Controversial Shark Tank Deals
Highlights
- Shark Tank has been in the news since its first episode came on TV screens.
- The show has often found its mention in controversies after deals fell through after the episodes.
- Bubba Q Boneless Baby Back Rib led to a legal dispute between the entrepreneur and Daymond John.
Since its inaugural season, Shark Tank has been a hot topic for reality TV followers. Its unique, focused approach to entrepreneurship has made it a favorite of countless viewers. During its hundreds of episodes and pitches, the show has been in the news for both the right and wrong reasons.
The happy pictures of pitchers and investors that we see on small screens are not the complete truth. After deals were finalized in the past, entrepreneurs often blamed the Sharks for different reasons. This resulted in verbal and legal battles, making the show a hot, controversial topic.
Below are some of these controversial Shark Tank deals, along with an explanation of why they sparked debates:
1. ShowNo
Momtrepreneur Shelly Ehler made her way to the panelists with ShowNo, her line of towels that allowed children to change out of their bathing suits modestly. The investment sought was $50K for 25% equity. She appeared on Shark Tank along with her sons and was revealed to have made $15K through sales.
Though the judges were impressed by her attitude and presentation, they were apprehensive about making an offer due to its initial phase. The only two who made an offer were Lori Greiner and Daymond John. After an intense discussion, Shelly finalized the deal with Lori at $75K at 25% equity.
How Was The Deal Controversial?
Right after the episode aired, Shelly stated through an interview that her full name was not written on the cheque that Lori handed her on Shark Tank. She was indirectly hinting that the investor was not serious about the deal.
Responding to the allegations, Lori’s team stated that she was very involved in the entire process, especially taking ShowNo to Disney. However, they refused to give out any more details, citing confidentiality restrictions.
The business was eventually closed in 2018.
2. You Smell Soap
Megan Cummings brought ‘You Smell Soap’ to the investors. She asked for $55K and offered 20% equity. Discussing the range of her products, Megan listed out different luxury scented soaps available in a variety of fragrances. While it was still in the pre-revenue phase, the products were sold at different prices, including $7 and $12.
The first offer was from Mark Cuban for $55K for 20% equity. Barbara Corcoran was the next one to propose $55K for 40% equity alongside a 10% royalty. However, Megan ultimately managed to secure a deal from Robert Herjavec, who agreed to pay her the same valuation as requested, along with a salary of $50K.
How Was The Deal Controversial?
Although the deal was finalized on Shark Tank, what followed was not a pleasant affair. She never received the promised amount from Robert. Following this, Robert offered her $55K for 50% equity, which she rejected. The matter took a worse turn when he received extreme criticism from the media for his approach to the deal.
In his defense, Robert stated the deal fell through due to the due diligence process.
Megan sold the venture in 2014; it eventually closed two years later.
3. Bubba Q Boneless Baby Back Rib
AI Bubba Baker went to Shark Tank along with his daughter, pitching for his barbequed ribs business. He sought $300K for 15% equity in his patented company, Bubba Q Boneless Baby Back Ribs. The investors loved the samples and were impressed to hear the $154K sales in 2013.
However, Kevin O’Leary and Daymond John were the only ones to propose an offer. After intense negotiations, the deal was finalized with Daymond John for $300K at 30% equity. The business then did quite well and made $16 million in sales by 2016.
How Was The Deal Controversial?
Things took an ugly turn after the show when, in a 2023 interview, Bubba revealed to have been cheated by the show’s makers and Daymond. He alleged to have been forced to take up his valuation from $300K for 30% equity, as promised on the show, to $100K for 35% after the telecast. Additionally, he claimed to have been left out of crucial business meetings.
Reacting to the allegations, Daymond went to court and filed a restraining order against the entrepreneur. Based on it, Bubba was given a restraining order that forbade him from publicly commenting on Daymond’s family.
As of 2024, the company’s website is down.
4. PinBlock
Vladislav Smolyanskyy approached the panelists with PinBlock, seeking $100K for 20% equity in his construction block toy company. He revealed that he owned only 85% of the business, while his friend owned the remaining 15%. Speaking about the numbers, he revealed that he had made over $18K through a Kickstarter initiative.
While the other Sharks stepped out of the deal, citing its early phase, Kevin O’Leary showed his interest in the condition of licensing the toys. With no other investor left, a pressurized Vladislav accepted his offer of $100K for 50% of the company. Kevin ended the deal by stating that he would be inclined to collaborate with toy businesses.
How Was The Deal Controversial?
Post Shark Tank, Vladislav’s deal soon turned sour. The real drama unfolded when the entrepreneur claimed that Kevin went to a giant toy firm himself without communicating with him. This is what led to the deal falling through at the end. Vladislav now works for Raindrop Media Management.
After Kevin backed out, the company closed down in 2021.
Conclusion
There is no denying that Shark Tank has been a celebration of creative pitches. But the show has been an equally controversial topic due to the manner in which deals like ShowNo, PinBlock, and You Smell Soap materialized. Such stories show that even though the reputed show does fulfill aspirations, it bears risks as well.
References
- Deals we struck with ‘Shark Tank’ investor heroes fell apart off-air, New York Post, Michael Kaplan
Entrepreneur, auteur, raconteur. Rob Merlino is a blogger and writer who enjoys the Shark Tank TV show and Hot Dogs. A father of five who freelances in a variety of publications, Rob has a stable of websites including Shark Tank Blog, Hot Dog Stories, Rob Merlino.com and more.
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