BioSteel Goes From Bankruptcy To Huge Trouble
A notable hockey player from the NHL, Connor McDavid, is the face of BioSteel, the beverage that was founded in 2009 by Michael Cammalleri and John Celenza.
In spite of its massive expenditures, the sports drink company was known for raking in little revenue for its efforts, despite spending wildly. Over a three-month period, it will spend $15 million a month, while earning $24 million in revenue. This is clearly not the best way to conduct business.
It has recently been placed under creditor protection by the company's owner, as the company has amassed a $400 million dollar bill owed to various entities, and players all across North America.
NHL loses out $8.7M in this lawsuit of owed money
A number of athletes, sponsors, and marketing partnerships have helped the brand to grow over the years.
To date, the brand has spent a total of 68 million dollars on sales and marketing expenses, and another half of that amount has been spent on marketing and promotion initiatives.
The U.S. Soccer Federation is owed more than $675,000. Canadian sports broadcaster TSN is owed more than $100,000, while Rogers Media is owed more than $428,000.
The NBA teams that are owed monies by the brand include the Philadelphia 76ers, Brooklyn Nets, Miami Heat, and Los Angeles Lakers in the National Basketball Association. A huge sum of money is owed to the Carolina Hurricanes, as well as the NHL itself, in the NHL.
It is currently not known if any professional athletes are listed as creditors to the company, but the company's initial list of creditors so far is only preliminary..
| POLL | ||
SEPTEMBRE 22 | 38 ANSWERS BioSteel Goes From Bankruptcy To Huge Trouble Do you think BioSteel will stay in bankruptcy long? | ||
| Yes | 24 | 63.2 % |
| No | 14 | 36.8 % |
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