B
DA Sports has formed a partnership with
Crunch Fitness Franchise, and some of its star athlete clients, including Bulls center
Joakim Noah, are investing in Crunch Fitness gyms across the country.
“It’s an investment alignment,” said BDA Sports founder and CEO Bill Duffy. “Crunch is a franchise, and the guys have the ability to invest in the franchise.”
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Joakim Noah hopes a Crunch Fitness investment will pump up his post-baskeball cash flow.
Photo by: NBAE / GETTY IMAGES
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In addition to Noah, Golden State Warriors guard/forward
Klay Thompson, Minnesota Timberwolves forward
Chase Budinger and Sacramento Kings guard
Darren Collison have invested in the franchises. BDA client and Phoenix Suns guard
Goran Dragic is talking to Crunch about opening fitness franchises in his native country of Serbia, Duffy said.
The deal is exclusive to both parties, Duffy said.
“A lot of athletes find their way into a franchise on their own, but this provides this structure for them,” said Ben Midgley, co-founder and CEO of Crunch Fitness Franchise. Athletes investing in franchises isn’t new, but Midgley said he thinks it is the first arrangement of its kind between a franchise company and a sports agency.
“Obviously, we love the association with the professional athletes,” he said.
The deals are not endorsements, but allow the players to take an ownership stake — from a small to a majority stake — in a Crunch Fitness center. Currently, 400 franchises have been sold and about 90 are operating.
Like any business, investing in a franchise comes with risk, but Duffy said he’s trying to provide his clients with a way to create a stream of income for when their playing days are done. “At the end of the day, I want them to have a great career and I want them to be set up for the future,” he said.
BDA does not represent players for financial work, and the deals are approved by their independent financial planners and/or business managers, Duffy said.
> EXCEL SIGNS NBA PLAYERS: Excel Sports Management has signed Detroit Pistons center Andre Drummond and Phoenix Suns point guard Isaiah Thomas for representation.
At Excel, Drummond will be represented by company founder and President Jeff Schwartz and Thomas will be represented by agent Sam Goldfeder.
Drummond was formerly represented by Landmark Sports Agency. Thomas was formerly represented by ASM Sports.
> OCTAGON SIGNS DRAFT CLASS: Octagon, which hired former NFL players Jeremy Newberry, John Thornton and Charles Fisher to restart its football division last year, has signed several players for the draft, including West Virginia wide receiver Mario Alford.
Octagon also signed Maryland defensive tackle Darius Kilgo, Colorado State defensive back Bernard Blake, Nevada defensive end Brock Hekking, San Diego State offensive lineman Terry Poole and North Dakota State defensive end Kyle Emanuel.
Octagon agents Ken Landphere, Mike Swenson, Newberry and Thornton will represent the players. As reported last July, Octagon hired the former NFL players, as well as Swenson, a young agent who was certified by the NFL Players Association in 2012, to replenish the division after other agents left.
Liz Mullen can be reached at lmullen@sportsbusinessjournal.com. Follow her on Twitter @SBJLizMullen.
