AVP (AVPI) is the owner and operator of the AVP volleyball tour in the United States. The company’s operations include establishing and managing tournaments; sponsorship and advertising sales; sale of broadcast, licensing, and trademark rights; sale of tickets, food, beverage, and merchandise at the tournaments; and contracting with players in the tournaments. Several AVP players played for the United States volleyball teams during the recent Beijing Olympics, including gold medalists Misty May-Treanor and Kerri Walsh.
Last week, AVP said it received a $3.5 million strategic investment from Meyer Ventures LLC of New York. Under the terms of the agreement, Meyer Ventures will be allowed to appoint two directors to AVP’s board. According to AVP, the new funds will be primarily used for working capital and the continued expansion of the company’s lifestyle sports entertainment offerings in professional beach volleyball. AVP was founded in 1983 and also started an indoor volleyball league earlier this year. The company is set to stage 35 events across the U.S. this year. AVP events are broadcasted on television by NBC and Fox.
The California-based company is led by former sports agent Leonard Armato and has seen rapid revenue growth over the past several years. In 2002, the company had $5 million in revenue. In 2007, it had almost $22 million. The revenue growth attracted the interest of, and a takeover from, the Shramrock Capital Growth Fund. The offer was rejected by AVP on the grounds that it undervalued the company. Diker Management LLC holds about 18 percent of AVP’s shares while insiders hold about 68 percent.
The company’s shares are thinly traded, with a daily average over the last three months of just under 19,000 shares. Potential investors should note that the company doesn’t yet regularly report quarterly results or hold conference calls. AVP shares closed at 40 cents on Tuesday and have traded between 25 cents and $1.22 over the past year.
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