Ravenous Shark Kevin O'Leary loses massive royalty deal as he's outplayed by Guest Shark
LOS ANGELES, CALIFORNIA: From the outside, skiing seems like a fun and exciting activity enjoyed by thousands around the globe. However, experienced skiers know that traditional ski poles come with a variety of functional and design shortcomings. By bringing Yardsale ski poles to the world, two ski aficionados, Kelly McGee and Cristina Ashbaugh, tackle these issues head-on.
The two co-founders took the stage on the third episode of ABC's 'Shark Tank' Season 16 to showcase their ground-breaking ski poles to a panel of experienced investors in hopes of securing a deal to elevate their brand. The co-founders walked into the Tank seeking $200K for 10%. Kevin O'Leary and Kendra Scott, the guest shark, expressed interest in the company, particularly once the creators disclosed that they earn a 75% profit on their goods. According to Lori Greiner, the business required an investor who would be enthusiastic about skiing because she had no interest in the sport. As a result, she decided against making an offer. Lori found that the moniker 'Yardsale' was unappealing, associating it with a disaster waiting to happen. In contrast, Daymond John defended the name, though he ultimately chose not to make an offer.
'Shark Tank' investor Kevin O'Leary wants a bigger bite off Yardsale
Kendra was skeptical about the company being valued at $2 million, given that it was only six months old at the time of filming. In response, Kelly asserted that their profit margins would enable the business to grow rapidly. The co-founders recognized that not all Sharks would be interested in their offer, and they were partially correct, as no celebrity investor showed interest in their initial proposal. Kelly and Cristina had a counteroffer ready for the Sharks, which they expected to pique Kevin's interest if not anybody else.
Kelly and Cristina offered 5% royalty on their offer, which Kevin found too little, too less. Their counteroffer of $200,000 for an 8% equity stake, along with $5 per unit sold until they recouped $300,000, failed to impress Kevin. Kevin stated that he doesn’t make deals just to recoup his investment; he aims to multiply it. He is essentially seeking something substantial. Later, he took to X to express, "First time anyone’s come into the Tank offering me a royalty! Now we’re talking, but 5% isn’t enough. I want 20% and a piece of the distribution pie."
First time anyone’s come into the Tank offering me a royalty! Now we’re talking, but 5% isn’t enough. I want 20% and a piece of the distribution pie. #SharkTank #MrWonderful #RoyaltyKing
— Kevin O'Leary aka Mr. Wonderful (@kevinolearytv) November 2, 2024
Guest Shark Kendra Scott scoops in a last-minute deal
When Kelly and Cristina noticed Kevin was backing away from the deal, the co-founders turned to Kendra. Kendra did not appear to be interested in the 8% stake, as she disputed their offer by requesting a whopping 10% ownership in the firm. Kelly aimed to leverage the royalty repayment, set at $5 per item until $250,000 was recouped. Yardsale ultimately reached an agreement after much negotiating.
Yardsale launched new products ever since Kendra Scott's investment in 'Shark Tank' Season 16
The P1 Poles won the Core77 Design Award in June 2024, only a year after Yardsale was founded. The Yardsale ski poles were also made available by the creators in January 2024 at the Bluebird store located in Big Sky Town Center in Big Sky, Montana.
Yardsale has also been featured in Forbes and Harper Bazaar, making a significant effect in a short time. Together with Halfdays, they introduced limited-edition pink P1 ski poles at the beginning of 2024.
P2 and Mini P1 poles were only recently introduced by Yardsale as part of their FW 24 Collection in October 2024. As they strive to create more inventive items for skiers worldwide, the co-founders hope that 'Shark Tank' will help them reach a larger audience.
'Shark Tank' Season 16 airs on Fridays on ABC at 8 PM ET.
For those who miss the episode, it will be available on demand the following day and on Hulu. Additionally, viewers can explore past seasons and episodes on Amazon Prime Video and iTunes.
