No Surprise: Kara Goucher joins Oiselle.Big Surprise: Turned down 7 figures from shoe company

Er... wrote:

I find Kara's blog post sort of strange. If Oiselle is a company so dedicated to honesty and integrity, why did they invite the Gouchers out to Seattle only to tell them they can't make Kara an offer?

I didn't get this part either. Come work for us for free? What was the point to inviting her out? Oiselle had to have known Kara would want an offer.

Er... wrote:

I find Kara's blog post sort of strange..

Remember you're hearing this through Kara's lens, who like anyone makes themselves and their situation seem just a little bit better than in reality. Let's count the overly egotistical sentences in her public and promoted blog that reveal her insecurities:

1. "Once again, Nike wanted to renew..." Notice she doesn't say it was a lousy enough offer to stop her from looking around?

2. "Sally Bergesen, the CEO and founder, and I ended up chatting on the phone." Not just anyone. The CEO. She needs you to know that.

3. "She [The CEO] wants to be my friend. Oiselle loves me." Yep, the company head wants to be her friend. We ALL do, Kara.

4. " Could I have helped change the running industry? Could I have inspired others? " Seriously, how far up her own a*s is this woman's head?

Like most pro athletes, Kara's marketability has much more to do with the way she reaches jane public than it does with her past and prospective performances. I don't think Oiselle thinks for a second Kara will contend for a world championship again. Possibly not even a national championship. But Kara is brilliant at appealing to women runners. Her look, her manner of speaking and writing and her social media presence are all a great tool in their belt. Only question is if Oiselle factored in how much less relevant she'll be each year she's no longer an elite-level runner.

just saying again wrote:

*stipe wrote:

Kara relates to the masses.

And what better way to relate to the masses than talking about the 7 digit contract you just turned down. Just saying.

Since when was it shameful to turn down more money for an offer you really love? To go with your heart? In my eyes that is extremely admirable given all of the people I see working jobs they hate just because they pay well. I'll be doing something like this in a year and a half when I go to graduate school.

I think the reasoning is that it is unlikely Goucher was offered a deal longer than four years (do they ever really run longer than an Olympic cycle?), given her age and recent results (good but certainly declining). At that rate, it would be 250k/yr and thats too high for an athlete a shoe company sees as on the decline.

I suspect only Nike could offer up that kind of money and they haven't shown themselves to be that friendly to athletes falling out of their prime.

This is pretty typical from someone who doesn't know any of the Oiselle girls. They're basically one giant sisterhood. Like an adult sorority of runners. They all love each other and eat and breathe Oiselle. This includes Sally. Kara was being honest.

Just to be clear: I'm a pedant and I think there are some internal inconsistencies in her blog post. I'm not, however, interested in psychoanalyzing her based on that post, nor am I writing to criticize her or tear her down. You can do that if you want, along with all the other posters on here motivated by who knows what insecurity.Sure there is some spin in her writing, and maybe an attempt at face saving in light of her no longer being thought of as "marketable" by the big money shoe and apparel corporations. Or maybe there isn't? How the heck are we supposed to know?In circumstances like this, despite my pedantry, I prefer to focus on the positive. She's signed a deal that offers her equity in a hip, young company that she likes. Maybe she'll be an executive with the company one day. Maybe it will go bankrupt. Maybe it will be a huge success. Why on earth would we not want the best for her?

Salt Lake City man wrote:

Let's count the overly egotistical sentences in her public and promoted blog that reveal her insecurities:

Er... wrote:

Why on earth would we not want the best for her?

Just because we analyze (or overly analyze) something doesn't mean we don't. I'd love to see her succeed and be happy. Doesn't mean I can't call it like I see it, sort of the point of an online message board.

I don't doubt she was offered in the million a year range. I know a track & field athlete (should say field athlete) that makes $200,00-$250,00 per year. If an athlete that specializes in a field event can make that kind of money then I wouldn't be surprised that someone like Kara could make much more. She's certainly more famous(marketable) than any field event athlete I know.

I'm talking American athletes by the way. I'm aware that in other countries some field event athletes make more money.

xenonscreams wrote:

Since when was it shameful to turn down more money for an offer you really love? To go with your heart? In my eyes that is extremely admirable given all of the people I see working jobs they hate just because they pay well. I'll be doing something like this in a year and a half when I go to graduate school.

It's not shameful, but it doesn't pass the smell test. See, Kara's job (at least in the near-term) didn't change. She's still a professional runner. Her job is simply to run fast. Companies are paying her not to be an employee but to wear their shoes and apparel. They're sponsoring her, she's not working for them.

She's had no problem taking Nike money for about a decade now. If she ever thought of it as a "job she hated" she could've broken the contract at any time. But she didn't, because Nike was willing to pay her a lot of money.

Maybe her deal with Oiselle will turn out to be a lucrative one but to turn down a seven figure sponsorship deal at this point in her career is just silly. It's a business decision, it shouldn't be based on emotion.

Guys, you gotta give it to Kara for supplanting $$ with Stock from both Nike (previously) and now potentially with Oiselle. This is how you build wealth (stock), not salary.

bizz ness mann wrote:

Maybe her deal with Oiselle will turn out to be a lucrative one

Well then the rest of your drivel on the subject is pretty useless isn't it

terrible post.

her job is not simply to run fast. it is to be a billboard for Nike. Lots of fast guys don't get contracts because they are not good at PR. Acosta, Manzano, etc.

She has said that she stayed with Nike for the coaching and so she can have teammates. And the money, sure.

Many people make economic decisions based on emotion rather than cold logic. We all do. Do you buy everything at the cheapest possible price? Do you haggle for every last dollar at every store? Of course not - you make an emotional choice no to deal with the stress of haggling.

May we all be financially strong enough to afford to make career decisions based on what we really want rather than just $$$$.

Hermione Granger wrote:

bizz ness mann wrote:

Maybe her deal with Oiselle will turn out to be a lucrative one

Well then the rest of your drivel on the subject is pretty useless isn't it

But it doesn't sound like any due diligence was done on the deal. Calling their financial adviser and his only response being to start a budget? Doesn't sound encouraging.

Here's the situation:

1) An established company offered her a seven figure deal.

2) Oiselle was not able to offer her a deal, but ended up giving her a small sponsorship plus what we're assuming is some sort of ownership stake in the company. A company not financially healthy enough to offer her a deal out of the gate.

Sure, Oiselle could become the next Lululemon, but it's a crapshoot. It doesn't sound like Kara or her financial adviser really did any research into future earning/growth projections.

If Kara was 25 and didn't have a family, sure, take a chance and go with the new company. But in the twilight of her running career, I think it would be smarter to secure her future by going with the sure thing.

keoll wrote:

How is Oiselle going to catch on? Started in 2007 and is "hoping" to hit near $10M in revenues by 2015? Does not sound like a success story.

Obvi nothing is guaranteed...But they could be like a less judgmental lululemon and rake it in -- lulu has revenue of $1 billion per year.

There's a sucker born every minute...

Look closer. On the same level as Lulu Lemon. Way over priced.

Lululemon took off in the Yoga market... much less competitive and established than the run apparel market.

It also probably was not a 7-figure per year deal. It isn't hard to believe someone could get a four-year deal for a total of over a million.

True and I guess we'll never know for sure. I understand why the contracts are kept quiet but I would love to know what they really make. It really could help grow the sport in this country.

I've personally known a few people who got contracts- they ranged from free shoes and clothes to $50K per year (right out of college) and everything in between- housing, facilities, expenses, bonus money ...

I think there are fewer opportunities to be wealthy as compared to the "major US sports) but more opportunities to at least have a shot at making it in track/distance running than most people think.

If Kara was 25 her Message Board Experts would be telling her "she's only 25, go after the stability and when you're in the twilight of your career and have made lots of money, then take the risk."

There is no correct time in one's career to go after a high-risk startup, it's a risk you either do, or never do.

You weren't in on the discussion with the financial adviser so you don't know how you know what was discussed. It sounds like YOU didn't do the research. Plug in a hypothetical % equity Kara would get, and a hypothetical value of the company in 4-10 years. That opportunity is now only. If she instead spends the next 4 years at Nike, that opportunity is lost.

Who cares