'Shark Tank': Mark Cuban dodges nasty Shark fight to invest $1M in company that feels like pickleball for golf
LOS ANGELES, CALIFORNIA: Tyler Simmons and Jen Simmons used BucketGolf to play a windy backyard version of golf in the second episode of Season 16 of ABC's 'Shark Tank'. For any picnic, vacation, or at-home activity, they offered consumers pop-up buckets, flags, bigger plastic balls, and golf clubs with giant heads so they could construct their own miniature golf course.
BucketGolf's adventure began informally in 2016 when Tyler was motivated to construct a handmade golf set as an additional pastime to enjoy with his family and friends over the summer holidays. 8 years later, he entered the Tank alongside his sister, wanting $1 million for 10%.
BucketGolf defends its $10M valuation in 'Shark Tank' Season 16
Daymond John, despite not being a huge golf enthusiast, embraced the BucketGolf concept. Lori Greiner recognized after playing a round that you don't need to be a good golfer to play this.
Kevin O'Leary, on the other hand, could not agree on the company's worth. The squad's first two years of BucketGolf were a hardship.
Shipping costs were a significant difficulty, since the size of the buckets and equipment required larger shipments, resulting in higher expenses. At the time, the buckets used in the game were constructed of stiff, flexible plastic that took up a lot of space. Tyler made $5,000 in the first three years of operation up to 2021. When Tyler saw a friend's foldable laundry bucket, he had an epiphany and decided to experiment with the same material for his golf buckets.
The outcome was revolutionary, as the now-compressible buckets required very little room, and the total cost of their product was almost halved, which fueled unprecedented expansion. And then in 2022, he did $2.5M in sales. In 2023, the firm made $5.9 in revenue, and this year they are on track to make over $12M. They are on pace to earn between 15% and 20%.
Their best-selling item is the 9-hole package, which retails for $199 and has a landing cost of $60. Their internet and Amazon sales account for 85% of what they do. BucketGolf has many knockoffs; however, they do have a design patent that is pending. The million dollars they seek from the Sharks are for inventory replenishment since they have yet to have a busy season without running out of some of their greatest goods. Tyler said that he needed the assistance of a Shark for operational purposes. The firm required assistance with logistics.
BucketGolf starts first Shark fight in 'Shark Tank' Season 16
Kevin feels that if BucketGolf is to become a $100 million industry, it must be done through distributors. If they tap into that channel, Kevin seems willing to contribute $1 million for a 25% stake.
Kevin feels he is due to cut because the distributor will take a portion. While Lori argues with Kevin, she is quickly silenced by Mr Wonderful, whom she discovered to be frisky on the October 25 episode. Daymond loved the deal and believed he could help BucketGolf expand internationally. He matched Kevin's offer since he, too, envisions the firm having a $150 million turnover.
Guest Shark Todd Graves simply didn't feel thrilled about the business, so he backed out. Lori, in the meantime, threw in a $1 million bid for 22.5%, undercutting the guys. Lori did, however, mention the necessity for preferred stocks. So when the company gives themselves distributions, they need to give her too.
Mark Cuban swoops in after Tyler's counter-offer in 'Shark Tank'
While there was a bidding battle going on among the three Sharks, Mark Cuban came in last after Tyler's $1M for a 12.5% counter-offer for a game that feels like pickleball for golf. He avoided the nasty Shark fight and ended up with a significant stake in the company.
Now we will have to watch how this plays out. Will it soar like a Spikeball? Only time will tell.
'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