Fantasy football trophies are such a niche business that it might not sound like the next big thing, but for the founders of TrophySmack, i.e. Matt Walsh and Dax Holt, it became a million-dollar idea. They did not just pitch a product, but a vision on Shark Tank, and it impressed Mark Cuban.
The company sold victory, bling, and bragging rights in the form of custom-designed trophies rings, and belts. What followed on the show was a tense negotiation that left one Shark out in the cold, and the founders with a deal they couldn’t refuse.
Mark Cuban’s $600k ultimatum on Shark Tank
When Matt Walsh and Dax Holt entered Shark Tank in season 12, episode 10, they came prepared. The founders brought their A-game to the pitch and also gifted each shark a custom-designed trophy, which instantly earned them some goodwill. They wanted $600, 000 for 8% equity in TrophySmack, and Mark Cuban had a no-nonsense approach to the deal.
So guys, I like what you’re doing, I like the fact that you’re hustlers right, and you’re looking to touch all the pieces and you’re just following the money, the question is 8 percent isn’t enough. I will make you an offer, I will offer you the 600,000 dollars but I want 17 percent, and it’s either a yes or no.
Before Cuban, Kevin O’Leary also made an offer of $600,000 for 25% of the business. But it seemed like the founders did not feel like this was a profitable deal, and waited for other Sharks to put forth a great deal, and they were right to do so!
TrophySmack ditched Lori Greiner’s offer for Mark Cuban
TrophySmack seemed to want someone who was already associated with sports, so there was no one better than Mark Cuban, who is already linked to the National Basketball Association. Lori Greiner was also interested in the company, she said, “I am going to make you an offer.”
Before she could continue, Cuban declared, “There you go, then I am out.” Greiner continued with her sentence, “I will tell you my offer,” and she repeated it several times but before she could state her numbers, founder Matt Walsh interrupted her, saying, “Let’s take a deal,” implying that he wants to take Cuban’s offer. As per reports in 2023, the revenue of the company had climbed to an impressive $1.9 million, with an 80% profit margin (via Shark Tank Recap).
So even though this whole ordeal was unfair to Greiner, saying yes to Cuban made the company thrive. With his backing, they expanded beyond fantasy football, offering customized trophies for other sports and corporate events. So, the Shark’s ultimatum might have been harsh, but it is exactly what TrophySmack needed to take their business to the next level, and the founders’ gamble paid off in spades.
You can watch Shark Tank on Hulu.
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