Jay Cutler once showed up on 'Shark Tank' and boldly turned down Kevin O’Leary’s big offer
The reason why “Shark Tank” stands out is that it offers regular people an opportunity to raise funds for turning their ideas into successful ventures. This doesn't mean that a famous person who has tasted success in another sector could not turn up on the show to pitch a business. One such aspiring entrepreneur was four-time Mr. Olympia winner, Jay Cutler, who showed up seeking $50,000 for 10% of his company, Jay’s Pet Butter.
The company made peanut butter that was suitable for consumption by both humans and dogs. Before the sharks got into the numbers of the business, they had a fan moment with the four-time Mr. Olympia winner. “You’re Jay Cutler, right?” Daymond John asked. “He’s a beast,” Mark Cuban added. There was a picture of him in his prime as a bodybuilder that impressed everyone, and Lori Greiner remarked, “That picture of you is insane.” However, once the pleasantries were over, it was time to crunch the numbers. Cutler wasn’t alone in this business and had brought his partner Brandan Fokker to the show. Both entrepreneurs had a massive social media following in the health and fitness industry. The former bodybuilder claimed to have 16 million followers on social media.
Cutler was also the owner of Cutler Nutrition, a massive supplement brand. He could have distributed this product through that brand, but since Jay’s Pet Butter had more to do with pet care than health and fitness, he decided to give it a different identity. The company’s sales figures, however, weren’t impressive at $39,000 in 10 years. That wasn’t going to impress the sharks, even though all of them liked the product that he had brought to the show.
Cuban said that it was a product that wasn’t investable yet and abstained from offering a deal. Greiner said no to a deal as this wasn’t a product that she could use as her body didn’t agree with peanuts, so she too backed out. Daniel Lubetzky also believed that he wasn’t the right shark for this business, and Daymond John said that Cutler didn’t need a shark at this point.
The only person left was Kevin O’Leary, who actually believed that the business could go big. The low cost of customer acquisition appealed to him despite the humble sales numbers. However, he didn’t want an equity deal, he wanted a royalty. Mr. Wonderful said that he’d give the entrepreneurs $50,000 for $1 a jar of perpetual royalty.
Even though there were no other offers on the table, Cutler and Fokker did not believe that a royalty deal was the right move for the company at that point and rejected the deal. Lubetzky said that they could counter the offer, but since Mr. Wonderful was unwilling to budge from this position, the entrepreneurs left empty-handed.
