MusclePharm Corp (OTCMKTS:MSLP) has been staying a lot in the sports news lately, but for varying reasons. It was reported that the company has formed a partnership with the Cleveland Cavaliers for a potential sponsorship. In other news, the company has been spending extravagantly on the luxurious life of its founder and CEO, Brad Pyatt.
MusclePharm represents itself as a “scientifically driven performance and lifestyle sports nutrition company”. As per the details of its agreement with the Cavaliers, the company will officially be the presenting partner of the “Fourth Quarter Combat Crunch Time”. The company aims to use this time to market its combat crunch high protein bar.
The agreement allows MusclePharm to do so, during certain playoff home games only. Additionally, the company is also entitled to in-arena branding and signage, as well as digital promotions and product sampling at the arena. The partnership would also extend to other teams associated with the Quick Loans Arena.
MusclePharm is also under fire for granting up to $200,000 to its CEO for a number of perks in 2012 and 2013. The stated amount excludes the compensation package of airfare, lodging and leisure activities at the company resorts. The Securities Exchange Commission is looking into the matter, after which the company amended prior filings to fully report executive compensations. As per the recent agreement between SEC and the company, Mr. Pyatt was asked to pay approx. $62,000 back to the company.
In addition to these compensations, Mr. Pyatt has received around $9 million in company stock. He is also accused of using the company’s ATM card to make transactions, which are not associated with business dealings. MusclePharm has never posted an annual profit, since it started trading in 2010. Finally, MusclePharm’s 1Q2015 reported a backlog of $8 million. The company has yet to give a good reason for this development.
MusclePharm Corp (OTCMKTS:MSLP) closed at $6.49, after losing 5.26% on May 19. The company has 13.49 million shares being traded in the market, with a 52-week range of $2.78-$14.20.
