'Musclepreneurs' hit the Ring

'Musclepreneurs' hit the Ring

ENTREPRENEURS by Mark Gordon | Managing Editor

Sarasota entrepreneur Andrew Neitlich is going to find out how his Harvard MBA does in a fight.

This is no match between Keynesian economic theorists. It's not even a bull or bear debate over the future of the stock market. This battle will be taking place in a real ring, between real fighters in a new sports league Neitlich formed called Bonecrunch Fighting.

A mix between boxing and karate, the sport is officially known as Mixed Martial Arts and it's the 'next big thing' in the nationwide sports and entertainment crossover for reaching the coveted young male demographic. Recent MMA fights, prior to Neitlich's venture, have been televised on pay-per-view and cable networks, and the sport's growing popularity even warranted a recent Sports Illustrated cover story.

Neitlich plans to bring all the elements of the sport together in a semi-nationwide franchised league he's forming, with Sarasota as the corporate headquarters. "The idea," Neitlich says, "was to take advantage of this growing sport with a league concept."

The inaugural fight of the Bonecrunch Fighting league is scheduled for Aug. 4 at the Robarts Arena in Sarasota, pitting the Sarasota Slammers against the Miami Crazy Wolves, two teams made up of a fighters from various athletic backgrounds, from former high school wrestlers to kick-boxers.

The one-on-one fights are set up for three rounds of four minutes but due to the aggressive style, Neitlich says some are over in as quick as one minute. Fights can end by knockout, a judge's decision or what's known as a tap out, where a pummeled fighter essentially gives up. Teams earn points for individual fights and then tally a cumulative total for the season.

The Bonecrunch franchise model works essentially like any other franchise system, only the product being sold is a fight until someone in the ring cries Uncle, as opposed to coffee or hamburgers. One caveat: The concept can't be totally national, as MMA fights, which Neitlich describes as not exactly anything goes but something close to it, isn't even legal in 20 states.

Neitlich, who earned his business degree in 1991 and later worked in marketing and management consulting, is approaching the MMA venture using his MBA skills. Since a good business, he says, is one with low fixed costs, he is outsourcing as much of the work as possible.

He hired attorneys from Fowler White Boggs Banker, a prominent Florida firm, to come up with uniform franchise agreements, draft fighter contracts and register trademarks. He also brought in a marketing firm to promote the league and the fights.

He chose franchising as the league's business model as a way to finance the entire business until it becomes profitable. The first five potential franchise owners accepted into the league can get in for a $50,000 franchise fee.

What's more, any potential team-franchise owner must have a minimum liquid net worth of $300,000 and the risk-taking ability to absorb significant losses, Neitlich says, especially in the beginning, with costs including insurance and recruiting fighters. It can cost up to $60,000 to put on an event, which is designed to include 10 individual fights.

Neitlich has yet to sign up any team-franchise owners, although his short-term goals call for having one to five teams by next year. And in three to five years, Neitlich projects, the league could have 30 teams, a TV contract and revenue sharing. The NFL, Neitlich says, has become enormously successful using that formula.

"Part of what I'm doing here is a laboratory to see what works and what doesn't work," Neitlich says. "Anyone can do it in a great market. I'm trying to do it in a small market."

Entrepreneurialism is a family business for Neitlich and his wife, Elena Neitlich, who co-founded a home-based children's products business last summer that has received some national attention from Entrepreneur magazine and Yahoo! (See Review, Aug. 11, 2006.)

And although Andrew Neitlich isn't himself a fighter, he did grow up in the aura of two fighting legends: Neitlich was born and raised in Brockton, Mass., home to boxing greats Rocky Marciano and 'Marvelous' Marvin Hagler.

It likely won't take long to see if Bonecrunch Fighting gets out of the first round.