The NFL concussion crisis has "hit the league's helmet makers where it hurts: in the wallet," according to Josh Kosman of the N.Y. POST. Sources said that Riddell has been "struggling without success to sell itself in recent months despite its market dominance." The same goes for No. 2 Schutt Sports, which "recently cancelled an auction of the company that makes helmets for NFL stars" like Panthers QB Cam Newton and Falcons WR Julio Jones. One "big obstacle" is former NFLer Leonard Marshall, who is "leading a class-action lawsuit on behalf of 4,500 former NFL players against Riddell." Marshall said that he "got a call in July from possible suitors" interested in purchasing Riddell, who "offered him cash and an equity stake in the company in exchange for dropping his suit." Marshall: "I am not going to drop my lawsuit because I am a part of a much bigger picture." Sources said that the legal battle is a "major cloud hanging over the helmet makers' future." The federal case against Riddell in Philadelphia is "ongoing, and plaintiffs are angling to move it to California in search of a bigger [judgment]." Kosman reports discovery in the suit is "expected to begin next year." Private equity firm Fenway Partners bought Riddell in '04, and "now owns Riddell through BRG, which in recent years has sold off most of its other assets including Easton-Bell helmets." Meanwhile, sources said that Platinum Equity-owned Schutt has been "for sale through the Park Lane investment bank," seeking about $40M. But Schutt "cancelled the auction a few months ago after Riddell countersued it in a dispute over patent infringement." Riddell is the "biggest football equipment maker" with about $200M in sales, and Schutt is second with $55M (N.Y. POST, 12/11).
