Fila launches exhibit at Hall of Fame to celebrate 100th anniversary: This Week in Tennis Business with Justin Cohen – Gene Yoon

Fila(CEO Gene Yoon) launches exhibit at International Tennis Hall of Fame & Museum to celebrate 100th Anniversary

Gene Yoon, Chairman & CEO of FILA Global

To celebrate the brand’s 100th anniversary, Fila and the International Tennis Hall of Fame & Museum in Newport, R.I., has launched a new exhibit that includes items from players that have worn the Fila logo including Hall of Famers Bjorn Borg, Boris Becker and Monica Seles. “At the International Tennis Hall of Fame & Museum, our mission is to preserve and showcase the history of tennis, with the goal of honoring the legends and inspiring tennis fans,” said Mark L. Stenning, CEO of the International Tennis Hall of Fame & Museum. “From Borg’s Wimbledon victories to Seles’ French Open title, Fila has been an integral partner in great moments in tennis history and we are pleased to celebrate their milestone anniversary by showcasing the brand’s rich history to our visitors.” The one-of-a-kind exhibit was unveiled in mid-June and will be changed out throughout the year as part of Fila’s year-long celebration of the centennial anniversary of the brand. The first exhibit showcases the White Line, Fila’s first tennis collection, through design sketches and dramatic tennis photos of Fila players in action. A wooden Fila tennis racquet and polos worn by tennis great Boris Becker are also part of the display. The exhibit will change every few months for a total of four exhibits over the course of the next 12 months. “We are thrilled to bring elements of our archives to Newport for inclusion in an exhibit at the International Tennis Hall of Fame & Museum,” said Gene Yoon, Chairman of Fila. “Tennis is such a rich part of our brand history and the Hall of Fame is an excellent environment to highlight select items from the archives.” The Museum currently displays Fila outfits from remarkable moments in professional tennis history. In the Grand Slam Gallery, visitors can see the outfit worn by Kim Clijsters when she went from wild card entry to the 2009 US Open singles champion, following her 27-month hiatus from tennis. Also on display is the memorable green Fila outfit that Clijsters wore when she captured the 2011 Australian Open earlier this year. In the ATP World Tour Gallery, one of Bjorn Borg’s iconic Fila outfits is on display. In the Billie Jean King WTA Gallery, Monica Seles’ outfit from her historic 1990 French Open victory is on display.

Sampras thinks Nadal can pass his Grand Slam title mark, possibly Federer’s too

FILA

In a press conference with reporters on Tuesday to promote the 12-city Champions Series tennis tour, former world No. 1 Pete Sampras said that he believes Rafael Nadal can outshine his record of 14 Grand Slam singles titles and challenge Roger Federer for the all-time mark if he is smart. “If you break down his game and what he’s been able to do on all surfaces, he’s only 24 and he’s got 10 majors, you do the math,” said Sampras, a winner of 64-singles titles during his 15-year career. “Obviously, I think he is going to pass me at some stage. The all-time record is a lot of work, and Roger can obviously continue to add to his list. But if Rafa is smart with his schedule and plans it out right, he can very well do it. We all know how hard he works.”

Isner accepts wild card into main draw at next week’s Campbell’s Hall of Fame Tennis Championships

World No. 47 John Isner has accepted a wild card into the main draw at the Campbell’s Hall of Fame Tennis Championships, which will be played at the famed International Tennis Hall of Fame in Newport, R.I., starting July 4 and continuing through July 10. Isner, who will be the top seed in Newport, a first for him at an ATP World Tour event, replaces world No. 9 Mardy Fish who will skip the tournament to participate in the United States’ Davis Cup tie next weekend against Spain in Austin, Texas. “We are very pleased to welcome John back to Newport for the third time,” said Mark L. Stenning, Tournament Director. “He’s a great addition to our field, which is a very athletic, competitive group, with players like former world No. 2 Tommy Haas, big-server Ivo Karlovic and young gun Ryan Harrison.” A four-time All-American while playing at the University of Georgia, Isner made his ATP-level main draw debut in Newport in 2007.

Blake accepts wild cards into two summer hardcourt tournaments in Atlanta and Washington, D.C.

James Blake, who is currently ranked No. 102 in the South African Airways ATP Rankings, has accepted main draw wild cards into the Atlanta Tennis Championships in suburban Atlanta and the Legg Mason Tennis Classic in Washington, D.C. Following his five-set loss to Marcos Baghdatis in the first round at Wimbledon, the 31-year-old said retirement has not crossed his mind. “It hasn’t crossed my mind yet,” said Blake. “That’s going to be a decision that’s going to take longer than one match and I wouldn’t want to make it within an hour, two hours, or even a day of a loss, especially because your head isn’t where it’s supposed to be at that time. There’s probably been around, I don’t know how many matches I’ve lost over the years, probably about a couple of hundred, and I’d say out of 200 about 198 of them I probably thought I should retire right after those. I’d come back the next day ready to play and ready to get better. I’m thinking this one will be the same.”

Zvonareva commits to WTA Mercury Insurance Open at LaCosta Resort and Spa in California

Tournament officials at the WTA Mercury Insurance Open presented by Tri-City Medical Center announced that world No. 3 Vera Zvonareva of Russia will participate in this summer’s tournament, which will be held from July 30-August 7 at the LaCosta Resort and Spa in Carlsbad, Calif.

WTA Citi Open moving to College Park venue

The Tennis Center at College Park in Maryland will be the new site of the $220,000 WTA International-level Citi Open from July 23-31, which was moved there after the Troy Park Tennis and Sports Center in Elkridge was not able to get funded enough to be developed in time to host the inaugural tournament this summer. “We thought we had the financing lined up last December, but the bond markets, the economy is a mess and no one was lending,” said Art Tollick, President of the Howard County Tennis Patrons. “It was discouraging, but we view it as a temporary setback.” Since the park hadn’t progressed as planned, the tournament owner, Donald Dell, a former ATP World Tour and Davis Cup player who is currently a Washington lawyer and sports agent, and his tournament director, Sam Duvall, scrambled to find a site and considered the nation’s capital as a venue. However, Duvall said the idea was to host a tournament in Maryland all along. “The goal was to have this event at Troy Park,” said Duvall. “Unfortunately, the financing wasn’t in place. Things are progressing now, and we’re 100 percent certain the tournament will be at Troy Park in the future. But, for now, we’re having it in College Park. It’s the next best place. We want it to be Maryland’s tournament, and it is still in Maryland.” Israeli Shahar Peer, Australian Jelena Dokic and Americans Melanie Oudin and Sloane Stephens are all slated to compete in the Citi Open next month.

Nadal to skip Spain’s Davis Cup quarterfinal tie against United States in Austin

Blaming the International Tennis Federation’s lack of scheduling consideration, top-ranked Rafael Nadal will not participate in Spain’s Davis Cup quarterfinal tie against the United States from July 8-10 in Austin, Texas. The 10-time Grand Slam singles champion says he needs to have his knees examined and 15-20 days to rest before partaking in the second half of the season including the US Open in New York.

USTA to donate $100,000 to help rebuild Joplin (Mo.) High School and support community

Last Thursday, the USTA announced that they will donate $100,000 to the city of Joplin, Mo., to assist with the disaster relief efforts from the tornado stricken community. The USTA is highly committed to rebuilding Joplin High School and its tennis courts, which were demolished during the storm. Furthermore, the USTA will bring SmashZone, the interactive fan attraction featured annually at the US Open each summer in New York, to Missouri Southern State University on Thursday, June 30 from 10 a.m. – 3 p.m. CT, in an effort to help boost the spirits of the children and families affected by the disaster. The SmashZone event is free to the public. “The USTA is committed to help rebuild Joplin and assist its tornado victims,” said Jon Vegosen, USTA Chairman of the Board and President. “By having our SmashZone Mobile Tour come to Joplin, we hope to provide the community an outlet for a day to enjoy themselves and the sport of tennis.”

Tickets on sale now for U.S. and Spain Davis Cup Draw Ceremony and Musical Performance

Tickets are on sale now for just $5 to attend the U.S. and Spain Davis Cup draw ceremony with a special musical performance featuring nine-time Grammy Award-winning “Asleep at The Wheel”. The draw ceremony will take place at the Austin City Limits Live at The Moody Theatre in Austin, Texas on Thursday, July 12 at 12:00 p.m. Doors open at 11:00 a.m. and all proceeds will go to the Joplin Schools Tornado Relief Fund. To order tickets, call (877) 437-9849 or visit the Waterloo Records store in Austin.

Promising American junior player now working with Davenport’s former coach

According to Twitter post by Matt Cronin (@TennisReporters), up and coming American junior player Madison Keys left the Chris Evert Tennis Academy in Boca Raton, Fla., six weeks ago to begin working with USTA coach Adam Peterson. Peterson is best known as Lindsay Davenport’s former coach.

Raonic hip injury not as severe as first thought

Rising Canadian star Milos Raonic’s hip injury that he sustained during his second round loss to Gilles Mueller at Wimbledon is not as severe as first feared. In a statement, the 25th-ranked Raonic said an MRI of the injury revealed strained ligaments. He is hopeful to play in Canada’s Davis Cup tie against Ecuador from July 8-10.

Burkitt named Dunlop Territory Manager

Dunlop announced that Todd Burkitt has joined their team as the Territory Manager for North Carolina, South Carolina, Tennessee, Southern Virginia and Coastal Georgia. Burkitt, who has over 20 years of experience in the racquet sports industry, once oversaw a 7,500 racquets-per-year retail stringing operation in Atlanta. He has been a USRSA-certified Master Racquet Technician since 1995. “We are excited to have someone with Todd’s skills and experience on the Dunlop team,” said Kai Nitsche, Vice President and General Manager of Dunlop Racket Sports. “With our recent restructuring we have positioned our brand extremely well to manage our steady growth. Bringing in a territory manager like Todd, who has established relationships with a wide variety of accounts, is a great fit for us and Kim’s expanded promotions role will continue to help give better visibility to our brand at grass roots.”

Book Launch Event in New York on June 29 at Opia for “THE WIMBLEDON FINAL THAT NEVER WAS”

“THE WIMBLEDON FINAL THAT NEVER WAS” is the newly-released memoir of Sidney Wood, the former New York resident and member of the International Tennis Hall of Fame, detailing his life and times with some of the most famous global personalities, including the unusual circumstances that lead him to win Wimbledon 80 YEARS AGO. David Wood of Queens, N.Y., will be making a casual, low-key public appearance Wednesday, June 29 at 6 pm to 9 pm at OPIA (57thStreet at Lexington Ave.) to sign and personally discuss the book and show off some of his father’s tennis memorabilia, including the racquet he used to win the Wimbledon title in 1931. The cornerstone tale of THE WIMBLEDON FINAL THAT NEVER WAS is one of the most unusual episodes ever in sport when he won the men’s singles title at Wimbledon by forfeit. Wood, who passed away in 2009 at the age of 97, tells the story of how he won the title over Frank Shields, his school buddy, doubles partner, roommate and Davis Cup teammate – and the grandfather of actress and model Brooke Shields – when Shields was ordered by the U.S. Tennis Association (USTA) to withdraw from the final to rest his injured knee in preparation for a U.S. Davis Cup match following Wimbledon. He then discusses his “private understanding playoff” that saw his match with Shields at the Queen’s Club tournament final in London three years later be played for the Wimbledon trophy. Wood, who could be called the greatest story teller tennis ever had, also relates fascinating anecdotes and stories that involve some of greatest titans of tennis and such legendary Hollywood personalities as Grace Kelly, Errol Flynn, Charlie Chaplin, Groucho Marx, Gary Cooper among others. Wood also critiques all the best players and all the best strokes for every top player through the years – from Bill Tilden, Rene Lacoste and Don Budge all the way to the modern era of the game. Wood was born on November 1, 1911 in Black Rock, Conn., and was a long-time resident of New York, N.Y., Southampton, N.Y., and Palm Beach, Fla. When he won the Wimbledon title in 1931 at age 19, he was the youngest man to win the singles title at the All England Club – 17-year-old Boris Becker breaking his record in 1985. He still holds the record of being the youngest player to compete at Wimbledon at age 15 in 1927. He was a singles finalist at the 1935 U.S. Championships and was inducted into the International Tennis Hall of Fame in 1964. David Wood is the youngest son of Sidney Wood and served as a contributor to the book.

USANA Health Science and WTA launch “Ace Out Hunger” program

In a recent press release, USANA Health Sciences, Inc. recently announced that it will donate $10 for every ace served at WTA events throughout the 2011 season, beginning with The Championships at Wimbledon. The Women’s Tennis Association (WTA) will support USANA’s contribution with a $25,000 donation. All proceeds from the “Ace Out Hunger” program will benefit Children’s Hunger Fund (CHF), a global nonprofit organization fighting hunger in impoverished regions around the world. “In tennis, an ace is a point-winning serve that isn’t returned by the opposing player,” said Dan Macuga, USANA’s Vice President of Marketing and Public Relations. “It is considered a demonstration of strength and strategy—qualities that represent USANA. Through this charitable program, we’re able to provide food, nutrients and vital resources to children in need. This is a program that is meaningful to us in many ways.” “When you consider that an estimated 1.4 billion people live on less than $1.25 a day, $10 can really go a long way,” says Dave Philips, CHF president. “We will be tuning in closely to every match, cheering whenever an ace is scored, knowing what a difference that single serve can make. We cannot thank USANA and the WTA enough for their compassion and generosity.” “We are thrilled to contribute to the Children’s Hunger Fund through the efforts of our world-class athletes,” said Stacey Allaster, CEO and Chairman of the WTA. “USANA is a fantastic partner of the WTA and this program will make a real difference in helping children in dire need.” “I’ve had a chance to learn more about Children’s Hunger Fund and am impressed by how effective they are at distributing resources,” said Liezel Huber, former WTA No.1 doubles player and USANA brand ambassador. “About 99% of CHF’s total contributions go directly into their programs. This is a charity that is doing what it promises to do, and I’m proud to support them.” In 2010, over 12,000 aces were scored in the season and as many as 596 in a single tournament. To date, USANA has donated over $11 million in monetary and in-kind contributions to Children’s Hunger Fund. For more information on USANA’s products and company, visit www.USANA.com.

United States Professional Tennis Association’s Buying Show to be held at Saddlebrook Resort

The United States Professional Tennis Association’s (USPTA) Buying Show will be held on September 22 during the World Conference on Tennis at the famed Saddlebrook Resort in Wesley Chapel, Fla. Booth space is currently still available for the largest national tennis-only buying show. Exhibitors include tennis equipment, apparel and footwear companies, marketers and wholesalers of hard and soft goods, video analysis, Web-based programs and software, teaching aids, court surfacing and lighting, awards, educational materials, nutrition bars and vitamins, and more. More than 1,500 tennis-teaching professionals, industry leaders and representatives, media and manufacturer representatives are expected to attend. Manufacturers are encouraged to submit booth registrations early to guarantee their space since the buying show sells out each year. To obtain booth reservation forms, visit usptaworldconference.com and click on the buying show menu tab or call John Dettor at (713) 978-7782 or e-mail him at marketing@uspta.org.

US: Fila Korea buys Acushnet golf business – Gene Yoon, Chairman & CEO of FILA Global

“We look forward to growing the brands around the globe, especially with the opportunities in the emerging markets in Asia,” said Gene Yoon, Fila Korea’s chairman and CEO.

Gene Yoon, Chairman & CEO of FILA Global

A consortium led by sports apparel maker Fila Korea has bought golf footwear, apparel and equipment maker Acushnet Co in a deal worth US$1.23bn.

Acushnet is one of the largest golf equipment companies in the world, with annual sales of more than $1.2bn in 2010. Its brands include Titleist golf balls and clubs, and FootJoy shoes, gloves and performance outerwear.

“Together, with our new owners, our team is looking forward to strengthening and building upon the global success of the Titleist and FootJoy brands,” said Wally Uihlein, Acushnet chairman and CEO.

Acushnet will remain as a standalone company from Fila Korea, with its worldwide headquarters staying in Fairhaven, Massachusetts.

The new ownership group includes Fila Korea Ltd, which owns the Fila brand globally; Mirae Asset Private Equity, the largest private equity firm in Korea; and the National Pension Service of Korea, the fourth largest pension fund in the world.

“We look forward to growing the brands around the globe, especially with the opportunities in the emerging markets in Asia,” said Gene Yoon, Fila Korea’s chairman and CEO.

Acushnet plans to accelerate growth in Asia

Acushnet plans to accelerate growth in Asia

says Acushnet’s new chairman is known as a rainmaker in South Korea, but don’t be surprised if he gains a similar reputation in the U.S.

By Gene Yasuda

As of Wednesday, September 14, 2011

Back home in South Korea, Gene Yoon is widely regarded as a rainmaker.

After all, he engineered one of the most successful initial public offerings in the history of the Korean Stock Exchange when he took Fila Korea public in 2010.

Don’t be surprised if Yoon – who recently led a consortium of Korean investors to acquire Acushnet Co., which owns Titleist and FootJoy – orchestrates an encore in golf.

At a media event held Aug. 31 near Acushnet’s headquarters in Fairhaven, Mass., Yoon provided a glimpse of his ambitions: To take Acushnet public, perhaps as soon as four years.

“We’re going to try to create the kind of opportunity (in which) all the investors can make the big money they’ve never seen before,” said Yoon, Acushnet’s new chairman. Sensing that he might have said too much, Yoon added with a touch of humor: “By the law, I suppose I (should) not say that specifically.”

Though he can’t guarantee such riches, Yoon made clear the new ownership group’s plans to fulfill its bullish intentions. The investors, led by Fila Korea Ltd. and Mirae Asset Private Equity, acquired Acushnet for more than $1 billion from Fortune Brands, which had owned the golf entity for 35 years since purchasing it for $55 million in 1976.

“We expect the transition to be seamless to the thousands of trade partners and the millions of serious golfers around the world,” Yoon said. “There is a significant potential in Asia to solidify our position as golf’s global premier brand, particularly in China, Korea and Japan. Mirae Asset and Fila Korea have great reach in this market, and we plan to help Acushnet facilitate growth at a rapid rate.”

Though Acushnet recently opened a golf ball plant in Thailand, Yoon insisted that Titleist’s U.S. manufacturing – and employment – would continue.

“The reason why we built that ball plant in Thailand is because we are going to try to put production closer to the market,” he said. “We try to save the cost of transportation. That’s the only reason. I think mostly the plant that we have in the U.S. will cover the European market as well as the U.S. market. If you still have some worry that Acushnet may go away from this area – that’s 100 percent wrong. Please delete that kind of thinking.”

The new owners’ intensified push into Asia validates Acushnet’s forecast that the Asia Pacific market will represent “40 percent of golf’s GDP” by 2015, according to Wally Uihlein, who will remain as the company’s CEO.

“Fortune Brands was a great partner, but I would add, though, that at the end of the day, they didn’t make as many trips to Asia Pacific as I would have liked for them to see why we needed to invest in those markets,” Uihlein said. “We certainly don’t have that concern when the sources and origins of the investor community is based in Asia Pacific. Because of that, we’ve actually accelerated our expectations in Asia Pacific for the next couple of years, and with its growth, we expect to grow proportionately in size compared to where we think that market will be.”

Gene Yoon and Monica Seles

Gene Yoon and Monica Seles Photo

International Tennis Hall of Fame’s Legends Ball 2012 – Arrivals
September 7, 2012 – New York City, NY, USA

Fila extends local license for 30 yrs; to double stores by ’15 – Gene Yoon, Chairman & CEO of Fila Global

Gene Yoon, Chairman & CEO of FILA Global

Mumbai: Leading sportswear maker Fila, which Sunday extended its license agreement here with Cravatex for another 30 years, said it plans to more than double its exclusive stores to 100 in the next two years and focus more on apparel.

Fila has been present here for the past three years and operates under a license agreement.

The originally Italian and currently Korean brand Fila has 5 percent market share in the Rs 2,000-crore sportswear market and is eyeing to double its market share to 9-10 percent by 2015, the company said.

“We are growing at 25-30 percent annually, and we plan to add 60 more stores by 2014 to take the own-store tally to 100. And with this we will be focusing on more apparel sales here,” Fila global chairman and chief executive officer Gene Yoon told PTI here.

On extending the license agreement with the city-based Cravatex for such a long time, Yoon said, “I thought it is time to give more space to invest in the business more aggressively by giving a long-term license agreement to our franchise partner here. We have renewed it for 30 years so that they can comfortably invest more in the business”.

On store expansion, Cravatex chairman Rajesh Batra said the focus will be on the own-store format.

“So far we have been present largely in wholesale and shop-in-shop formats and retail stores, so the next step is open stores and push apparel sales through exclusive stores. Initially, we were focusing on footwear. Sunday we are 60-65 percent a footwear company. We want to make that equal as we go along,” Batra said.

Fila had clocked retail revenue of Rs 120 crore in 2011-12 in the country while its global sales stood at USD 1.2 billion (around Rs 6,500 crore at the current exchange rate), but Yoon said the market provides them a huge opportunity.

“There is big potential here. The two big potential countries in Asia are China and India,” Yoon said, adding the company has individual agreements with partners to spend 4-5 percent of their revenues on marketing activities.

Without naming Reebok India, he said the issues at that company offer him an opportunity to grow faster here.

“We have relatively small share of the market at this moment. We can only expect to grow and increase the business even though the market is declining for the big guys. There is a problem with a big global company here, which presents us opportunity over here,” Yoon said.

The Rs 2,000-crore branded sportswear segment is growing at 12-15 percent.

Asked if Fila plans to grow inorganically here, Yoon said a recent acquisition in the US does not permit it to acquire new firms at present.

“Not at this moment. According to the agreement for Acushnet, I am not supposed to buy any new company till I make a successful exit, which is in 2016, when the IPO for Acushnet comes in the Hong Kong market,” he said.

Fila Korea that owns the Fila brand name, and Mirae Private Equity, which bought the Fortune Brand Inc’s Acushnet that makes the Titleist golf balls, clubs and other equipment for USD 1.23 billion in May last year.

The Italian owner’s of Fila had sold the brand to hedge fund Cerberus Capital Management in 2003, except Fila Korea. Fila Korea later bought the parent brand in 2007.

Yoon added that newly-acquired company has shown good growth which makes it a profitable buy.

“When we acquired the company, the earning before tax was USD 105 million. This year it was USD 145 million. We are very happy with the acquisition of Acushnet. I have to double the earnings before tax before by 2015. Which means USD 215 million, but I am expecting we may even hit USD 265 million. So it is a good buy,” he said.

Fila India, which in July roped in cricketer Virender Sehwag as its first brand ambassador with a contract for three years, is keenly watching the football space due to the growing interest for the sport.

“Football is becoming very popular over here. We tied up with Mohun Bagan to sponsor their kits two weeks ago,” Yoon added.

PTI

How Fila plans to gain from Reebok’s woes – Gene Yoon, Chairman & CEO of Fila Global

Gene Yoon, Chairman & CEO of FILA Global

Mumbai: Italian sportswear brand Fila expects the decision by German competitor Adidas to reduce the number of its Reebok stores in India will significantly benefit its business as it looks to expand in the country.

Adidas, which bought US rival Reebok in 2005 for $3.8 billion, has accused top former executives of Reebok India of fraud that led to the company losing Rs. 870 crore.

Adidas had indicated in May it would cut the number of Reebok stores in India by one-third. Last month, Adidas said it expects a fresh start for Reebok India in 2013.

“We definitely expect our business to benefit from the Reebok-Adidas controversy… The Reebok fiasco should definitely give us traction,” Gene Yoon, global chairman of Fila, said.

Fila, which has 40 stores in India, plans to set up 60 more by end-2014 with its Indian licensing partner Cravatex Ltd.

The company, which expects India to be a major growth driver for it along with China, will also invest heavily to expand its wholesale business, Yoon said.

Despite the Indian government permitting single-brand retailers to own 100 per cent of their Indian operations, Fila plans to sign a 30-year licensing agreement with its current partner, Gene Yoon said.

Copyright: Thomson Reuters 2012

How FILA’s Gene Yoon plans to build a strong brand presence in India

To make Fila a strong brand

Preethi Chamikutty, ET Bureau Oct 3, 2012, 04.01AM IST

Until Nike and Adidas burst onto the Indian marketplace, only one brand occupied customer mindspace — Bata.

But when the new brands urged customers to ‘Just Do It’ and told them ‘Impossible Is Nothing’, it was no longer cool to wear the tried and tested Bata. Now sportswear brand Fila is hoping to create a similar affinity with its renewed vigour in the Indian market.

FILA Global chief Gene Yoon wins Ernst & Young award

FILA Global chairman Gene Yoon (third from left) poses with other winners at a ceremony for the sixth Ernst & Young Entrepreneur of the Year Award in Seoul on Thursday. (Ernst & Young Hanyoung)

FILA Korea Ltd. and FILA Global chairman and CEO Gene Yoon won the sixth Ernst & Young Entrepreneur of the Year Award, or EOY, organizers said on Friday.

The award is created to pioneer outstanding leaders of business whose strength and leadership inspire world.

Out of six EOY awardees, Yoon won this year’s EOY Master’s Award in recognition of his excellence in mergers and acquisitions he showed in merging the global sports brand FILA, Ernst & Young Hanyoung said.

In 2011, Yoon also succeeded in acquiring former U.S. golf equipment and apparel firm, Titleist.

First created by the U.S.-based accounting firm in 1986, the Ernst & Young Entrepreneur of the Year has expanded internationally since 1993, spanning more than 140 cities in 50 countries.

By Chung Joo-won (joowonc@heraldcorp.com)

Entrepreneurship = risk taking – Gene Yoon, Chairman & CEO of FILA Global

Gene Yoon, Chairman & CEO of FILA Global

By Kim Da-ye

“Entrepreneurship,” arguably the trendiest word of our time when people have lost their faith in financial juggernauts and conglomerates, became so overused that it has no clear definition. For Gene Yoon, the chairman of sportswear brand Global Fila and golf equipment maker Acushnet, the term is about risk taking.

“Challenging the unknown world is terrifying, and not anyone can do it. But you must take unknown risks in order to attain high returns. Entrepreneurs are no cowards,” said Yoon, who is also known as his Korean name Yoon-soo.

Grand prize

Business Focus met Yoon at a dimly lit private room in a cafe at Hotel Shilla. The luxury hotel owned by the Samsung family was hosting a red carpet event that day. Men came in tuxes and ladies in floor-length evening dresses, creating a rare scene to be seen in Seoul.

The hero of that night was Yoon, who was going to win the “Ernst & Young Entrepreneur of the Year” award. The global audit and consulting firm would award five entrepreneurs of Korea, and the top honor — the master prize — was Yoon’s. The black bow tie looked good on him.

Gene Yoon, the chairman of Global Fila and Acushnet, delivers an acceptance speech after winning the master’s prize at the 2012 Ernst & Young Entrepreneur of the Year Korea award in Hotel Shilla, central Seoul, Nov. 22. / Courtesy of Ernst & Young Korea

In his inner pocket, he prepared an acceptance speech. He was going to talk about why Korea needs more entrepreneurs. He hopes the country does better in encouraging entrepreneurs instead of killing the “animal spirit” of businesspeople.

“The weakness of capitalism is that the wealthy makes a lot of money and the poor don’t. There should be corrections made on this cycle,” Yoon said.

“When society fosters entrepreneurs who take risks, do their best, succeed and achieve high returns, there will naturally be a positive circulation of wealth. People will also have the hope that a guy like myself can make it.”

Risk taking

In May 2011, Fila and Mirae Asset Private Equity Fund (PEF) bought Acushnet from Fortune Brands for $1.23 billion. Fila was going to manage the company, and Mirae Asset secured investment from National Pension Service, the world’s fifth largest pension fund, and the state-owned Korea Development Bank.

Koreans, many of whom are golf enthusiasts, couldn’t believe that high-end golf brand Titleist and esteemed shoemaker FootJoy were now controlled by the Korean capital. The acquisition has been celebrated as the best deal done by Korean companies.

Behind the glamour, however, the acquisition remains a risky bet to Yoon. When Fila and Mirae Asset bought Acushnet, Fila invested only $100 million out of the $1.23 billion paid to Fortune Brands.

The rest came from financial investors who required Acushnet to be listed on the stock market by 2016. In short, Yoon’s job is to manage the company well and boost its value and help investors reap capital gains and exit.

His more imminent goal is to double Acushnet’s earnings before interest and taxes by the end of 2015.

“If I fail to achieve that, I will be deprived of all my assets including shares in Fila,” Yoon said, indicating that they are held as securities to the loans.

In the meantime, Fila has been given the right to buy back shares from the investors and ultimately the opportunity to become Acushnet’s major shareholder.

Yoon said that he will be able to talk about the creation of a synergy effect between Fila and Acushnet only when the former fully takes over the latter. Investors do not want the businesses of Fila and Acushnet to be combined yet, he added. For instance, Acushnet will launch the clothing line of Titleist next year in Korea, Japan and China while Fila continues to produce its golf apparels.

“That’s the hidden meaning behind why I carry two business cards — one for Fila and the other for Acushnet — although I would very much like to save on paper,” Yoon said with a laugh.

The chairman, in fact, had taken similar risks with the buy-out of the full stake in Fila Korea in 2005 and Fila Korea’s acquisition of the global rights to the Fila brand in 2007.

Back in 2005, Yoon led the “management buy-out” of Fila Korea, the deal that turned the company from a subsidiary of a foreign company into a genuinely domestic firm.

He formed a consortium with executives and employees of Fila Korea and domestic investors and banks, which bought the full stake from Fila’s New York-based holding company, Sports Brands International.

Two years later, he tried an even bolder deal described as “the tail conquering the head.” In order to acquire Fila Luxembourg, the entity that owned all the rights to the Fila brand, Yoon drew several financial investors including Samsung Securities that bought each Fila Korea share at 20,000 won. Yoon pledged to take the company public, and did so in October 2010 with an initial public offering (IPO) price of 35,000 won.

Fila Korea stocks has been moving in the vicinity of 60,000 won while the shares of most companies that went public in 2010 — notably, those of Samsung Life Insurance — are underperforming their IPO prices.

The biggest benefit of the acquisitions so far would be the immense boost in Fila’s brand value. Fila, despite its Italian heritage, now represents Korea’s sportswear, and was chosen as the official provider of uniforms for the Korean team during the London Olympics this year.

The brand also sponsors the country’s two hottest athletes — swimmer Park Tae-hwan and gymnast Sohn Yeon-jae — and have them as models in its advertisements.

“Sponsoring Park, to be honest, is more of a business decision. The sponsorship for Sohn is different for its long-term nature. We’ve been supporting her since she was very young,” Yoon said.

When asked if he has any plans to get new models for golf equipment brands, he said that Acushnet already supports hundreds of golfers including Jason Dufner, Kyle Stanley and Webb Simpson. He did feel that Rory McIlroy’s departure from Titleist for Nike was a loss.

“Rory McIlroy will be with us until the end of December. He was given much more money (by Nike), and if we cannot match it, we should let him go forward. We cannot stop him from better opportunities,” Yoon said.

M&A for expansion of economic territory

Yoon is now known as Korea’s most experienced in handling mergers and acquisitions (M&A) at global scale. He said that although Korea has developed much, fostering a truly global company still remains a challenge and acquiring one instead may be a more efficient path.

As the global economic crisis still lingers, fine companies are being offered for sale at bargain in the global M&A markets and Yoon urged Korea to expand the country’s “economic territory” by acquiring them. He forecasts that Koreans would be able to have such opportunities for shorter than the next five years because the wealthier China is expected to dominate the markets soon.

Yoon admitted that he is interested in three or four companies offered for sale, but his hands are tied. When Fila acquired Acushnet, the company pledged to financial investors that it would not acquire another company until the missions is accomplished so that both Fila and Acushnet remain financially healthy.

When asked which companies he is keen on, he said, “I shouldn’t mention their names because it might affect the deals.”

In a way, the ban on additional M&As was another risk Yoon had to take for purchasing Acushnet. Gone are the opportunities for him to attain good deals when too little time is left.

Yoon said that the acquisition of a Korean company by a Korean company is relatively an easy job, but that of a foreign company is not. The latter requires a staff who are fluent in English and have experience in managing global companies, but Yoon said there aren’t many of them in Korea.

He often boasts his fluency in English, the language he learned while serving in the military at the U.S. base and mastered while travelling for businesses. And with no business degrees, he gained skills in M&As in a hard way through experiences.

“Business schools do not teach you innovative strategies. Speaking of case studies that are popular teaching methods in MBA programs, the power of a strategy is completely gone once it is open to the public. The same strategy doesn’t work twice. You cannot make money with the same method. The really working strategy comes from your experience,” he said.

Yoon divided a typical M&A into four stages: negotiating, raising funds for the deal, managing the company and rewarding investors, usually through an IPO.

The most important stage is the third one — managing the company and boosting its value, which, he said, needs a talented staff the most.

“Korean companies aren’t actively buying global firms because they aren’t confident that they can successfully manage the companies,” Yoon said.

“There are only a few who can, and that’s why I make money. I am a patriot. I am helping Korea to expand its economic sovereignty.”

Learn from failures

When he gives speeches and interviews, he always emphasizes the importance of failures.

Dubbed “a legend of salaried employees,” Yoon is one of few Koreans who started as an employee of someone else and now leads a large corporation. He is a late bloomer who had gone through a series of devastating failures. Surprisingly, he said applying to the medical school of Seoul National University three times but never getting admitted has been the biggest letdown of his life.

Yoon was born in a village in Hwaseong, Gyeonggi Province, in 1945, the year of Korea’s independence from Japan. His mother died of typhoid 100 days after he was born, and he was raised by his aunt who was abandoned by her husband. Yoon’s father died of lung cancer when Yoon was a junior in high school, so he was deeply determined to study medicine at the prestigious public university in order to become an expert of the nature’s most feared killer.

“My dad’s only wish was to live until I got married. When he passed away without seeing me marry, I was tremendously shocked,” Yoon recalled.

After the first two failed attempts, he briefly studied at the dental school at Seoul National University but quit because he did not see the point of becoming a dentist. He tried one more time, but ended up studying political science and diplomacy at the Hankuk University of Foreign Studies. By the time he graduated from college, he was 28 (30 in Korean age).

“Failing three times dealt a great psychological damage to me, but in the long run, it made me humble. I am still sad that I couldn’t become a doctor, so I am extra humble in front of doctors,” Yoon said.

The chairman said that the biggest weakness of those who never fail in their lives is hubris, adding that Guan Yu, a general from Chinese epic Romance of the Three Kingdoms, was killed because of his arrogance.

“Humble people are the ones you should be afraid of. You cannot buy failures and humility with money. Failures also teach you the strategies of how not to fail in the next project. Once you have failed, you struggle not to make the same mistake again,” Yoon said.

kimdaye@koreatimes.co.kr,

http://www.gene-yoon.com/2012/11/30/entrepreneurship-risk-taking/

Getting to know Gene Yoon, Chairman & CEO of Fila Global

Gene Yoon, center, sits next to Michele Scannavinim, left, the then CEO of Fila Holdings Italy in this undated photo. / Korea Times file

By Kim Da-ye

“Why I Get an Annual Salary of 1.8 Billion Won” by Gene Yoon (Chosun, 277 pages, 6,500 won, discontinued)

Getting to know a person in a one-hour interview is nearly impossible, and most interviewees make it worse by being too political and careful. Gene Yoon, the chairman of Global Fila and Acushnet, wasn’t.
In a low husky voice, he was unafraid of talking about failures in his life and making comments on sensitive matters. After each candid — and even blunt — remark, he would say, “You gotta be honest. You shouldn’t lie.” He then laughed.
An hour with him still wasn’t enough — he nowadays constantly travels and rarely gives interviews — so the discovery of his autobiography published in 1997 was tremendously fortunate.
The book titled “Why I get an annual salary of 180 million won” was discontinued a long time ago, and a rare copy was found at a second-hand book shop. It was ironically near the Seoul National University, Yoon’s nemesis whose medical school rejected his applications three times.
The tell-all autobiography explained every point Yoon made during the interview. The title may come across as too proud, but the book is more of an honest account of failures he has made (In 1996, Yoon was ranked among the top 100 income tax payers in Korea and reluctantly revealed his salary following inquiries by the media).
The book narrates Yoon’s life from his birth in 1945 to 1997 when he was the president of Fila Korea and was thriving.
Yoon writes that his 20s was a dark time marked by failing to get into Seoul National. He briefly worked at a shipping company and moved to J.C. Penny, a U.S. chain of department stores, in 1975
At J.C. Penny, assigned to discover “hard-line” products to export to the U.S., Yoon came up with an idea of shipping microwaves that no Korea manufacturers could produce back then. The jaw-dropping story goes that Yoon, in collaboration with Samsung Electronics, reassembled a Japanese microwave, got it approved by J.C. Penny and eventually succeeded in helping Samsung mass-produce its own microwaves.
He had cheeky strategies including camouflaging Samsung’s electric fan plant into one that manufactured microwaves when an American engineer visited Korea for an on-site inspection before the approval. It  now sounds scandalous, but well, it was the seventies.
One of the heart-wrenching failures he managed to narrate with so much humor is botched exports of E.T. the Extra-Terrestrial dolls.
At his next employer, Hwaseung, Yoon proposed making dolls of the popular E.T. character from the 1982 Steven Spielberg film and exporting them to the U.S. He did not know that a company is required to obtain a license to do so.
By the time six containers carrying E.T. dolls worth $180,000 arrived in the U.S., he received a call from customs that said the license for E.T. dolls belonged to someone else. Hwaseung ended up burning all of the exports, but had already been mass-producing them at a dedicated factory. That year and the following year, E.T. dolls flooded handcarts of street vendors, Yoon recalls.
The highlight of the book is, of course, how he became the head of Fila Korea after more heartbreaking failures. Italian sports apparel maker Fila neither had a branch in Korea nor produced shoes until Yoon approached the brand. Yoon did not find a job in Fila Korea, but founded Fila Korea.
After seeing Fila’s clothes in the U.S., he hoped to get a license for making their sports shoes but realized that someone else has taken the license in the U.S. The person was Homer Altice, whom Yoon got to work closely with.
Yoon recalls that Altice initially had wrong business ideas about pricing the shoes too high, starting with too little capital and giving unreasonably high interest to the lender at a whopping 22 percent of revenue. When Yoon quit Hwaseung and launched his company, he visited Fila’s headquarters in Biella, Italy, to obtain the license to operate in Korea, but was rejected.
Months later, however, Altice contacted him, saying that he was struggling and mulling to give up the business.
Yoon convinced Altice to meet with Chung Young-woo, a classmate from Seoul High School who then headed the New York branch of SsangYong Group’s trading company, as a potential financing partner.
Chung didn’t show up in the first meeting, and Yoon begged Altice for another chance. He even cried.
Finally, Yoon convinced Altice. He arranged the production of Fila shoes in Korea, SsangYong supported Altice financially and logistically and Altice ran the U.S. branch of Fila. Yoon took 3 percent of the revenue as agency fees, but continued to try establishing his own businesses. Some of the products he produced and sold as sidelines were toy helicopters, water heating systems and electric carts for the disabled.
Altice later sold his license back to the Italian holiding company who appointed Yoon as the head of its Korean operation in 1991.
Fila and Yoon jointly set up the Korean operation. The holding company wanted Yoon to have a 45 percent stake, but he did not have enough money. Instead, he took a 10 percent stake and received $1.6 million of annual salary. The rest is history.
The book is an inspiring confession for those who want to shape their own destinies and become entrepreneurs. It will make you laugh, weep and learn what it takes for someone to reach the position where Yoon is.
Unfortunately, this book isn’t likely to be released again in a second edition. It would be best to remain as a relic from an analogue age when people had little access to the Internet and didn’t make too much fuss about one famous person’s opinion.

kimdaye@koreatimes.co.kr,http://www.gene-yoon.com/2012/11/30/getting-to-know-gene-yoon-chairman-ceo-of-fila-global/