Due to the recent exodus of three rightsholders, an inability to secure crucial financing and the need to reimagine its future, streaming platform Victory+ has removed founder Neil Gruninger as CEO and replaced him with board member Jon Spencer of TriWest Capital Partners, the company told SBJ Thursday.<\/p>\n
Gruninger \u2014 who 15 years ago co-founded the Calgary-based media business A Parent Media Co. that owns Victory+ \u2014 will remain with the company to focus on technology and innovation after multiple sources told SBJ the Victory+ board wanted to rely on Spencer\u2019s financial acumen to steady its recent freefall.<\/p>\n
According to a Victory+ statement to SBJ, Gruninger \u201cwill more closely focus on strategic relationships, business development, and long-term vision, areas where he has consistently driven significant value.\u201d<\/p>\n
In the meantime, multiple sources said Victory+ is expected to downsize and stay afloat, pursuing teams and leagues that are willing to do exclusive deals. Currently, the platform streams games for the WNBA\u2019s Lynx<\/a> and Dream<\/a> — although those WNBA deals are just advertising rev shares and do not contain rights fee payments \u2014 and is the sole broadcast home of the NHL\u2019s Stars. It also has contracts to stream League One Volleyball (LOVB) and Texas prep football in conjunction with the University Interscholastic League and the Texas High School Coaches Association.<\/p>\n Sources said none of those remaining deals appear to be in jeopardy.<\/p>\n Over the past 15 days, the NHL\u2019s Ducks<\/a>, MLB\u2019s Rangers<\/a> and, as of Thursday, the NWSL<\/a> have all terminated their contracts with Victory+ due to missed rights fee payments. According to sources familiar with Victory+, the company asked those teams to renegotiate their contracts, which all included significant rights fees Victory+ could not sustain, and all declined.<\/p>\n But the platform\u2019s marquee client, the Stars<\/a>, are its most important and informative deal of all, an exclusive package that includes a rights fee and advertising rev share package that Victory+ believes will stay intact. The Stars also own a percentage of equity in Victory+.<\/p>\n \u201cAPMC has evolved from a single platform into an industry-defining company that puts audiences first,\u201d said Gruninger in a statement Thursday. \u201cI\u2019m incredibly proud of what we\u2019ve built and our unwavering commitment to our mission through every industry shift. As we look ahead, I\u2019m excited to sharpen my focus on driving our long-term vision and deepening key partner relationships.\u201d<\/p>\n Victory+\u2019s business model under Gruninger was to pay teams an undisclosed minimum guarantee, stream their games for free on the Victory+ platform and recoup money through a collaborative advertising rev share with teams. Gruninger was flexible enough to allow the Rangers to stream games behind a Victory+ paywall — the only team to do so — but remained convinced the best route forward was to remain a free digital platform.<\/p>\n As recently as six months ago, following the collapse of Main Street Sports Group, Gruninger pitched his free-stream concept<\/a> to 20 NBA and NHL teams, an ambitious move that required more financial backing. According to sources, having all those properties available at one time — \u201ca land grab,\u201d as one source put it — forced Victory+ to go too fast, too soon. They offered significant rights fees to multiple teams, and sources said the Magic, T-Wolves and Hornets were conditionally set to join the Victory+ platform.<\/p>\n