MusclePharm Deal Finally TERMINATED by Arnold Schwarzenegger

MusclePharm Arnold Terminated

Breathe easy, Arnold fans. The nightmare is finally about over.

After years of his good name being dragged through the mud, Arnold Schwarzenegger has finally terminated his relationship with MusclePharm.

Arnold released a statement through his social media manager, Daniel Ketchall at Oak Productions:

In case you can’t read it, it follows below:

May 6, 2016

Today, Arnold Schwarzenegger announced that he has concluded his relationship with Denver-based nutritional supplement company, MusclePharm.

“After collaborating with MusclePharm for the past three years on the Arnold Series, given the distractions caused by the significant issues that MusclePharm faces, Arnold believes that the time is right for him to move on and pursue other opportunities with partners that are better suited to help him fulfill his ultimate vision to promote fitness around the world,” said Governor Schwarzenegger’s spokesman, Daniel Ketchell.

“Governor Schwarzenegger remains passionate about promoting health and fitness worldwide. He has been on a crusade to promote fitness for more than four decades, including an appointment as chairman of President George H. W. Bush’s Council on Physical Fitness. Governor Schwarzenegger looks forward to his next endeavor as part of his mission to help everyone discover the benefits of health and nutrition”

Reading between the lines, it’s clear what Ketchell’s really trying to say: “We’re sick of dealing with this nonsense and we’re finally out. Now let us go do something good for the world.”

Is Arnold protecting his legacy with this product line?

What an ironic marketing message MusclePharm used here in this one…

Very telling is that there wasn’t even a “thank you” to MusclePharm in the statement, which one typically says at the end of business relationships – even mediocre ones.

This agreement will likely officially terminate on July 25, 2016, which is three years after it was originally signed, per an SEC report.[1] This leads us to an important point:

Sales goals not met (thankfully for Arnold at this point)

Interestingly, this contract would have been automatically extended another two years had “certain net sales milestones are met, as specified in the Agreement.”[1] Clearly that didn’t happen, because we’re here discussing the end of the contract. Ironically, the failure to make sales goals was likely a sigh of relief for Arnold at this point, who probably just wanted to get the hell out of the relationship.

So this marks the end of a quite tumultuous few years, and may be one of the final nails in the coffin for the entire MusclePharm company itself.

What distractions and issues?

Sadly, many commenters on @ketch’s Twitter still don’t understand what many of us have known this entire time: The Arnold Schwarzenegger Series quickly became synonymous with MusclePharm’s lowest-quality products.

Iron Whey is nearly cheaper than dirt, tasted awful, and was originally loaded with glycine and taurine (ie amino acid spiked), while Iron Mass is the product that truly did get the company sued for amino acid spiking! Additionally, a serving of Iron Cre3 had just 1g of creatine nitrate, which means you were literally getting 22.3% of the lowest daily research-backed dose of creatine. The story goes on.

Warning: Incoming Rant

At this point, screw professionalism — I’m just gonna say it: Whoever’s idea it was to take the greatest bodybuilder ever to live and put garbage supplements in his name is a total asshole, and an idiot too.

MusclePharm now sponsors Johnny Manziel of the Cleveland Browns

Pathetic.

From a consumer standpoint, the Arnold Series was supposed to be like the Man himself: top notch! You could have made a tub of protein filled with the finest stuff and sold it for $75. The consumers would have eaten it up, and you’d still have made a profit.

Instead, you put glycine and taurine in it. Instead, you underdosed quality ingredients. Instead, you used proprietary blends. And instead, you decided to waste time sponsoring people like Johnny Manziel (called that one, didn’t I?).

And in the end, you got your asses sued.

Whoever you are, and I hope you’re reading this — you should be banned from the supplement industry and from bodybuilding forever. You ruined something that could have been incredible, all for a shady corporation that could hardly ever profit anyway!

It’s one thing to make a shitty product. Who doesn’t have a dud here or there? But it’s another thing to put an entire lineup of shitty products in the name of the one guy who pioneered this entire community. Shame on you, MusclePharm.

What’s next for Arnold?

Sounds like Arnie’s going to focus on what he loves – keeping people fit. You can read about the President’s Council on Physical Fitness at www.fitness.gov – it’s co-chaired by Drew Brees and Dominique Dawes, and has an impressive list of council members.

We’re not sure how much time MusclePharm took up for Arnold – likely not all that much – but we hope to see more fun commercials and gags like the one below:

Either way, once that last tub of Iron Mass is sold and off the shelves, it will likely be quite a sigh of relief for the Governor.

What’s next for MusclePharm?

Who really even cares anymore?

The MSLP stock has been under constant pressure since it went public… Where does this one end?

While we can’t confirm it, we believe that it’s become increasingly clear that “the athlete’s company” is looking for a liquidity event. They’ve shed athletes, removed idiotic expenses (like when the SEC caught then-CEO Brad Pyatt using company funds to pay for the birth of his child), and in our opinion, they’re trying to make a few profitable products so that they can get sold and maybe get shareholders compensated at some degree.

And at this point, we just don’t believe that it’s going to successfully happen.

Originally led by Pyatt, who recently resigned six months after the aforementioned SEC investigation,[2] MusclePharm screwed their customers over in an already-fickle industry with high levels of turnover. What was cool five years ago is no longer cool these days. And MusclePharm, who made one consumer-facing mistake after another, is definitely not cool today.

Regarding the stock, we aren’t sure if Arnold’s sold his, but when he originally signed with them, they did award him with 780,000 shares of MusclePharm’s restricted common stock.[1] We have to believe that stock is long out of Arnold’s portfolio by now, though.

It’s an unfortunate story for anyone who invested in MSLP, looking to get in on the sports nutrition supplement industry. Sadly, we just don’t see you getting out ahead.

So when this MusclePharm nightmare is finally over some day, we can collectively say the same thing Arnold probably just said this past Friday: good riddance.

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References

  1. Form 8-K – MusclePharm Corporation – July 26, 2013; SEC.gov; 2013
  2. The Denver Post; MusclePharm Founder Brad Pyatt Resigns as CEO After Federal Investigation; Retrieved from https://web.archive.org/web/20160420110129/http://www.denverpost.com/business/ci_29646116/musclepharm-founder-brad-pyatt-resigns-ceo
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  • BasharAR

    You forgot to mention that they copied pre-jym line by line and added DAA to the formula then marketed it to the general public “males and females!?”

    • Ecaidian

      Wreckage was interesting…it was their attempt to “slay the Pre-Jym monster” by copying and in their minds…improving…and while it was not bad suppliment at all (they fixed some of the complaints that were made against pre-jym, like artificial dyes, etc) they did it in a very…ill-intent way. They marked down the price fo be nearly 30% cheaper than Pre-jym per serving, and marketed a product with DAA to both women and men.

      Pre-Kaged is probably the closest thing to Pre-Jym these days that does not have the artificial dyes, with a slightly different twist on ingrediants..for about the same price per serving point. Wreckage could of been great at the price point they tried to push it at, if they had just removed the DAA and tweaked a few things minimally.

      • Yeah, well Pre-Kaged has its own questions. As we posted here:
        https://business.facebook.com/PricePlow/photos/a.10151309061414137.495100.174210669136/10154295207319137/?type=3&theater

        You get 23.124g of active ingredients with Pre-Kaged, yet the scoop is 32g. That’s a hell of a lot of natural flavors (providing 3g carbs), malic acid, and other fillers, no???

        We contacted them and they said “The additional grams are derived from mainly stevia and beet root powder. Which is used to color and flavor the product.”

        But that doesn’t really make sense. Stevia is used at <50mg max and beet root is typically needed at 2-10mg depending on the product…..

      • Ecaidian

        Interesting…so the 3g of carbs is 1g of sugar and 2g of unidentified carbs, possibly from the “natural flavors” which still leaves 5g on the table to account for…with Malic Acid being ahead of the Beet Root Powder on the ingredient list…you figure they are probably ~2g each since we now know the exact amount of sodium in the product on the new label (from sea salt further down the list) is 85mg…else there is something else in the product not on the label…

      • Exactly. Not doubting the effectiveness of the product. Just unsure what’s up with that label. Worth its own article?

      • Ecaidian

        It kind of makes sense though…there is a very bitter taste on the backend of the Fruit Punch, likely from all the Malic Acid they have in the product…

      • Flavoring with just stevia is still pretty tough, even though it gets better every year. You definitely need a lot of help to cover up… so it’s def possible

      • Ecaidian

        I think if anything needs an article these days, it is trying to convince companies to leave out Agmatine Sulfate and/or Capsimax in the pre-workout genre. There is a fair bit of the training population with a GI sensitivity to sulfates or a sensitivity to capsicum…or both even, and nobody wants to spend the second half of his/her workout in the bathroom, or the rest of the day with abdominal discomfort.

      • saywutrly

        This may be true, but someone has the magic. I run all custom blended proteins from TrueNutrition using their stevia-sweetened-only natural flavoring system, TrueFlavor. The flavors are all on point (save for cinnamon bun; still good but the cinnamon overpowers the bun by far too much), and there isn’t all the gastric distress many folks normally get from artificial flavors and sweeteners.

  • Lizz

    this is gold. so happy arnold is finally out of that mess.

  • Zach

    Are all MusclePharm products awful though? I always got the impression that the Combat Whey was a decent product, and the flavors I’ve had taste great too.

    • Of course not. What’s cool about Combat Whey is that you can now go and put your lot number into MPSSI to see what quality you get. There’s just so much reputation damage done at this point, it’s hard to give any blanket recommendations. Fool me once…

  • Ken

    I would think someone would find their product placement attractive, I mean they are highly visible, even in walmart. I do like their amino1 and combat powder. Maybe the ever growing high tech pharmaceuticals company would take interest, I mean, that would open up a lot of brick and mortar stores to brands like “I force” and “gaspari”.

    • It’s a publicly held company with a market cap of $43.52M. So you’d either need to spend a ton to take it private, or half a ton to own a controlling stake and still not own it all.

      Distribution network and brand are definitely worth something though, just not sure if 43mil is worth it for a company whose revenues are shrinking, has pending lawsuits, and isn’t profiting.

      Someone will probably take it, cut the expenses, and make it work though. Their sales and general administration expenses are killing them when taking a quick look at the books, plus lots of writedowns from the SEC fines and whatever else. https://finance.yahoo.com/q/is?s=MSLP+Income+Statement&annual

  • Iron Whey tasted awful? O.o Hell no! I tried all Iron Whey flavors except Peanut Butter and I confirm the flavors were great! I agree with you that considering the name (Arnold), the protein had to be top quality though.. but it wasn’t bad. Best thing was flavor.

    • Iron Whey seems to have been ‘reformulated’ so many times that you can’t even have an official stance on flavor. What you had may be different from what Al had which may be different from what we’ve had.

      Hopefully you can find a good replacement though – a switch back to Combat series might be close to what you’re looking for.