I know that the OG members sold to some venture capitalists around 3 years ago, but in September of 2022 something happened where the managers all became members. Then I started to think, that’s about the time Grant left. Based on what I have seen he was likely renegotiating his contract for FY2023 because he was an independent contractor and had to renegotiate every year, he wanted to have a stake in the company and become a real member, the suits refused, so he left. Remember the “kitchen sink” yeah that didn’t include making him a real member it was just a yearly contract with virtually no stake in the company. The thing that seems weird to me is that shift from managers to “members”. Of course venture capitalists aren’t going to relinquish their shares for no reason, they probably seen Grant as replaceable, they can just plug someone in that’s going to be happy with just being along for the ride, whilst not being a real member or having a stake in the company. Anyone have any idea of what happened in September? Did the managers buy out the majority shareholders(the VC’s that GG originally sold to)? Or did the GG members sell on 2 separate occasions? These are all just my opinions that are based off public information and my own common sense. I have no issue with being wrong or hearing other ideas, I find the business side of this to be really interesting.
by Say10Chris
8 Comments
So that’s not exactly how companies work. For an LLC, a manager is just a member of a company with the authority to effectuate change within the company. By just agreeing to not be a manager anymore, you don’t lose any stake in the company. A 25% owner can be the manager even though there may be a 50% owner. The 50% owner may own more of the business, but they’re still not allowed to do anything outside the limited authority granted by the manager. They likely stepped down as managers to allow some management company to take over while still keeping a majority of their ownership. Also, ownership of a company doesn’t necessarily dictate his much you’ll be paid out. Members can be granted salaries or even just take a split of EoY profits.
Edit to add: members elect managers, so if a majority % ownership votes to elect a different manager, that’s how it’ll go (subject to change based on bylaws.
TLDR: Changes from manager to member don’t necessarily indicate changes in ownership share.
Honestly, probably just updated their annual statement of information with the SOS (annual reporting obligation to the state) and recharacterized as members instead of managers. You’d have to see their operating agreement to know any true organizational changes, which the public (and the state) isn’t privy to. All the SOS cares to know is who to context on behalf of the entity
Why are you even looking so far into this you doing a report for school?
So strange to have all these entities involved in a grass roots internet golf goof off YouTube channel. It’s almost like everyone is being played here.
Why can’t we just enjoy the content and put away the microscope.
using LLC instead of individuals, its a basic move to reduce risk to yourself and have less liability in case some shit goes down.
But I thought they were just a bunch of friends playing golf…
you tellin me Optic HECZ owns good good?