Anon Trevor Thompson and Jill Powers resign from Powers Gymnastics

[Anonymous (7242)]

Anyone have any more info about this and what it might mean for Powers-owned gyms, if anything at all?

LinkedIn Login, Sign in | LinkedIn

Login to LinkedIn to keep in touch with people you know, share ideas, and build your career.

www.linkedin.com

 

[Anonymous (7ed8)]

I am very interested in reading more about this! I assume it's from the pushback of her buying gyms and cutting programs? Anyway, looking forward to hearing more. Is there an article that can be linked? The one above doesn't have any information (or the "read more" link is inactive).

 

[JBS]

Here is an older thread to help everyone catch up on The Powers Group...

P

Parents New trend in gym ownership? (The Business Side Of Gymnastics / Powers Gymnastics)

Apr 26, 2023

Has anyone had experience with Powers Gymnastics? I am curious to hear about it and if it was positive or negative.

It sounds like Jill Powers owns this company and is buying up quite a few gyms in Arizona, Texas, and North Carolina. She appears to be shutting down quite a few of the compulsory and optional programs after purchasing the gyms because those programs are not profitable. The gymnasts are then left having to find another gym, sometimes increasing their commute by an hour, or more...

• PippenMom
• Replies: 155
• Forum: Gym Parent Forum

• 
• 

 

[Anonymous (8a93)]

From what I’ve heard, there might be some shifts in how Powers-owned gyms are run, but I haven’t seen any concrete details yet.

 

[Anonymous (7242)]

From what I’ve heard, there might be some shifts in how Powers-owned gyms are run, but I haven’t seen any concrete details yet.

Keep us posted please. I have a level 10 at a Powers gym and have been uneasy since they took over a couple years ago.

 

[Anonymous (9c71)]

Stephen D. on LinkedIn: #gymnastics #pe #vc #olympics

Interested in the intersection of #Gymnastics and #PE/#VC? 🤨Something is amiss! Powers Gymnastics had plans to acquire and operate gymnastics facilities…

www.linkedin.com

Something is amiss!

Powers Gymnastics had plans to acquire and operate gymnastics facilities, manufacturer obstacle course equipment, and offer gym insurance. Relevance Ventures (RV) backed the namesake, Jill Powers, by funding the strategy with a $17MM Series A round. RV most likely took a controlling equity position and/or had majority vote on the Board (if structured accordingly) with this investment. Powers’/Thompson’s mandate was to cut deals to purchase gyms and implement a business “playbook.”

RV had high hopes for elite-level financial returns on their investment:

“Newton [Partner] expects Relevance’s eventual exit will be through a sale to a larger facility operator, like Planet Fitness, or a buyout firm…he compared Powers Gymnastics to Varsity Brands, the cheerleading uniform manufacturer that Bain Capital Private Equity… And if you let it run, you’re going to be big enough to go public with this thing. There is enough (total addressable market) out there where this could be just a gigantic business.”

Is the strategy working?

From what I’ve *heard/read* around the G community, gyms that sold have been operated with mixed results. See articles below for more context. Competitive teams were cut or phased-out, while money-making recreation programs were bolstered. Add on ancillary programming — Ninja, Parkour, cheer, etc. — and you should have cash-generating machine.

The stitch

While this makes business sense in the financial models and market-sizing exercises, the reality is Gymnastics is a magnetic sport. Locally, competitive gymnastics teams make headlines, attracting parents’ attention and yet-to-be gymnasts’ dreams. Gym enrollment is rocket fueled every #Olympics cycle. Rec programs act as (profitable) feeders. Competitive teams are effectively a loss-leader for the gym. The important point here is the virtuous relationship.

‍The breakdown

In venture capital and private equity, when a Board or controlling equity shareholder (i.e. Relevance) doesn’t agree with what’s happening in the business, they have the right/fiduciary obligation to change leadership. Alternatively, leadership may simply resign.

Lacking data on gymnastics facilities

While the G community doesn’t have much data or research on gym operations available, it would be neat to see an intel research/support service offered by USA Gymnastics (or other) to help gyms thrive. Gym owners will attest how hard it is to successfully operate a gym these days.

Looking forward to sharing more as details emerge.

 

[Anonymous (9c71)]

https://www.indeed.com/cmp/Powers-Gymnastics/reviews

 

[JBS]

This is all very interesting.

 

[Anonymous (7242)]

Oh wow those reviews on Indeed. YIKES. very telling that they are coming from all over the US and not just one specific gym location.

 

[JBS]

Does anyone have an exact list of all of the Powers clubs?

 

[Anonymous (7242)]

This is the list I had started making a while back, it may not be up to date, and some of the gyms have since closed down.

Rowland Ballard (Kingwood & Humble, TX)
Houston gymnastics academy (TX)
Mazeika’s Elite Gymnastics (Houston, TX)
Golden Grips (Dallas, TX)
Capital - 3 locations (Austin, TX)
Platinum (Austin, TX)
Estrella Gymnastics (Goodyear, AZ)
Oasis (AZ)
Scottsdale Gymnastics (AZ)
First In Flight (NC)
Bull City (NC)
EVO athletics (FL)
Tigar (Denver, CO)

 

[Anonymous (9c71)]

That seems about right.

I believe they sold/shut down Tigar and lost both NC gyms, First in Flight and Bull City.

Thats usually the outcome when you treat your customers like crap :/

This is the list I had started making a while back, it may not be up to date, and some of the gyms have since closed down.

Rowland Ballard (Kingwood & Humble, TX)
Houston gymnastics academy (TX)
Mazeika’s Elite Gymnastics (Houston, TX)
Golden Grips (Dallas, TX)
Capital - 3 locations (Austin, TX)
Platinum (Austin, TX)
Estrella Gymnastics (Goodyear, AZ)
Oasis (AZ)
Scottsdale Gymnastics (AZ)
First In Flight (NC)
Bull City (NC)
EVO athletics (FL)
Tigar (Denver, CO)

 

[Anonymous (b08b)]

It appears that TIGAR is still open, but it could be under new management.

 

[Anonymous (298d)]

I’ve always found it odd how little digital footprint the powers group has.. I suspect they do a great deal of negative PR mitigation. A Google search for their filing company, AMM GHC LLC, yields significantly more results.

I know I’m not the only one who has been patiently waiting for the law (and karma) to catch up with them.

I’ll just leave this here:

https://trellis.law/doc/218383554/summons-complaint

 

[Anonymous (9c71)]

Usually little digital footprint means they can easily hide things. For such an important sport as girls/woman gymnastics you’d expect a lot more transparency. From what it seems and how they’ve been treating everyone, they’re probably not doing so well.

I wonder what the people at Relevance Ventures has to say since they have to make a return for their investors, being a VC fund and all.

I’ve always found it odd how little digital footprint the powers group has.. I suspect they do a great deal of negative PR mitigation. A Google search for their filing company, AMM GHC LLC, yields significantly more results.

I know I’m not the only one who has been patiently waiting for the law (and karma) to catch up with them.

I’ll just leave this here:

https://trellis.law/doc/218383554/summons-complaint

 

[Anonymous (298d)]

I’ve always found it odd how little digital footprint the powers group has.. I suspect they do a great deal of negative PR mitigation. A Google search for their filing company, AMM GHC LLC, yields significantly more results.

I know I’m not the only one who has been patiently waiting for the law (and karma) to catch up with them.

I’ll just leave this here:

https://trellis.law/doc/218383554/summons-complaint

Adding another: https://trellis.law/doc/233124154/complaint-w-jury-demand-complaint-jury-demand

 

[Anonymous (e7bd)]

This is the list I had started making a while back, it may not be up to date, and some of the gyms have since closed down.

Rowland Ballard (Kingwood & Humble, TX)
Houston gymnastics academy (TX)
Mazeika’s Elite Gymnastics (Houston, TX)
Golden Grips (Dallas, TX)
Capital - 3 locations (Austin, TX)
Platinum (Austin, TX)
Estrella Gymnastics (Goodyear, AZ)
Oasis (AZ)
Scottsdale Gymnastics (AZ)
First In Flight (NC)
Bull City (NC)
EVO athletics (FL)
Tigar (Denver, CO)

Golden grip in Dallas??? That gym used to be in Plano but is now NV gymnastics, is it owned by powers??? My brother goes there and I’d hate for him to be at a powers gym…

 

[Anonymous (298d)]

Ever since receiving 16.8 million in VC funding, the backing firm (Relevance Capital) owns the majority stake in the company and has the power to remove anyone from leadership. In this case I assume they were asked to resign with the alternative being a forced ousting. I've worked with both of them and can say with confidence they would not leave on their own accord .

The group currently has two lawsuits against them that I've been able to find, and I'd guess more yet to be uncovered given that they seem to have an endless number of company names they conduct business under.

- First lawsuit filed in September '24 has to do with defaulting on an almost million dollars across two loans from a lender in NY.

- Second lawsuit is brought by Trevor's dad, Jeffrey, on Dec 5th. Jeff actually purchased the entirety of TIGAR back in June of 2023 for $450,000. The business operations of the gym have continued to be managed by another of Jill and Trevor's companies "nc gymnastics management". The lawsuit is extensive but the cliff notes include:
-- powers defaulting on their contract to the original owner, leaving Jeffrey liable for an additional $200,000+ debt remaining from the purchase in 2021.
-- not granting Jeff any access to the business' financial information.
-- Denying Jeff any access or visibility to the businesses' bank accounts.
-- Stopping monthly payments to Jeffrey entirely. He has not received income from his business for several months.
-- Pledged Jeffrey's business as a collateral asset when taking out the afore mentioned $900,000+ loans in April and June of '24 without his knowledge or consent.
-- Has effectively 'ghosted' Jeffrey in all attempts to reconcile the situation

That being said, I'm working on putting together a larger picture of the series of events and conduct across gyms and states relating to Powers. If you have worked with the company or have any info/anecdotal information you think is relevant, please please comment below, I'd love to get in touch and hear what you have to say!

 

[Anonymous (7242)]

As the parent of an optional gymnast with NCAA aspirations, currently training at a Powers-owned gym, should I be concerned about the program? We love the coaches, but everything I’ve read has made me feel uneasy. Should we start exploring other options just in case?

 

[Anonymous (425e)]

Ever since receiving 16.8 million in VC funding, the backing firm (Relevance Capital) owns the majority stake in the company and has the power to remove anyone from leadership. In this case I assume they were asked to resign with the alternative being a forced ousting. I've worked with both of them and can say with confidence they would not leave on their own accord .

The group currently has two lawsuits against them that I've been able to find, and I'd guess more yet to be uncovered given that they seem to have an endless number of company names they conduct business under.

- First lawsuit filed in September '24 has to do with defaulting on an almost million dollars across two loans from a lender in NY.

- Second lawsuit is brought by Trevor's dad, Jeffrey, on Dec 5th. Jeff actually purchased the entirety of TIGAR back in June of 2023 for $450,000. The business operations of the gym have continued to be managed by another of Jill and Trevor's companies "nc gymnastics management". The lawsuit is extensive but the cliff notes include:
-- powers defaulting on their contract to the original owner, leaving Jeffrey liable for an additional $200,000+ debt remaining from the purchase in 2021.
-- not granting Jeff any access to the business' financial information.
-- Denying Jeff any access or visibility to the businesses' bank accounts.
-- Stopping monthly payments to Jeffrey entirely. He has not received income from his business for several months.
-- Pledged Jeffrey's business as a collateral asset when taking out the afore mentioned $900,000+ loans in April and June of '24 without his knowledge or consent.
-- Has effectively 'ghosted' Jeffrey in all attempts to reconcile the situation

That being said, I'm working on putting together a larger picture of the series of events and conduct across gyms and states relating to Powers. If you have worked with the company or have any info/anecdotal information you think is relevant, please please comment below, I'd love to get in touch and hear what you have to say!

I worked with the company in the past, this is wild, but I am not surprised.