The rise, near collapse, and salvation of the
Transcription
The rise, near collapse, and salvation of the
The rise, near collapse, and salvation of the legendary snowboarding brands. By Brad Farmer The Forum crew in Germany at what was perhaps the peak of Four Star’s glory years. Courtesy Steve Ruff “The Joint” at the HARD Rock Casino in Las Vegas was dark, smoky, and packed with hundreds of restless industry heads. A strange uneasiness filled the infamous amphitheater. I’ve never felt such discontent at a party, especially one that was supposed to be the party of the tradeshow. It was shocking that some of snowboarding’s most influential brands were not going to have a booth, here, at the most important industry tradeshow. However, Four Star Distribution and the associated snow brands’ decision to instead throw a huge bash for the release of Video Gangs seemed somehow fitting for their now rowdy image. The rumored $2 million Video Gangs movie project had been cleverly marketed almost like a brand in and of itself but in reality it was intended to be a post Mack Dawg follow up to team movies The Resistance and True Life. The popularity of these movies along with several other bold marketing moves had propelled the Forum brand to one of the most wanted in the nation despite serious product quality issues in their first couple of years. I remember in the fall of 2003, I ventured down the mountain from Big Bear to the industry premier of Video Gangs, which was held at a small downtown theater in San Clemente, California. About three times as many people as the place would hold showed up. Once the crowd learned that most of them would not get in…they literally tried to storm the theater. Just about every available police officer in the area had to be brought in to control the situation. Now this was a movie premier! On the Monday night of SIA 2004, I walked into Four Star’s party expecting something similar to the chaos of the previous premier but what I found was a rather subdued crowd. Show headliner 50 Cent turned out to be an SIA no-show along with Four Star. Rumors were running rampant that the company was up for sale, in serious financial trouble, and numerous personnel departures and position changes had basically confirmed it. Just over six months later the sale of Four Star brands including Special Blend, Foursquare, Forum, and Jeenyus to Burton would be finalized. This is a story about the rise, near collapse, and eventual sale of one of the most important conglomerates in snowboarding’s brief history: the Four Star Distribution brands (with a focus on Forum Snowboards). This is a story that has never been told and it is a story that was incredibly difficult to get: Some of the main players seemed relieved to talk, some were reluctant, while others refused and were downright furious with me for pursuing it. Peter Line, Mike McEntire (Mack Dawg), Greg Dileo, Steve Ruff, Niko Achtipes, and Travis Wood agreed to interviews. Raul Reis and Markus Bohi declined to comment. The Origin of the Four Star Brands Around 1990, Raul Ray Reis Sr., who was a pastor and one of the founders of the Calvary Chapel in the Inland Empire, invested in a mountain bike gear company called Switchbacks along with a few other members of his church. According to Travis Wood, the company didn’t have much success and eventually Raul Reis Sr. came to an agreement with his son Raul Reis Jr. to try and make something out of the brand. “I was working at a shop called Hot Skates in Orange and Raul [Reis] would come in with these prototype snowboard pants with the Switchbacks name on them,” said Wood. He further explained that it was around 1992 when Raul dropped the mountain bike products and decided to go completely into snowboard outerwear. Shortly after that the name was changed to SB before finally becoming Special Blend. Around 1993, Travis Wood, Steve Ruff, Brian Thien, Marc Morisset, and Jason Bump were team riders for Special Blend outerwear. Wood says, “After Switchbacks made the transformation to Special Blend, they created a whole new style of outerwear completely aside from skiing in a more urban fashion direction.” As it turned out a denim line was what really blew it up for them. Niko Achtipes was brought onboard by Reis to help start an image ad campaign that he believed would make the company. “Raul loved all of the image ads I was doing for Droors at the time. He was like, ‘Well let’s just do what you are doing for Droors but do it for snow.’” Achtipes’ efforts helped create the all-important image of the brand. “My favorite ad ever was a shot of Brian Thien standing in the middle of this wheat field, on a pool table, putting a golf ball. It had nothing to do with snowboarding at all and yet it caught everyone’s attention,” said Wood. Weather he knew it or not, Raul Reis was in the midst of starting what would become one of the most influential companies in snowboarding. The people that Reis would bring together over the next several years would be the key to its success. “Here is my explanation of Raul,” says Antipes. “He is really good at recognizing what he’s not good at and surrounding himself with good people. He has decent taste in that he knows whose taste to copy. I was Raul’s taste for 10 years.” Achtipes went on to say, “Most people that I know who run shit are A.D.D. [Attention Deficit Disorder]. Raul is A.D.D. They have selective hearing, selective memory, they barely graduate high school, but they run shit and that’s what they’re good at…And that is what Raul is good at. He surrounds himself with the right people and he gets them to do what needs to get done.” In 1995, two of the biggest names in snowboarding were Peter Line and Ingemar Backman. “Raul was always good with timing and getting the right guys on the program and he wanted Peter Line,” said Wood. Raul looked to his friend and then president of Division 23, Greg Dileo to connect with Peter Line. “I was riding for Division 23 when Raul and I first talked and he told me that Ingemar and I could hold an outerwear line on our own,” said Line. He went on to explain that the first year he designed a jacket and pant and subsequently put together several pieces. Line says, “At first we just had a logo that I designed with four squares stacked together—Raul later staggered the squares. We really didn’t have a name the first year—we just called it The Clothing Company Designed by Peter and Ingemar, before it became Foursquare.” Special Blend and Foursquare quickly became successful with the help of Line and his edgy designs, the solid marketing effort by Raul, and the creative direction of Niko Achtipes. Line says, “Raul wanted to keep Special Blend as a more urban core brand while I helped take Foursquare in a more tech direction.” Line maintained the lead designer role for the first three or four years until the brands became too big and his new role with Forum Snowboards took more of his time. As a Four Star rider, Peter Line defined himself as one of the elite snowboarders of all time. Photo: Niko Achtipes The Rise of Forum Snowboards and Four Star Distribution Even while Foursquare was under development, Greg Dileo, Peter Line, and Mike “Mack Dawg” McEntire were discussing the creation of a new snowboard company. “Greg Dileo was really the one who put 38 JANUARY 2007 Peter Line is infamous for classic shots like this huge method at Snow Summit. Photo: Jon Foster JP Walker was submerged in mealworms for a bugs ad shot that ultimatly went to Peter Line. Photo: Niko Achtipes it all together. He and Peter were still with Division 23 but looking to try something different,” said Mack Dawg. The consolidation of the industry suggested to the three friends that the time was right to start something fresh and new. At the same time, Reis and partner Markus Bohi were looking to add a snowboard brand to compliment Special Blend and Foursquare’s success. “The original core of Forum was the three of us,” says Dileo. “We knew we had the right formula. Peter was the talent and on top of his game, Mike was the finest filmmaker at the time, and I was going to handle marketing and board design. I went and talked with Raul and Markus because they had the missing ingredients—management, financial backing, and distribution.” “Raul arranged a meeting at which time we discussed creating the brand and came to an agreement,” says Mack Dawg. He also explained that himself, Peter Line, Greg Dileo, Raul Reis, and Markus Bohi were basically equal partners. “Forum was under the newly created Four Star Distribution umbrella but it was to be treated as a separate entity from the other brands that Raul and Markus owned,” added Dileo. Mack Dawg had some serious demands of the driection of the brand from the beginning. He told STN that he made it absolutely clear to all of the partners that he had no interest in being a part of a company that was after the raging partier image. “Our goal was to create a company where the riding was what mattered,” he said. The Making and Marketing of the Team “Peter and I started putting the team together and then Ruff was brought in to help. We got the guys that agreed with our philosophy for the brand’s image,” said Mack Dawg. Steve Ruff was Reis’s cousin and had been the team manger for Dragon when he was hired to manage the Forum team. The first rider brought onto the team was Bjorn Leines followed by Chris Dufficy, and JP Walker. “We decided early on that we wanted to have a small tight team of only the top riders. We didn’t want to have any scrap at all,” said Dileo. “From the beginning, the riders were on a mission to push themselves and progress at every session…all of the time,” adds Mack Dawg. With the first few riders onboard and the rest to follow shortly, they set out to dominate the snowboarding media. “One thing Raul did really well was take care of the riders,” offered Wood. According to Mack Dawg, their marketing wasn’t groundbreaking, just using what works: “I’d seen it work for skate companies like Powell, H-Street, and Plan B. I was shocked that it had not been done before in snowboarding.” The idea really wasn’t that complicated—employ the best riders, shoot and produce the most insane films, and make it so damn easy for the magazines that all of the Four Star riders would end up on every other page…or more. At the time Forum and Burton were the only companies that employeed their own staff photographers who flooded the magazines with images. “We only wanted to have the best riders in the sport on the team and in turn those riders would work together as a unit pushing each other and the boundaries of the sport—this showed in the movies and the magazines,” said Dileo. In 1996, Achtipes headed up the creative development of one of the most famous Forum ad campaigns, better know as the bug ads. “We set up a shoot in L.A. and nothing good was really coming out of it…At the end of the night, I shit you not, a cockroach ran by my foot and I was like, ‘Alright, there are our ads,’” says Achtipes. “A week or two later we hired a bug wrangler and brought the team in to shoot the bug ads.” When the ads came out, JP Walker appeared with scorpions, Peter Line A young Jeremy Jones might have been using stickers to help keep his board intact, but he slayed it nontheless Photo: Niko Achtipes with mealworms, Chris Dufficy with tarantulas, and Bjorn Leines with cockroaches. “I’m all about turn the page shock value,” said Achtipes. “With a team that everyone in our industry already knows kills it, why show them snowboarding? We wanted to show their personalities. All our guys had personality, all had style, all were quirky in their own way. Some were hip hop, some were fresh, and some were a little bit of everything. Peter was his own little alien self. We love him. Everybody loves him.” Raul and Niko’s instincts were correct and the Forum ads became the new indusry standard. The Forum Product Debacle “From the beginning the product was a really big problem for the company,” said Dileo. He further explained that Reis and Bohi picked the first factory where the boards were to be produced based on previous relationships they had. “I didn’t agree with the factory choice because they didn’t have a good track record,” says Dileo. It turned out that Dileo’s belief was correct: “I was brought into an emergency meeting and found out that it wasn’t going to happen. At that point, I had to scramble to try and find a new factory and this was December…we had to have our samples for the tradeshows.” Dileo went on to say that most of the real legitimate factories such as Elan were booked up already so they ended up choosing a factory located in San Diego. “Of the open factories, they seemed to have the best product at the time. It ended up not being good product and it was a constant one and a half to two year struggle with that factory to get anything out of it.” According to Mack Dawg, Dileo started having Forum boards made 40 JANUARY 2007 Jones—getting it done on the brand defining lime green Forum snowboard. Photo: Niko Achtipes at this place called Rocket Science by some crazy engineer guy from England. “The boards were strong and light but they could not figure out how to finish one at all,” says Mack Dawg. “I’d be out at shoots with riders and we would pull the boards out of the bags and they would look like they almost had a texture on the bottom…you could not even ride it. So, I’d go down there and I’d bring a good board to show them how it’s supposed to be done. They didn’t even have a good grinder or anything so I helped them get the stuff they needed and they tried to do it right, but they could never really pull if off. They tried to do these die-cuts but they didn’t put them in right, so they would actually pop out. It was insane…you’d be riding down the mountain and then all of sudden it would be like an anchor dropped and you’d go flipping over the bars [Laughs].” He went on: “I remember talking with JP [Walker] and Jeremy [Jones]…they came off riding for Rev which was making some of the best boards at the time. They couldn’t even ride the boards. They’d be like, ‘What do you want me to do? I can’t even ride this.’ I can’t believe that Ruff even kept those guys on the program because the product they were riding was so compromised. It’s amazing that they were able to get such good video parts.” Mack Dawg further explained that Dileo was convinced that Rocket Science would be able to pull it off in the second year (apparently making snowboards really was rocket science). “I went down there and started pulling boards out of the bags and they were just like the first year…they were unrideable. I started throwing boards around and I was like ‘What the hell are you guys doing? These boards can’t ship.’ Every board had to come out, the wax has to be taken off to redo them…it was a bad scene. We basically had to shift gears and that’s when Greg’s job came in jeopardy.” “I was in a position that I shouldn’t have been in and didn’t really care to be in,” says Dileo. “I had to do it in the beginning because I was the only person who understood the process of board production. If I were to go to them and say we need to bring in an engineer—I would have discounted my own position. The way Raul and Markus manage is if you even begin to deem yourself ineffective you’re gone—that’s it—there was no loyalty. I’ve always been a marketing and a branding person and I was pushed into the role of product development and engineer guy which I’m not.” Dileo, the person who originally came up with the idea for Forum, was let go. “When it all went down with Greg, I was the only one who said anything. I was like, ‘Greg has to get something out of this’ and no one said anything. I was like, ‘Man, that’s harsh,’” said Mack Dawg. According to Dileo, after some serious legal wrangling, Raul and Markus finally agreed to pay him out roughly $100,000 for his shares in Forum. “When I lived with Dano [Pendygrasse] in Whistler,” says Colin Whyte, now editor of FSM, “he was shooting for Forum and I was handling all of the warranty repairs for Forum’s Canadian distributor out of our basement—solo. I remember one time, Bjorn [Leines] and Peter [Line] were hanging out on our couch after a hard day in the backcountry. I had to move these legends’ boots drying by our fire in order to get some heat on giant delams I was fixing some of their pro models returned by shops. One of the boards had like eight C-clamps on it. It was pretty funny but none of us really said anything... Early on, it seems like the boards were as bad as the team was good but it seems like now Forum makes some of the best boards out there.” After Dileo’s departure, Jason Kanes was brought in to help solve the product problem. According to Mack Dawg, the temporary fix to the problem was moving production to a Canadian factory. The improvement to the product was tremendous but ultimately the costs were too high. The manufacturing was finally moved to the Elan factory in Switzerland where the focus continued to be on board quality. The Forum 8 and The Marketing Juggernaut Despite the product problems, the marketing force that was Forum and Four Star didn’t skip a beat. “The craziest thing about Forum is that we were basically able to sell the shittiest boards ever made,” said Mack Dawg. The reason why they were able to sell terrible product might have been a result of the state of the sport at that time. Snowboarders were much more core in that they wanted to ride the board that their favorite shredder rode even if there were quality questions. The explosion of the team and the success of the marketing effort managed to make up for any product shortcomings in the first couple of years. The focus of Forum’s ad campaigns continued to be on the image of the team riders. Achtipes says, “These guys ride, everyone knows they can ride. We don’t really have to show them riding. I was more about, ‘Let’s sell these guys because they are going to be in Mack Dawg’s movie anyway—killing it.’” They actually pulled back from advertising after the bugs ads because they were so dominant on the editorial side of the magazines they didn’t even need it. The Forum team was quickly solidified in 1998, bringing on Jeremy Jones, Wille Yli-Luoma, Joni Malmi, and Devun Walsh. The eight-man roster was one of the best, if not the best at the time and the marketing effort based on them continued to gain dominance. Travis Wood made the transition from Special Blend team rider to marketing and promotions manager for the Four Star brands and he recalls how the Forum team riders became known as the legendary Forum 8. “We had gotten word that Burton was starting a new program In 1999, a switch method gap jump was the height of progresion. Devun Walsh, Mt. Seymour. Photo: Dano called Seven,” he said. “It was Burton’s attempt to be a little more core at the time…they were starting this program to get back to their roots and into the specialty core shop’s mode of thinking.” Achtipes added, “For some odd reason they told us they were going to do Seven. We were much smaller than Burton and could turn things around quicker so Greg and Raul came into the office and in one night we bang out the first ad with the silhouette of all the riders and we put it in the last issue of that year to preview next year. We felt that Seven was an attempt by Burton to come after us and so we beat them to the punch. It’s just ironic and funny as hell that we happened to have eight guys on the team and it became the Forum 8.” Mack Dawg’s movies, including The Resistance and True Life, were absolutely the most groundbreaking movies of their time, propelling the riders to stardom. Wood says, “Mike [Mack Dawg] is very clear about what he wants and how it all fits together from start to finish. He demanded a lot of commitment from his riders and it showed in the progression of the sport. They were on another level, they had a job to do, and if that meant being up at 5 a.m. to accomplish it—they were up and ready to work.” “Working with riders of that caliber, that closely, and having them be that motivated, that was the best thing ever,” said Mack Dawg. “For me as a filmmaker trying to push the sport of snowboarding, that was all-time. We were on exactly the same page.” The team riders were having the time of their lives—traveling together, shooting together, and more and more often partying together. “We were all hanging together just like one big family—traveling and going on team trips to Mexico when the season was over. We were all super tight and everyone who was not on the team was jealous of what we had. Other riders would pay their own way to come on trips with us just to hang out,” said Peter Line. “Those were the best years of my life—the experiences that we all had—traveling the world together. I would never take back those years,” said Ruff. But behind the scenes, on the financial side of the company, things had not been going well for quite some time. The shock and awe Forum image ad campaigns set the industry standard. The pictures below depict three of their bangers. Joni Malmi Photo: Niko Achtipes When Money and the Party Became a Factor The first sign of a problem may have been the Forum product issues but soon “money” exposed the real internal problems. The consensus among those interviewed seems to be that mismanagement of the financial side of the company and frivolous spending created a huge drain on the cash flow. Ruff says, “When money came into the picture it really changed a lot of people in the company.” The fast growth of the company also created serious cash crunches. Wood explained that in his two years in marketing with Four Star they went from roughly 15 employees to about 70; from having a couple of small buildings to moving into the former Arnette headquarters; from “X” amount of dollars coming in to three or four times that; and from the three snow brands to adding Circa and later C1, Jeenyus, and Video Gangs to the mix. The growing pains became apparent to the Forum partners when the company came up short when financing a board order. “Raul and Markus got all of us [the Forum partners] together and told us that they needed to bring a new investor into the company in order to complete a production run of new boards,” says Mack Dawg. “Markus’s brother who resided in Switzerland was going to invest the needed money but that meant that our stock had to be diluted. I think I went from 20 percent owner to less than two percent in about 15 minutes. Then Peter and I were told that we were going to get equal percentages in this great umbrella company that was going to cover all of the Four Star brands…but that never happened.” While the money issues and divisions between partners mounted, the party scene and everything Mack Dawg had been against was 42 JANUARY 2007 Devun Walsh and Chris Dufficy, Mt. Hood. Photo: Niko Achtipes Photo: Niko Achtipes Photo: Niko Achtipes Photo: Niko Achtipes Bjorn Leines at Bear Mountain Photo: Niko Achtipes escalating. Mack Dawg says, “It started to go downhill when it became successful. I told them from the beginning that I was not interested if once it became successful everyone turned into alcoholics and just started partying and thinking they’re rock stars.” “When I met Raul there was…no drinking… no cussing…and he had a girlfriend but claimed not to sleep with her. He was his father’s son [i.e. a pastor’s son]. Raul is an all-or-nothing guy. He is either going to drink and be a party guy or he is not. When I met him he was not but then he became one,” said Achtipes. Perhaps one of the most obvious signs that something was wrong at Four Star came with the departure of Mack Dawg. “I was completely not backing the way the whole program was going and they obviously didn’t want to talk to someone who was destroying the fun party,” said Mack Dawg. He went on to tell STN about how Raul wanted Mack Dawg Productions to be part of Four Star and only make their movies. “I was like, ‘No way, first of all you are totally blowing it and second of all, why would I do that when my company is its own thing and has been around for like 12 years already?’” Reis decided that it was time to start his own film company and brought on Sean Johnson to team up with Sean Kerns, the creators of Whiskey, to make the new film. “We meet up to discuss the project after True Life and they weren’t having the budget and basically declined to do the project,” says Mack Dawg. “They were pretty smart about it, they had been thinking Photo: Niko Achtipes about it for a while. They had written in riders’ contracts that they had to film for the Forum movie or the Four Star movie. Basically a lot of those people who I was filming with for years and had basically brought up had to film for their [Four Star] project. The only person who really denied that was JP [Walker], he was like, ‘Screw that.’ He didn’t film for their movie. He did what he wanted to do and filmed with me in Shakedown and they couldn’t fire him because he’s JP.” “The team riders didn’t know anything was going on. They knew Mack Dawg was bummed on things. But it really didn’t affect the riding. It was definitely a money thing and a trust thing,” says Peter Line. “Dawger [Mack Dawg] just didn’t trust Markus or the direction of the company. I guess he kind of felt like they [Raul and Markus] were pitching people out over their ownership.” Mack Dawg told STN that he did eventually get paid out the same amount as Dileo receiving about $100,000, which he equated to roughly $12,000 per year for his work. Toward the very end, right in the middle of the Video Gangs project, Steve Ruff was kicked out of Four Star signaling even more problems at the top. “With Ruff it was just a clashing of heads I guess. That was pretty gnarly...He was there from almost the beginning and being Raul’s cousin and everything…that was the end,” said Line. The Sale of the Snow Brands With Four Star on the verge of collapse the only way to save the snow brands was to sell them off. Achtipes says, “What were the snow brands worth when he sold it? Do I know numbers? No, but I can speculate. I know what was making money in the building and it was Circa. By the time he sold the snow brands—from what I was told—Circa was 70 percent of the income.” Ruff talked about the day he found out about the sale: “I remember when Raul called me. He and I weren’t on talking terms too much at that point, but he said ‘Ruff, we sold the snow companies to Burton. You’re the first person I called.’ And I remember saying, ‘Dude, that’s awesome, Raul,’ and kind of thinking wow it actually happened. I said, ‘Well what does that mean for us [myself and the riders?]’ He was like, ‘Oh, it’s all-good, I can’t talk about it. We signed nondisclosure statements so none of us can talk about anything. But when it’s all closed and finalized, we’re going to sit you guys down…with a lawyer and we’ll explain to you exactly how the payout is going to work.’ So, sure enough, as soon as that happened, Peter, JP, Devun, and myself were all on the phone with each other talking and wondering what was going to happen.” “This was to be kind of like a day of redemption,” says Ruff. “We were all going to cash in. When we first started Forum, we were going to sell for millions. All of us who had ownership were going to be taken care of and never have to work again for all of our lives. But when the sale was actually going down…we knew the industry was in a different state, and it wasn’t going to be a matter of, ‘Oh, we’re all getting millions of dollars,’ but it’s going to be interesting to see what everyone gets.” “We all got letters in the mail from the attorneys, saying that there was essentially no money made on the sale…no profit for any of us to have…nobody was getting any money. I don’t even know how to put it into words what a horrible feeling that was,” says Ruff. “My best friends JP, Peter, and Devun…those guys gave up so much financially for so many years to build Forum and for them not to get any sort of payout at all was heartbreaking.” He further explained that many of the riders could have had made way more money riding for other companies but they chose to stay with Four Star because it was something they believed in and many of them were given shares and promised ownership in return for working to make it happen. Line said, “I’m bummed. It’s something I helped start and I know it was nothing I could have helped unless I knew what was happening on the inside but I was just a kid at the time. So, I had no clue that it was falling apart like that. I still think about it—like right now—I’m just bummed about everything.” When all was said and done no one got a dime and that can only be seen as a tragedy to most of the key players. After years of hard work, people like Peter Line, Mack Dawg, Steve Ruff, etc. were left with nothing but memories. The harsh reality in the end is that a percentage of nothing is unfortunately, nothing. All of the guys I talked with had some regrets but they all also said those were some of the best days of their lives. They would have all done things differently, mostly keeping their eyes on the money, but they are grateful for being a part of something so special. “It was just a unique deal in the history of snowboarding that will never be duplicated,” said Ruff. Burton Saves the Brands and Creates The Program Almost 17 years after Switchbacks started, Burton now owns the former Four Star snow brands and they have created “The Program” under which Special Blend, Foursquare, and Forum are marketed and sold. The team is still one of the best and the product quality rivals any brand on the market. Jake Burton had the following to say at the time of purchase: “Forum is a company we have always respected, and it is a brand that needed to stay in the hands of snowboarders. We will do our best to see that Forum and its sister brands continue to grow and develop.” Line says, “Forum is still here, we had a rough time but Burton kind of saved our asses. Otherwise Forum wouldn’t even be around right now. I’m very fortunate that that happened…especially having the coolest company in the world buy us.” “It was pretty awesome that Jake [Burton] stepped up and bought that company and now those brands have a chance to progress,” said Mack Dawg. “I’m stoked that Forum is getting back on track. I’m stoked I’m still around. Forum for life!” says Peter Line. 44 JANUARY 2007 JP Walker exemplifies why Forum Snowboards is known for having one the best pro teams in the history of snowboarding. Stockholm, Sweden. Photo: Rob Mathis