What a position I had put myself in! I had agreed to join "Sports Newco" but had just told my boss that I was committed to my present job. Now I had to tell him that I was, in fact, leaving...after spending considerable time and effort convincing him of my loyalty. The apprehension was worse than the reality, though. My boss was disappointed but understanding and, much to my astonishment, supportive. Having recently uprooted his family to take the position of CEO at Child World, he understood the dynamic of having to "go for the brass ring." Gil's only request was that I stay for 3 to 4 weeks to help through the annual budgeting process and bow out of the management incentive trip to Key West. Done and done!
Meanwhile, there was work to be done for Sports Newco. First and foremost was the task of coming up with a name for the Company. There were many names floated...."Jack's" (it is obvious who that one came from), "Balls" "SportCity" and "AllSport" were all being considered. It was obvious to me that we needed help in naming the Company, so I contacted an Advertising Agency that specialized in Retail...W.B.Doner...out of Detroti, MI. I had positive experiences working with Doner at two other Companies. It didn't hurt any that one of my mentors from early in my career was Senior Vice President in charge of the Florida office! Ann Bergstrom had been VP of Advertising at Richway Stores and had taught me the ins and outs of retail advertising. So, I put them on the task of naming the Company.
A meeting was scheduled at Doner's offices. As Jack and I were still working out our notices, we flew in from multiple locations. Present at the meeting were me and Jack as well as representatives from the Investment group....Jory from Maurice Sporting Goods, Scott from Blair, Adam Kirsch from Bain Capital and Chip Ruth from Marquette. The night before the meeting, Ann and I talked and she informed me that they had not come up with a better name than "AllSport" and were going to make a presentation to us utilizing that name. However, Ann greeted our long white limo as it pulled up to the front of Doner's headquarters, hugged me and whispered in my ear "Forget our conversation of last night...surprise name coming!" Later, I was berated by Jack for daring to hug Ann...I was never sure if he really thought this was such an "unprofessional" act or if he was bothered by the impression that my relationship with the agency would preclude him from some measure of control.
As we entered the conference room, I noticed presentation books laid out at each seat...the title was "AllSport." Once the meeting started, it was explained that the creative group had worked on the name for some time but had not come up with a name other than the one that I had originally suggested..."AllSport." However, on a trip to New York the previous day, one of the members of the creative team had seen a sign at the airport...."New York Port Authority" and the name "The Sports Authority" immediately came to mind. No sooner did the words get out of the presenter's mouth that Jack slapped the table and declared, "Absolutely NOT...over my dead body will we have a name with that many letters." I, along with the others present, were stunned. The name said it all...it was a strong statement of what the store actually stood for. As we polled the room, all except Jack liked the name....he accused me of liking it only because "you hired these guys." He discounted any other opinions because "you are not retailers...you don't understand the cost of making the signs for the store with that many letters!" The discussion went on for several hours....Jack began to wear down and he had come to a realization that the rest of the room was not going to back down. So, he asked for a compromise...let's name the Company "AllSport" and have as it's tagline..."The Sports Authority." More discussion led to a tentative name of "The Sports Authority." It only became permanent after Jack tried it out on some other associates and friends of his and they all endorsed the name!
Jack and I met several times over the next few weeks...mainly as a two man team visiting key suppliers to tell them of our plans and to garner support for what, at the time, was such a radical departure from traditional Sporting Goods Retailing. We had developed a presentation whereby we laid out our plans...Huge Assortments, Everyday "Fair" Pricing, and Superior Customer Service in a MegaStore environment. Frankly, the idea of a large Sporting Goods store frightened many of the suppliers. We had to assure them that we would never lead the market down in price and would treat their merchandise with the respect that it (they believed) such richly deserved. In reality, they were scared that their present customers... Herman's, Oshman's and Foot Locker... would not be please that they had added The Sports Authority to the roster! We garnered assurances from Reebok, Adidas, New Balance, Wilson and many others during our road trip. But we made a terrible mistake....we didn't travel to Nike in Oregon....Nike had just begun to grow and it seemed on the surface that they would not be a problem. Oh, but we were wrong!!!
We had my daughter's Bat Mitzvah in Massachusetts the first week of June, 1987. Having sold the house, Connie and I bought a new one in Boca Raton over Memorial Day weekend and I set out for Florida the week after the Bat Mitzvah....the family was left behind to pack up and join me the first week in July. Arriving the first day at our temporary office ...an old Radio Shack storefront in the nearly defunct Lauderdale Lakes Mall...I found a skeleton crew consisting of the CFO, Chet Howard; the VP of Store construction, Dick Carter; and Kelly Conway, the IT manager. Jack would show up later in the week.
Having signed an employment agreement, I was required to purchase my founder's stock and promptly wrote a check for $21,428....which for me at the time, was a huge amount of money. I later found out that Jack was not required to invest any of his own money in the deal....his ownership participation was handled as a "loan" from the Company. My naivete and general lack of experience in these sort of deals caused me to invest my capital and yet receive significantly less stock than others that invested zero of their own capital! Live and learn!
Coming in part 5.....hiring the staff, laying out the store, buying the merchandise, and getting the store open!
And The Journey continues............................
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