I want to preface that the contents of this post is for informational purposes. I do not condone or approve of any harassments or witch-hunting or the attacking of anybody.
 
Richard Lewis recently did a stream talking about the terrible state of CS esports and I thought it was an important stream anyone who cares about the CS community should listen to.
Vod Link here: https://www.twitch.tv/videos/830415547
I realize it is 3 hours long so I took it upon myself to create a list of interesting points from the stream so you don't have to listen to the whole thing, although I still encourage you to do so if you can.
I know this post is still long but probably easier to digest, especially in parts.
Here is a link to my raw notes if you for some reason want to read through this which includes some omitted stuff. It's in chronological order of things said in the stream and has some time stamps. https://pastebin.com/6QWTLr8T

Intro

• "The last month has convinced me, that we are going to be heading into a dark place for Counter-Strike esports in 2021."
  • "I think I've seen the scene essentially kill itself."
• "For the past 5 to 6 years, we've basically been in a holding pattern of people coming into our game wanting to run it, wanting to run all of the esports and wanting to profiteer and its been sort of a concerted effort to drive them off and push them away."
  • "We're spread way too thin."
• "If Riot don't get involved and stop the scumbags that have moved over to Valorant from getting their feet under the table, Valorant is going to have real problems."
• RL thinks too much has happened all at once for us to do anything except watch it play out, like:
  • Recent CSPPA strike against BLAST
  • ESIC failures and them not being supported enough
  • Teams cheating i.e. coaches/bugs
  • Widespread match fixing
  • The Pandemic
    • "People who try to hold bubble events are so incompetent and fuck up and people get the 'rona and its their fault."
    • "People who say Flashpoint is a bubble is full of shit and is a lie and people are now suffering for that lie."
      • "To save money they let people go home and break the bubble for a week."
      • "Not just Flashpoint peoples decision, they have a partner that handles the production." (hinting FACEIT)
      • "People are trapped in hotels essentially under house arrest because of COVID restrictions and has fucked peoples lives up."
• "It's all too much, all of this incompetence, all of this greed, maybe we ride it out."
  • RL says he has talked to the Riot devs (the ones working on Valorant) and says, "They are so cognizant of all the fuck ups and all the problems we have in Counter-Strike."
    • He continues to say that this is factored into their business plan and that we never had a competitor, but just so happens to have one coincide, when we are at our worst.

CSPPA - Counter-Strike Professional Players' Association

"Who does this union really fucking serve?"

• RL believes that the CSPPA is a mockery.
  
  • He points out the hypocrisy that they wouldn't strike for the pros who were kicked out of ESL Pro League, or for Jamppi or dream3r.
    • He also says ESL paid CSPPA and are racketeering and many other TOs have to pay them to get their "seal of approval"
      • He says they would strong-arm TOs saying "well if you don't give us the money, these guys are so we'll just have to commit to playing their event."
    • Also points out that they will strike against a competitor they are not in agreement with (Flashpoint)
    • RL: "It's what it says about every other time you haven't done it and it's about every time you don't do it now moving forward." "The issues they've chosen to ignore this year alone are embarrassing."
    • Then he points out that there was no strike for Valve qualifiers even if we have no major but Jamppi and dream3r can't play in them.
      • "and Valve have said 'Oh yeah we know actually their stories are accurate, Jamppi didn't cheat, now in a legally binding document. Yep dream3r did have his account hacked in a LAN café', but they still can't play. Where is the fucking solidarity? Gone. Doesn't exist. It's not important [because] it doesn't affect you." "That's what the union does right now, it looks after all the tier 1 people."
• He says the CSPPA doesn't represent all players all the time and has driven a divide where you have the haves and have-nots
  
  • "We have a tier of players that operate with impunity and do not help their tier 2 or tier 3 players out at all." "If you are not a tier 1 player you do not matter, they don't event ask your opinion."
  • He tells chrisJ to admit and own the fact that the reason he didn't speak up during the ESL Pro League debacle is because it didn't affect him
  • "They are looking after some players at the expense of other players. How the fuck is that a union?"
• He says the BLAST situation is a reasonable dispute and supports the players but is not the right time for a strike and have not even identified the correct enemy
  
  • He thinks players are lashing out now due to previous incidents and are upset that BLAST are working with ESIC
    • He stated that CSPPA shouldn't beefing with ESIC and they should be working in harmony
  • He says what they need to do is talk with the teams/organizations that have sold that right to BLAST
    • RL: "Your employers, the people who pay you that massive exorbitant salaries, when you don't stream and you don't do interviews and you offer no value beyond your ability to click heads and you get 25k dollars a month." "Why don't you talk to them about it? Oh right. You're happy to take away BLAST's paper, but you don't want to risk your own."
  • "I am seeing such unbelievable cowardice from the players here with the battles you choose."
  • "Where was the strike action when in the qualifiers for the world championship, there were teams and players engaged in huge conflicts of interest?" "Where was the strike action when your image rights were taken and sold to every league you've ever been in every union type organization you've ever been associated with like, WESA, to your org every time you sign a contract, to the leagues you play in."
    • "Your image rights are essentially worthless now, there's about 10 fucking separate parties that have them, and how many of them are giving you anything for it? Not much pretty much your org by the way."
    • "That's a big issue. Your image is you, your image is your brand. What are you doing about that? Nothing."
• He is also angry at SirScoots who is "popping off" at people on Twitter who all want the same thing, which is 'A unified Counter-Strike scene for everybody, that works for everybody, that has a sustained ecosystem that nourishes everybody.' "We don't have that now."
  
• He also says their rankings are a joke
  
  • "Just so happened, oh look TACO, that very important prominent member of the board, we pushed his team artificially up when they weren't even in the fucking top 20, not by a long shot."
• He also says the ineptitude of the CSPPA cost Flashpoint a monitor sponsor
  
• "Is it really a player association or is it like a fucking agency at this point"
  

ESIC - Esports Integrity Commission

"They have been put in an impossible position."

• RL says that Ian Smith, the founder of ESIC and who was done work in mainstream sports, is a good and honorable man who has dedicated his life to integrity and sports. He takes on both sides, ensuring match fixers are punished, but also doing appeals and ensuring those punishments were fair.
• "ESIC is a tiny organization" and are in need of money, "They didn't run a grift like the CSPPA did."
  • "Saying 'you want our support and you want the players to turn up you better pay us.' They don't do that."
  • "Had startup seed money from MTG and since then they've been pecking shit with the hens."
    • Ian Smith made sure that the money given by MTG (Modern Times Group, parent company of ESL, ESEA, DreamHack) was nothing more than startup money and wouldn't be in debt to them
      • Ian Smith sat down with other TO's not part of MTG and wanted to partner with them. They declined and called ESIC "ESL spies and we will never align ourselves with you"
  • "They only were just able to afford, hiring a PR guy on a full time salary to deal with the press and send out those releases you've seen, this year."
    • "They have a tiny group of staff investigating these things and they have taken on the biggest problems in our scene: the cheating, the match fixing."
• ESIC have had "unprecedented levels of cheating to deal with, because there's something wrong with our scene ever since we went online. There's something wrong with it, everyone's lost their fucking pride and self-respect and they got no passion for it anymore, so they think fuck it, what's in it for me?"
  • He calls out coaches who are talking about players rights when they would rob and steal from them.
    • Also says more coaches being banned are coming
    • He also points out flaws in community's reaction to the punishments to coaches bans: "Half of the cunts still have jobs and some of the cunts got new jobs. We didn't even shun the cheating coaches."
• ESIC have "found I think another 2 or 3 exploits like that one and they are investigating them all right now, it's going on right now."
  
  • "I know that there are going to be more names getting banned, again."
  • "So they're doing that on a skeleton crew while, investigating 3 continents worth of match fixing in MDL and semi-pro level CS." "They're doing this with half a dozen people." "They don't have any money or any help. People barely even fucking cooperate with them, they are treated like pariahs. It's ridiculous."
    • "Why are the CSPPA popping off at ESIC on my Twitter timeline, when you should be working together." "because its all about what's in it in for me." "2020, the online era of CS: 'What is in it for me?' How can I cheat, how can I get my paper, how can I bleed this scene one last time before I fuck off and play shooty shooty bang bang Riot Games babys first fps."
• RL says that in the CIS region, teams have gone to tournaments and have been eliminated multiple times by the same team. We found out they were cheating and those players who lost, have been cut from their roster, careers ended because of cheaters.
  

Stream Sniping

"They're all at it in the online era, they're all at it, they're all cheating, they're all using exploits, probably that see through smoke bug got used a bunch of times"

• RL talks about how there is no integrity from dead (the player), always denying when caught doing something
  • On the topic of 'BLAST never said we couldn't stream snipe': "Lies, BLAST never said you could do that, they had to sort of retcon it." "because what happened after that they fucking started snitching and squealing"
    • "Suddenly you had like, 10 of the top 15 teams in the world, staring into the abyss of being banned for 6-12 months in line with ESIC recommendations."
      • He says that ESIC was put in a tough situation and couldn't enforce the bans because it would have resulted in killing CS. What resulted was, BLAST, ESIC, and teams came together and gave them a warning and told them, in RL's words "don't do this again or you're gonna get got."
        • He then says the top teams brushed this off and didn't give a fuck
        • The new MiBR team playing Flashpoint, that wasn't involved in the previous incidents are doing it again (stream sniping). He gave credit to Flashpoint for the quick resolution and punishment and respect for cogu's response to the situation.
        • "ESIC came out and said, once more, 'Guys, zero tolerance from now on.'" RL then got upset at community's reaction calling ESIC "pussies" for their non enforcement and said if we want competitive CS we cant ban the top 10 teams.
• He points out how players have no integrity and will do anything for an edge as long as they won't get detected or banned or it's within a grey area.
• "All of this shit was mad avoidable, even in the pandemic era."
  • He talks about why aren't we filming them. Why aren't there representatives for leagues and tournaments making sure players aren't cheating?

Match Fixing

"How many years have we let our scene be fucking pillaged by these greedy cunts?" "We just let it happen."

• RL says that gambling and skins betting which existed in moderation was "accelerated and blown up by the Call of Duty greedy fucks."
  • "Never forget TmarTn was on the board of EnVyUs." "His website, CSGOLotto, they had a bunch of off-the-books sponsorships." "NBK promoted them. People forget."
• "Those people who had access to the skins, go to the players" "Even people like s1mple, best player in the world, even he scammed knives and skins off fucking fans."
• Owners of skin casino sites would approach pros and lend them skins to use in tournaments and possibly keep them after reaching a deal
  • Players would tip off inside info about matches and teams in exchange for skins. Info such as: roster changes, how they played in scrims
    • They would use this info to bet and subvert the odds on their sites. "That happened religiously, I can't even tell you how many times it happened."
      • "I had access to the biggest database of information, from an inside betting circle in NA, and it would take information and screenshots from other pro players, who were feeding them info in exchange for money or skins."
        • "Some of these players are still playing." "Incredibly, there are players still in the CSPPA today, complaining about the BLAST recordings, that were embroiled in this murky shit back then."
• RL also says that there were tournaments where teams contrived with each other, who should throw, who should win.
• "There's a handful of people that are trying to fucking clean it up, and you think you get something over the line and you see something like the CSPPA and it's run by corrupt fucking chuckle heads, and now you've got another corrupt body you have to fight on a fucking daily basis, it's demoralizing."
  • "It's too far gone. Our entire semi-professional scene is compromised."
• "It's rife guys, I'm not going to lie any more. It's not just China, it's not just Russia, it's here, it's NA, it's Europe, it's Australia, so much more than you think, so much more than we can prove."
  • "I get sent chat logs all the time […] and they're morons, these players, short-sighted, amateur, morons and they're doing it on WhatsApp." People would get cut from the bets because they want to make more money, then they leak the logs. He says, from the chat logs, they spread "little" bets across every site they can (400 to 1k dollars) to prevent shifting odds
• He says the scumbags who've fucked off to Valorant will do the same there if Riot doesn't do something and says Valorant "is an esports scene heading for a very early fall based on the sheer volume of scumbags that are already there."
• "That's tier 2 CS in a nutshell these days. They know they're never going to play in a major, so what's the punishment?"
  • "All of these tier 2 fucks that are fixing games now they are like the fucking mafia compared to iBuyPower" "These guys are working with organized criminals to fix entire seasons worth of games. That's what's going on in your tier 2 CS."
• "I'm literally being told that there are players fixing games at all levels of Chinese esports and motherfuckers with guns are turning up to team houses and stuff."

North America

"Everyone in NA has left we've lost a continents worth of support during this pandemic and Valve haven't said a fucking word."

• RL says the Call of Duty "goblins" that destroyed CS for years are the same people who are now trying to leave CS. "The nerve to treat a game where the fans, and the community, and the TO's were nothing but good to you." "To just kick the players out now and go and leave and say 'It just doesn't make financial sense.' Oh you'll slither back when we have a major though for them stickers won't you."
• There's a cascading effect in NA where people don't bother with CS anymore and people like Chaos suffer.
• He says NA team owners are incompetent for always wanting it easy and always wanting a guarantee on their investment without skill or nuance.
  • RL says he would be able to market a team correctly and would have a good ROI and also points out how TSM wouldn't even be bothered to tweet that their team, which was one of the best in the world, was playing at the Major.
  • He also says not all NA owners are like that, compliments and respects Jason Lake who nearly lost everything to keep Complexity going.
• He then calls out the incompetence in Infinite Esports when they acquired OpTic Gaming and bought an Indian CS team.
  • He says HECZ is not to blame here and that they couldn't tell forsaken was cheating when it was so obvious.
    • They measured his reaction time to the likes of dev1ce and s1mple
    • When an enemy showed up on his screen he won that duel something like 44% of the time
    • "was like the number 1 player in the world statistically"
    • He brought a laptop to their bootcamp and refused to use the high end PCs that hey provided
• He respects Andy Miller (NRG CEO) and HECZ but says that the attitude of not being able to easily monetize their teams is "piss weak" and there needs to be a risk.
  • He says Chaos EC shouldn't be cutting their roster and should be competent enough to be able to figure out how to make money off their team.
• He says there are still opportunities in NA and people are panicking and pulling out, and says Valorant will be the same if not worse.
  • He also says "bums" who couldn't even get out of groups in NA competitions, are making crazy money in Valorant and says it will continue to inflate.
• He also said that he heard rumors that EG (Evil Geniuses) are done.
• He also thinks that the rumors of a Valve franchised league from before was sparked up from "these lazy fabled weak NA fucking team owners basically trying to see if Valve would bite at the hook if it was dangled and they didn't"
  • Slasher says NA team owners are really in favor of franchised leagues because they want to make more money. "Most of the powerful team owners right now are on board with ditching this third party organization structure, or they are trying to play this power politics with all the TOs, and that is contributing to a lot of the problems there"
• RL says that Riot has proved they can run a franchised league (LCS) and will be profitable in 2021 which is what a lot of team owners care about and says the competition will only serve to snatch people away from CS.
• RL continues to say, "I am so sick and tired of what we have done to this scene, I am just exhausted with it." "I think we have legitimately fucked it, I really think we have. I think we're staring into almost like a CGS (Championship Gaming Series) wasteland in NA." "Counter-Strike esports is a fucking joke."

Talent

"TO's have treated CS talent like absolute human garbage for years now."

• RL says that people like Sean Gares and ddk switching over to Valorant isn't for financial reasons because they are making less over there.
• He points out that TO's can't even give talent a 3 month in advance calendar.
• Because of the pandemic TO's won't hire certain people and some people are working more hours for the same money.
• He says we as a community don't respect journalists enough which is why we don't have good journalists.
  • He also says DeKay is leaving the scene soon and that Thorin is close to leaving also
• He says he had to talk a caster down from quitting and was struggling to find reasons.
• He says that DreamHack told Vince they would hire him but not if he wants to stick with dusT and says that this is the norm in esports. "Constant leveraging of people against each other." and says this is why we don't have a talent union.
• New gen casters are getting put into shit situations and the community's reaction to them is adding fuel to the fire
• He says the reason Moses left was because of the terrible conditions
• He says that Anders had to constantly leave his family and kid because someone fucked up or broke promises and had to constantly tell his kid to their face that "daddy can't be home this weekend."
• He says that esports has always been a lie to sell you this dream, "Meanwhile there's about 2% of the cunts getting all the checks."

Valve

"Anything that Riot does, is better than Valve's inaction"

• Slasher says that the larger aspect of esports as a whole compared to other entertainment mediums and Valve's lack of inattention are the bigger problems. He continues saying that the fact that Valve let their game be ran as an esport, they need to take on the responsibilities of it.
  • Both Slasher and RL wants Valve to take control but not on the level of Riot Games, there needs to be a balance.
• In case it was ever a question: Gabe Newell has been to 0 CSGO Majors.
• RL calls Valve out saying they could have done something during the gambling era.
• He says Valve used to come to the majors, but doesn't think they do anymore.
• RL had met with Valve at the Cluj-Napoca Major and had tried to appeal iBP's indefinite punishment and had also gave Brax's life story:
  • A recent family member passed away, they had lost a lot of income, they had to live in trailer, iBuyPower did not pay any salaries, and was pressured by family to make money who didn't support his career.
  • RL said that Valve told him, "How dare you try and make us feel guilty." "We shouldn't feel bad about enforcing the only thing that matters that we need to make players afraid of: cheating and match fixing"
  • RL also tried to share other info about match fixing and nothing came of it
• RL points out that Source 2 or a new engine is not something you will want based on the experience of transitioning from CS 1.6 to CS:S. "Valve's track record with brand new engines being launched, not fucking great from what I remember."
• Slasher says "If there is anything the community should do, is pressure Valve to hire a community manager."
  • They say that we need a commissioner, a community manager (not the person who runs the Twitter who posts memes all day), then we need to have a circuit
• RL reiterates that Valve doesn't care about CS esports and says they need to change the culture at Valve to make them care about CS esports
  • Slasher says a systemic problem is making it so working on CSGO would be a bad decision for you as an employee for Valve
• He also hasn't talked to Valve in ages and have sent over bugs and cheats and doesn't get emails back anymore
• Slasher says we should be directing attention at the developer leads, pointing out Ido Magal, if he even is still the project lead
  • RL thinks that Ido and Brian are the only people that "vaguely even give a fuck about CS" and were the only people that RL recalled that actually read Reddit and paid attention from time to time
• "It is really fucking precarious. Somebody has got to step the fuck up and start giving a shit"
  • Slasher suggests org owners, with CSPPA, with ESIC, with TOs have a concerted effort against Valve
• "Riot Games are doing better things than Valve in the esports space" which is something RL didn't think he'd say.
• "People who used to be talent, working with unions, arguing with other talent, when the unions fucked them over, can't understand their perspective, TOs fucking over broadcast talent, broadcast talent wanting to leave and go and work for orgs, orgs having no money, Valve might take coaches away because all the coaches are cheating, ESIC has about 4 people in a fucking call doing the investigations, everyone thinks they're spies for ESL, ESL are just the evil fucking overlords wanting to rule the scene and will just somehow, like cockroaches outliving a nuclear bomb, and Valve are in a fucking holiday in Hawaii thinking about the next Dota character because they don't give a fuck about us."

Closing Statements

"We've peaked. If we want to sustain and exist, now is the time to figure it out. No esports lasts as long as this, we've already done 8 years. We've already broke the records. We have got to figure out a way to coexist and drive the negative forces out and we need to do it as a collective and we're not doing that."

• RL compared the Counter-Strike scene to the people on the Titanic who ran around with guns robbing people while the boat was sinking.
• "We have given up on being a respectable esports scene." "We are now a conduit to make money for those who want to just milk it, just have one last ride, one last roll of the dice. It's done." "What a fucking mess. What have we done to our fucking scene?"
• "There's just too much self-interest driving all of this." "I don't see a way we stop the dominoes." "When it's that bad, when there's that many dishonest people that ESIC have to come out and say that if we punish them all there's no one left. What does that tell you?"
• "How many opportunities have we had to clean house? How many times have we said, 'this must never happen again', and another scandal." "The entire skins betting operations was the biggest criminal conspiracy in esports ever executed and no one has been punished for it." "The people who could be driving that don't want to."
• "Right now people are fans of those organizations because the scene has value. It is worth being a fan of Astralis because they are excellent at Counter-Strike. It is worth being a fan of s1mple because he is the best player in Counter-Strike, maybe the exception of ZywOo. If the scene is devalued, if the scene loses its meaning, those things lose its meaning too, and people will leave, people will stop tuning into the games. I have seen it happen in multiple esports, this is not my first time at the rodeo. I am getting big Brood War vibes right now and I don't like it."
• "The role you play in all of this as fans, as viewers, as listeners, as consumers of esports content, it's absolutely imperative that you know who the good guys are. It's absolutely imperative that you use your voice. It's absolutely imperative that when things are bad, you know who, at least, is trying to make them good, and you have to apply your criticism to the right targets."
  • He continues saying it's no good in continuing to attack ESIC and saying how they are bad, ESIC have it hard
• He says CSPPA are on the right side of the argument on BLAST but have been on the wrong side of many arguments many times.
  • "If you are not willing to stand along side the weakest member of the union, with the least amount of influence, and the least amount of power, then it is not a union at all and you shouldn't pose as one." "You wanna serve a bunch of special interest do it, everyone else in esports fucking does, but do not pose as something you are not." "We love the players. I've been fighting for players rights for as long as I've been able to, but the CSPPA is not what we needed."
    • "They are not applying the pressure to the right people, they are not fighting the right battles, they are not helping their weaker members."
• He says what orgs have done by keeping or hiring coaches is bad. "When you give up on holding an appreciable standard, you've lost the scene" "Competition matters, rules matter, punishments matter, achievements matter, excellence matters" "If you start stripping that away, you have nothing" "You guys need to take that knowledge and apply it sensibly."
• "Valve has sold you all down the river, they sold everyone in the esports scene down the river, tournament organizers are selling their talent down the river. Don't hate on them for sounding tired after a 16 hour day. Don't hate on them because the hype for a matchup they've seen for the 20th time in the past 3 months, they can't be as excited or it sounds contrived. Support your guys, they're there for you, these are your people."
• "This community has got to start acting like one for the first fucking time. Just put the petty shit away, let's try and fix this fucking scene while we still have one to save."
• "You can't rely on Valve, you can't rely on ESL, you can't rely on the CSPPA, you can't rely on anyone." "Once again, it's gonna be the likes of us, the amateurs, the people who give a fuck, rolling up our sleeves and grafting." "I'm old and tired and I don't want to have to do it again. People need to pick up the torch and do it."
  • "Like Michal did, like Dudenhoeffer did. You see something wrong, fix it. You see somebody doing something wrong, call it out. If you think something could be better, let people know."
• "Vote with your wallets if you're not happy with the direction Valve goes in. If when we do get to the Major, they serve up another subpar, same old bullshit stickers and signatures package again, do not buy it."
  • "You're a powerful block and if you use it correctly we can fucking avert this disaster."
• "I'm not doing another year in this broken, bust-up fucking scene, where everyone is miserable, everyone is broke, everyone is tired, and everyone is trying to fucking rob everyone else, blind, while the fucking people who are meant to be protecting you, are just fucking enhancing it and lining their own pockets."
  • "I'm not doing it anymore and you shouldn't want to do it either."
• "I stand by every fucking thing I said. I mean it, because this game fucking matters to me, this scene fucking matters to me. I put my life into this, my adult life, and to see it in this state is fucking sad."

2/9/21 Update: Additional info posted here

Funko is a good company with solid performance that is still trading at a reasonable price. Check out my DD below:
​
Funko (FNKO)
Share Price (1/28/21) : $11.97
Share Price (09/16/19) : $27.86
Short Interest (1/26/21) : 14%
Next Earnings Release: March 2021
Funko Inc. is an American company that manufactures licensed pop culture collectibles, best known for its licensed vinyl figurines and bobbleheads. They have over 1,000 licenses across music, video games, film, TV, sports and many other pop culture properties. Some of their most popular licensed brands include Marvel, Disney, Star Wars, Pokemon, Fortnite, NBA, NFL, MLB, DC Comics, and a variety of anime properties.
Several points below support the belief that Funko’s revenue grew during the 2020 holiday season and could continue well into 2021:
· Increasing search traffic for Funko products
· Direct sales growth is driving increased revenue and profitability
· Parents are buying more gifts for their kids due to COVID
· People have more disposable income from staying at home and not going out
· Expansion of new products and licensees continuing through 2021
· Collectible investments like Funko POP! figures are exploding in value and popularity
· Recent analyst commentary, valuation, and financials are positive
FUNKO’S SEARCH TRAFFIC REACHES AN ALL-TIME HIGH IN Q4 2020
“Funko” google trends search traffic was up 20-30% in Q4 2020 (vs. Q4 2019)
Searches for “Funko” were up 2x in December vs the beginning of November 2020
After falling in December, “Funko” searches are trending back up to all-time-high levels
FUNKO’S DIRECT SALES INITIATIVES DRIVING HIGHER REVENUE & MARGIN
Funko Direct Sales (B2C) grew significantly in Q3 and likely to continue into Q4
· B2C business as a percentage of sales increased to 8% in Q3 2020 from 4% during the prior year.
· Funko’s e-commerce site grew over 150% vs. the prior year in Q3 2020
· The number of SKU’s on Funko’s e-commerce site rose tenfold since June 2020
“We went from only 200 of our own products [on our website] as late as June this year, to now well over 2,000 products available on our website.” – Funko CEO, Brian Mariotti
Funko’s first ever Selena Pop! sold out online in just 40 minutes.
Funko’s Q3 2020 Gross Profit % and Operating Margin % were near all-time-highs for the company
· Funko’s Q3 Gross Profit Percentage of 38.6% was its second highest ever (behind only Q1 2020)
· Funko’s Q3 Operating Profit Percentage of 10.8% was its second highest ever (behind only Q4 2018)
· As Funko continues to grow it’s B2C e-commerce sales in Q4 and beyond, it is possible that gross profit and operating profit percentages could rise as well
Retail customers were able to shift their Brick & Mortar inventory to their e-commerce channels to Funko unit sales
· Funko resellers who didn’t sell online were severely impacted by Brick & Mortar closures during COVID stay-at-home orders. As 2020 progressed, some of these retailers were able to create online stores (e.g.- Shopify, Amazon, eBay, etc.) through which they could sell their Funko inventory.
· Larger retailers that already had an omni-channel presence were able to shift their sales inventory from their Brick & Mortar stores to online fulfilment.
Funko has also created a mini-Pop! factory at its headquarters where customers can make their own custom Funko at a price of $25 each
· According to Funko, you can customize your Pop! using thousands of combinations. It’s “Think Build-A-Bear meets Funko Pop!” according to CEO Brian Mariotti.
· With a $25 price point, the margins are likely higher than the average Pop! figure that retails for between $10 to $15
PARENTS BUYING MORE GIFTS FOR THEIR KIDS DUE TO COVID
Parents likely splurged on their kids out of guilt of having shelter at home because of restrictions and to keep them occupied while they had to work at home.
· “Faced with rising transmission of the virus, state restrictions on retailers and heightened political and economic uncertainty, consumers chose to spend on gifts that lifted the spirits of their families and friends and provided a sense of normalcy given the challenging year. We believe President-elect Biden’s stimulus proposal, with direct payments to families and individuals, and further aid for small businesses and tools to keep businesses open, will keep the economy growing.” NRF President Matthew Shay
· “2020 was an unprecedented year for the U.S. toy industry. The growth we’ve seen in the toy industry speaks to the fact that parents are willing to put their children’s happiness above all else. The industry’s resiliency is very much underpinned by the reality that, in times of hardship, families look to toys to help keep their children engaged, active, and delighted. Put simply, toys are a big part of the happiness equation.” Juli Lennett - VP, U.S. Toys at NPD
Toy sales were strong in 2020 as US retail sales of toys was up 16% vs 2019; driven by pandemic spending
· According to NPD, “Much of the growth in 2020 was directly correlated to the COVID-19 pandemic and the changing consumer behavior associated with widespread lockdowns and school closures, the disposable income diverted from other types of entertainment to toys, as well as the onset of federal stimulus checks.”
Consumer spending on toys increased measurably due to lockdowns; with strong performance continuing through the holidays
· Per NPD, “While toy sales through mid-March 2020 were flat vs. 2019, widespread lockdown measures led to an abrupt increase in sales. This was further amplified by the distribution of stimulus checks beginning in April, resulting in the strongest month of growth for the year in May (+38%). Toy industry growth peaked again in October with an increase of 33% when the holiday season kicked off with Amazon Prime Day along with other retailer deals the same week.”
Key retail sources reporting significant sales growth during Q4 2020 suggest Funko sales performance was strong
· Target Q4 sales were fantastic showing signs of retail strength with a consumer that overlaps well with the Funko
> Overall comparable sales were up 17.2%
> Comparable digital sales were up over 100%
> Store-originated comparable sales were up 4.2%
> Store traffic was up 4.3%
> Average ticket size was up 12.3%
· GameStop Q4 sales were solid; showing additional potential for Funko sales
> Same store sales were up 4.8% in Q4 2020
> Online sales increased 309% in Q4 2020
· According to the NRF, 2020 Holiday Retail Sales were up 8.3% compared to the prior year despite the pandemic
> A surge in online shopping drove the increase (rising 32% vs. 2019)
> The increase of 8.3% was over double the average increase of 3.5% that the industry had seen over the last five years.
MORE DISPOSABLE INCOME TO SPEND AT HOME BY NOT GOING OUT
The National Retail Federation (NRF) says that strong retail performance has been driven by consumers with stimulus checks and extra savings from not going out or traveling
· “There was a massive boost to consumer wallets this season. Consumers were able to splurge on holiday gifts because of increased money in their bank accounts from the stimulus payments they received earlier in the year and the money they saved by not traveling, dining out, or attending entertainment events” – NRF Chief Economist Jack Kleinhenz.
Spending on “experiences” fell significantly in 2020
· The US Travel Association forecasts that spending on travel fell $500 billion in 2020 from $1.1 trillion in 2019
> The industry has lost about 40% of its direct travel jobs (about 3.5 million jobs) in 2020; driven by a reduction in business travel
> Foreign visitors to the US fell about 75% in 2020; driving a $119 billion reduction in travel spending
· Concert spending is down dramatically
> Live Nation reported a 98% decline in concert revenue in Q2 2020 and a 95% decline in concert revenue in Q3 2020
> About 5.2 million tickets were refunded in Q3 2020 and 23.3 million tickets had been refunded so far in 2020 (as of the end of Q3)
· Movie theater attendance is down substantially
> AMC theaters saw a 97% decline in attendance and a 91% decline in revenue in Q3 2020
> Cinemark saw a 96% decline in revenue
> Marcus Corporation (which also owns hotels and restaurants) saw a 84% decline in revenue
> Studio Movie Grill filed for bankruptcy
· Other anecdotal information points to more stay-at-home activity decreasing recreational spending
> Chuck E Cheese’s declared bankruptcy
> Dave & Busters is considering bankruptcy and plans layoffs of +1,000
> CiCi’s Pizza declares bankruptcy
> Starbucks saw fewer customers, reduced store hours, increased store closures, and a 5% decline in revenues in Q4 2020. This has led them to plan a shift to more “to-go” formats
> Many Las Vegas Hotels and Casinos have decided to close “part-time” during the week due to lower attendance and travel.
These include Encore, Rio, Linq, Planet Hollywood, Mandalay Bay, Park MGM, and Mirage
The majority of food buffets at the major hotels and casinos have been shuttered for the time being
Stimulus checks and other government programs to support consumer spending provide tailwinds for retail activity
· The US government authorized more than $10,000 per person in stimulus spending in 2020 over the course of five relief bills totaling $3.5 trillion
· More stimulus spending is expected; including a potential $1.9 trillion package that could include an additional $1,400 in stimulus checks
MORE SKUS / LICENSES ARE GROWING AND EXPECTED TO CONINUE STRONG
Active properties continue to rise and are expected to grow well into the future
· The number of active properties in Q3 2020 grew 15% over 2019
· Active properties grew from 644 in Q2 to 715 in Q3 2020
· The potential universe for Funko Pops! is limitless as new films, tv shows, musicians, anime characters, sports stars, and other media properties are created every year.
Some of the hot properties for this year and beyond
· Star Wars: Baby Yoda, Mandalorian, Rey, Valentine’s Day, etc.
· Marvel: WandaVision, Deadpool, Lucha Libre, Spiderman, Venom
· Anime: Dragon Ball Z, Naruto, Bakugan, My Hero Academia
· Films: Harry Potter, The Goonies, The Mummy, Fast & Furious
· TV: The Office, Umbrella Academy, The Queen’s Gambit, The Simpsons
· Sports: NFL, NBA, MLB, WWE
· Others: Disney, Pokemon, etc.
Retail exclusives can grow the potential universe of licenses and increase retailer buy-in
· For example: A retailer like GameStop could lobby Funko to make a GameStop exclusive of the WallStreetBets Kid like this person suggested here. (The exclusive Pop! would be made into a limited edition and sold only to GameStop to sell at their stores)
COLLECTIBLE INVESTMENTS ARE GROWING IN VALUE & POPULARITY
· Funko: The average Pops! Figure has a retail price from between $10 and $15 which allows most people an affordable entry point into collecting. Over time some Pops! Figures increase substantially in price; from $50 to $100 to even several thousand dollars. While some collectors buy Pops! as primarily an investment, many more buy them as a way to show their fandom. Whether they are avid Star Wars, Harry Potter, Pokemon, Sports, or Anime fans; collectors build large collections and show them off to friends.
· Sports Cards: To those paying attention, sports cards have been on a massive run with some cards worth more than your parent’s house and your sister’s car. Since the pandemic started, the demand for sports collectibles from basketball to football to soccer (and many others) has skyrocketed. Countless videos of box-breaks and pack openings have become the norm on social media. Some of these boxes are being purchased for tens of thousands with “hits” ranging from several hundred to hundreds of thousands.
· Collector’s Universe: This company that grades sports cards and other collectibles has tripled in value since June 2020. The number of sports collectors grading cards has exploded as demand rises. The popularity of grading sports cards is expected to maintain as prices continue to rise and the hobby becomes more mainstream.
ANALYST COMMENTARY AND FINANCIALS ARE A POSTIVE FOR THE STOCK
Piper Sandler: Upgraded Funko from “Neutral” to “Overweight” (raising their price target from $6 to $12).
· Analyst Erin Murphy sees evidence of “subsequent revenue pillars” with their recent launch of Snapsies at 800 Target stores; along with an expansion into board games and its digital efforts, which include a newly launched website in six European countries.
Valuation Comparison: Market Cap / Revenue (TTM)
· Funko: MC - $604 million / Rev - $640 million (0.9x sales)
· Mattel: MC - $6.27 billion / Rev - $4.43 billion (1.4x sales)
· Hasbro: MC - $13.13 billion / Rev - $5.17 billion (2.5x sales)
Key Financial Trends For Funko
· Q3 2020 EPS (Adjusted) = $0.31
> Third highest ever (only Q4 2018 & Q3 2019 were higher)
· Q3 2020 Revenue = $191 million
> Fourth highest ever (only Q4 2018, Q3 2019, and Q4 2019 were higher)
· Q3 2020 Revenue increase vs prior quarter of 94%
> Q1 and Q2 2020 saw significant declines due to COVID
> Q3 2020 only down 14% vs Q3 2019 despite Q2 2020 being down 49%
> Q3 2020 strength driven by Funko adapting quickly to online in the US market. (Q4 2020 revenue growth could be aided substantially by Funko’s development of their e-commerce shop in Europe.)
· Q3 2020 SG&A was reduced 20% vs. the prior year as Funko rationalizes costs and adjusts to focus more on D2C e-commerce
TL;DR
After a tough summer, Funko sales have rocketed back in Q3 to near where they were pre-pandemic; setting up a potentially historic earnings for Q4 2020. Google search activity suggests that Funko is as popular as ever and is set up well for a strong year in 2021. People are spending less on “going out;” instead buying things to use at home and presents for their kids. As time passes, Funko’s status as a popular collectible only continues to gain momentum.
Their direct sales initiative allows Funko to capture additional margin by sidestepping traditional brick and mortar retail to reach their customers. Investments in collectible products like Pops! and sports cards continue to increase in popularity and price. And the company continues to release even more products beyond Pops!; including games and apparel. While some Wall Street Analysts have already begun to take notice, a strong Q4 earnings announcement can drive even more attention to the stock.
Positions: Long Shares & Calls
Disclosure: I am long FNKO. This is not investment advice. I reserve the right to buy or sell FNKO without updating this thread. Do your own research and share (or not share) with the community in this thread. Thank you to the others on Reddit that shared this idea earlier.
Feedback: If you have any additional information, ideas, or critiques please make sure to comment. It is great to get the perspective of others when making an investment. Also that information can be incorporated into future posts and updates.
Previous DD: Herman Miller

Hi all,
To celebrate the return of Undervalued to the Reddit community, I decided to put together a quick DD and post it on a stock that I have had my eye on for a little while. It's still a "work-in-progress" and I may potentially update it later on Reddit with more information or detail if I have time at some point in the future.
If you have any opinions, thoughts, or additional information, please share it. Positive. Negative. Neutral. All information is helpful and informative to the community. (I thought the feedback received from my first DD posted to this sub was quite helpful and I look forward to what you have to say.)
Thank you to u/BuyLowSellNever for turning the sub back on; allowing us to share and discuss ideas with the broader community in a thoughtful and respectful manner. Best wishes. - LA

Funko (FNKO)
Share Price (1/28/21) : $11.97
Share Price (09/16/19) : $27.86
Short Interest (1/26/21) : 14%
Next Earnings Release: March 2021
Funko Inc. is an American company that manufactures licensed pop culture collectibles, best known for its licensed vinyl figurines and bobbleheads. They have over 1,000 licenses across music, video games, film, TV, sports and many other pop culture properties. Some of their most popular licensed brands include Marvel, Disney, Star Wars, Pokemon, Fortnite, NBA, NFL, MLB, DC Comics, and a variety of anime properties.
Several points below support the belief that Funko’s revenue grew during the 2020 holiday season and could continue well into 2021:
· Increasing search traffic for Funko products
· Direct sales growth is driving increased revenue and profitability
· Parents are buying more gifts for their kids due to COVID
· People have more disposable income from staying at home and not going out
· Expansion of new products and licensees continuing through 2021
· Collectible investments like Funko POP! figures are exploding in value and popularity
· Recent analyst commentary, valuation, and financials are positive
FUNKO’S SEARCH TRAFFIC REACHES AN ALL-TIME HIGH IN Q4 2020
“Funko” google trends search traffic was up 20-30% in Q4 2020 (vs. Q4 2019)
Searches for “Funko” were up 2x in December vs the beginning of November 2020
After falling in December, “Funko” searches are trending back up to all-time-high levels
FUNKO’S DIRECT SALES INITIATIVES DRIVING HIGHER REVENUE & MARGIN
Funko Direct Sales (B2C) grew significantly in Q3 and likely to continue into Q4
· B2C business as a percentage of sales increased to 8% in Q3 2020 from 4% during the prior year.
· Funko’s e-commerce site grew over 150% vs. the prior year in Q3 2020
· The number of SKU’s on Funko’s e-commerce site rose tenfold since June 2020
“We went from only 200 of our own products [on our website] as late as June this year, to now well over 2,000 products available on our website.” – Funko CEO, Brian Mariotti
Funko’s first ever Selena Pop! sold out online in just 40 minutes.
Funko’s Q3 2020 Gross Profit % and Operating Margin % were near all-time-highs for the company
· Funko’s Q3 Gross Profit Percentage of 38.6% was its second highest ever (behind only Q1 2020)
· Funko’s Q3 Operating Profit Percentage of 10.8% was its second highest ever (behind only Q4 2018)
· As Funko continues to grow it’s B2C e-commerce sales in Q4 and beyond, it is possible that gross profit and operating profit percentages could rise as well
Retail customers were able to shift their Brick & Mortar inventory to their e-commerce channels to Funko unit sales
· Funko resellers who didn’t sell online were severely impacted by Brick & Mortar closures during COVID stay-at-home orders. As 2020 progressed, some of these retailers were able to create online stores (e.g.- Shopify, Amazon, eBay, etc.) through which they could sell their Funko inventory.
· Larger retailers that already had an omni-channel presence were able to shift their sales inventory from their Brick & Mortar stores to online fulfilment.
Funko has also created a mini-Pop! factory at its headquarters where customers can make their own custom Funko at a price of $25 each
· According to Funko, you can customize your Pop! using thousands of combinations. It’s “Think Build-A-Bear meets Funko Pop!” according to CEO Brian Mariotti.
· With a $25 price point, the margins are likely higher than the average Pop! figure that retails for between $10 to $15
PARENTS BUYING MORE GIFTS FOR THEIR KIDS DUE TO COVID
Parents likely splurged on their kids out of guilt of having shelter at home because of restrictions and to keep them occupied while they had to work at home.
· “Faced with rising transmission of the virus, state restrictions on retailers and heightened political and economic uncertainty, consumers chose to spend on gifts that lifted the spirits of their families and friends and provided a sense of normalcy given the challenging year. We believe President-elect Biden’s stimulus proposal, with direct payments to families and individuals, and further aid for small businesses and tools to keep businesses open, will keep the economy growing.” NRF President Matthew Shay
· “2020 was an unprecedented year for the U.S. toy industry. The growth we’ve seen in the toy industry speaks to the fact that parents are willing to put their children’s happiness above all else. The industry’s resiliency is very much underpinned by the reality that, in times of hardship, families look to toys to help keep their children engaged, active, and delighted. Put simply, toys are a big part of the happiness equation.” Juli Lennett - VP, U.S. Toys at NPD
Toy sales were strong in 2020 as US retail sales of toys was up 16% vs 2019; driven by pandemic spending
· According to NPD, “Much of the growth in 2020 was directly correlated to the COVID-19 pandemic and the changing consumer behavior associated with widespread lockdowns and school closures, the disposable income diverted from other types of entertainment to toys, as well as the onset of federal stimulus checks.”
Consumer spending on toys increased measurably due to lockdowns; with strong performance continuing through the holidays
· Per NPD, “While toy sales through mid-March 2020 were flat vs. 2019, widespread lockdown measures led to an abrupt increase in sales. This was further amplified by the distribution of stimulus checks beginning in April, resulting in the strongest month of growth for the year in May (+38%). Toy industry growth peaked again in October with an increase of 33% when the holiday season kicked off with Amazon Prime Day along with other retailer deals the same week.”
Key retail sources reporting significant sales growth during Q4 2020 suggest Funko sales performance was strong
· Target Q4 sales were fantastic showing signs of retail strength with a consumer that overlaps well with the Funko
> Overall comparable sales were up 17.2%
> Comparable digital sales were up over 100%
> Store-originated comparable sales were up 4.2%
> Store traffic was up 4.3%
> Average ticket size was up 12.3%
· GameStop Q4 sales were solid; showing additional potential for Funko sales
> Same store sales were up 4.8% in Q4 2020
> Online sales increased 309% in Q4 2020
· According to the NRF, 2020 Holiday Retail Sales were up 8.3% compared to the prior year despite the pandemic
> A surge in online shopping drove the increase (rising 32% vs. 2019)
> The increase of 8.3% was over double the average increase of 3.5% that the industry had seen over the last five years.
MORE DISPOSABLE INCOME TO SPEND AT HOME BY NOT GOING OUT
The National Retail Federation (NRF) says that strong retail performance has been driven by consumers with stimulus checks and extra savings from not going out or traveling
· “There was a massive boost to consumer wallets this season. Consumers were able to splurge on holiday gifts because of increased money in their bank accounts from the stimulus payments they received earlier in the year and the money they saved by not traveling, dining out, or attending entertainment events” – NRF Chief Economist Jack Kleinhenz.
Spending on “experiences” fell significantly in 2020
· The US Travel Association forecasts that spending on travel fell $500 billion in 2020 from $1.1 trillion in 2019
> The industry has lost about 40% of its direct travel jobs (about 3.5 million jobs) in 2020; driven by a reduction in business travel
> Foreign visitors to the US fell about 75% in 2020; driving a $119 billion reduction in travel spending
· Concert spending is down dramatically
> Live Nation reported a 98% decline in concert revenue in Q2 2020 and a 95% decline in concert revenue in Q3 2020
> About 5.2 million tickets were refunded in Q3 2020 and 23.3 million tickets had been refunded so far in 2020 (as of the end of Q3)
· Movie theater attendance is down substantially
> AMC theaters saw a 97% decline in attendance and a 91% decline in revenue in Q3 2020
> Cinemark saw a 96% decline in revenue
> Marcus Corporation (which also owns hotels and restaurants) saw a 84% decline in revenue
> Studio Movie Grill filed for bankruptcy
· Other anecdotal information points to more stay-at-home activity decreasing recreational spending
> Chuck E Cheese’s declared bankruptcy
> Dave & Busters is considering bankruptcy and plans layoffs of +1,000
> CiCi’s Pizza declares bankruptcy
> Starbucks saw fewer customers, reduced store hours, increased store closures, and a 5% decline in revenues in Q4 2020. This has led them to plan a shift to more “to-go” formats
> Many Las Vegas Hotels and Casinos have decided to close “part-time” during the week due to lower attendance and travel.
These include Encore, Rio, Linq, Planet Hollywood, Mandalay Bay, Park MGM, and Mirage
The majority of food buffets at the major hotels and casinos have been shuttered for the time being
Stimulus checks and other government programs to support consumer spending provide tailwinds for retail activity
· The US government authorized more than $10,000 per person in stimulus spending in 2020 over the course of five relief bills totaling $3.5 trillion
· More stimulus spending is expected; including a potential $1.9 trillion package that could include an additional $1,400 in stimulus checks
MORE SKUS / LICENSES ARE GROWING AND EXPECTED TO CONINUE STRONG
Active properties continue to rise and are expected to grow well into the future
· The number of active properties in Q3 2020 grew 15% over 2019
· Active properties grew from 644 in Q2 to 715 in Q3 2020
· The potential universe for Funko Pops! is limitless as new films, tv shows, musicians, anime characters, sports stars, and other media properties are created every year.
Some of the hot properties for this year and beyond
· Star Wars: Baby Yoda, Mandalorian, Rey, Valentine’s Day, etc.
· Marvel: WandaVision, Deadpool, Lucha Libre, Spiderman, Venom
· Anime: Dragon Ball Z, Naruto, Bakugan, My Hero Academia
· Films: Harry Potter, The Goonies, The Mummy, Fast & Furious
· TV: The Office, Umbrella Academy, The Queen’s Gambit, The Simpsons
· Sports: NFL, NBA, MLB, WWE
· Others: Disney, Pokemon, etc.
COLLECTIBLE INVESTMENTS ARE GROWING IN VALUE & POPULARITY
· Funko: The average Pops! Figure has a retail price from between $10 and $15 which allows most people an affordable entry point into collecting. Over time some Pops! Figures increase substantially in price; from $50 to $100 to even several thousand dollars. While some collectors buy Pops! as primarily an investment, many more buy them as a way to show their fandom. Whether they are avid Star Wars, Harry Potter, Pokemon, Sports, or Anime fans; collectors build large collections and show them off to friends.
· Sports Cards: To those paying attention, sports cards have been on a massive run with some cards worth more than your parent’s house and your sister’s car. Since the pandemic started, the demand for sports collectibles from basketball to football to soccer (and many others) has skyrocketed. Countless videos of box-breaks and pack openings have become the norm on social media. Some of these boxes are being purchased for tens of thousands with “hits” ranging from several hundred to hundreds of thousands.
· Collector’s Universe: This company that grades sports cards and other collectibles has tripled in value since June 2020. The number of sports collectors grading cards has exploded as demand rises. The popularity of grading sports cards is expected to maintain as prices continue to rise and the hobby becomes more mainstream.
ANALYST COMMENTARY AND FINANCIALS ARE A POSTIVE FOR THE STOCK
Piper Sandler: Upgraded Funko from “Neutral” to “Overweight” (raising their price target from $6 to $12).
· Analyst Erin Murphy sees evidence of “subsequent revenue pillars” with their recent launch of Snapsies at 800 Target stores; along with an expansion into board games and its digital efforts, which include a newly launched website in six European countries.
Valuation Comparison: Market Cap / Revenue (TTM)
· Funko: MC - $604 million / Rev - $640 million (0.9x sales)
· Mattel: MC - $6.27 billion / Rev - $4.43 billion (1.4x sales)
· Hasbro: MC - $13.13 billion / Rev - $5.17 billion (2.5x sales)
Key Financial Trends For Funko
· Q3 2020 EPS (Adjusted) = $0.31
> Third highest ever (only Q4 2018 & Q3 2019 were higher)
· Q3 2020 Revenue = $191 million
> Fourth highest ever (only Q4 2018, Q3 2019, and Q4 2019 were higher)
· Q3 2020 Revenue increase vs prior quarter of 94%
> Q1 and Q2 2020 saw significant declines due to COVID
> Q3 2020 only down 14% vs Q3 2019 despite Q2 2020 being down 49%
> Q3 2020 strength driven by Funko adapting quickly to online in the US market. (Q4 2020 revenue growth could be aided substantially by Funko’s development of their e-commerce shop in Europe.)
· Q3 2020 SG&A was reduced 20% vs. the prior year as Funko rationalizes costs and adjusts to focus more on D2C e-commerce
TL;DR
After a tough summer, Funko sales have rocketed back in Q3 to near where they were pre-pandemic; setting up a potentially historic earnings for Q4 2020. Google search activity suggests that Funko is as popular as ever and is set up well for a strong year in 2021. People are spending less on “going out;” instead buying things to use at home and presents for their kids. As time passes, Funko’s status as a popular collectible only continues to gain momentum.
Their direct sales initiative allows Funko to capture additional margin by sidestepping traditional brick and mortar retail to reach their customers. Investments in collectible products like Pops! and sports cards continue to increase in popularity and price. And the company continues to release even more products beyond Pops!; including games and apparel. While some Wall Street Analysts have already begun to take notice, a strong Q4 earnings announcement can drive even more attention to the stock.
Positions: Long Shares & Calls
Disclosure: I am long FNKO. This is not investment advice. I reserve the right to buy or sell FNKO without updating this thread. Do your own research and share (or not share) with the community in this thread. Thank you to the others on Reddit that shared this idea earlier.
Feedback: If you have any additional information, ideas, or critiques please make sure to comment. It is great to get the perspective of others when making an investment. Also that information can be incorporated into future posts and updates.

2/9/21 Update: Additional info posted here

2/9/21 Update: Additional info posted here

Funko is a good company with solid performance that is still trading at a reasonable price.
Check out my DD below:
Funko (FNKO)
Share Price (02/01/21) : $12.90
Share Price (09/16/19) : $27.86
Short Interest (1/26/21) : 14%
Next Earnings Release: March 2021
Funko Inc. is an American company that manufactures licensed pop culture collectibles, best known for its licensed vinyl figurines and bobbleheads. They have over 1,000 licenses across music, video games, film, TV, sports and many other pop culture properties. Some of their most popular licensed brands include Marvel, Disney, Star Wars, Pokemon, Fortnite, NBA, NFL, MLB, DC Comics, and a variety of anime properties.
Several points below support the belief that Funko’s revenue grew during the 2020 holiday season and could continue well into 2021:
· Increasing search traffic for Funko products
· Direct sales growth is driving increased revenue and profitability
· Parents are buying more gifts for their kids due to COVID
· People have more disposable income from staying at home and not going out
· Expansion of new products and licensees continuing through 2021
· Collectible investments like Funko POP! figures are exploding in value and popularity
· Recent analyst commentary, valuation, and financials are positive
FUNKO’S SEARCH TRAFFIC REACHES AN ALL-TIME HIGH IN Q4 2020
“Funko” google trends search traffic was up 20-30% in Q4 2020 (vs. Q4 2019)
Searches for “Funko” were up 2x in December vs the beginning of November 2020
After falling in December, “Funko” searches are trending back up to all-time-high levels
FUNKO’S DIRECT SALES INITIATIVES DRIVING HIGHER REVENUE & MARGIN
Funko Direct Sales (B2C) grew significantly in Q3 and likely to continue into Q4
· B2C business as a percentage of sales increased to 8% in Q3 2020 from 4% during the prior year.
· Funko’s e-commerce site grew over 150% vs. the prior year in Q3 2020
· The number of SKU’s on Funko’s e-commerce site rose tenfold since June 2020
“We went from only 200 of our own products [on our website] as late as June this year, to now well over 2,000 products available on our website.” – Funko CEO, Brian Mariotti
Funko’s first ever Selena Pop! sold out online in just 40 minutes.
Funko’s Q3 2020 Gross Profit % and Operating Margin % were near all-time-highs for the company
· Funko’s Q3 Gross Profit Percentage of 38.6% was its second highest ever (behind only Q1 2020)
· Funko’s Q3 Operating Profit Percentage of 10.8% was its second highest ever (behind only Q4 2018)
· As Funko continues to grow it’s B2C e-commerce sales in Q4 and beyond, it is possible that gross profit and operating profit percentages could rise as well
Retail customers were able to shift their Brick & Mortar inventory to their e-commerce channels to Funko unit sales
· Funko resellers who didn’t sell online were severely impacted by Brick & Mortar closures during COVID stay-at-home orders. As 2020 progressed, some of these retailers were able to create online stores (e.g.- Shopify, Amazon, eBay, etc.) through which they could sell their Funko inventory.
· Larger retailers that already had an omni-channel presence were able to shift their sales inventory from their Brick & Mortar stores to online fulfilment.
Funko has also created a mini-Pop! factory at its headquarters where customers can make their own custom Funko at a price of $25 each
· According to Funko, you can customize your Pop! using thousands of combinations. It’s “Think Build-A-Bear meets Funko Pop!” according to CEO Brian Mariotti.
· With a $25 price point, the margins are likely higher than the average Pop! figure that retails for between $10 to $15
PARENTS BUYING MORE GIFTS FOR THEIR KIDS DUE TO COVID
Parents likely splurged on their kids out of guilt of having shelter at home because of restrictions and to keep them occupied while they had to work at home.
· “Faced with rising transmission of the virus, state restrictions on retailers and heightened political and economic uncertainty, consumers chose to spend on gifts that lifted the spirits of their families and friends and provided a sense of normalcy given the challenging year. We believe President-elect Biden’s stimulus proposal, with direct payments to families and individuals, and further aid for small businesses and tools to keep businesses open, will keep the economy growing.” NRF President Matthew Shay
· “2020 was an unprecedented year for the U.S. toy industry. The growth we’ve seen in the toy industry speaks to the fact that parents are willing to put their children’s happiness above all else. The industry’s resiliency is very much underpinned by the reality that, in times of hardship, families look to toys to help keep their children engaged, active, and delighted. Put simply, toys are a big part of the happiness equation.” Juli Lennett - VP, U.S. Toys at NPD
Toy sales were strong in 2020 as US retail sales of toys was up 16% vs 2019; driven by pandemic spending
· According to NPD, “Much of the growth in 2020 was directly correlated to the COVID-19 pandemic and the changing consumer behavior associated with widespread lockdowns and school closures, the disposable income diverted from other types of entertainment to toys, as well as the onset of federal stimulus checks.”
Consumer spending on toys increased measurably due to lockdowns; with strong performance continuing through the holidays
· Per NPD, “While toy sales through mid-March 2020 were flat vs. 2019, widespread lockdown measures led to an abrupt increase in sales. This was further amplified by the distribution of stimulus checks beginning in April, resulting in the strongest month of growth for the year in May (+38%). Toy industry growth peaked again in October with an increase of 33% when the holiday season kicked off with Amazon Prime Day along with other retailer deals the same week.”
Key retail sources reporting significant sales growth during Q4 2020 suggest Funko sales performance was strong
· Target Q4 sales were fantastic showing signs of retail strength with a consumer that overlaps well with the Funko
> Overall comparable sales were up 17.2%
> Comparable digital sales were up over 100%
> Store-originated comparable sales were up 4.2%
> Store traffic was up 4.3%
> Average ticket size was up 12.3%
· GameStop Q4 sales were solid; showing additional potential for Funko sales
> Same store sales were up 4.8% in Q4 2020
> Online sales increased 309% in Q4 2020
· According to the NRF, 2020 Holiday Retail Sales were up 8.3% compared to the prior year despite the pandemic
> A surge in online shopping drove the increase (rising 32% vs. 2019)
> The increase of 8.3% was over double the average increase of 3.5% that the industry had seen over the last five years.
MORE DISPOSABLE INCOME TO SPEND AT HOME BY NOT GOING OUT
The National Retail Federation (NRF) says that strong retail performance has been driven by consumers with stimulus checks and extra savings from not going out or traveling
· “There was a massive boost to consumer wallets this season. Consumers were able to splurge on holiday gifts because of increased money in their bank accounts from the stimulus payments they received earlier in the year and the money they saved by not traveling, dining out, or attending entertainment events” – NRF Chief Economist Jack Kleinhenz.
Spending on “experiences” fell significantly in 2020
· The US Travel Association forecasts that spending on travel fell $500 billion in 2020 from $1.1 trillion in 2019
> The industry has lost about 40% of its direct travel jobs (about 3.5 million jobs) in 2020; driven by a reduction in business travel
> Foreign visitors to the US fell about 75% in 2020; driving a $119 billion reduction in travel spending
· Concert spending is down dramatically
> Live Nation reported a 98% decline in concert revenue in Q2 2020 and a 95% decline in concert revenue in Q3 2020
> About 5.2 million tickets were refunded in Q3 2020 and 23.3 million tickets had been refunded so far in 2020 (as of the end of Q3)
· Movie theater attendance is down substantially
> AMC theaters saw a 97% decline in attendance and a 91% decline in revenue in Q3 2020
> Cinemark saw a 96% decline in revenue
> Marcus Corporation (which also owns hotels and restaurants) saw a 84% decline in revenue
> Studio Movie Grill filed for bankruptcy
· Other anecdotal information points to more stay-at-home activity decreasing recreational spending
> Chuck E Cheese’s declared bankruptcy
> Dave & Busters is considering bankruptcy and plans layoffs of +1,000
> CiCi’s Pizza declares bankruptcy
> Starbucks saw fewer customers, reduced store hours, increased store closures, and a 5% decline in revenues in Q4 2020. This has led them to plan a shift to more “to-go” formats
> Many Las Vegas Hotels and Casinos have decided to close “part-time” during the week due to lower attendance and travel.
These include Encore, Rio, Linq, Planet Hollywood, Mandalay Bay, Park MGM, and Mirage
The majority of food buffets at the major hotels and casinos have been shuttered for the time being
Stimulus checks and other government programs to support consumer spending provide tailwinds for retail activity
· The US government authorized more than $10,000 per person in stimulus spending in 2020 over the course of five relief bills totaling $3.5 trillion
· More stimulus spending is expected; including a potential $1.9 trillion package that could include an additional $1,400 in stimulus checks
MORE SKUS / LICENSES ARE GROWING AND EXPECTED TO CONINUE STRONG
Active properties continue to rise and are expected to grow well into the future
· The number of active properties in Q3 2020 grew 15% over 2019
· Active properties grew from 644 in Q2 to 715 in Q3 2020
· The potential universe for Funko Pops! is limitless as new films, tv shows, musicians, anime characters, sports stars, and other media properties are created every year.
Some of the hot properties for this year and beyond
· Star Wars: Baby Yoda, Mandalorian, Rey, Valentine’s Day, etc.
· Marvel: WandaVision, Deadpool, Lucha Libre, Spiderman, Venom
· Anime: Dragon Ball Z, Naruto, Bakugan, My Hero Academia
· Films: Harry Potter, The Goonies, The Mummy, Fast & Furious
· TV: The Office, Umbrella Academy, The Queen’s Gambit, The Simpsons
· Sports: NFL, NBA, MLB, WWE
· Others: Disney, Pokemon, etc.
Retail exclusives can grow the potential universe of licenses and increase retailer buy-in
· For example: A retailer like GameStop could lobby Funko to make a GameStop exclusive of the WallStreetBets Kid like this person suggested here. (The exclusive Pop! would be made into a limited edition and sold only to GameStop to sell at their stores)
COLLECTIBLE INVESTMENTS ARE GROWING IN VALUE & POPULARITY
· Funko: The average Pops! Figure has a retail price from between $10 and $15 which allows most people an affordable entry point into collecting. Over time some Pops! Figures increase substantially in price; from $50 to $100 to even several thousand dollars. While some collectors buy Pops! as primarily an investment, many more buy them as a way to show their fandom. Whether they are avid Star Wars, Harry Potter, Pokemon, Sports, or Anime fans; collectors build large collections and show them off to friends.
· Sports Cards: To those paying attention, sports cards have been on a massive run with some cards worth more than your parent’s house and your sister’s car. Since the pandemic started, the demand for sports collectibles from basketball to football to soccer (and many others) has skyrocketed. Countless videos of box-breaks and pack openings have become the norm on social media. Some of these boxes are being purchased for tens of thousands with “hits” ranging from several hundred to hundreds of thousands.
· Collector’s Universe: This company that grades sports cards and other collectibles has tripled in value since June 2020. The number of sports collectors grading cards has exploded as demand rises. The popularity of grading sports cards is expected to maintain as prices continue to rise and the hobby becomes more mainstream.
ANALYST COMMENTARY AND FINANCIALS ARE A POSTIVE FOR THE STOCK
Piper Sandler: Upgraded Funko from “Neutral” to “Overweight” (raising their price target from $6 to $12).
· Analyst Erin Murphy sees evidence of “subsequent revenue pillars” with their recent launch of Snapsies at 800 Target stores; along with an expansion into board games and its digital efforts, which include a newly launched website in six European countries.
Valuation Comparison: Market Cap / Revenue (TTM)
· Funko: MC - $604 million / Rev - $640 million (0.9x sales)
· Mattel: MC - $6.27 billion / Rev - $4.43 billion (1.4x sales)
· Hasbro: MC - $13.13 billion / Rev - $5.17 billion (2.5x sales)
Key Financial Trends For Funko
· Q3 2020 EPS (Adjusted) = $0.31
> Third highest ever (only Q4 2018 & Q3 2019 were higher)
· Q3 2020 Revenue = $191 million
> Fourth highest ever (only Q4 2018, Q3 2019, and Q4 2019 were higher)
· Q3 2020 Revenue increase vs prior quarter of 94%
> Q1 and Q2 2020 saw significant declines due to COVID
> Q3 2020 only down 14% vs Q3 2019 despite Q2 2020 being down 49%
> Q3 2020 strength driven by Funko adapting quickly to online in the US market. (Q4 2020 revenue growth could be aided substantially by Funko’s development of their e-commerce shop in Europe.)
· Q3 2020 SG&A was reduced 20% vs. the prior year as Funko rationalizes costs and adjusts to focus more on D2C e-commerce
TL;DR
After a tough summer, Funko sales have rocketed back in Q3 to near where they were pre-pandemic; setting up a potentially historic earnings for Q4 2020. Google search activity suggests that Funko is as popular as ever and is set up well for a strong year in 2021. People are spending less on “going out;” instead buying things to use at home and presents for their kids. As time passes, Funko’s status as a popular collectible only continues to gain momentum.
Their direct sales initiative allows Funko to capture additional margin by sidestepping traditional brick and mortar retail to reach their customers. Investments in collectible products like Pops! and sports cards continue to increase in popularity and price. And the company continues to release even more products beyond Pops!; including games and apparel. While some Wall Street Analysts have already begun to take notice, a strong Q4 earnings announcement can drive even more attention to the stock.
Positions: Long Shares & Calls
Disclosure: I am long FNKO. This is not investment advice. I reserve the right to buy or sell FNKO without updating this thread. Do your own research and share (or not share) with the community in this thread. Thank you to the others on Reddit that shared this idea earlier.
Feedback: If you have any additional information, ideas, or critiques please make sure to comment. It is great to get the perspective of others when making an investment. Also that information can be incorporated into future posts and updates.
Previous DD: Herman Miller

My players are going to be visiting the palace of a demon lord of pleasure who's more CN than CE. I want to show that despite his title, he represents all forms of pleasure and good feelings, not just sex. Also space in his realm doesn't work the same way as it does in the mortal plane. He essentially has an infinite amount of space to work with and can customize it as he pleases, so there are no size constraints.

1. A casino to feel the thrill of gambling.
2. A dining hall with an endless buffet that visitors are allowed to eat as much as they wish.
3. An idyllic beach with perfectly white sand to relax or play on.
4. An arena where gladiators brawl it out against each other. The point of it isn't to kill each other as much as make the battles look stunning to the audience.
5. A hotel with the most comfortable beds possible. Here anyone with enough money can enjoy a good rest after all the excitement.
6. A beautiful and well tended garden filled with aromatic flowers and sweet fruits.
7. A vineyard where exquisitely-aged wine can be produced just by pressing the grapes. (u/_SovietMudkip_)
8. A petting zoo full of the babies of dangerous creatures. (u/_SovietMudkip_)
9. An opulent concert hall where the best musicians of the realms perform (u/_SovietMudkip_)
10. A small, cozy looking wooden library, with a cushioned bay window where rain gently scatters against the glass and a cup of some hot liquid gently rising with steam. (u/QuietOracle)
11. An owl-bear hugging zoo. Go to sleep in the embrace of their soft down. (u/QuietOracle)
12. The room of sensory experiences. The room itself is fairly plain, with the main feature being long tables running the length of the room. On closer inspection there are fist-sized carved holes, each one holding a small round crystal... (u/QuietOracle)
13. A room with dozens of sacks filled with beans, lentils and grains where visitors can put their hands in and let the contents run through their fingers. (u/_WhiteCubeCat_)
14. A hag (or any other long nailed creature) giving visitors a scalp massage. (u/_WhiteCubeCat_)
15. A museum of little-known or long-forgotten art pieces, sculptures, and history. (u/MoonlightMancer)
16. A festival full of colors, music, and drinks. Everyone seems to love you, and you can’t stop laughing. (u/MoonlightMancer)
17. A hallway of endless doors. In each room is someone you know, complimenting you endlessly, sharing every positive, even begrudgingly jealous thought they ever had about you. (u/MoonlightMancer)
18. A room full of bubble wrap. (u/EmmaDrake)
19. A hot spring/spa, with fluffy towels, those showers that are like rain with perfect water pressure, mud baths, and refreshing food and drink. (u/lionesslindsey)
20. A room full of people that constantly give you validation and laugh at all your jokes. (u/CountryJeff)
21. Never-ending line of gold chalices, crystal vases, silver artwork, and other valuables. (u/PutridMeatPuppet)
22. People who are “better” than you are marched in a stripped of their superior qualities. Beautiful people are disfigured and turned ugly. Wealthy powerful people are ruined and made to beg you for pennies. (u/PutridMeatPuppet)
23. Mass groups of people enter the room and tell you how they admire you and how wonderful you are. They stroke your ego and inflate your pride. (u/PutridMeatPuppet)
24. Servants do everything for you. Feed you, give you drinks, wash you, wipe your arse, etc. (u/PutridMeatPuppet)
25. You are given a wickedly barbed leather whip. A slave creature is bound to a post and you can whip this creature to inflict your wrath upon them as much as you desire. If the poor soul dies, another is brought in to replace them. (u/PutridMeatPuppet)
26. 'Knight for a day'. The full experience; lance, shiny outfit, a squire, a trusty stead, a dragon and a princess/prince to rescue. (u/mr_earthman)
27. The magical equivalent of a holo deck (u/cyber-viper)
28. Wide, flat plain with the fastest vehicles in the multiverse (a good place to use the Avernus vehicles) (u/Clickclacktheblueguy)
29. A selection of cities and villages for you to destroy with war machines or your own magic. (u/Clickclacktheblueguy)
30. A collection of wand that allow you to test out powerful magic. (u/Clickclacktheblueguy)
31. A magical version of a movie theatre, allowing you to watch all manner of stories, true and legendary. (u/Clickclacktheblueguy)
32. A moderately large pool where small battleships with tiny animated crewmen can be deployed in teams to shell and board each other for the audience's amusement. Honored guests can put their strategic abilities to a test against other players by directly giving orders to their ships, and in certain hours guests may even swim in the pool to live out the power fantasy of being a sea monster. (u/VIixIXine)
33. A colorizer-device that transforms any clothes/armoweapons/other gear to any desired hue you wish (as long as it doesn’t affect the workings of the gear) (u/PaigeOrion)
34. A grand screen, showing a nearly infinite number of (screen)plays from all space and time, including the show with the disgraced human paladin delivering a green baby gnome back to his home land through incredible odds. (u/PaigeOrion)
35. A tiara that allows you to experience the sensory experience of a black cat as long as you wear it and close your eyes. (u/PaigeOrion)
36. A plethora of small, multicolored blocks that will magically interlock with one another to render almost any architectural structure imaginable. (But don’t step on them barefoot!) (u/PaigeOrion)
37. A band of musicians who are the perfect musical backup for any performances. Alone, they are more low key, but no less skilled, playing haunting melodies of unknown origin. (u/PaigeOrion)
38. A massive walk-in closet where you can try in any clothes in any fashion you like. (u/Tezla44)
39. A "schadenfreude" theatre, with shows that rely on slapstick and cringe comedy. (u/Martinus_XIV)
40. A REALLY good chocolate fountain (u/BrokenBanette)
41. A room designed to give you closure. When you enter this room, someone you loved and lost is there, sitting in a couch. The room feels vaguely familiar, but you can't place why. If Detect Magic is used, the room is full of magic (divination, transmutation, illusion) but the person seems like a normal person. You can chat with them for as long as you like. They behave just as you remember them, with the good and the bad. (u/ohsurenerd)
42. A theatre performing the most magnificent tragedies. When you watch the performance, you find yourself completely enraptured: you cheer when things go right, scream when something terrifying happens, and moan and weep at the inevitable horrible ending. When you leave, it feels like removing a backpack full of lead that you'd been carrying for so long you'd forgotten it was there. (u/ohsurenerd)
43. A room where there's a button, there's someone outside and it explains that if you enter there's a 50/50 chance of you dying or not, the room won't actually kill you and it's there just to make you feel the pleasure of near death experience. (u/SupremeGodDictator)
44. A massage parlor with the universes best staff pampering your every need as you receive the most relaxing massage of your life whether it be scalp, back, foot, full body, etc. Has the worlds fluffiest towels and robes to luxuriate in while you wait or if you simply want to sit in a comfy chair and enjoy your ache free muscles. (u/Blue_Mando)
45. An arena where you and your opponents heal near instantly, and you can fight endlessly (u/ellen-the-educator)
46. A reenactment of your greatest failures in life, but this time they turn into your greatest achievements. (u/CountryJeff)
47. A room with the world's finest works of art.... and a myriad of implements you can use to destroy them. (u/redrosebeetle)
48. A torture chamber with mages on hand to create illusions of the people you wish to torture. Or increasingly realistic versions of them, depending on the level of magic you wish to implement. (u/redrosebeetle)
49. A room full of gold and jewels you can roll around in, ala Scrooge McDuck. But woe betide anyone who tries to take a souvenir.... (u/redrosebeetle)
50. As you're walking through the gardens, a person comes up to you. They introduce themselves as an adventurer who's also here on a quest. They seem to be the same class as you, and they're incredibly attractive-- almost exactly your type. You immediately click and end up spending the day together, talking about everything and anything. You tell them things you've never told anyone else before. They understand everything you tell them, almost innately, but they're still impressed by your feats and your stories. The two of you find an empty bedroom and close the door behind you. It's perfect in its imperfections. In the morning they're gone. No matter where you look, you can't find them. (u/ohsurenerd)
51. A room lined with shelves and shelves of bottles and vials containing a crimson liquid flowing slowly (like a syrup), all with small labels on them. As you inspect the labels, you realize they've all got names on them: famous adventurers, kings and queens, great sages. If you drink one, you experience a selection of their memories as they experienced them: battles won, discoveries made, historical alliances and friendships being forged or broken... (u/ohsurenerd)
52. A room that turns anyone that enters it into a child. It is full of every toy imaginable (u/arual_x)
53. A tour of a chocolate factory. Kobolds work there, and the owner, who gives the tour, is a Metallic Dragon in Humanoid form. (u/arual_x)
54. A fortune teller who has a Deck of Many Things with only the good cards. If you in any way offend them, they will sleight of hand vs perception check slip you a bad card instead. (u/arual_x)
55. An island theme park of reanimated dinosaurs. The owner is a level 20 Necromancer called Hamm Johnand. (u/arual_x)
56. A Virtual Reality style game that allows you to battle horrible monsters over and over again without risk of injury physical. But still allows you to gain XP... (u/arual_x)
57. A perfect expanse of thick snowy ground. There is constantly a snowball fight going on. (u/arual_x)
58. A giant room full of mattresses where everyone immediately gets a wonderful massage. (u/Revanclaw-and-memes)
59. A room where you get to torture all of your worst enemies (u/Revanclaw-and-memes)
60. A room where people applaud you, give you a trophy, etc (u/Revanclaw-and-memes)
61. A room where you get something that was denied to you (u/Revanclaw-and-memes)
62. A room full of gold and exquisite things, from beautiful furniture to magic weapons (u/Revanclaw-and-memes)
63. A seemingly endless room where adventurers can drink a potion to grow wings and flit about to their hearts' delight (u/iriedashur)
64. An ordinary classroom containing the adventurer's childhood friends, enemies, and their most hated teacher. Upon entering the room, the adventurer discovers that they are invisible, and free to pull pranks as they wish (u/iriedashur)
65. A brightly colored room piled high with wrapped gifts, large and small, for the adventurers to open endlessly (u/iriedashur)
66. A purple and black dragon named Ace who cooks you garlic bread and cake. (u/sanorace)
67. A magic pair of goggles/glasses that simulate any “What if” question you pose to them. (u/lewiscann)
68. A magical weather room where you can ask for any weather for your pleasure (I love listening to rain) (u/lewiscann)
69. A room full of lounges with a floating slow burning piece of wood that warms the whole area, the piece of wood is so large you can see the flame spread through this piece of wood forever (u/lewiscann)
70. A room where you can bite your fingernails and they grow back instantly ( so you can bite them some more )(u/razenastie)
71. A room with incredibly weakened versions of powerful monsters. (u/Your_InsideMan)
72. A vast room on wooden sculptures, oil, and torches. (u/Your_InsideMan)
73. A zoo of sentient races (u/Paralytica)
74. A collection of legendary heroes magically transfixed in blocks of ice. (u/Paralytica)
75. Palanquin rentals (u/Paralytica)
76. A booth that will remake your face whilst in the palace (ostensibly to make you more beautiful but it could be used for anything) (u/Paralytica)
77. A magic chair that gives really good back massages (u/TenNinetythree)
78. A playground where the slides and carousels are for adults (u/TenNinetythree)
79. A room where you become a giant and can destroy cities and fortresses kaiju style. (u/Paralytica)
80. Drug Olympics. A room with every drug imaginable to try. Leaving the room cleanses you of their effects. (u/Skitsafrit)
81. No Pauses. A room that has the effect of making all conversations flow perfectly. No silence stretches too long, no one mishears you, and every topic segways perfectly into the next. (u/Skitsafrit)
82. Deprivation Room. The room is so absolutely featureless and quiet, that you can meditate magnitudes better here than anywhere else. (u/Skitsafrit)
83. A games room where you play against your perfect match (u/Nesurame)
84. Similar to the previous, a games room where you're matched against nothing but weaker opponents (u/Nesurame)
85. A smoky, dreamweed hookah lounge (u/reallyenjoyscarbs)
86. A heist simulator where you always get away with the big diamond, chest, etc (thrill of theft) (u/reallyenjoyscarbs)
87. A sauna room with a central pillar. Inside the pillar is a chamber containing a magic stone which can detect the exact temperature preferences of those inside, and making each person feel said preference. (u/TgagHammerstrike)
88. An oval-shaped room with countless glass lotion bottles, with each smelling better than the last. If you look for a specific scent (no matter how rare), you'll certainly find it with the help of a goblin near the back of the room. (u/TgagHammerstrike)
89. A room that consists of A bunch of mortals so utterly jaded from years of plesure seeking that they need the hardest of drugs and the wildest of sensations to feel anything,with lesser demons feeding on their pursuit of euphoria. Think the emperors children from warhammer 40k. (u/TgagHammerstrike)
90. A buffet of the lids of yogurt/pudding cups to lick. (u/Hunter37594)
91. An olfactory room that reads your memories and replicates smells that remind you of your most joyous moments. (u/lecorbusianus)
92. A wildlife reserve for Druids to find new and exotic wild shapes. (u/lecorbusianus)
93. A room with musical instruments that you're able to master immediately. (u/lecorbusianus)
94. Zero gravity obstacle course. (u/lecorbusianus)
95. A cooking class taught by a master chef that always seems to have enough time to guide you one-on-one. (u/lecorbusianus)
96. An enchanter who allows you to relieve the best moments of your life over and over again. (u/lecorbusianus)
97. An illusionary room that brings up past experiences and let’s you make different choices to fix mistakes or win arguments. (u/The_Rhibo)
98. A murder simulator to allow an individual to live out the fantasy of killing that special someone. (u/Brann_The_Kid)
99. A library full of blackmail and secret knowledge regarding historical and political figures. A conniving, plotting character’s dream! (u/MoonlightMancer)
100. A room where you can see colors that shouldn't exist. (u/Clickclacktheblueguy)
101. A room with a creature in a dark robe sitting at a table covered in maps and dice. He helps you play a strange game where you and your party make up characters that go on adventures while the robed creature acts as all of the other characters and determines new events. (u/Clickclacktheblueguy)
102. ...

The results are in for Match 9. The winner is…
William Eyelash, with a score of 68 to Jacob Brown’s 68, tie broken by a higher ‘categories taken’ count!

Category	Winner	Point Totals	Comments
Popularity	The Graveyard Shift	16-13
Quality	The Graveyard Shift	22-20	Reasoning
JoJolity	Masters of Funky Action	20-25	Reasoning
Conduct	Tie	10-10

William Eyelash had taken the lead in this match, and though as a leader, he hadn’t done the best job, getting Jack visibly injured, as a combatant, he had managed to withstand the aggressive and area-painting onslaughts of himself from not so long ago, and of a much more experienced version of the partner he’d once had.
It had made him catch his breath, reflect on all that had come to this point, to recall that moment where Ocean Eyes had been the one to embrace and protect him.
“Yes… I understand now,” William answered, walking carefully through the snow, “you had something good going there, Jacob Brown, but… Y-you didn’t seriously think I would fall for tricks like those coming from my own Stand, did you?” Didn’t even know it could do all that, though… Even now, I can still grow, huh?
That put a smile on his face, then, as he approached the injured Jack, helping him up. “You still with us?”
“Hee hee, I’ll peachy keen as peachy cream in a little while… But right now I’m very much hurting yes.” Jack chuckled, resting his eyes and looking things over. “In the end, though… I called that other me in the hoodie an impostor, but he knew my Stand better than I did. He was even more me than me… What does that mean?” He looked down. “Am… Am I the lie?”
“I, uh… I don’t know how to answer that,” William said, “but… You’re one of the most genuine people I’ve ever met. And, uh… You helped me out a ton. Sorry for getting you hurt, uh, not that used to leading, but you really seemed to trust in me…”
“We all make mistakes!” Jack said, not minding that at all, “but… I suppose you’re right. I won’t let some stranger get in my head… But I guess that all of us were telling the truth in our hearts, then.” He looked to the defeated ‘Billy’ and the slightly-older Jacob, both bleeding and unconscious, the latter falling much faster. Already, a strange white blob was moving through the snowfield towards them, examining them. “So I guess we spare them today... if they survive what we’ve given already!”
Neither would realize it for another few minutes, but for Jacob Brown, those words had proven prophetic.
“S-still though… If you’ve really lived a full life here, become the same person with the same Stand, same memories,” William said, “does that mean that can just… Happen? But how, wh-when really, by probability and stuff…”
“So is the unusual burden of ‘Fate,’ felt strongest upon this city,” a familiar, altered voice spoke, and sitting on a park bench, William and Jack spied none other than the Institute’s head, still heavily layered as he always was.
“Oh No…” William muttered.
“‘Oh no?’ Is this a problem of a person?” Jack asked, then giggled. “Heeheh, just a little joke. I know about the Institute, of course!”
“The ‘Fortuna Double’ might exist at any point in time, for any Stand User from outside its walls, and no matter how irreconcilable the circumstances, how ‘impossible’ it should be for two people to have the same fated path, even for the slight differences of the city… The ‘Same Person’ can unquestionably exist. Wouldn’t be surprised if you, ‘Jack,’ and this ‘Billy’ here were simply the first you encountered who were close enough to your age that you immediately noticed.” No tilted his head. “Why, even that cute creature who followed the elder Jacob Brown is, literally, the same being as the Bert that just died… Yet, unlike them, bound still by fate. I wonder, then, what will prove to be the same, to be indomitable ‘fate,’ and what will prove not so.”
“I think sometimes about if I’ve ever had one here… Or will, in the future. That sounds utterly boring if so, though. I refuse to know my fate; it’s vexing enough of a limit on myself that I’m burdened by, knowing it’s predetermined to exist at all.”
“Uh… Right.” This was heavy, huh? William tried to figure out what it all meant. “Fortuna Doubles, huh… So they’re both real, completely and absolutely, then?”
“Precisely!” No remarked, cheerily. “Would you like to speak more about this? Go on, sit with me.”
Only a few hours remain still in your window of time to vote in a match between an Agnes and some Guy in a crowded concert hall brought down to size.
Scenario:
Alexis Williams was sinking.
Every day, the myriad of matters which plagued the outwardly-cheerful woman’s mind seemed to be growing worse and worse. The unhealthy relationship she’d had with her Stand had turned into an even worse sort of tension, a fundamental disconnect with an aspect of herself which she literally could not be away from.
It hadn’t been uncommon for some time for her to wonder if a given day would be her last. Over the last several months, those feelings had only grown and grown in their intensity, in their power over her, and it had even begun to show outwardly.
It wouldn’t be long now, surely, before-
Alexis’ hotel room door was kicked so hard that one of the hinges flew off, and through it launched, not an attacker like she might have imagined, some hostile Stand User out to invade her home, but something arguably even worse.
“ALEXIS!”
Her friend and fellow Eighth Circle mainstay, Bucket.
She clutched her forehead and forced a smile, turning away from what she’d been using to get through the day and towards him. Already, she could tell that the chaos agent, formerly known for the octopus on his head, now sporting sick sarashi and a pompadour, was here with intentions ranging from ‘good’ to ‘no intentions whatsoever,’ and it wasn’t in her nature to tell someone like that to fuck off.
“Bucket! Hey!” She said, an edge to her chipper tone. “You, uh, surprised me there… You’re gonna fix that door, right?” She blinked. “Wait, weren’t you at that Metra show? I thought I’d heard everyone there was shrunk down to-”
“Forget about that!” He answered, earnestly drawing closer, grasping her by the wrists suddenly, yet at once gently. “Alexis, I don’t know what’s going on with your head or heart or anything else, but I know I can’t just stand around outside your door watching you get more and more miserable! Even I noticed, so it must be really really bad whatever’s hurting you inside! I’m an acolyte of the boogie now, the example of Rudolf Pavlova, so I can’t let a friend be in need!”
“Rudolf…” Alexis had heard of his passing, so soon after helping her put on such a wonderful show, and been unsurprised. Wait, though, since when did Bucket- Ah, never mind. She shook her head, looking him in the eye. The highly chaotic, unstable hellraiser of the Judecca Highrollers was giving her puppy-dog eyes. “Did… Did you want to do something?”
“Yes! I want to make you better!” Bucket exclaimed, pulling away and bouncing upwards. “So c’mon! Let’s head out… Make some trouble, follow no rules but our own and to be happy!” He stopped, then, pulling back a moment, as if reading the room once again, folding his arms over his chest. “I mean, if you want to.”
Alexis thought it over. He meant well, clearly, and wished dearly to cheer her up… A person didn’t need to understand the nuances of the soul to see when a person was hurting, and to reach out for them.
She doubted it would make things better for her, but who’s to say it needed to be?
“That sounds great,” she said, relaxing her forced cheer slightly and nodding. “Maybe it’s what I need right about now.”
The Woods at Aurelio - Midday - Near the Northern Bridge
“So you’re sure that he’s got a base out here?”
“Crystal clear!” Tiger ‘Glitch’ Ricky answered Effie Linder, tilting her head one way and then the other as she and her Stand attempted to scope out the sounds of the area. “There was only basically one cop left and then Ugo made them quit, took the place over, paid them off… So now he just sorta comes and goes around that little old ‘empty’ police station!”
“If he hangs out at the town’s police station,” Effie asked, confused at her coworker’s demeanor, “then why are we out this far away from it?”
“Because!” Glitch answered, huffing and folding her arms. “I said he comes and goes! And prrobably isn’t there right now. Mrr, you’re the one who wanted to come out here with me, so let’s keep searching!”
“…” Effie nodded. “You know what, fair enough. He never was the type to stay still long, so looking where the Watch is going would be a start…”
Since that day she fought that shithead twink Agnes and that Italian twink Arpeggi at Tigran Sins’ casino, Glitch had been gradually, increasingly mulling over the idea of becoming something not so much unlike the latter… A vigilante, out to not just cause problems on purpose, but sometimes even solve them on purpose, in the way a Stand User knew best: shenanigans and violence.
Hearing about the way that Ugo McBaise had sabotaged the capture of the very villains whose challenge had inspired her to act, had directly gotten people killed and responsible for dangerous people staying at large, that felt like reason plenty to break out ‘shenanigans and violence’ on him.
Effie caught her on the way out, and had said then, “what, am I gonna wait around for Fira to send me on some bullshit errand? If you’re turning that piece of shit’s head concave, I’m in too.”
And so, enthusiastically, Effie had joined, and the pair had been circling the outskirts of town atop Vida Loca ever since, Effie also using her murder of crows for further observations than what her eyes alone could tell her.
Glitch’s ears perked, as did her Stand. “…something’s up ahead. A bunch of people hanging out by the river…”
“Hm? Yeah, I think I see it!” Effie remarked, producing a pair of binoculars to look that way. “VALKYRIE guys… You know what that means up here, don’t you?”
Though most of the company fell in line with Rushen Smith’s new leadership, it was something of an open secret that Ugo McBaise had very specifically drilled the former Neighborhood Watch, which had become a new unit of the company, into being loyal to him, not to his rank. Fears being stoked about the potential of ANVIL going to war with the town was all that kept them from being disbanded outright, feeling that people familiar with the area were best-suited for watching it.
Glitch hissed. “Alright, then, you know what we’ve gotta do!”
“Wait, it looks like they’re being talked through something by…” Effie adjusted the binoculars, peered through the crowd, and recognized a very identifiable vest… and a bald head, shining in the midday sun. “Mr. Jones?”
Mr. Jones had been having a good few weeks himself, ever since his earlier, very successful outing with Dread. It had ended in him successfully acquiring not just any ‘Memento,’ but perhaps one of the city’s most dangerous, and the life-fearing compliance of the kidnapped alleged immortal who led it to him, taught him its secrets.
Apparently some kitty somewhere was sad about that, but eh, when you’re making an omelette, yeah?
“Wait wait wait,” he said affably to the crowd of VALKYRIE agents he’d once called a neighborhood watch, “you say a guy in a blue pomp and a dancer’ve been… Spray painting your cars? Throwin’ dead fish at ya? Sprayin’ ink to get away?” He snickered. “You’ve had a hell of a morning with this prankster pair, then, if they keep givin’ you the slip.”
“Please, Mr. Jones,” a young man said as he continued to wipe fish guts off of his helmet visor, “I… I know, technically, you aren’t our leader anymore, that the bosses don’t like you much, but.” He sniffled, earnestly. “But you’ve always been so good to us, even since then! You’ve been loyal to us, and we still love you for it, no matter what they say you did!”
“Heheh… Hearin’ you say that makes it worth it, y’know that?” Mr. Jones wiped a finger under the eye of his sunglasses, looking them over. “Think I know who might be the whodunnit-er here, actually. Just gimme a hot minute to track the guy down, and-”
“Got a lot of nerve talking to my men, Jones.”
Everyone went silent, then, at the sound of a hammer, for dramatic effect, being dragged along the pavement of the road, then swung in the air by an absolute cinderblock of a man.
“You got a problem, and you come running to him because he happened to be passing by? What happened to using your damn heads?” Ugo chewed his subordinates out, then, before looking to the neighborhood watch founder. “I think you’ve confused these people, Worm, by still keeping up that paternal reliable neighbor shit. They’ve all been taught well and good that they listen to me, not some replacement,” he pointed his hammer forward, then, threateningly, “and sure as hell not some serial killing scum!”
“Now now now, Ugo, c’mon, it’s clear they like us both, yeah? So let’s just… Clear the confusion up, if y’care that much!” Mr. Jones reached for the sabre sheathed at his side, then, drawing it with a golden sheen; he’d fished it out of the wreckage of Capital Island one day after it wasn’t destroyed in Jack’s ritual. He, too, pointed it forward. “I know the language you speak, so let’s talk in that.”
Ugo grunted, then, swinging his hammer back over his shoulder as a very feminine form appeared behind him, looking like something of a curvy, thickset cowgirl. “Aw, Ugo and I concur, y’all know we’re down t’bash some heads and take a name or two! Why, sugar, we’re about to put you down like a sick dog!”
Mr. Jones got a snicker out of the odd word choices of ‘She’s a Big Boy,’ finding the contrast between Stand and User in all but their brutal aggression amusing; sometimes he’d tried in the past to talk to him and unpack what the Stand actually said about Ugo’s soul, but it was a conversation the very straightforward, taciturn former football star never quite liked to have.
Jones gestured with his head, then. “Watch, get back to HQ, yeah? Whoever you see walk through that door, few hours from now, respect that, yeah?”
“Uh… S-sure?” The ex-Watch member who’d been speaking said, turning around. “C’mon, guys, let’s get pizza or something… I guess.”
Alexis had been sitting by the bank of the Wormwood River, mulling over the shenanigans Bucket had encouraged her to join in with, ever since she’d happened to spot all the Watch members they’d been harassing seemingly surround somebody; it was an action which led Bucket to say ‘just gimme a minute’ before diving into the water.
It was a shame, honestly. This harmless problem causing had actually been kind of fun, in a way.
Bucket splashed up soon after. “I knew it!”
“Knew what?”
“There was this bald guy talking to all the VALKYRIE guys about all our awesome pranks, and then that no-good bastard Ugo showed up and they started slugging it out and moving towards a sewer grate. And then, you wouldn’t believe it… The bald guy turned into Conqueror Worm!”
That gave Alexis pause, then. He was here? “We… We should probably go somewhere else, then! If people out there are fighting, I want no part in it whatsoever… And you probably shouldn’t anger guys like that either.”
“I can’t just turn away from this, Alexis! I’m here to cheer you up, and that guy… When he helped kidnap you, that’s when you started to feel even worse! So, I’m going to roll up there, give him my fiercest look possible, and make him apologize for being mean to you.”
That… Wasn’t where Alexis was expecting Bucket to end that sentence, but it made her sigh, momentarily. Her mood was good and ruined now anyway by these revelations, and Bucket was suggesting something dangerous nonetheless. “Look, Bucket, not everybody is good-natured, okay? You can’t just walk up to somebody and-”
“But I will!” Bucket insisted, flexing. “Because I have the power of ‘the boogie’ on my side, don’t you get it? This will cheer you so far up! You don’t even need to come along if you don’t want, because I dunno I might punch Ugo a bit if he hits first! But either way, you will get your apology, I swear it!”
Then, Bucket ran off. To confront two very dangerous brick shithouses of men. In a sewer.
“He’s going to get himself killed…” Alexis felt awful now, standing and looking Southward. She could just leave, couldn’t she? Bucket even said he wasn’t expecting her to follow when it could turn into a fight… In the end, were humans not all fated to fall victim to their own mistakes, their own vices and eccentricities?
…I can’t just leave a friend like that, even if I’m feeling bad.
“Bucket!” Alexis called, beginning to run after him. “Wait up for me! I’m coming along too! Let’s… Get that apology!”
She was having to babysit the guy who came to help her out, now, was that it?
“Ghhgh, it’s a two-for-one special on the worst in the city, isn’t it?” Glitch complained, trailing Effie down a ladder into the sewers. “First we’re tailing Ugo, and then Mr. Jones, and now they’re fighting… I don’t even know who’s worse!”
“One’s a serial killer, and yeah super dangerous,” Effie pointed out, “and the other keeps getting a lot of other people killed with his own dangerous stupidity… Keeps causing us problems, and helped escalate that warzone. I don’t like being an enemy of ANVIL, Glitch… I really don’t.”
“Mmrhh… They’re gonna get a piece of our best attacks.”
The pair, then, touched ground, and Effie saw around them the signs of battle, of pieces of the ground seemingly terraformed, nicked, busted-up, and the sounds of clashing in the distance. Undoubtedly them.
Then, though, as they stepped forward, soon after, a pair literally dropped down behind them, one after the other, first a scarred, pompadoured idiot doing a cool roll, then a redheaded gymnast landing coolly not far behind.
“Wait a minute… Bucket? And, uh, that performer from that thing everyone liked… Alexis Williams?” Effie remarked, backing away a bit, trying to figure out the pair’s intentions. “What are you doing here?”
“Oh, you know!” Alexis tilted her head, very blatant in how forced the chipper tone had become, especially by the nature of what she’d said next. “Losing control of my life, letting weird things get out of hand… But I’m here now. I’ve committed to my choice, and I hear sounds further back. So, Bucket! Let’s get a move-on, yeah? I don’t particularly care much for being in a sewer…”
Bucket, however, had been unmoving since he had begun to stand. Glitch, too, faced directly his way, allowing him to look her in the eye as a strange expression came over them both.
Effie and Alexis, then, were deeply confused, until Vida Loca appeared, and the sounds of beatboxing seemed to fill the air.
“Wh-” Effie was taken aback. “Glitch, we’ve got something going on here. You’re not seriously going to-”
“Hey fishman, the cat’s here to catch ya / Tiger ‘Glitch’ Ricky on the mic comin’ atcha / In a hotel or a diner or even a sewer / My rhymes gonna run you through like a skewer!”
This was physically painful for Alexis to watch. She covered her mouth as she prepared for Bucket to open his, well aware that half of their social circle was probably going to slap him for whatever came out.
“Name’s Bucket, B-U-C-K-E-T / Got beat but came back now with the Boogie! / Was chasin’ a killer but this fish can still school you / With my friend Alexis here, my rhymes’ll hit true!”
“…hit true?” Alexis couldn’t help but find that groan-inducingly hilarious, though her momentary joy, then, was cut short by the fact that Effie, meanwhile, was absolutely seething.
“C’mon, do this literally any other time!” She exasperatedly proclaimed, tugging at Glitch’s arm, “we can’t let those assholes get away, c’mon, you know we need to cut this out and-”
Bucket threw a fish at Effie’s face.
Everyone went silent, then, as it slid off and hit the ground, her own expression dry with displeasure.
“Did… Did you just throw a fish at me?”
“Yeah! Because you keep ruining the vibes!” Bucket huffed. “So cut it the hell out, or I will do it again!”
“Really now,” Effie said, keeping her hand by her slingshot and beginning to walk further Southward. “If you keep distracting us, I’ll have to get you out of our way.”
One of Bucket’s massive knives, then, was drawn, blade resting centimeters from Effie’s face. “Don’t threaten me, alright? That’s completely against the spirit of this.”
Glitch hissed, then, her own mood ruined, “hey! You can’t just pull a weapon on my friend like that, even if she’s being a spoilsport! That’s way over-the-line!”
As both sides fell back, not losing sight of the other as they attempted to pull away and regroup, it was clear that three-fourths of the quartet had been angered enough at one another in an instant that a fight was about to brew.
Alexis had been deliberately trying not to send out her Stand this entire time, wanting some semblance of mental distance from it after their disagreements had turned increasingly mean, her literal fighting with herself and grappling with her demons leaving her wanting absolutely none of this.
Bucket was about to get himself killed over, easily, the stupidest thing she had ever seen a fight start over.
This day has gone from sad to fun to the most frustrating I have ever seen… I tried to make a good day out of it, but here I am now. I can’t just abandon Bucket after he tried for me… But boy is he trying me.
OPEN THE GAME!
(Credit to CaptainSpooky27 for yet more awesome match art!)
Location: One of Los Fortuna’s sewer pathways, specifically far on the Northwestern outskirts of the town of Aurelio. These are one of the many entrances to the elaborate and interconnected underground networks of the city, though you’re in a pretty straightforward section of it that doesn’t branch off all that many surprising ways.
Not far South from here, but distant enough that it won’t ever affect this match, you can hear the sounds of a simultaneous battle between Mr. Jones and Ugo McBaise.
The area here is 63 meters by 33 meters with each tile being 3 by 3 meters. With TGS on the left and JHR on the right, represented by their character tokens.
The light grey tiles are the concrete paths, the darker grey tiles are the walls, and the blue tiles are sewer water. The walls are solid all the way through.
The sewer itself is actually relatively clean here, as clean as underground sewer water can be really. The water level is about 1 foot below the walkways and the water is 3 meters deep.
The ceiling is 4 meters above the walkways and the walkways have cheap metal guardrails between themselves and the water, as represented by the bolded outlines. The orange rectangles are the metal bridges between the walkways and the yellow circles are open manhole covers with light streaming through. The grey triangles are strange stalagmite-like protrusions, likely somehow created by Ugo and Jones’ fight. They match the same material as the stone walls, take up most of the walkway in width, and reach up to the ceiling.
Goal: RETIRE your opponents!
Additional Information: Logic is allowed to kill me(Kak) and both of the players who made me write this.

Team	Combatant	JoJolity
Judecca Highrollers	Bucket	"Are you mocking me? You went into the ground with your zipper? Are you copying me?" This whole thing has gotten so absolutely lame, that it’s killed your attempts to cheer your friend up and to have an awesome rap battle. So these guys are lame, and need to feel it! Make sure to find creative ways for your strategy to humiliate your opponents!
Judecca Highrollers	Alexis Williams	“You think that you can escape my punches when you're surrounded by walls of dirt?” Bucket’s gotten people into another frustrating situation by not thinking, huh? Well, you’ll get him out of this in one piece by using your head. Use this underground sewer environment to your advantage!
The Graveyard Shift	Effie Linder	“They say that sound reverberates better in liquids than in solids.” Seriously, Glitch? Seriously? Well, at least as long as you’re in this gnarly sewer, you can get something out of it by using your head. Use this underground sewer environment to your advantage!
The Graveyard Shift	Tiger “Glitch” Ricky	"Do you think you stand a chance against me by going underground?!" So now you and your opponents are going to be trying to one-up each other, huh? Bucket is an immensely clownable guy, dammit, and you were so hyped to do so verbally… Make sure to find creative ways for your strategy to humiliate your opponents!

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