Huge NHL sponsor files for credit bankruptcy in Canada and the US

Canopy Growth was looking to diversify their business, turning to the drink industry. Canopy Growth has not had the outcome they were looking for, claiming that BioSteel was responsible for 60% of Canopy's financial losses in the fiscal year.

This may come as a shock to sports fans as many star athletes and teams in the NBA, MLS, NFL and NHL have had partnerships. For example, BioSteel had a partnership with top Canadian soccer (Football) player, Alphonso Davies which is pictured above. BioSteel specifically had many partnerships with the NHL's best such as Connor McDavid and #1 pick in the 2023 draft, Connor Bedard. BioSteel also had a partnership with the NHL, that stated that BioSteel was the "Sports Hydration Partner of the NHL". These partnerships were part of the problem, BioSteel paid $12 million dollars in advertising to the NHL alone.

While the partnerships have seemed to work better this year as BioSteel generated nearly $32 Million this year, which more than doubles last years revenue. The focus on partnerships cost them $40 Million, putting them at a net loss.

Canopy Growth released at statement on Thursday, announcing that they have stopped funding for BioSteel Sports Nutrition Inc. BioSteel has now began proceedings under the Companies Creditors Arrangement Act (CCAA). BioSteel used CCAA to protect them from their creditors. They have filed for protection in The USA and Canada. The NHL and BioSteel had a payment coming up on Sept 1. The deal was not made and it appears that it will not be paid to the NHL at this time.

The next steps for BioSteel's owners are to continue their CCAA proceedings and then look to sell the company to an independent company.

Sources: CBC.ca