Brad Scudder and Rob Dickens claim their 5K obstacle course series is one of a kind. Will convincing the sharks to give them a deal be too high of a hurdle to clear? Or will they get a deal on
Shark Tank Rugged Maniac Update
- Entrepreneurs: Brad Scudder, Rob Dickens
- Business: Obstacle course series
- Ask: $1 million in exchange for 10% equity
- Result: $1.75 million in exchange for 25% equity
- Sharks: Mark Cuban
Brad and Rob brought their Rugged Maniac, 5K obstacle course series to the tank. They had held events in over 20 major U.S. cities. In addition to running, the race had 25 obstacles that included clamoring over shipping containers, squeezing through tunnels of mud, and leaping over fire, with participants paying about $50 for the privilege.
In contrast to their competition (Tough Mudder), Rob said that their Rugged Race was a smaller, more relaxed operation. Their course took about an hour to complete. The most exhilarated participants stuck around to enjoy the boozy and convivial day-long festival that featured live music after finishing the race.
The company was on pace to make a whopping $4.2 million in sales in the then-current year, giving the company $1 million in profit. Their next year projections were for $6.5 million in sales and $2.2 million profit.
The sharks were satisfied with what they were hearing until the guys revealed that they had invested their $1 million profit into an American running-of-the-bulls type of event, Great Bull Run, through another of their brands under a separate LLC. Kevin O’Leary, Robert Herjavec and Daymond John wanted the bull run events to be included with their potential investments, but Brad and Rob said that wasn’t part of the deal.
In light of the new information, none of the sharks was comfortable investing Rugged Maniac without the other company. Robert offered $1.5 million in exchange for 25% for both companies. Barbara Corcoran and Daymond said they weren’t comfortable investing, so they were both out.
Rob and Brad pivoted to Mark Cuban, who said he thought they were overvaluing their bull run business. That they thought so highly of it signaled to Mark that they likely wouldn’t be focused on the obstacle course company– the one they had just asked $1 million for.
Mark’s explanation made Robert question whether he had made too high an offer, and he warned the pair that the more time they gave him to think about it, the more nervous he was getting. Kevin suggested that Robert ask for 33% in exchange for the $1.5 million, and said he would join Robert 50/50 in the investment. Robert liked the idea, and revised his deal.
Just when we thought that was the final proposal, Mark came in and offered $1.5 million in exchange for 25% of both companies, undercutting Robert and Kevin’s deal. Rob and Brad countered Mark for $1.75 million, and Mark accepted the deal! What happened next? Keep reading our Rugged Maniac update to find out!
We have great news to share in our Rugged Maniac update! Shortly after their episode aired, the company’s sales surpassed $10 million. In early 2018, New Media Investment Group bought 80% of the company for $10.4 million, and they continue to run it today. You can find out more on the Rugged Maniac website.
Would you like to learn about the other companies featured on Season 5 Episode 26? Follow the links below for our other company updates from the episode.
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Jennifer is an avid Shark Tank fan that has been watching the show for years. She serves as Senior Editor at Shark Tank Recap and ensures that all our information is accurate and that our posts are up to date. Her favorite Shark Tank products are Le-Glue and Ring!