Paul McBeth signs 10 year, $10 000 000 contract with Discraft

[Casey 1988]

From the UltiWorld article: "In his first year at Discraft, McBeth easily surpassed his guaranteed salary, selling over 250,000 discs even as some of his own most popular discs, like the Hades, had yet to be released."

That's $5 million in revenue in one year at $20/disc. And disc sales are much higher now. So if McBeth just gets the guaranteed $1 million a year but nothing additional from disc sales anymore, this contract is a steal for Discraft.

That's my #1 question: does the $10 million cover everything?

Yes but Paul gets to help design discs more so then what any player has ever done in the past including the Paul McBeth contract at Innova. Only other players with a similar contract a two. first is Paige Pierce who since going back to Discraft got her putter and since she was a former Discraft player before going to Dynamic Disc she liked the molds she was using, that or Corona Virus came up and messed up her plans for more molds. The other was Eric McCabe who is also a Part owner in Dynamic Discs so he can kind of do what he wants with a few disc molds designs he modified.

 

[DiscFifty]

If that's the case though I find it a bit surprising. No one I play with seems to buy discs based on brand loyalty or the pro's name on it. I never thought that meant much to most disc golfers.

Social media has alot to do with this imop. I would guess 99% of the mindset you mention is not on this site for instance.

how does Discraft justify this? Their reported 2020 sales were just under $4 million. That is sales, not profits.

Where did you get this information from? 4 million gross sales is very small on the grand scheme of things, business expenses, employees, sponsorship, etc. Do we have sales info for other manufactures?

Furthermore, is he still making royalties on his discs?

Just speculation, but the contract could also have been a guaranteed 1 million a year, nothing more, nothing less, so perhaps he no longer gets royalties, allowing Discraft to benefit more when production is ramped up.

 

[nothinbuttree]

Where did you get this information from? 4 million gross sales is very small on the grand scheme of things, business expenses, employees, sponsorship, etc. Do we have sales info for other manufactures?

Dun and Bradstreet. I did not look up other manufacturers.

 

[DiscFifty]

Dun and Bradstreet. I did not look up other manufacturers.

Discraft - 4 million a year?
https://www.dnb.com/business-direct...aft_inc.87a2a38874f86c7c398f6c5897c19ade.html

DynamicDiscs - 1 million a year?
https://www.dnb.com/business-direct...tion_co.6718cba4a44311bb3ef09ec5f84f11ed.html

Numbers seem very low.

 

[Hyzer Ale]

This sight says $19 million for Discraft https://www.zoominfo.com/c/discraft-inc/82397260

So who knows the actual amount

 

[Meillo]

If you haven't done so yet, listen to McBeth's interview on Brian Earhart's podcast "The Flight Diary". Every interview Brian does is great, but Paul's is incredible. It's a two-parter and gives great insight about his history and how he became the juggernaut he is today.

Where can I find that? Can someone share a link, please.

 

[DiscFifty]

This sight says $19 million for Discraft https://www.zoominfo.com/c/discraft-inc/82397260

So who knows the actual amount

That site says 6 million for DD, sticking with a little over 3X lower than Discraft. hmm....

 

[wolfhaley]

i was interested then saw it was 13 min

ill take your word for it that its true

damm

You should watch it. It's well done. Maltas will kick that beloved red z wasp right out the bag.

 

[Flick Maniac]

Where can I find that? Can someone share a link, please.

Seriously, just google "flight diary paul mcbeth"

 

[Flick Maniac]

You could manufacture that Ezra kid into a far bigger start with a fraction of the money. Either way it is cool, big dollar figures only help our sport seem legit in the mainstream.

Kid has potential. But no way to guarantee he will be the second McBeth, as not all of them pan out. LMK when he is in the 1060 club. Pablo is on a level of his own, as this contract also proves.

 

[davetherocketguy]

I bet Discraft will outsell Innova in 2022.

I bet Discraft is outselling Innova right now.

 

[autocrosscrx]

This is great and all, but I just want to be able to replace my beloved Z Heat that I lost back in the summer.

 

[davetherocketguy]

This is great and all, but I just want to be able to replace my beloved Z Heat that I lost back in the summer.

No kidding. I just want to get a ESP Sting in a better color than what I have. Wave 2 of the Ledgestone discs has Sparkle Stings coming and I am not sure how I feel about that...

 

[zontar]

I appreciate him more now, mainly because his background is a lot like mine. I'll stop giving him crap about the McLaren too (even if he should have bought a "tastefully modded" Miata).

 

[Meillo]

Seriously, just google "flight diary paul mcbeth"

Thanks. ;-)

Here the links to part 1 & 2:
https://www.podparadise.com/Podcast/1457213669/Listen/1611842400/0
https://www.podparadise.com/Podcast/1457213669/Listen/1613055600/0

 

[Ryan P.]

My guess on what made this worthwhile from Discraft's side.

I'd imagine Discraft's sales popped because of a few things. Paul won world's, Jomez's coverage of it blew up on YouTube, and the pandemic caused the demand for discs to increase. Discraft has always been forward thinking and seems to believe that the increased sales are a sign that either their revenue streams will increase once distribution returns to normal, or all of disc golf revenue streams will increase when distribution normalizes. In either case, they will be making bank (from their perspective).

They also dropped a couple hints in the video, such as telling Paul, "If we do this we want to lock you down." So they seem to think that Paul is related to their increased sales. Further, they didn't do this before the 2020 season, so it doesn't seem to be solely related to 2019/him winning worlds/etc. They clearly have something in mind for the future.

This is all conjecture, but hopefully educated conjecture. Not that anyone has accused me of being educated before.

 

[joecoin]

What about the possibility this is a clever way for McBeth to gradually buy a significant stake in Discraft? Seems like he's stated he's wanted to own production long range. So perhaps a good chunk of that $1 million per year is looping right back into Discraft? Discraft gets to book a $1 million dollar salary/contractor expense each year to reduce their net income and then receives a good portion of the cash back as a capital infusion from McBeth. I know absolutely nothing on this deal beyond the announcement. Just presenting a possible scenario.

What about the possibility this is a clever way for McBeth to open a nationwide chain of quality pay to play courses.

Just gotta find a quality designer. Hmmm...

 

[Jolt]

Wonder how Simon feels about his 5-y contract now?

 

[perklc]

If that's the case though I find it a bit surprising. No one I play with seems to buy discs based on brand loyalty or the pro's name on it. I never thought that meant much to most disc golfers.

Of the nine people I play with on a regular basis, all but one who has been playing longer than I have, seven have brand loyalty and/or buy many/all of the discs with PMcB or PP name on them. 1 guy is MVP/SL/Axiom all the way, 1 is Discraft with just a few DD, and the other 5 are all Discraft. Only one of those five was all Discraft a couple of years ago.

 

[swhite]

I wonder if Discraft is betting that governments will continue to create long term shutdowns due to Covid-19, causing folks to continue looking for alternative sports endeavors, since the usual North American based (baseball/football/basketball/hockey) choices could be limited.

If everything opens up again, it could slow disc golf growth due to more choices.