Julie Nimmons has found that this is not an easy time to be running a sporting-goods manufacturing company. That’s because one of the major products of her firm, Schutt Sports Group in Litchfield, Ill., is football helmets.
What’s wrong with football helmets? Nothing; they’re a useful product.
But people who have been injured while wearing football helmets have been known to sue others involved, including the manufacturer.
And football, as the cliche goes, is a game of collision. Lots of collisions.
Schutt Sports, along with Riddell Inc., is one of two U.S. companies that still manufactures football helmets. In 1970 there were 18 helmet manufacturers, Nimmons said. A lot of big names are out.
In the 1970s the exodus from the helmet business by different brands got under way. It followed a $1 million damage award in a Florida case.
Nimmons, 38, recalls one case in which a professional football player filed a suit and the helmet manufacturer, in West Virginia, simply closed the company’s doors.
Nimmons said Schutt Sports so far has defended itself successfully against multimillion-dollar suits. But she said there are suits outstanding against her company.
She said the company should have about $21 million in sales this year and adds, “We try to remain profitable.”
But she hesitates to say more about the company’s financial results, explaining that she would not want any profit figures to be an impetus for more litigation.
A football helmet for professional or college play can cost $95 to $120, she said, and roughly half that amount can be attributed to the cost of legal defense.
More Top Picks Best Convection Countertop Ovens
The issue of product liability is addressed in a bill before Congress. In testimony, Nimmons said running a business while constantly feeling the threat of litigation is like walking a tightrope.
“Whether it’s a softball, exercise bike or pogo stick, product manufacturers are seen as insurers of last resort for sports activities. What that may mean ultimately is less access to sports, which would be yet another manifestation of the cost of product liability in our society.”