GYM news>>Sport Supply Group, Inc. and uBid.com Form Exclusive On-Line Alliance for E-Commerce Auction of Sporting Goods; Sport Supply Group to Launch Product on uBid.com Site Within 24 Hours
DALLAS, May 6 /PRNewswire/ -- Sport Supply Group, Inc. (NYSE: GYM - news) announced today it has entered into an agreement with uBid.com (Nasdaq: UBID - news; ubid.com) to become the exclusive sporting goods manufacturer and distributor for uBid.com -- for products SSG manufactures or distributes exclusively. Sport Supply Group is the largest direct supplier and marketer of sporting goods in the United States; uBid.com is one of the largest and fastest growing internet auctioneers in the world with first quarter 1999 revenues of $34.3 million compared to $2.1 million in the year-ago period.
The agreement calls for uBid.com to offer for auction products that Sport Supply Group manufactures under the brands and licenses of MacGregor, Voit, AMF, Portapit, Champion, and Junglebug -- and to offer the products that SSG distributes exclusively in the United States. Sport Supply Group manufactures and sources over 8,000 different products representing more than 25 product categories in sporting goods. uBid.com will be Sport Supply Group's exclusive distribution channel for online auction of its products.
Commenting on the relationship, John P. Walker, President and COO of Sport Supply Group stated, ''This exclusive partnership combines Sport Supply Group's product breadth and direct distribution capabilities with uBid's impressive online traffic flow and internet marketing savvy. Registered users at uBid grew to more than 377,000 compared to 25,000 at the end of the first quarter of 1998. uBid's exponential growth in the last 12 months affirms that people do not just visit the uBid site... they purchase. Opening up Sport Supply Group's broad and diverse product line to this audience, on an exclusive basis, will allow us to expand our product offering to a completely new and fast growing distribution channel. Sport Supply Group will work with a dedicated team from uBid to select the most attractive products for auction and position them in the best possible way to maximize sales. We expect to benefit from the natural surge in online traffic during the holiday shopping season.''
Mr. Walker went on to say, ''We believe the agreement with uBid marks the first step in executing our strategic initiative with regard to the Company's internet and electronic commerce strategy. In addition to our arrangement with uBid, we are currently developing additional, significant internet partnerships with other online suppliers, portal companies and content providers.
''The second part of our e-commerce strategy, ESPORTSONLINE.COM, remains on schedule to go live June 3, 1999. This site will offer many of the Company's products to the consumer athlete.
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