SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
July 9, 1999 (July 2, 1998)
Sport Supply Group, Inc.
(Exact name of registrant as specified in its charter)
Delaware 1-10704 75-2241783
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification No.)
incorporat ion)
1901 Diplomat Drive, Farmers Branch, Texas 75234
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(972) 484-9484
Not Applicable
(Former name or former address, if changed since last report)
Item 5. Other Events
Incorporated herein by reference is a press release attached
hereto as Exhibit 5(a) and previously released by Registrant
through media sources concerning a lawsuit filed by the
Registrant as the result of a notice delivered by MacMark
Corporation purportedly terminating the Registrant's rights under
a license to use the MacGregor trademark.
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Exhibits Index:
Description of Exhibit
5(a) Press Release
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
Sport Supply Group, Inc.
Date: July 9, 1999 By: /s/ John P. Walker
John P. Walker
President, Chief Operating
Officer and Chief
Financial Officer
EXHIBIT 5(a)
FOR FURTHER INFORMATION:
At the Company:
John P. Walker
President
972/406-7108
Michele Girard
General Information
972/406-7166
FOR IMMEDIATE RELEASE
July 2, 1999
SPORT SUPPLY GROUP, INC.
FILES LAWSUIT REGARDING MACGREGOR LICENSE
DALLAS, Friday, July 2, 1999-Sport Supply Group, Inc. (NYSE: GYM)
("SSG") announced today that it has filed a lawsuit for declaratory
relief in the United States District Court for the Northern District of
Texas against MacMark Corporation ("MacMark") and Equilink Licensing
Corp., both of which SSG believes are controlled by Riddell Sports, Inc.
The lawsuit arises out of a notice delivered by MacMark purportedly
terminating SSG's rights under its license to use the MacGregor
trademark. The license is perpetual and royalty free subject to
certain limited termination rights. MacMark stated in its notice that
it considers there to be continuing and material breaches of the License
Agreement and that such breaches are incurable, all of which SSG
disputes. Because SSG has converted a substantial portion of its
products to the MacGregor brand, termination of the License Agreement
could have at least a short term material adverse effect on SSG's
results of operations.
<PAGE>
John Walker, SSG's President, stated that "We believe MacMark has no
reasonable basis to terminate this License Agreement. Several years ago
MacMark received more than $1 million in exchange for this royalty-free
license. Now that SSG has built up the value of this trademark, we
believe MacMark is questioning the wisdom of its prior sale and wants to
retrade the current license for a license with a limited duration that
pays a royalty. We intend to vigorously protect our rights under the
License Agreement and pursue any other rights we may have against any
and all parties, including SSG's right to prevent any tortious
interference with our business relationships."
Sport Supply Group is the leading direct marketer of sporting goods
equipment to the institutional market place. The Company's products and
proprietary brands are used by professional and amateur athletes in
schools, colleges, universities, governmental agencies, camps and youth
organizations across the country.
This news release, other than the historical information, consists of
forward looking statements that involve risks and uncertainties detailed
from time to time in the Company's filings with the Securities and
Exchange Commission, including the Company's Reports on Form 10-K and
Form 10-Q. Actual results may vary materially.