Atlanta-based Bull Run Corp. "has struck an investment agreement that could lead to" a 20% stake in MO-based sporting goods company Rawlings, according to Al Stamborski of the ST. LOUIS POST-DISPATCH. Bull Run will pay $2.84M for 926,000 Rawlings warrants, or $3.07 each. Each warrant will allow Bull Run to buy a share of Rawlings' common stock for $12. But the stock will have to "close at or above $16.50 for 20 consecutive trading days." In addition, Rawlings signed a five-year marketing agreement with Bull Run-subsidiary Host Communications. Stamborksi adds that Host Communications "will help Rawlings sell sporting goods through corporate promotions and at amateur athletic contests" like Hoop-It-Up. Rawlings CFO Paul Martin said that sales through such promotions "could have a fairly sizeable effect two or three years from now," much like a previous Rawlings promo with Pizza Hut on a basketball giveaway (POST-DISPATCH, 11/25). Rawlings gained 11/16 yesterday to close at $11 (WALL STREET JOURNAL, 11/25).
CNN's Lou Dobbs reported that Nike fell yesterday 2 1/8 to 48 3/4. Dobbs added that Donaldson, Lufkin and Jenrette trimmed Nike's earning estimates, expecting international sales to fall rapidly" ("Moneyline," CNN, 11/24)....PCH Investments, owners of L.A. Gear, said that the CA-based company "will default" on a November 30 payment "on certain notes, and added that it hasn't paid cash dividends on its preferred stock." The stock closed down $0.0625 to $0.625 (WALL STREET JOURNAL, 11/25). CNBC's Terry Keenan: "Another sign ... that L.A. Gear may be in a lot of financial difficulty. The retailer of athletic footwear says that it has, quote, insufficient resources, to pay interest on some of its outstanding debt" ("Market Wrap," CNBC, 11/24).