Today, Eric Roza announced on Twitter that he and Greg Glassman signed a legally binding agreement to finalize a deal to purchase 100% of CrossFit, Inc. from its founder Greg Glassman.
Why it matters: The penultimate hurdle follows the letter of intent accepted by Glassman back in late June. The deal now signed by both parties is legally binding which means neither party can back out. Roza is only waiting on a pro forma government clearance from the Federal Trade Commission and Department of Justice which could take a few more weeks. Afterward, the money would be transferred and the sale complete.
- Roza’s not alone in his ownership of CrossFit. Berkshire Partners, a Boston-based private equity firm with more than $16 billion in private equity investments is also behind the deal.
- One percent of the stock will be set aside in a non-voting trust for Maggie Glassman and their kids.
- The final hurdle of the deal is government approval from the FTC/DOJ, which is expected in the next couple of weeks.
The big picture: The announcement of Roza’s ownership last month immediately quelled the mass exodus from CrossFit as a result of Glassman’s remarks. Long-standing members of the CrossFit community noticed an immediate change in approach to communication.
- Roza’s first order of business was to conduct a public townhall, a fast departure from CrossFit HQ’s typical reticence toward open dialogue.
- Roza also gave out his email address and encouraged feedback.
- Roza has been on a listening tour since the announcement, hosting a number of zoom calls with various sections of the community.
- One such call included 2020 CrossFit Games qualifiers after which athletes reversed their boycott of competing at this year’s Games.
- Roza hosted a future of CrossFit summit in Boulder, CO last week, the first in what will be periodic gatherings with key stakeholders across the community.
For your radar screen: Roza is hosting a community town hall in mid-August with “specifics on our work on Culture, Inclusion, Affiliate Support, and the 2020 Games.”
In a letter to the CrossFit community, Roza didn’t shy away from key issues facing the business of CrossFit and the community.
- There’s “a mandate that CrossFit provide a culture of inclusion that works tirelessly to eliminate racism, sexism, and bias.”
- “The team and I have become acutely aware of the alienation and dissonance felt by a number of current, former, and potential members of our community.”
- “COVID-19, has created unprecedented challenges in our community. Nearly 100,000 people around the world make their livelihood through CrossFit, supporting several million others for whom CrossFit is the best hour of the day. We must think and act in the box to help our Affiliates survive and thrive through a resurgent global pandemic with devastating social, economic, and health consequences of indeterminate duration and severity.”
- “We are working hard to deliver a safe and global CrossFit Games in mid-September. We are partnering closely with our Athletes, their agents and managers, and local and federal agencies to deliver the world’s greatest test of fitness to living rooms and mobile screens around the world in spite of the challenges presented by the pandemic.”
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Editor’s Note: The original version of this story referred to Roza as a “ten-year affiliate owner.”…