The NHL and McDavid lose a huge sponsor to bankruptcy
It was announced in 2022 that the NHL would partner with the beverage BioSteel for a multi-year agreement.
Nevertheless, the company recently filed for bankruptcy, so it seems the deal won't last.
In addition, their partnership with NHL star Connor McDavid is believed to have recently expired, so he no longer has any ties to the company.
Other notable NHLers who have deals with the company include Connor Bedard, Nathan MacKinnon, and John Tavares.
BioSteel was founded in 2009 by entrepreneur John Celenza and ex-NHLer Mike Cammalleri, eventually taken over by Canopy Growth in 2019, who have ceased funding to the business because it «continued to generate negative cash flow.»
The company burns through about $15 million every month � according to the CBC, they've spent $90 million this year on sales alone to pull in only $24 million of revenue in the first 3 months of 2023. Other expenses topped another $114 million.
BioSteeel has yet to pay the NHL for its most recent partnership payment due Sept 1, and is now trying to find a new buyer to take the business over.
As a result of the bankruptcy, the NHL will be light on revenue and so too will Connor McDavid, whose sponsorship with the company has expired.
Ex-NHL player Mike Cammalleri and entrepreneur John Celenza founded the company in 2009. They burn through $15 million every month, according to CBC, indicating that their best practices aren't really that great.
For just achieving $24 Million in revenue in just three months, it was a massive business expense.
The brand has yet to pay the NHL's partnership payment on September 1st, despite other costs reaching $114 Million for the business.
In spite of the fact that McDavid signed his endorsement deal with the drink at age 17, there's no doubt he's been able to cash in, as well as create customers for the brand, but how they've handled this deal is completely inexplicable.
| POLL | ||
SEPTEMBRE 15 | 54 ANSWERS The NHL and McDavid lose a huge sponsor to bankruptcy Do you think that the BioSteel owners will make it out of bankruptcy? | ||
| Yes | 11 | 20.4 % |
| No | 43 | 79.6 % |
| List of polls | ||
