BioSteel Goes From Bankruptcy To Huge Trouble
PUBLICATION
Joshua
September 22, 2023 (2:24 PM)
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.
Court filings for BioSteel show the Canadian company owes more than $400 million to various entities in the U.S., Canada and Europe
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.
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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 corporate parent of the NHL's Carolina Hurricanes is on the hook for more than $95,000, along with the hockey league itself, which is owed more than $8.7 million. A separate filing shows BioSteel has a $12-million payment due on its NHL sponsorship next month — a payment the company has no intention of making.
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..
Ex-NHLer Mike Cammalleri, who co-founded the company, is listed as being owed $12,000. And the wife of former NHLer Brian McGrattan is owed more than $1,300.
Previously on HawksInsider
| POLL |
22 SEPTEMBRE | 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 % |
| LIST OF POLLS |
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