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Marketing and Sponsorship

WWE, ABG To Reposition Tapout Brand As Part Of 50/50 Joint Venture

WWE and Authentic Brands Group have entered into a 50/50 joint venture for the Tapout brand, which the two companies are repositioning as a fitness lifestyle brand. Tapout, whose roots are in MMA, now becomes the official fitness and training partner of WWE, and WWE talent will be provided with Tapout brand apparel for training purposes. WWE will promote the brand on its cable broadcasts, PPV productions, at live events and via digital platforms including the WWE Network. The announcement coincides with the build up to Sunday's WrestleMania 31 at Levi's Stadium. ABG, which owns more than 20 brands including Spyder skiwear and Prince tennis, purchased Tapout in ’10. While Tapout had previously targeted the MMA community, ABG and WWE are pivoting the brand into a more mainstream fitness brand that will compete with Nike, Under Armour and adidas in the “athleisure” and “hard-body fitness” spaces. ABG President & CMO Nick Woodhouse said, “The point of difference will be that we will be directly talking to the WWE Superstars, and they’ll be involved with the design to make sure it meets their needs.” The Tapout product line, which is slated for retail in spring of ’16, will include athletic apparel, as well as performance eyewear, socks, headwear, bags and accessories. Distribution discussions are ongoing, but mid-tier retailers are being targeted. Product will also be available online. Woodhouse said that with the exception of some “heritage pieces,” the new Tapout gear will not feature the bold, brash logos and designs of its previous incarnation. Instead, it will be “more tastefully done.” Woodhouse: “The consumer of Tapout should be comfortable running Central Park with this, going to a CrossFit workout, doing squats at home or just going to the gym, for that matter, or wearing it casually.” Rebranded Tapout supplements and beverages will be available later this year, and Tapout fitness centers will begin operations this year.

WORKING APPAREL INTO CONTENT: Both Woodhouse and WWE Chief Revenue & Marketing Officer Michelle Wilson touted plans to integrate the Tapout brand into WWE content. Wilson said, “Our athletes will all be provided Tapout gear -- both our main roster and the talent that you see at our Developmental Center, our performance center in Orlando. Whether it’s on-air, television, at our pay-per-views, we will create custom video content.” Wilson cited five-minute workout videos featuring WWE talent and Tapout branding as one example of the content that will drive the partnership. While Tapout previously maintained a roster of MMA endorsers, Woodhouse said that those deals have all expired and have not been renewed. Instead, the brand will focus immediately on using WWE Superstars and Divas to promote the product and sign a wider-ranging stable of athletes within the next year. Woodhouse said that the brand’s decision to shift its focus from MMA was unrelated to the exclusive apparel deal the UFC signed with Reebok that goes into effect in July.

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