fitness needs. A national Healthier Holidays promotion will be rolled out this November including the distribution by the TheSportsAuthority.com of a co-branded $10 gift certificate for an online purchase of fitness merchandise to the 100,000 HEALTHSOUTH patients seen each day at the nearly 2,000 HEALTHSOUTH facilities.
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Richard M. Scrushy, chairman and chief executive officer, HEALTHSOUTH, said, “Healthier Holidays will be a medium in which to convey to the public the benefits of staying healthy - through nutrition, stress relief, exercise- during the holidays. We look forward to helping consumers and the millions of children we see through our Go For IT roadshow learn how to stay healthy during the holidays and to purchase online, simply and conveniently, what they need to achieve that goal.”
The Healthier Holidays campaign and, on an ongoing basis, the new health and fitness channel will be promoted in more than 200 The Sports Authority stores and through the extensive WebMD network.
The consumer-focused promotion campaign will include:
7 in-store signage and radio advertisements,
7 online banner advertisements,
7 online marketing and promotional efforts conducted through WebMD’s portal co-brands, including MSN, Excite, and Lycos,
7 WebMD health & fitness tips and content in numerous The Sports Authority circulars distributed via newspapers which each have a circulation of 20 million nationwide,
7 an Ask WebMD column in every employee newsletter.
About WebMD
Atlanta-based WebMD, which is privately held and was founded in 1998, offers a comprehensive suite of Internet-based services and information for physicians as well as healthcare information services and online communities for consumers. WebMD can be reached through its Web site at http://www.WebMD.com. As previously announced, WebMD and Healtheon (NASDAQ: HLTH) agreed in May to merge to form Healtheon/WebMD.
About Global Sports, Inc.
Global Sports, Inc. (http://www.GS-Interactive.com), is an e-Tail company that operates the Internet businesses of leading sporting goods retailers under long-term exclusive agreements, including The Sports Authority, The Athlete’s Foot, Sport Chalet, MC Sports and Sports and Recreation. On July 26, 1999 SOFTBANK Capital Partners LP invested $80 million into Global Sports, Inc. Global Sports, Inc. shares are included in the Russell 2000 index.
About The Sports Authority
Founded in November 1987 in Fort Lauderdale, Florida, The Sports Authority is a full-line sporting goods superstore featuring an extensive selection of name brand sporting goods equipment, activewear, and footwear for all sporting goods customers. The company operates 200 stores in the U.S. and Canada. Mega Sports Co., Inc. operates another 13 stores in Japan under a license agreement with the company.
About HEALTHSOUTH
HEALTHSOUTH, (www.HEALTHSOUTH.com), the largest healthcare company geographically in the United States, is also the nation’s largest provider of outpatient surgery and rehabilitative and diagnostic healthcare services, with nearly 2,000 locations in all 50 states, the United Kingdom, Australia and Puerto Rico. HEALTHSOUTH provides sports medicine for the PGA, Senior PGA, LPGA, PBR, over 2,000 high schools, 125 colleges, and 50 professional sports teams.
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About Healtheon
Healtheon (NASDAQ: HLTH), founded in 1996 and based in Santa Clara, CA is a pioneer in providing Internet-based, business-to-business and consumer-to-business electronic commerce services that link doctors and consumers with healthcare institutions, enabling them to efficiently and conveniently manage their business and personal healthcare needs. Healtheon’s services simplify the business and clinical processes of healthcare, provide more timely access to information, provide faster and more convenient service and lead to high quality, more affordable care. The company recently announced definitive agreements to acquire MedE America Corp. and merge with WebMD, Inc. Healtheon can be reached through its Website at http;//www.healtheon.com
Statements concerning HEALTHSOUTH contained in this press release, which are not historical facts are forward-looking statements. In addition, HEALTHSOUTH, through its senior management, may from time to time make forward-looking public statements concerning the matters described herein. Such forward-looking statements are necessarily estimates reflecting the best judgment of HEALTHSOUTH’s senior management based on current information, involve a number of risks and uncertainties and are made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. HEALTHSOUTH’s actual results may differ materially from the results anticipated in these forward-looking statements as a result of a variety of factors, including those identified in this press release and in the public filings made by HEALTHSOUTH with the Securities and Exchange Commission, including HEALTHSOUTH’s Annual Report on Form 10-K for the year ended December 31, 1998 and its Quarterly Reports on Form 10-Q, and forward-looking statements of HEALTHSOUTH or its senior management should be considered in light of those factors. There can be no assurance that such factors or other factors will not affect the accuracy of such forward-looking statements.
Contact:
WebMDContact:
Dave Faupel
Alexander Ogilvy Public Relations
404-897-2300, ext. 339
dfaupel@alexanderogilvy.com
Global Sports/TheSportsAuthority.com Contact:
Michael R. Conn
Senior Vice President Strategic Development
610-768-0900
connm@globalsportsinc.com
