My Appearance on Shark Tank: All the Dirt
*Scott Jordan, Co-Founder and CEO of SCOTTeVEST, was on Shark Tank Season 3: Episode 7.
*It was one of the most controversial episodes in the history of the show, as Scott was unwilling to give them a piece of SCOTTeVEST, only the licensing of TEC-Technology Enabled Clothing.
*What ensued was a battle with Mark Cuban, a call to Steve Wozniak, and Scott walking out of the room with $1 million still on the table. But there are two sides to every story. If you just watched the episode as it aired on ABC, you may have thought Scott was an arrogant jerk just looking for free publicity... or hopefully you thought Scott was a brilliant businessman who just would not let the Sharks push him around. Well, this page contains the whole truth. To understand what really happened, please read the following 4 points:
“Sony Pictures Television, a Designee of Mark Burnett, and ABC may receive equity in or a share of revenues generated by the businesses included in this program.” Specifically, buried deep in the agreement (which you can see by clicking here), by merely appearing on the show, whether a deal is made or not, I have to give 5% of my "business" or 2% of the profits forever to the producers. So, my appearance was not free. Since the business I was presenting was TEC-Technology Enabled Clothing®, I now have partners in that business, even though a deal was not made with The Sharks. Free? They make money out of every deal I make from here forward.
I believe that The Sharks were intentionally 'baiting' me the entire time I was being filmed. Because of the contract I signed, just one mention of the brand SCOTTeVEST, and I would be forced to give the sharks 5% equity or 2% of the profits of SCOTTeVEST. I went into the Tank pitching TEC, and I had to carefully tiptoe around the brand name that I spent years successfully building. If I slipped once and either mentioned SCOTTeVEST or countered their offer for SCOTTeVEST, part of SCOTTeVEST would be theirs automatically forever. Given the value of SCOTTeVEST, I could not risk it, especially that it appeared likely that The Sharks would not likely agree on a fair valuation for SCOTTeVEST. Imagine how hard it is to talk about your job without mentioning the name of the company. If I had, it would have cost me millions and for no good reason.
On a podcast (you can listen to it here), it was blatantly stated by Mark Cuban that his only goal was to make me cry on air, and I am not one to back down from a challenge. Imagine how you might have done in a similar situation knowing that Mark Cuban's goal was to make you cry on national TV. I think I gave it a pretty good shot, though unsuccessful.
I walked away from a deal with The Sharks when it became apparent that they were only interested in SCOTTeVEST. As I went to shake hands with them, all of The Sharks, other than Robert Herjavec, told me what an amazing job I did, including Mark Cuban. Robert Herjavec, however, refused to shake my hand, which has NEVER happened to me after all my years as a professional. When I told him as much, I turned and walked away. That is when you hear him telling me to "show some respect" as I was walking out the door. Doesn't ring true telling me to show respect when he refused to shake my hand after the other Sharks did so graciously.
I still firmly believe in the value of patents and the value of TEC. With all this background to the story, combined with my incredible passion for my companies, you can see why things got heated in the Shark Tank. Just remember, there are ALWAYS two sides to every story and you can see the full story below if you are interested in diving deeper into the Shark Tank.
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