Varsity Spirit, LLC, also known as Varsity, is an American cheerleading company owned by Varsity Brands. Founded in 1974 as the Universal Cheerleaders Association, the company is a manufacturer of apparel for cheerleading and dance teams, organizer of cheerleading competitions, and operator of training camps and sanctioning bodies.
The company's vertical integration of competitive cheerleading has faced criticism, including accusations of anti-competitive and monopolistic practices (including opposition to cheerleading being sanctioned as a sport), conflicts of interest via control of governing bodies, and institutionalizing high financial costs for participation in competitive cheerleading.
History
Varsity Spirit was founded by Jeff Webb, a yell leader at the University of Oklahoma contemplating law school. After working as a summer camp instructor for Lawrence "Herkie" Herkimer's National Cheerleaders Association (NCA), he attempted, but failed, to acquire part of the company.
In 1974, Webb established the Universal Cheerleaders Association (UCA), in an effort to raise the profile of cheerleading, initially by establishing training camps, and later through promotional campaigns and its National College Cheerleading Championship (which was first held in 1978) and its National High School Cheerleading Championship (which was first held in 1980). Cheerleading had seen declines in participation due to the growth of women's sports following the introduction of Title IX.
Webb first operated the company out of his apartment, and only made a profit of $850 during his first year of operations. By 2002, Webb estimated that Varsity Spirit held about half of the market, and that 60% of its revenue came from apparel. In 2003, Varsity backed the formation of the U.S. All Star Federation, a sanctioning body for "all-star" cheerleading competitions involving teams from private gyms.
In 2004, Varsity acquired National Spirit Group, owner of the NCA (which Webb estimated to have a 25% market share in 2002), giving it control of the sheer majority of the cheerleading industry. In 2005, it acquired the Knoxville-based Athletic Championships LLC and Premier Athletics LLC. In 2007, it backed the formation of USA Cheer, a non-profit led by Webb which aimed to be a sanctioning body for cheerleading (with a goal to back cheerleading as a proposed Olympic event).
In 2011, Varsity Brands merged with Herff Jones, an Indianapolis-based manufacturer of class rings, caps and gowns, and yearbooks; Webb was named president and COO in December 2012, and the merged company took on the Varsity Brands name in 2014. In 2012, it acquired American Cheerleader magazine from Macfadden Communications Group, with the publishers of Memphis-based teen magazine Justine producing the magazine. Charlesbank Capital Partners acquired Varsity Brands in 2014, after which it began to place a larger focus on club-based "all-star" cheerleading. In 2015, it acquired JAM Brands, which had been the company's main competitor in the 2010s.
In 2016, Varsity Brands sued Star Athletica, a competing manufacturer of cheerleading uniforms established by The Liebe Company (which was formerly contracted with Varsity), for copyright infringement over similarities in designs between their products. The Supreme Court ruled in favor of Varsity, establishing that aesthetic elements of a useful article can be protected if they are a copyrightable artistic work, and are identifiable as art when mentally separated from the practical aspects of the item.
In 2017, BSN Sports CEO Adam Blumenfeld replaced Webb as CEO.
In July 2019, the company introduced a new division, "Varsity Pro", which focuses on providing apparel and services for professional cheer and dance teams, such as those of professional sports franchises. The division's first partnership as outfitter was with the NBA's Memphis Grizzlies. It also acquired SA Feather Co. and Stanbury Uniforms to expand into the band market.
In December 2020, Webb announced his departure from the company to pursue other projects.
Market position
Varsity Spirit has been described as having a monopoly position in cheerleading in the United States, due to extensive vertical integration of apparel businesses, training camps, affiliated gyms, cheerleading competitions, and sanctioning bodies, as well as acquisitions of competitors.