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In 2004, Varsity acquired National Spirit Group, owner of the NCA (which Webb estimated to have a 25% market share in 2002),<ref name=":3">{{Cite web|date=2005-07-06|title=Varsity Brands acquires Athletic Championships and Premier Athletics|url=https://www.bizjournals.com/memphis/stories/2005/07/04/daily16.html|access-date=2020-09-30|website=Memphis Business News}}</ref><ref name=":2" /> giving it control of the sheer majority of the cheerleading industry.<ref name=":5">{{Cite web|last=Reigstad|first=Leif|date=2015-07-21|title=Varsity Brands Owns Cheerleading and Fights to Keep it From Becoming an Official Sport|url=https://www.houstonpress.com/news/varsity-brands-owns-cheerleading-and-fights-to-keep-it-from-becoming-an-official-sport-7606297|access-date=2020-09-30|website=Houston Press}}</ref> In 2005, it acquired the Knoxville-based Athletic Championships LLC and Premier Athletics LLC.<ref name=":3" /> In 2007, it backed the formation of USA Cheer, a non-profit led by Webb which aimed to be a sanctioning body for cheerleading (with a goal to back cheerleading as a proposed [[Summer Olympic Games|Olympic]] event).<ref name=":6">{{Cite web|title=CHEER EMPIRE: A for-profit company built competitive cheer, pays people who make its rules|url=https://www.commercialappeal.com/in-depth/news/2020/09/18/cheer-empire-profit-company-created-cheerleading-regulators-pays-salaries/3468551001/|access-date=2020-09-30|website=The Commercial Appeal|publisher=Gannett|language=en}}</ref>
In 2004, Varsity acquired National Spirit Group, owner of the NCA (which Webb estimated to have a 25% market share in 2002),<ref name=":3">{{Cite web|date=2005-07-06|title=Varsity Brands acquires Athletic Championships and Premier Athletics|url=https://www.bizjournals.com/memphis/stories/2005/07/04/daily16.html|access-date=2020-09-30|website=Memphis Business News}}</ref><ref name=":2" /> giving it control of the sheer majority of the cheerleading industry.<ref name=":5">{{Cite web|last=Reigstad|first=Leif|date=2015-07-21|title=Varsity Brands Owns Cheerleading and Fights to Keep it From Becoming an Official Sport|url=https://www.houstonpress.com/news/varsity-brands-owns-cheerleading-and-fights-to-keep-it-from-becoming-an-official-sport-7606297|access-date=2020-09-30|website=Houston Press}}</ref> In 2005, it acquired the Knoxville-based Athletic Championships LLC and Premier Athletics LLC.<ref name=":3" /> In 2007, it backed the formation of USA Cheer, a non-profit led by Webb which aimed to be a sanctioning body for cheerleading (with a goal to back cheerleading as a proposed [[Summer Olympic Games|Olympic]] event).<ref name=":6">{{Cite web|title=CHEER EMPIRE: A for-profit company built competitive cheer, pays people who make its rules|url=https://www.commercialappeal.com/in-depth/news/2020/09/18/cheer-empire-profit-company-created-cheerleading-regulators-pays-salaries/3468551001/|access-date=2020-09-30|website=The Commercial Appeal|publisher=Gannett|language=en}}</ref>


In 2011, Varsity Brands merged with [[Herff Jones]], an Indianapolis-based manufacturer of [[Class ring|class rings]], [[Cap and gown|caps and gowns]], and [[yearbooks]];<ref name=":0">{{Cite web|last=Hirsch|first=Lauren|date=2018-06-19|title=Bain to acquire Varsity Brands, a top maker of cheerleader uniforms and school spirit items, for roughly $2.5 billion|url=https://www.cnbc.com/2018/06/19/bain-nears-2-point-5-billion-deal-for-cheer-uniform-leader-varsity-brands.html|access-date=2020-09-30|website=CNBC|language=en}}</ref><ref name=":1">{{Cite web|date=2014-06-03|title=Rebranding spreads Varsity name around|url=https://www.bizjournals.com/memphis/news/2014/06/03/rebranding-spreads-varsity-name-around.html|access-date=2020-09-30|website=Memphis Business News|publisher=American City Business Journals}}</ref> Webb was named president and COO in December 2012,<ref>{{cite news|author=Michael Sheffield|date=11 December 2012|title=Jeff Webb Named President, COO of Herff Jones|work=Memphis Business News|url=http://www.bizjournals.com/memphis/news/2012/12/11/jeff-webb-named-president-coo-of.html|access-date=6 August 2015}}</ref> and the merged company took on the [[Varsity Brands]] name in 2014.<ref name=":12">{{Cite web|date=2014-06-03|title=Rebranding spreads Varsity name around|url=https://www.bizjournals.com/memphis/news/2014/06/03/rebranding-spreads-varsity-name-around.html|access-date=2020-09-30|website=Memphis Business News|publisher=American City Business Journals}}</ref> In 2012, it acquired ''[[American Cheerleader]]'' magazine from [[Macfadden Communications Group]], with the publishers of Memphis-based teen magazine ''Justine'' producing the magazine.<ref>{{cite news|author=Ioanna Opidee|date=26 January 2012|title=American Cheerleader Sold to Varsity Spirit Corp.|work=Folio Magazine|url=http://www.foliomag.com/2012/american-cheerleader-sold-varsity-spirit-corp/|access-date=6 August 2015}}</ref> In 2015, it acquired JAM Brands, which had been the company's main competitor in the 2010s.<ref name=":4" />
In 2011, Varsity Brands merged with [[Herff Jones]], an Indianapolis-based manufacturer of [[Class ring|class rings]], [[Cap and gown|caps and gowns]], and [[yearbooks]];<ref name=":0">{{Cite web|last=Hirsch|first=Lauren|date=2018-06-19|title=Bain to acquire Varsity Brands, a top maker of cheerleader uniforms and school spirit items, for roughly $2.5 billion|url=https://www.cnbc.com/2018/06/19/bain-nears-2-point-5-billion-deal-for-cheer-uniform-leader-varsity-brands.html|access-date=2020-09-30|website=CNBC|language=en}}</ref><ref name=":1">{{Cite web|date=2014-06-03|title=Rebranding spreads Varsity name around|url=https://www.bizjournals.com/memphis/news/2014/06/03/rebranding-spreads-varsity-name-around.html|access-date=2020-09-30|website=Memphis Business News|publisher=American City Business Journals}}</ref> Webb was named president and COO in December 2012,<ref>{{cite news|author=Michael Sheffield|date=11 December 2012|title=Jeff Webb Named President, COO of Herff Jones|work=Memphis Business News|url=http://www.bizjournals.com/memphis/news/2012/12/11/jeff-webb-named-president-coo-of.html|access-date=6 August 2015}}</ref> and the merged company took on the [[Varsity Brands]] name in 2014.<ref name=":12">{{Cite web|date=2014-06-03|title=Rebranding spreads Varsity name around|url=https://www.bizjournals.com/memphis/news/2014/06/03/rebranding-spreads-varsity-name-around.html|access-date=2020-09-30|website=Memphis Business News|publisher=American City Business Journals}}</ref> In 2012, it acquired ''[[American Cheerleader]]'' magazine from [[Macfadden Communications Group]], with the publishers of Memphis-based teen magazine ''Justine'' producing the magazine.<ref>{{cite news|author=Ioanna Opidee|date=26 January 2012|title=American Cheerleader Sold to Varsity Spirit Corp.|work=Folio Magazine|url=http://www.foliomag.com/2012/american-cheerleader-sold-varsity-spirit-corp/|access-date=6 August 2015}}</ref> [[Charlesbank Capital Partners]] acquired Varsity Brands in 2014, after which it began to place a larger focus on club-based "all-star" cheerleading.<ref name=":9">{{Cite web|last=Libit|first=Daniel|date=2021-09-16|title=A Tangled Jeff Webb Weaves Cheerleading’s Olympic Dreams|url=https://www.sportico.com/personalities/executives/2021/cheerleading-varsity-brands-webb-1234638714/|access-date=2021-09-25|website=Sportico.com|language=en-US}}</ref> In 2015, it acquired JAM Brands, which had been the company's main competitor in the 2010s.<ref name=":4" />


In 2016, Varsity Brands [[Star Athletica, LLC v. Varsity Brands, Inc.|sued]] Star Athletica, a competing manufacturer of cheerleading uniforms established by The Liebe Company (which was formerly contracted with Varsity), for [[copyright infringement]] over similarities in designs between their products.<ref name="WhoOwnsCheerleaderUniforms">{{Cite web|last=Smith|first=Erin Geiger|date=2016-10-31|title=Who Owns Cheerleader Uniform Designs? It’s up to the Supreme Court|url=https://www.nytimes.com/2016/10/30/sports/who-owns-cheerleader-uniform-designs-its-up-to-the-supreme-court.html|access-date=2018-07-15|website=The New York Times}}</ref> The [[Supreme Court of the United States|Supreme Court]] ruled in favor of Varsity, establishing that aesthetic elements of a useful article can be protected if they are a [[Threshold of originality|copyrightable]] artistic work, and are identifiable as art when mentally separated from the practical aspects of the item.<ref name="HLR">{{Cite web|date=2017-11-04|title=Star Athletica, L.L.C. v. Varsity Brands, Inc.|url=https://harvardlawreview.org/2017/11/star-athletica-l-l-c-v-varsity-brands-inc/|access-date=2018-07-16|website=Harvard Law Review}}</ref>
In 2016, Varsity Brands [[Star Athletica, LLC v. Varsity Brands, Inc.|sued]] Star Athletica, a competing manufacturer of cheerleading uniforms established by The Liebe Company (which was formerly contracted with Varsity), for [[copyright infringement]] over similarities in designs between their products.<ref name="WhoOwnsCheerleaderUniforms">{{Cite web|last=Smith|first=Erin Geiger|date=2016-10-31|title=Who Owns Cheerleader Uniform Designs? It’s up to the Supreme Court|url=https://www.nytimes.com/2016/10/30/sports/who-owns-cheerleader-uniform-designs-its-up-to-the-supreme-court.html|access-date=2018-07-15|website=The New York Times}}</ref> The [[Supreme Court of the United States|Supreme Court]] ruled in favor of Varsity, establishing that aesthetic elements of a useful article can be protected if they are a [[Threshold of originality|copyrightable]] artistic work, and are identifiable as art when mentally separated from the practical aspects of the item.<ref name="HLR">{{Cite web|date=2017-11-04|title=Star Athletica, L.L.C. v. Varsity Brands, Inc.|url=https://harvardlawreview.org/2017/11/star-athletica-l-l-c-v-varsity-brands-inc/|access-date=2018-07-16|website=Harvard Law Review}}</ref>

In 2017, BSN Sports CEO Adam Blumenfeld replaced Webb as CEO.<ref name=":9" />


In July 2019, the company introduced a new division, "Varsity Pro", which focuses on providing apparel and services for professional cheer and dance teams, such as those of professional sports franchises. The division's first partnership as outfitter was with the [[National Basketball Association|NBA]]'s [[Memphis Grizzlies]].<ref>{{Cite web|date=2019-07-17|title=Varsity Spirit launches new brand for pro teams|url=https://www.bizjournals.com/memphis/news/2019/07/17/varsity-spirit-launches-new-brand-for-pro-teams.html|access-date=2020-09-30|website=Memphis Business News}}</ref> It also acquired SA Feather Co. and Stanbury Uniforms to expand into the [[Marching band|band]] market.<ref>{{Cite web|title=Varsity Spirit adds to squad, buys two companies|url=https://www.bizjournals.com/memphis/news/2019/07/29/varsity-spirit-adds-to-squad-buys-two-companies.html|access-date=2020-09-30|website=Memphis Business News}}</ref>
In July 2019, the company introduced a new division, "Varsity Pro", which focuses on providing apparel and services for professional cheer and dance teams, such as those of professional sports franchises. The division's first partnership as outfitter was with the [[National Basketball Association|NBA]]'s [[Memphis Grizzlies]].<ref>{{Cite web|date=2019-07-17|title=Varsity Spirit launches new brand for pro teams|url=https://www.bizjournals.com/memphis/news/2019/07/17/varsity-spirit-launches-new-brand-for-pro-teams.html|access-date=2020-09-30|website=Memphis Business News}}</ref> It also acquired SA Feather Co. and Stanbury Uniforms to expand into the [[Marching band|band]] market.<ref>{{Cite web|title=Varsity Spirit adds to squad, buys two companies|url=https://www.bizjournals.com/memphis/news/2019/07/29/varsity-spirit-adds-to-squad-buys-two-companies.html|access-date=2020-09-30|website=Memphis Business News}}</ref>

In December 2020, Webb announced his departure from the company to pursue other projects; the [[Conservatism in the United States|conservative]] publication ''[[Human Events]]'' subsequently announced that Webb had been hired as their new co-publisher and senior news editor.<ref name=":9" />


== Market position ==
== Market position ==
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Varsity has been accused of engaging in [[anti-competitive practices]]; the company signs gyms to multi-year agreements, under which they receive rebates if they exclusively purchase apparel from the company, and participate in Varsity-run competitions.<ref name=":4" /> Only Varsity-owned brands are allowed to exhibit and market their apparel at its events, hindering the ability for competitors to do the same. Although there are no restrictions on use of non-Varsity apparel by participants in the competitions proper,<ref name=":4" /> in 2010 Webb testified that in at least one competition, teams received more points if they used Varsity-produced props.<ref name=":5" />
Varsity has been accused of engaging in [[anti-competitive practices]]; the company signs gyms to multi-year agreements, under which they receive rebates if they exclusively purchase apparel from the company, and participate in Varsity-run competitions.<ref name=":4" /> Only Varsity-owned brands are allowed to exhibit and market their apparel at its events, hindering the ability for competitors to do the same. Although there are no restrictions on use of non-Varsity apparel by participants in the competitions proper,<ref name=":4" /> in 2010 Webb testified that in at least one competition, teams received more points if they used Varsity-produced props.<ref name=":5" />


Varsity also has effective control of affiliated governing bodies for cheerleading.<ref name="P_and_T" /> USA Cheer, a non-profit governing body for cheerleading, was established by Varsity Spirit with a no-interest loan, and is staffed by six contracted Varsity Spirit employees.<ref name=":6" /> The [[U.S. All Star Federation]] (USASF), a governing body for private cheer and dance squads, was formed in 2003 with financial backing by Varsity Spirit via a no-interest loan.<ref name=":6" /> Although Varsity Spirit officially states that it does not own the USASF,<ref>{{Cite web|title=Varsity Spirit FAQ|url=https://www.varsity.com/about/faq/|access-date=2020-09-30|website=Varsity.com|language=en-US}}</ref> its board is effectively controlled by Varsity Spirit by means of six of its 15 board members, and by-laws requiring seven seats to be filled by representatives of a group of Varsity Spirit-controlled cheerleading and dance associations. The company also pays the salary of its president, and its vice president of events and corporate alliances.<ref name=":7">{{Cite web|title=Cheerleading has a list of people banned from the sport. It was missing 74 convicted sex offenders|url=https://www.usatoday.com/in-depth/news/investigations/2020/09/18/cheerleading-cheer-investigation-sexual-misconduct-sex-offender-banned-list/3377622001/|access-date=2020-09-30|website=USA Today|publisher=Gannett|language=en}}</ref> In 2011, the USASF threatened to ban its members from participating in Varsity-run events if they participate in competing world championships not run by the company.<ref name=":6" /> Varsity was also involved in the establishment of the [[International Cheer Union]].<ref name=":6" />
Varsity also has effective control of affiliated governing bodies for cheerleading.<ref name="P_and_T" /> USA Cheer, a non-profit governing body for cheerleading, was established by Varsity Spirit with a no-interest loan, and is staffed by six contracted Varsity Spirit employees.<ref name=":6" /> The [[U.S. All Star Federation]] (USASF), a governing body for private cheer and dance squads, was formed in 2003 with financial backing by Varsity Spirit via a no-interest loan.<ref name=":6" /> Although Varsity Spirit officially states that it does not own the USASF,<ref>{{Cite web|title=Varsity Spirit FAQ|url=https://www.varsity.com/about/faq/|access-date=2020-09-30|website=Varsity.com|language=en-US}}</ref> its board is effectively controlled by Varsity Spirit by means of six of its 15 board members, and by-laws requiring seven seats to be filled by representatives of a group of Varsity Spirit-controlled cheerleading and dance associations. The company also pays the salary of its president, and its vice president of events and corporate alliances.<ref name=":7">{{Cite web|title=Cheerleading has a list of people banned from the sport. It was missing 74 convicted sex offenders|url=https://www.usatoday.com/in-depth/news/investigations/2020/09/18/cheerleading-cheer-investigation-sexual-misconduct-sex-offender-banned-list/3377622001/|access-date=2020-09-30|website=USA Today|publisher=Gannett|language=en}}</ref> In 2011, the USASF threatened to ban its members from participating in Varsity-run events if they participate in competing world championships not run by the company.<ref name=":6" /> Varsity was also involved in the establishment of the [[International Cheer Union]] (ICU).<ref name=":6" />


In 2020, a proposed class action lawsuit was filed against Varsity Brands, alleging that it used its "undue influence and control" over affiliated bodies to maintain its monopoly in competitive cheerleading and scholastic apparel, including requiring participation in Varsity-run training camps in order to attend its competitions, participation in its insurance plans, and the aforementioned rebate program, which institutionalized financial costs for participation in competitive cheerleading. Varsity responded to the suit, arguing that they "welcome the kind of competition that enhances the cheer marketplace", and accused competitors of "seeking to chill that marketplace through the Courts. We are contesting this flawed diversion from an otherwise dynamic industry with energy, resources and determination."<ref>{{Cite web|date=2020-07-29|title=Federal lawsuit aims to break up alleged Varsity monopoly in cheerleading business|url=https://www.bizjournals.com/memphis/news/2020/07/29/federal-lawsuit-claims-monopoly-exists-cheer.html|access-date=2020-10-01|website=Memphis Business Journal}}</ref>
In 2020, a proposed class action lawsuit was filed against Varsity Brands, alleging that it used its "undue influence and control" over affiliated bodies to maintain its monopoly in competitive cheerleading and scholastic apparel, including requiring participation in Varsity-run training camps in order to attend its competitions, participation in its insurance plans, and the aforementioned rebate program, which institutionalized financial costs for participation in competitive cheerleading. Varsity responded to the suit, arguing that they "welcome the kind of competition that enhances the cheer marketplace", and accused competitors of "seeking to chill that marketplace through the Courts. We are contesting this flawed diversion from an otherwise dynamic industry with energy, resources and determination."<ref>{{Cite web|date=2020-07-29|title=Federal lawsuit aims to break up alleged Varsity monopoly in cheerleading business|url=https://www.bizjournals.com/memphis/news/2020/07/29/federal-lawsuit-claims-monopoly-exists-cheer.html|access-date=2020-10-01|website=Memphis Business Journal}}</ref>

On December 9, 2020, Webb announced that he would step down from Varsity. In a 2021 interview with ''[[Penske Media Corporation|Sportico]]'' after the [[International Olympic Committee]] (IOC) voted to recognize the ICU, Webb stated that he had divested himself of Varsity, recently had "a very favorable liquidity event", and "was looking around with what I want to do with this phase of my life." Varsity's former vice president of corporate alliances and business development, Marlene Cota, stated that Webb's role in the company had begun to lessen after the sale to Charlesbank.<ref name=":9" />


=== Classification of cheerleading as a sport ===
=== Classification of cheerleading as a sport ===

Revision as of 02:15, 25 September 2021

Varsity Spirit, LLC
IndustryCheerleading
Founded1974
FounderJeff Webb
HeadquartersMemphis, TN, United States
Area served
Worldwide
Key people
Bill Seely
(President)
OwnerVarsity Brands
ParentBain Capital
Websitewww.varsity.com

Varsity Spirit, LLC, also known as Varsity, is an American cheerleading company owned by Varsity Brands. Founded in 1974 as the Universal Cheerleaders Association, the company is a manufacturer of apparel for cheerleading and dance teams, organizer of cheerleading competitions, and operator of training camps and sanctioning bodies.

The company's vertical integration of competitive cheerleading has faced criticism, including accusations of anti-competitive and monopolistic practices (including opposition to cheerleading being sanctioned as a sport), conflicts of interest via control of governing bodies, and institutionalizing high financial costs for participation in competitive cheerleading.[1][2]

History

Varsity Spirit was founded by Jeff Webb,[3] a yell leader at the University of Oklahoma contemplating law school. After working as a summer camp instructor for Lawrence "Herkie" Herkimer's National Cheerleaders Association (NCA),[4] he attempted, but failed, to acquire part of the company.[5]

In 1974, Webb established the Universal Cheerleaders Association (UCA), in an effort to raise the profile of cheerleading, initially by establishing training camps, and later through promotional campaigns and its National College Cheerleading Championship (which was first held in 1978) and its National High School Cheerleading Championship (which was first held in 1980).[6][7] Cheerleading had seen declines in participation due to the growth of women's sports following the introduction of Title IX.[8]

Webb first operated the company out of his apartment, and only made a profit of $850 during his first year of operations. By 2002, Webb estimated that Varsity Spirit held about half of the market, and that 60% of its revenue came from apparel.[9] In 2003, Varsity backed the formation of the U.S. All Star Federation, a sanctioning body for "all-star" cheerleading competitions involving teams from private gyms.[10]

In 2004, Varsity acquired National Spirit Group, owner of the NCA (which Webb estimated to have a 25% market share in 2002),[11][9] giving it control of the sheer majority of the cheerleading industry.[12] In 2005, it acquired the Knoxville-based Athletic Championships LLC and Premier Athletics LLC.[11] In 2007, it backed the formation of USA Cheer, a non-profit led by Webb which aimed to be a sanctioning body for cheerleading (with a goal to back cheerleading as a proposed Olympic event).[10]

In 2011, Varsity Brands merged with Herff Jones, an Indianapolis-based manufacturer of class rings, caps and gowns, and yearbooks;[13][14] Webb was named president and COO in December 2012,[15] and the merged company took on the Varsity Brands name in 2014.[16] In 2012, it acquired American Cheerleader magazine from Macfadden Communications Group, with the publishers of Memphis-based teen magazine Justine producing the magazine.[17] Charlesbank Capital Partners acquired Varsity Brands in 2014, after which it began to place a larger focus on club-based "all-star" cheerleading.[18] In 2015, it acquired JAM Brands, which had been the company's main competitor in the 2010s.[5]

In 2016, Varsity Brands sued Star Athletica, a competing manufacturer of cheerleading uniforms established by The Liebe Company (which was formerly contracted with Varsity), for copyright infringement over similarities in designs between their products.[19] The Supreme Court ruled in favor of Varsity, establishing that aesthetic elements of a useful article can be protected if they are a copyrightable artistic work, and are identifiable as art when mentally separated from the practical aspects of the item.[20]

In 2017, BSN Sports CEO Adam Blumenfeld replaced Webb as CEO.[18]

In July 2019, the company introduced a new division, "Varsity Pro", which focuses on providing apparel and services for professional cheer and dance teams, such as those of professional sports franchises. The division's first partnership as outfitter was with the NBA's Memphis Grizzlies.[21] It also acquired SA Feather Co. and Stanbury Uniforms to expand into the band market.[22]

In December 2020, Webb announced his departure from the company to pursue other projects; the conservative publication Human Events subsequently announced that Webb had been hired as their new co-publisher and senior news editor.[18]

Market position

Varsity Spirit has been described as having a monopoly position in cheerleading in the United States, due to extensive vertical integration of apparel businesses, training camps, affiliated gyms, cheerleading competitions, and sanctioning bodies, as well as acquisitions of competitors.[10][5][2][12]

Varsity has been accused of engaging in anti-competitive practices; the company signs gyms to multi-year agreements, under which they receive rebates if they exclusively purchase apparel from the company, and participate in Varsity-run competitions.[5] Only Varsity-owned brands are allowed to exhibit and market their apparel at its events, hindering the ability for competitors to do the same. Although there are no restrictions on use of non-Varsity apparel by participants in the competitions proper,[5] in 2010 Webb testified that in at least one competition, teams received more points if they used Varsity-produced props.[12]

Varsity also has effective control of affiliated governing bodies for cheerleading.[1] USA Cheer, a non-profit governing body for cheerleading, was established by Varsity Spirit with a no-interest loan, and is staffed by six contracted Varsity Spirit employees.[10] The U.S. All Star Federation (USASF), a governing body for private cheer and dance squads, was formed in 2003 with financial backing by Varsity Spirit via a no-interest loan.[10] Although Varsity Spirit officially states that it does not own the USASF,[23] its board is effectively controlled by Varsity Spirit by means of six of its 15 board members, and by-laws requiring seven seats to be filled by representatives of a group of Varsity Spirit-controlled cheerleading and dance associations. The company also pays the salary of its president, and its vice president of events and corporate alliances.[24] In 2011, the USASF threatened to ban its members from participating in Varsity-run events if they participate in competing world championships not run by the company.[10] Varsity was also involved in the establishment of the International Cheer Union (ICU).[10]

In 2020, a proposed class action lawsuit was filed against Varsity Brands, alleging that it used its "undue influence and control" over affiliated bodies to maintain its monopoly in competitive cheerleading and scholastic apparel, including requiring participation in Varsity-run training camps in order to attend its competitions, participation in its insurance plans, and the aforementioned rebate program, which institutionalized financial costs for participation in competitive cheerleading. Varsity responded to the suit, arguing that they "welcome the kind of competition that enhances the cheer marketplace", and accused competitors of "seeking to chill that marketplace through the Courts. We are contesting this flawed diversion from an otherwise dynamic industry with energy, resources and determination."[25]

On December 9, 2020, Webb announced that he would step down from Varsity. In a 2021 interview with Sportico after the International Olympic Committee (IOC) voted to recognize the ICU, Webb stated that he had divested himself of Varsity, recently had "a very favorable liquidity event", and "was looking around with what I want to do with this phase of my life." Varsity's former vice president of corporate alliances and business development, Marlene Cota, stated that Webb's role in the company had begun to lessen after the sale to Charlesbank.[18]

Classification of cheerleading as a sport

Varsity Spirit and its affiliates have lobbied against proposals for cheerleading to be sanctioned as a sport, including proposals by California and Texas's University Interscholastic League (UIL), arguing that this would result in increased oversight and regulation that would be detrimental to its business and self-oversight.[12] In 2015, the UIL announced a pilot "Spirit Championship", and that it would "partner with Varsity Brands to provide and train judges for the contest."[10]

In 2010, Webb was called upon as an expert witness in a Title IX case involving Quinnipiac University, which had redirected money out of women's sports to its all-girls cheerleading team under the argument that it was a sport.[26] In his testimony, Webb stated that he did not consider cheerleading to be a sport, as he primarily considered Varsity's competitions to be a promotion for its lines of business.[12] A federal judge held that cheerleading "does not qualify as a varsity sport for the purposes of Title IX".[27][12]

Sexual misconduct

In September 2020, USA Today published a report accusing governing bodies tied to Varsity Spirit of allowing 180 individuals (including coaches, choreographers, and others) indicted for child sexual abuse — 140 of whom having been convicted — to continue participating in activities. It found that their list of blacklisted individuals only contained 21 people, and was only amended and expanded following reports made by the paper.[24]

References

  1. ^ a b "Cheerleaders". Penn & Teller: Bullshit!. Season 8. Episode 1. July 10, 2010. Showtime.
  2. ^ a b "Cheerleading may not be a sport, but it is an industry". Christian Science Monitor. 2010-07-22. ISSN 0882-7729. Retrieved 2020-09-30.
  3. ^ "Industry Profile: Jeff Webb of Varsity Brands, Inc". Cheercoachmagazine.com. 2006-05-01. Retrieved 2010-07-27.
  4. ^ "NCC Nationals: Continuing a rich tradition". Philstar.com. 23 February 2015. Retrieved 6 August 2015.
  5. ^ a b c d e Buchanan, Leigh (2016-02-22). "Meet Rebel, the $20 Million Cheerleading Startup Living Up to Its Name". Inc.com. Retrieved 2020-09-30.
  6. ^ Michael Sheffield (19 June 2015). "Top 100: Varsity squad leader Jeff Webb rallies billion-dollar spirit brands". Memphis Business News. American City Business Journals. Retrieved 6 August 2015.
  7. ^ Elliott, Stuart (2007-06-11). "Marketers Are Joining the Varsity". The New York Times. ISSN 0362-4331. Retrieved 2020-09-30.
  8. ^ Schultz, Jaime. "Cheerleading's peculiar path to potential Olympic sport". The Conversation. Retrieved 2020-09-30.
  9. ^ a b Brady, Erik (2002-04-26). "From megaphones to mega-profits". USA Today. Retrieved 2020-09-30.
  10. ^ a b c d e f g h "CHEER EMPIRE: A for-profit company built competitive cheer, pays people who make its rules". The Commercial Appeal. Gannett. Retrieved 2020-09-30.
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