Mike Abbaticchio & Shon Lees
BEST PART OF THE PITCH: The country-style clothing these guys produce sells well at rodeos and concerts. The clothes look good and the guys are looking to expand their brand. They have over $271,000 in sales over the past three years. They say the term “hillbilly” doesn’t have a negative connotation anymore. Jeff Foxworthy may be a redneck, but he probably has a little hillbilly in him, too. Everyone does! They signed an agreement to get their product into 30 Sports Authority stores as well as a deal to get Hill Billy clothes in truck stops and travel plazas everywhere.
DO THE SHARKS BITE? When the sharks crunch the numbers, they realize the business only makes about $7,000 a year, and that’s without Mike and Shon taking a salary. Kevin O. doesn’t want to be in the retail biz, so he’s out. Daymond and Jeff think the guys should explore licensing opportunities. Barbara’s out because she has no licensing contacts. Robert wants to know if Jeff will license the product. If he’s in then Robert wants 100% of the company for the product name. They’ll pay them a 7% royalty. Daymond’s in, too.
THE RESULT: Jeff, Daymond and Robert will pay $50k plus a 7% royalty for the entire company. Mike and Shon counter with $100k deal with a 10% royalty and the opportunity to get the company back if these guys just put it on a shelf. The three sharks counter that offer with $75k and the industry standard 7% royalty. There’s a loud hillbilly shout of joy inside the tank as Mike and Shon take the deal.