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

[perklc]

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.

I don't know about long-term shutdowns as better models are pointing toward summer returning back to normal-ish, but I think they are hoping to be able to retain a large portion of the new market with the season restarting when things in a lot of areas are still limited/closed and the weather is still trash in a lot of the northern hemisphere. If they can keep new people around and interested to start a second year, and then flood a bare market with new discs thanks to new machines, they could put themselves into a pretty good spot before the weather gets better and things start to look more normal.

 

[Ryan P.]

Whether growth slows or not, the sport will still be larger than it was before the pandemic. The people playing before the pandemic are almost certainly still playing, and some people who started playing because of the pandemic will continue. Reopening might slow the growth, but it isn't going to result in profit losses.

I wonder if, in 6-8 years, either side will regret their decision. Often with sports contracts, about 60-80% of the way through a contract, one side will massively regret the decision. Either the team/company will think, "Man this guy isn't as good as he used to be," or the athlete will think, "Man I should have signed a shorter deal because I'm worth a lot more now." Maybe, as some have said, the contract is backloaded or incentivized in such a way that it'll keep both sides happy throughout the length of it. So much is unknown.

 

[ru4por]

Congrats, Paul. Is Discraft going to start making McBeth towels, pint glasses, socks, touches, bottle openers?? I am going to need something to put in player packs for the season's tournaments.

Sounds like the cost of tournament business is going to increase as the price of discs rise??

I think people should be looking at the number of discs sold last year, not the amount of money that Discraft made. Without tournament sales for half a year and no Ace Race I am guessing they did not smash sales records.

 

[VictorB]

I wonder if, in 6-8 years, either side will regret their decision. Often with sports contracts, about 60-80% of the way through a contract, one side will massively regret the decision.

While that may be true in some cases - Discraft is investing in production infrastructure as a partnership with McBeth. The addition of more molding machines *prior* to signing Paul to this deal shows me that they are invested just as much in expanding the company, and not just paying him based off of performance as you see in other sports.

 

[Jay Dub]

He aint getting any of my money!! That's it I refuse to throw Discraft anymore!!!!

Spoiler

I throw Innova anyway.

 

[Dcinmd]

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.

High school football started back up in Northern Virginia last week. It was weird watching them practice in snow.

 

[ru4por]

While that may be true in some cases - Discraft is investing in production infrastructure as a partnership with McBeth. The addition of more molding machines *prior* to signing Paul to this deal shows me that they are invested just as much in expanding the company, and not just paying him based off of performance as you see in other sports.

Did the videos review the infrastructure expansions, previous and planned, at Discraft? This part of the discussion is important to me. Having a full lineup of stock production discs in stock and available, is crucial here in the heart of Discraft country.

Sorry, I did not take a look at the video.

 

[VictorB]

Did the videos review the infrastructure expansions, previous and planned, at Discraft? This part of the discussion is important to me. Having a full lineup of stock production discs in stock and available, is crucial here in the heart of Discraft country.

Sorry, I did not take a look at the video.

they didn't go into detail about it unfortunately, hopefully they will follow up a bit on that. The video was mainly focused on Paul.

 

[Jolt]

they didn't go into detail about it unfortunately, hopefully they will follow up a bit on that. The video was mainly focused on Paul.

But they did say that Discraft bought new machines...but i did not catch WHAT kind of machines.

 

[Zanguini]

I am just spit balling here... but what if it is the other way around? What if it is Discraft putting a cap on McBeth. Your guaranteed 1M a year no matter the amount of discs you push.. For example Sexton sold 1000 discs in 2 hours, without a massive announcement that is 20K. Imagine he does that once a week, that is over 1M. This is Sexton... who hasnt played in a year and won 1 tournament.
I could see that Discraft having made easily the 10M last year just with McBeth branded gear. But if Discraft caps McBeth at 1M then it is an easy call if he continues to sell and still make money.

 

[Ryan P.]

While that may be true in some cases - Discraft is investing in production infrastructure as a partnership with McBeth. The addition of more molding machines *prior* to signing Paul to this deal shows me that they are invested just as much in expanding the company, and not just paying him based off of performance as you see in other sports.

In my mind that's an argument that Paul could regret his decision in 6-8 years.

 

[Jolt]

In my mind that's an argument that Paul could regret his decision in 6-8 years.

If Paul even can play in 6-8y..Discgolf is hard on your body.

 

[Jay Dub]

If Paul even can play in 6-8y..Discgolf is hard on your body.

No it isn't. I'm 63 and still play. :confused look:

 

[oldmandiscer]

I bet Discraft is outselling Innova right now.

https://infinitediscs.com/blog/best-disc-golf-discs/

Not quite but the gap is narrowing. If you go to DGC the gap is much larger though.

https://www.discgolfcenter.com/main....0|-5.0|1.0|0&disc_lss[opt]=0.0|5.0|0.0|5.0|0

 

[Jolt]

No it isn't. I'm 63 and still play. :confused look:

Sure i´m 49 and have never been injured...but then again i dont play every day and throw max drives over and over.

But it´s still risky for Discraft..10y is a long time....if he gets injured and can´t play anymore.

If paul can´t win anymore in a few years due to injury, he wont play

 

[jakebake91]

But it´s still risky for Discraft..10y is a long time....if he gets injured and can´t play anymore.

If paul can´t win anymore in a few years due to injury, he wont play

Ken Climo still had a name recognition with Innova plastic, right? Paul could be the Climo of the new wave of golfers in 10 years.

 

[Jolt]

Ken Climo still had a name recognition with Innova plastic, right? Paul could be the Climo of the new wave of golfers in 10 years.

Yes. Pauls name will sell Disc for many MANY years to come..it will sell long after Paul has retired.
BUT they will sell more if he plays and is a top player. . . If he gets hurt and only can play and place far below his current level i think he will quit

 

[VictorB]

Anything that long term in sports can be risky. I'd assume Discraft weighed the opportunity cost before offering that kind of money.

I think Paul still has 6 good years left in him where he can compete for world championships. His fitness and dedication can bring him a long way, barring injuries that don't allow him to play at all. He still is having ankle issues but he still has just as good of a shot to win on any given weekend as the rest of the field.

 

[Jay Dub]

I also am confused when any sport figure gets a 10 year contract. But I don't see this as the same. Paul is becoming more than just a sponsored player for Discraft, imo.

 

[Jay Dub]

Yes. Pauls name will sell Disc for many MANY years to come..it will sell long after Paul has retired.
BUT they will sell more if he plays and is a top player. . . If he gets hurt and only can play and place far below his current level i think he will quit

You are assuming this is all based on disc sales.