Mitch Modell's Heated Exchange With Sporting Goods Owner Over Failed Buyback Bid
The former CEO of Modell's Sporting Goods clashed with the current owner via text as the Knicks neared their NBA championship, revealing months of acrimonious negotiations.
Mitch Modell, the former CEO of the defunct sporting goods chain Modell's, engaged in a heated text exchange with the company's current owner, Raj Gupta, on June 12, just days before the New York Knicks secured their NBA championship. The exchange occurred amidst months of failed negotiations for Modell to buy back the 137-year-old brand.
Modell, whose great-grandfather founded the company in 1889, had been attempting to reacquire the brand since 2024. His initial offer of $500,000 was later increased to $1 million. Sources close to the negotiations indicated that a written, unsigned sale agreement had been drafted by Gupta's attorney.
However, the talks stalled when Gupta insisted on retaining a 5% stake in the company and a portion of its future profits, a demand Modell found unacceptable. Modell also sought access to customer data, including email lists, which he believed Gupta possessed. "He had all my data, everything," Modell stated.
The negotiations reportedly hit a roadblock when Gupta delayed providing the requested customer information, citing being "super busy." This led to a two-month stall, culminating in the tense exchange during the NBA Finals.
On June 12, with the Knicks on the verge of winning the championship and demand for merchandise surging, Modell's e-commerce website was reportedly down for maintenance. "Modell’s website is closed down for maintenance??? Everybody is calling where to buy shirts," Modell texted Gupta. He added, "You blew it. I hope you choke on it." Gupta responded by telling Modell to stop texting him and later informed him the site was back online.
Modell launched MitchellModell.com on June 22, an online apparel site selling merchandise, including a T-shirt commemorating the Knicks' championship win. The T-shirts, which cleverly refer to the team as "Knodells" and feature a pigeon, the unofficial mascot of New York, are priced at $20. Sales from these shirts will also support cancer research, with $5 from each item donated in memory of Modell's father and brother.
Modell's Sporting Goods originally filed for bankruptcy in 2020, leading to the closure of its 140 stores. The brand was subsequently acquired out of bankruptcy in August 2020 for $3.6 million by Retail Ecommerce Ventures (REV), a company led by Tai Lopez and Alex Mehr. Gupta acquired REV’s assets, including Modell's, in late 2023 after REV faced numerous lawsuits and government probes.
Gupta confirmed the text exchanges in a phone interview but remained tight-lipped about the negotiation details. "The deal fell apart because he didn’t stand by the terms we had agreed to," Gupta told The Post, declining to provide further elaboration. Modell described the new online venture as a comeback, drawing a parallel to the Knicks' improbable championship run and emphasizing that "failure does not have to be final."