All-Star Confused About Merger

[Deleted member 11300]

Ok, so Varsity and Cheersport merged if I understand correctly. And I hear several are very upset about this because they feel we are one step closer to a monopoly. Am I doing ok so far? I'm asking this because I try to stay out of the politics and try to concentrate on my CP and her happiness. Anyway, if the aforementioned is true....what is the difference between this and gyms opening all these satellite gyms? How many do they get to have before its considered a monopoly? Before long, these big gyms are going to eat up the little gyms and we will only have 15 or 20 big gyms. Isn't it the same thing? Not trying to start any trouble, just would like to know your thoughts.

 

[CEAisstronger]

Why did you start a new thread?

 

[ACEDAD]

Ok, so Varsity and Cheersport merged if I understand correctly. And I hear several are very upset about this because they feel we are one step closer to a monopoly. Am I doing ok so far? I'm asking this because I try to stay out of the politics and try to concentrate on my CP and her happiness. Anyway, if the aforementioned is true....what is the difference between this and gyms opening all these satellite gyms? How many do they get to have before its considered a monopoly? Before long, these big gyms are going to eat up the little gyms and we will only have 15 or 20 big gyms. Isn't it the same thing? Not trying to start any trouble, just would like to know your thoughts.

There are a lot more gyms than there are event producers. Especially event producers at the size of Varsity, Cheersport & Jamfest.

 

[Deleted member 11300]

Why did you start a new thread?

I'm sorry. Has this been discussed already?

 

[Deleted member 11300]

There are a lot more gyms than there are event producers. Especially event producers at the size of Varsity, Cheersport & Jamfest.

Ok. Understood. But I assume there use to be more EPs in the past. Now they are merging. Kind of like AT&T eating up all the phone companies in the past (showing my age :)). What's to say hypothetically speaking, a gym could open 10, 15 or 20 gyms. Isn't that a monopoly?

 

[ACEDAD]

Ok. Understood. But I assume there use to be more EPs in the past. Now they are merging. Kind of like AT&T eating up all the phone companies in the past (showing my age :)). What's to say hypothetically speaking, a gym could open 10, 15 or 20 gyms. Isn't that a monopoly?

There's not a true monopoly one either side right now, but Varsity is close; primarily because of their overwhelming positions on the USASF board. The Cheersport acquisition pretty much completes that.

And number of locations for a gym doesn't constitute a monopoly, at least at the national level.

 

[12stepCheermom]

I can see the monopoly argument brewing for the EP's, but not for the gyms. Cali has multiple gyms around the west coast, ACE has multiple gyms in the South, CEA has multiple gyms on the East Coast....its not like there aren't other gyms in those areas as well. Lots of them actually.

I guess I don't get the mentality that as soon as a "mega gym" opens in an area that automatically means every cheerleader in a 50 mile radius will suddenly proceed, in zombie like fashion, through their front doors and all other gyms will fail. That doesn't happen.

Yes, those gyms will pick up kids from other established large and small organizations, but the mere fact they exist within a 45 minute drive doesn't doom every other gym to failure. Some folks like small programs. Some folks aren't interested in/or ready for the kind of commitment some of those large gyms require. I remember someone on here (maybe in the confession thread) confessing they had no interest in being on a worlds level team. Other's might like the smaller, more local, non-traveling type programs because it fits their needs at the time.

So, I'm not understanding why opening multiple gyms would make you a monopoly. In some thread somewhere we listed the number of programs in an hour radius from Charlotte (using that because I live here) and there had to be 30 of them and two are very large programs (CAC and CEA-Charlotte). That provides a lot of choices which means no one is a monopoly, because choice is the foundation of the free market system.

Now Varsity.....that's getting to be an entirely different story. Choice in EP's is becoming progressively more limited.

 

[cheerKT]

The definition of a monopoly is an organization that controls majority of an industry. A gym would have to own hundreds upon hundreds (thousands?) of gyms to own a monopoly. So far no one is even close.

 

[MissCongeniality]

And it's not just EPs. It's uniforms and publications and governing/rules.

 

[flipmac]

The definition of a monopoly is an organization that controls majority of an industry. A gym would have to own hundreds upon hundreds (thousands?) of gyms to own a monopoly. So far no one is even close.

Does varsity now own or control the majority?

 

[cheer25mom]

Does varsity now own or control the majority?

I would say so at this point. The only other option in our area at this point is Ham brands. We are on.y going to one comp that is not a Varsity product after the merger, and there ar only 2-3 others offered that we would not need to overnight for.

 

[Cheer Dad]

Even CNN Money says Varsity controls cheerleading. The business of cheer - Fortune Management

At least with companies like AT&T & Verizon there is a government oversight to prevent one company from taking over an entire industry and preventing them from having free run doing whatever they want.

 

[fullpass]

The definition of a monopoly is an organization that controls majority of an industry. A gym would have to own hundreds upon hundreds (thousands?) of gyms to own a monopoly. So far no one is even close.

Yes. However, I would say it's pretty clear that Varsity has a Monopoly on events and Uniforms as well. Not a slight, just an observation.

 

[cheerKT]

Yes. However, I would say it's pretty clear that Varsity has a Monopoly on events and Uniforms as well. Not a slight, just an observation.

I agree there. I was just speaking to the point of gyms that the OP brought up. No one gym has a monopoly.

 

[fullpass]

:) sorry I should have been more clear. I agree 100% on the gym issue. Also, I'm not trying to criticize Varsity for seeking a monopoly. It's sort of what a business should try ideally. Whether or not its best for a consumer is another discussion :)