Sunday, October 15, 2023

Founder of MLP Resigns | When Will it End? - MLP v PPA Pt. 5

 

The Rise and Fall of Major League Pickleball: How Greed and Grand Visions Led to a Bitter Breakup In just two short years, Major League Pickleball (MLP) shook up the world of professional pickleball with flashy events and star-studded teams. But a messy breakup between the upstart league and the Professional Pickleball Association (PPA) now threatens the sport's momentum. At the center of the saga is Steve Kuhn, founder and former CEO of MLP. Kuhn's big dreams and even bigger personality fueled rapid growth - but also sowed seeds of discontent that now jeopardize pickleball's future. 0:30 - MLP & PPA History Lesson Major League Pickleball burst onto the pro pickleball scene in 2021, hosting its first team event that November. With high production values and innovative formats like mixed gender singles, MLP captured fans' imagination. The inaugural event was a smash success, despite initial tensions with the PPA over player contracts. The established association eventually allowed its pros to compete while both leagues co-existed during 2022. Behind closed doors, merger talks between MLP and PPA progressed. Both sides signed a term sheet heading into 2023, clearing the way for joint events. The first unified MLP-PPA tournament in January went off without a hitch. With six more competitions on the 2023 calendar, the partnership seemed poised for prosperity. 5:30 - New Drama Recap But just weeks after the season one finale in June, trouble surfaced. Founder Steve Kuhn reportedly had seller's remorse over the merger terms and attempted a "hostile takeover" to improve MLP's leverage. What followed was a chaotic two-week struggle for power, with both leagues aggressively recruiting players. Top stars bounced back and forth as each jockeyed for position. Remarkably, despite the bitter feud, MLP and PPA reconvened at the bargaining table after just six weeks. While full details are unknown, it appears updated terms gave more control to new MLP investors who had injected badly needed cash. Original league backers like Kuhn were marginalized in favor of newcomers like venture capitalist Alan Tylis. But after an exhausting war, the leagues again seemed ready to join forces. 7:13 Owners Meeting The detente would prove short-lived. During a recent MLP owners call led by Kuhn, tensions apparently flared over financial strategy. Kuhn reportedly suggested selling another team franchise to raise capital, despite existing merger agreements. Some owners pushed back, arguing this contradicted the negotiated terms. Two top partners - Tylis and entrepreneur Jason Stein - were noticeably absent from the contentious call. Sources believe their exclusion was intentional. While owners debated finances, Kuhn's latest power play had clearly widened fissures among league partners. After two draining months, many lacked appetite for continued conflict. 8:20 MLP Economics The heated disagreement illuminated concerns over MLP's shaky finances. Despite flashy presentations, the upstart league was bleeding cash. Lavish productions and star-studded rosters came at a steep cost. And without assets like TV deals or corporate backers, MLP struggled to monetize its glossy product. Rumors suggest the league sold four expansion teams for $6 million each. But that windfall failed to staunch financial bleeding from unsold franchises and high overhead costs. Facing turmoil, the league had begun piggybacking events onto the PPA's established infrastructure. This sloppiness concerned potential partners conducting due diligence. For a merger to happen, insiders say MLP needed to get its house in order fast. But Kuhn's disruptive brinkmanship threatened that goal. 9:23 Steve Says Sell Another Team Despite growing doubts in the owners room, Kuhn remained undeterred. With his back against the wall, he doubled down and called for the sale of yet another MLP franchise. This brazen proposal was apparently a bridge too far. After months of headaches, key directors refused to stumble down another rabbit hole on Kuhn's whim. Following the contentious call, three members of MLP's board resigned immediately in frustration. They wanted no part of whatever came next under Kuhn's continued leadership. 10:33 The Next Morning By the next day, it was clear Kuhn's support network was crumbling. Tylis and Stein quit MLP's board after learning of the disastrous owners meeting. For two years, the founder had relied on force of will and relentless salesmanship to pull allies into his orbit. But this gravity could not withstand so many blows in quick succession. In 48 hours, Kuhn had alienated the remaining directors and investors he needed to keep his coup alive. After months of turbulence, the finish line for a merger finally seemed within reach. 11:00 - Steve Kuhn Resigns The morning after his failed insurrection, Kuhn waved the white flag. In an email to all MLP owners, he stepped down from the board and relinquished his voting shares. But Kuhn's retreat was not entirely graceful. Despite accepting defeat, he lobbied owners to let him depart "without disparagement" so he could focus solely on - DUPR, a pickleball matchmaking app. Ever the salesman, Kuhn essentially pleaded to escape litigation while framing his resignation as voluntary. With notably little praise for the league he founded, he asked erstwhile partners simply to allow his "peaceful exit." 12:22 Recap Steve's Memo Miller summarized Kuhn's rambling farewell memo as a mea culpa combined with an appeal for mercy. The founder expressed regret for letting emotions overrule reason as his dream derailed. Sources say Kuhn has an undeniable vision for the sport, but lacks pragmatism. His inability to compromise and unchecked emotion fueled unchecked conflict. In asking owners to spare DUPR employees any fallout, Kuhn revealed his tendency for solipsism. Despite the damage from his hijacking, he remained fixated on his own interests. 14:22 We have talked to some people Miller indicated discussions with various insiders convinced him Kuhn's departure could actually ease the path for a merger. Removing such a chaotic variable streamlined the remaining challenges. While appreciating Kuhn's passion, Miller felt consolidating authority under a few pragmatic leaders like Tylius and Stein would provide much-needed stability. He predicted that by January 2024, the warring factions would finally unite schedules and work collectively to grow the sport overall. 15:08 Why did the Tour Wars start? But sources pinned blame for the endless turmoil squarely on greed. If both leagues approached merger talks amicably from the outset, critics claim none of this chaos would have ensued. Some believe cooler heads could have forged a partnership on mutually-beneficial terms much earlier, avoiding the draining battle entirely. Informants argue both leagues dramatically overspent to stockpile players, committing to exorbitant contracts they originally never intended to offer. Miller, however, attributed clashes more to clashing visions than avarice. In his view, Kuhn was an idealist who saw pickleball reaching incredible heights under his stewardship. 16:29 The contracts are wild The frenzied recruiting pushed player compensation to levels unthinkable just months prior. While figures vary, total payroll for the partnership may approach or even exceed $40 million annually. Miller acknowledged many contracts were inflated. But he argued "you can't knock someone's hustle" for negotiating the best deal possible, however preposterous. In his view, despite much grumbling, all parties believe they can make the finances work over an initial "burn period." They are betting on landing a lucrative TV deal and riding pickleball's momentum. But an insider told Miller had leagues offered just $12-15 million less during 2022's "arms race", every single player would still have signed. Avoiding irrational exuberance could have saved the partnerships tens of millions. 18:00 What if the PPA started the Tour Wars? Intriguingly, Loong said contacts at the PPA itself argued had their organization acted as MLP did, they would have been branded a Ponzi scheme or scam by many. He agreed MLP somehow avoided this characterization by engendering a party-like atmosphere around events versus the PPA's stern corporate identity. Miller revealed Connor Pardoe stressed his PPA tournaments must make a minimum profit to be viable. Unlike MLP's disregard for balance sheets, Pardoe's financial discipline was essential for sustainability. By contrast, Miller argued, MLP's Kuhn convinced fans, players and owners not to sweat the numbers and embrace a "why not?" attitude. This devil-may-care approach enabled his rise.

19:52 This is massive news in the Pickleball Industry Miller observed that within pickleball circles, Kuhn's resignation and the leagues' ongoing dramas were explosive developments. But outside their niche community, few cared about the salacious saga. He expressed surprise other outlets had largely passed on opportunities to report on leaks and revelations. Within pickleball, fans and players endlessly dissected each new twist. Miller reiterated his own commitment, and this show's, to covering the sport fairly and providing credible insider information to fans deeply invested in pickleball's future. 21:28 Why was MLP trying to cut costs and get everything in line? Informants revealed to Miller that MLP had to eliminate all debt before the merger could be finalized. The PPA understandably refused to absorb untenable liabilities from the upstart league. Hence, MLP began reining in expenditures by riding the PPA's coattails for event production and operations. Together with selling franchises, executives scrambled to clean up balance sheets. But Kuhn's impromptu coup attempt blew up burgeoning trust just as the finish line emerged into view. For pickleball's sake, many now hope the dust has finally settled for good. 22:36 PPA does not want to take on MLP's debt. Like Miller, Loong believes level-headed leadership can still salvage a constructive future from this mess. Consolidation offers undeniable benefits for both leagues, players and fans. But these bitter feuds revealed real cultural hurdles that linger, especially around financial transparency. Until philosophies fully align, the path forward will remain clouded by suspicion. Still, Miller makes a fair case for optimism. With Kuhn's corrosive impact diminished, a unified league can focus on the big-picture growth of pickleball overall. If everyone looks beyond their own self-interest, perhaps unity will prevail. But this saga shows how much work remains to move beyond pickleball's wild-west past. Summary In just two years, Steve Kuhn's Major League Pickleball went from disrupting a niche sport to disrupting itself. Kuhn's ambition, charisma and recklessness fueled the league's breakneck rise and spectacular fall. Allegedly prioritizing self-interest and pride over a measured long-term strategy, both he and his PPA rivals pushed pickleball to the brink in a war over money, power and control. Now that Kuhn has resigned in disgrace, professional pickleball may finally have a chance to clean up the wreckage and chart a sustainable path forward. But the internal culture problems revealed by this saga will linger unless addressed transparently. Ultimately, the Kuhn vs PPA grudge match caused needless damage while solving nothing. With grown-ups now holding the reins, pro pickleball is poised to rebound. But the road to rebuilding trust and unity promises to be long and bumpy. For the sport to thrive, owners must learn from these mistakes. Yet history shows how hard it is for some to abandon greed when fortunes suddenly emerge. As long as short-term gain remains the priority, pickleball will struggle to deliver its long-awaited promise. True progress may have to wait until a new generation rejects self-interest to serve the common good.


  1. 0:30 - MLP & PPA History Lesson
  2. 5:30 - New Drama Recap
  3. 7:13 Owners Meeting
  4. 8:20 MLP Economics
  5. 9:23 Steve Says Sell Another Team
  6. 10:33 The Next Morning
  7. 11:00 - Steve Kuhn Resigns
  8. 12:22 Recap Steve's Memo
  9. 14:22 We have talked to some people
  10. 15:08 Why did the Tour Wars start?
  11. 16:29 The contracts are wild
  12. 18:00 What if the PPA started the Tour Wars?
  13. 19:52 This is massive news in the Pickleball Industry
  14. 21:28 Why was MLP trying to cut costs and get everything in line?
  15. 22:36 PPA does not want to take on MLP's debut.


No comments:

Post a Comment

PBisLife: Alix Truong Interview

  Alix Truong: Rising Star in Pickleball Shares Her Journey at Just 16 Years Old From tennis to pickleball, balancing school with tournament...