{"id":422385,"date":"2022-03-27T19:25:43","date_gmt":"2022-03-27T16:25:43","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/nordictrack-ceo-scott-watterson-forced-out-in-battle-with-peloton\/"},"modified":"2022-03-27T19:25:43","modified_gmt":"2022-03-27T16:25:43","slug":"nordictrack-ceo-scott-watterson-forced-out-in-battle-with-peloton","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/nordictrack-ceo-scott-watterson-forced-out-in-battle-with-peloton\/","title":{"rendered":"#NordicTrack CEO Scott Watterson forced out in battle with Peloton"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a36e957b0b12\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a36e957b0b12\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/nordictrack-ceo-scott-watterson-forced-out-in-battle-with-peloton\/#%E2%80%9CNordicTrack_CEO_Scott_Watterson_forced_out_in_battle_with_Peloton%E2%80%9D\" >&#8220;NordicTrack CEO Scott Watterson forced out in battle with Peloton&#8221;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/nordictrack-ceo-scott-watterson-forced-out-in-battle-with-peloton\/#Michael_Phelps_bill\" >Michael Phelps bill<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/nordictrack-ceo-scott-watterson-forced-out-in-battle-with-peloton\/#%E2%80%98So_many_Wattersons\" >\u2018So many Wattersons\u2019<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/nordictrack-ceo-scott-watterson-forced-out-in-battle-with-peloton\/#%E2%80%98Mormon_brotherhood_vanished\" >\u2018Mormon brotherhood vanished\u2019<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CNordicTrack_CEO_Scott_Watterson_forced_out_in_battle_with_Peloton%E2%80%9D\"><\/span>&#8220;NordicTrack CEO Scott Watterson forced out in battle with Peloton&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<aside class=\"single__inline-module alignleft\">\n<\/aside>\n<p>The maker of NordicTrack exercise bikes and treadmills got a financial lifeline this month \u2014 but only after the struggling Peloton rival\u2019s founder agreed to step down as chief executive, The Post has learned.<\/p>\n<p>Investors insisted that 66-year-old Scott Watterson \u2014 a hard-charging billionaire entrepreneur who founded the company in 1977 after doing a stint as a Mormon missionary in Asia \u2014 relinquish control of the daily management of NordicTrack\u2019s parent company, iFIT Health &amp; Fitness, sources close to the situation said. <\/p>\n<p>IFIT\u2019s new backers likewise demanded control of the board, which meant booting longtime directors from the Church of Latter-day Saints who were close to Watterson, sources told The Post. Watterson remains chairman \u2014 but his wings have been clipped, the sources said.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Michael_Phelps_bill\"><\/span>Michael Phelps bill<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A key beef was over iFIT\u2019s expenses, which ballooned over the past year as Watterson scrambled to outgun archrival Peloton by pouring millions of dollars into a marketing push that t<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ed Olympic swimming legend Michael Phelps. <\/p>\n<p>Some investors griped that Watterson \u2014 who, they claim, ran the company like a family business  \u2014 racked up a massive tab with a risky plan to pay it off with proceeds from an IPO that ended up getting scrapped in October. IFIT expected to raise $650 million in the public offering.<\/p>\n<div class=\"wp-block-image\">\n<figure class=\"alignright size-large is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/03\/scott-watterson-1.jpg?quality=90&amp;strip=all&amp;w=768\" alt=\"Scott Watterson wearing a navy knit shirt.\" class=\"wp-image-21665195\" width=\"273\" height=\"363\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/03\/scott-watterson-1.jpg?quality=90&amp;strip=all&amp;w=544 546w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/03\/scott-watterson-1.jpg?quality=90&amp;strip=all&amp;w=408 409w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/03\/scott-watterson-1.jpg?quality=90&amp;strip=all&amp;w=273 273w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/03\/scott-watterson-1.jpg?quality=90&amp;strip=all&amp;w=136 136w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/03\/scott-watterson-1.jpg?quality=90&amp;strip=all 1024w\" sizes=\"auto, (max-width: 273px) 100vw, 273px\"\/><figcaption>Scott Watterson, CEO of iFIT, founded the company in 1977.<\/figcaption><figcaption><span class=\"credit\">iFIT Health &amp; Fitness<\/span><\/figcaption><\/figure>\n<\/div>\n<p>Once valued at more than $10 billion, iFIT last year was forced to shed hundreds of workers in a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/watch-movies-tv-seriess\/\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Watch Movies &amp; TV Series\" target=\"_blank\" rel=\"noopener\">series<\/a> of layoffs in a bid to slow its cash burn as pandemic-driven demand for exercise bikes from NordicTrack and Peloton alike dried up last fall. <\/p>\n<p>Both companies were bogged down in patent lawsuits against each other as well as other fitness companies. <\/p>\n<p>One source close to the company now pegs iFIT\u2019s market value closer to $1.5 billion.<\/p>\n<p>\u201cIt needed a fresh set of eyes and for someone to manage the business professionally,\u201d one source close to the company told The Post.<\/p>\n<p>The investors \u2013 L Catterton and Pathlight Capital \u2013 wanted assurances that new leadership would be installed before they parked their millions in the Logan, Utah-based company, according to the source. They are now in discussions with candidates to succeed Watterson as CEO, the source said.<\/p>\n<p>It\u2019s a different story than the one iFIT told after it secured the $355 million investment in early March, announcing that Watterson would be stepping down as CEO \u201cas previously planned.\u201d <\/p>\n<p>His 35-year-old son Mark, who is chief experience officer, was promoted to co-president along with iFIT\u2019s chief financial officer, Steve Barr. <\/p>\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/03\/wattersons-3-brothers-.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"Headshots of Scott Watterson's sons, Mark, Blake and Eric.\" class=\"wp-image-21665314\" width=\"619\" height=\"206\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/03\/wattersons-3-brothers-.jpg?quality=90&amp;strip=all&amp;w=1235 1238w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/03\/wattersons-3-brothers-.jpg?quality=90&amp;strip=all&amp;w=927 928w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/03\/wattersons-3-brothers-.jpg?quality=90&amp;strip=all&amp;w=619 619w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/03\/wattersons-3-brothers-.jpg?quality=90&amp;strip=all&amp;w=309 309w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/03\/wattersons-3-brothers-.jpg?quality=90&amp;strip=all 1024w\" sizes=\"auto, (max-width: 619px) 100vw, 619px\"\/><figcaption>Scott Watterson\u2019s sons, Mark, Blake and Eric have senior positions in the company. A fourth, son, Nick, is not pictured.<\/figcaption><figcaption><span class=\"credit\">iFit<\/span><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"%E2%80%98So_many_Wattersons\"><\/span>\u2018So many Wattersons\u2019<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The shuffle follows investor complaints that Watterson ran iFIT like a fiefdom \u2013according to one source, Scott has been known to \u201cdress down his employees in front of the board of directors\u201d \u2014 and he doled out plum gigs to 11 family members, according to public filings.\u00a0<\/p>\n<p>Indeed, Scott himself was poised to receive $35 million upon completion of the IPO, which was ultimately postponed due to \u201cadverse market conditions,\u201d according to securities filings. The flopped IPO didn\u2019t stop iFIT from forgiving $53.2 million worth of loans to family member employees right before the company\u2019s IPO registration, filings show.<\/p>\n<p>\u201ciFit is a billion-dollar company, but if you look at the names of the executives there are so many Wattersons in the C-suite,\u201d another source with knowledge of the investment terms said. <\/p>\n<p>Watterson\u2019s 62-year-old brother David, formerly chief strategy officer, is no longer a director nor does he hold an executive position.\u00a0It\u2019s Scott\u2019s son Mark that Watterson hopes will take the reins of the company eventually, the sources said.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/03\/nordictrack-bike-1.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"A woman using a NordicTrack bike in a livingroom.\" class=\"wp-image-21665652\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/03\/nordictrack-bike-1.jpg?quality=90&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/03\/nordictrack-bike-1.jpg?quality=90&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/03\/nordictrack-bike-1.jpg?quality=90&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>NordicTrack exercise equipment competes directly with Peloton.<\/figcaption><figcaption><span class=\"credit\">NordicTrack<\/span><\/figcaption><\/figure>\n<p>His three other sons \u2014 Blake, chief operating officer; Eric, chief marketing officer; and Nick, a product manager; will continue in their roles and are well regarded by the investors, but are not yet viewed as CEO material, sources said. <\/p>\n<p>Pathlight invested $325 million and L Catterton \u2013 backed by French luxury giant LVMH\u2019s billionaire chairman Bernard Arnault \u2013 invested $25 million, according to a source close to the company. Scott Watterson, who is worth $1.6 billion according to Forbes, invested $5 million, the source said. Pathlight did not respond to requests for comment and L Catterton declined to comment.<\/p>\n<p>IFIT did not respond to repeated requests for comment.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"%E2%80%98Mormon_brotherhood_vanished\"><\/span>\u2018Mormon brotherhood vanished\u2019<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As exclusively reported by The Post, iFIT was facing down a potential bankruptcy this year due to a lawsuit from Pamplona Capital Management, which had demanded im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>te repayment of a 2019, $200 million loan and $100 million in interest, alleging that iFIT cut a deal to acquire a Chinese manufacturer that subordinated Pamplona\u2019s loan to the company and violated the terms of its agreement with iFIT.<\/p>\n<p>IFIT this month said it settled the dispute without disclosing details. Sources said the settlement was the key to unlocking the $355 million as Pathlight and L Catterton did not want the liability hanging over the company.<\/p>\n<p>L Catterton has effectively taken over the management for now \u2014 and was likely the reason that Scott agreed to the leadership changes, citing friction between Watterson and Pamplona, according to a source.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/03\/proform-mirror-workout.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"A woman working out in front of an interactive mirror.\" class=\"wp-image-21665721\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/03\/proform-mirror-workout.jpg?quality=90&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/03\/proform-mirror-workout.jpg?quality=90&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/03\/proform-mirror-workout.jpg?quality=90&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Demand for at-home exercise equipment spiked during the pandemic, but took a tumble late last year.<\/figcaption><figcaption><span class=\"credit\">Proform<\/span><\/figcaption><\/figure>\n<p>The board, meanwhile, has been shrunk, with L Catterton holding three seats and the rights to install three independent directors. Gone are two high-ranking members of the Mormon church: Gary Stevenson, who\u2019d co-founded iFIT and is now the 12th Apostle of the church; and Bob Gay, an investment banker who also has held church leadership positions. IFIT directors had been instructed to refer to Stevenson as \u201cElder Stevenson\u201d at board meetings, the source told The Post.<\/p>\n<p>\u201cAll that Mormon brotherhood vanished from the board,\u201d the source said. \u201cThey were a big issue. They all stuck together and kept propping Scott up,\u201d the source said.<\/p>\n<p>Watterson and Stevenson served as Latter-day Saint missionaries in Asia earlier in their careers and formed the fitness company \u2014 then called Weslo Inc. \u2014 together in 1977. Watterson speaks fluent Mandarin, according to Forbes.<\/p>\n<p>When iFIT announced plans to go public last fall, the local press pointed out that Stevenson could become a billionaire in the process. The Salt Lake Tribune also pointed out that serving on a corporate board \u201cwould appear to violate long-standing church policy.\u201d<\/p>\n<p>A church spokesperson responded that Stevenson had received a special dispensation from church authorities, \u201cresulting from his legacy shareholdings and his role as a co-founder of the corporation.\u201d\n                        <\/p><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2022\/03\/27\/nordictrack-ceo-scott-watterson-forced-out-in-battle-with-peloton\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;NordicTrack CEO Scott Watterson forced out in battle with Peloton&#8221; The maker of NordicTrack exercise bikes and treadmills got a financial lifeline this month \u2014 but only after the struggling Peloton rival\u2019s founder agreed to step down as chief executive, The Post has learned. Investors insisted that 66-year-old Scott Watterson \u2014 a hard-charging billionaire entrepreneur&#8230;<\/p>\n","protected":false},"author":1,"featured_media":422386,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/03\/nordic-track-scott-watterson.jpg?quality=90&strip=all&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[127205,127239,72667,116681,72201,78778],"class_list":["post-422385","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-3-27-22","tag-conflicts-of-interest-board","tag-investors","tag-mormons","tag-peloton","tag-private-equity-investments"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/422385","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=422385"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/422385\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/422386"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=422385"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=422385"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=422385"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}