Back in 2020, BioSteel Sports Nutrition was on cloud nine when they announced a partnership between the sports nutrition company and Patrick Mahomes. The deal was monumental for Mahomes since winning the Super Bowl earlier that year.
BioSteel was supposed to take the next step in leading the wave of healthy sports nutrition by partnering with Mahomes, who is clearly the best quarterback and the face of the NFL. The good vibes have worn off since then.
On Friday, it was reported that the Mahomes-backed company has filed for bankruptcy.
Canopy Growth, which owns 90% of the equity in BioSteel, filed for bankruptcy protection.
More information via KCTV:
“The company, which makes most of its money in cannabis, decided to stop funding the company and instead sell it.
The company, based in Ontario, Canada, said it expects to save more than CDN $100 million, or about $74 million USD, a year with the move. In an SEC filing, Canopy said it will lay off 181 employees.”
“Canopy Growth has marked yet another major milestone in our transformation plan, as while BioSteel’s business has shown significant year-over-year revenue growth, and we believe the brand remains an attractive asset, it does not align with Canopy Growth’s cannabis-focused asset-light strategy. We have repeatedly demonstrated that we will take decisive action to enhance our profitability and ensure we are focused and positioned to be a leader in the North American cannabis sector,” David Klein, Chief Executive Officer, said in a statement.
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BioSteel was competing in a crowded sports drink space and trying to secure the fourth market position behind Gatorade, BodyArmor, and Powerade. They had signed sponsorship deals with several NBA teams such as Brooklyn Nets, Dallas Mavericks, Los Angeles Lakers, and Philadelphia 76ers.
The company also became the NHL’s “official hydration partner” in 2022 as they would go on to sign agreements with the Anaheim Ducks, Carolina Hurricanes, Chicago Blackhawks, Columbus Blue Jackets, Pittsburgh Penguins, and Tampa Bay Lightning.
Despite these deals, BioSteel came in behind Gatorade, BodyArmor, Powerade, and others in the sports drink market last year.
Aside from Mahomes — Sophia Smith, Ezekiel Elliott, Gleyber Torres, and Andrew Wiggins are part of its endorsement roster.
On the field, Patrick Mahomes has thrown for 531 yards to go along with four touchdowns and two interceptions. The Kansas City Chiefs are 1-1 after they lost their home opener to the Lions and defeated the Jaguars on the road this past week.
