Highlights
- Shark Tank has been in the news since its first episode aired on TV screens.
- The show has often been mentioned in controversies after deals fell through following the episodes.
- Bubba Q Boneless Baby Back Ribs led to a legal dispute between the entrepreneur and Daymond John.
Since its first season, Shark Tank has been more than just a reality TV show for followers; it’s been a cultural phenomenon. Its unique, focused approach to entrepreneurship has made it a favorite of countless viewers. With hundreds of pitches and investments, Shark Tank has been in the news for both the right and wrong reasons.
Why Some Shark Tank Deals Spark Controversy
Not every deal on Shark Tank makes it to the finish line. Though the show has inspired numerous entrepreneurs, behind the inspiring success stories are deals that sparked controversy, legal battles, and broken partnerships.
Many controversies stem from due diligence failures, misaligned expectations, or disputes over valuations and control.
The happy pictures of pitchers and investors that we see on small screens are not the complete truth. After deals were finalized in the past, entrepreneurs often blamed the Sharks for different reasons, while investors claim founders weren’t fully transparent about their numbers. This resulted in verbal and legal battles, making the show a hot, controversial topic.
In other cases, legal issues, miscommunication, and unmet promises have led to public disputes. These incidents highlight how even high-profile deals are vulnerable to the same pitfalls that affect everyday business negotiations.
Most Controversial Shark Tank Deals
Below are some of these controversial Shark Tank deals, along with an explanation of why they sparked debates:
1. ShowNo
Momtrepreneur Shelly Ehler made her way to the panelists with ShowNo, her line of towels that allowed children to change out of their bathing suits modestly. The investment sought was $50K for 25% equity.
Quick Facts
- Founder: Shelly Ehler
- Investment Asked: $50K for 25% equity
- Deal Status: $75K for 25% with Lori Greiner
- Outcome: Business shut down in 2018
- Controversy: Alleged lack of seriousness in deal execution
She appeared on Shark Tank along with her sons and was revealed to have made $15K through sales.
Though the judges were impressed by her attitude and presentation, they were apprehensive about making an offer due to its initial phase. The only two who made an offer were Lori Greiner and Daymond John. After an intense discussion, Shelly finalized the deal with Lori at $75K at 25% equity.
How Was The Deal Controversial?
Right after the episode aired, Shelly stated through an interview that her full name was not written on the cheque that Lori handed her on Shark Tank. She was indirectly hinting that the investor was not serious about the deal.
In response to the allegations, Lori’s team stated she was very involved in the entire process, especially taking ShowNo to Disney. However, they refused to give out any more details, citing confidentiality restrictions.
The business was eventually closed in 2018.
2. You Smell Soap
Megan Cummings brought ‘You Smell Soap’ to the investors. She asked for $55K and offered 20% equity.
Quick Facts
- Founder: Megan Cummings
- Investment Asked: $55K for 20% equity
- Deal Status: $55K for 20% with Robert Herjavec (plus $50K salary)
- Outcome: Business sold in 2014, shut down by 2016
- Controversy: Robert never delivered the promised deal, and later renegotiated for 50% equity
Discussing the range of her products, Megan listed out different luxury scented soaps available in a variety of fragrances. While it was still in the pre-revenue phase, the products were sold at different prices, including $7 and $12.
The first offer was from Mark Cuban for $55K for 20% equity. Barbara Corcoran was the next one to propose $55K for 40% equity alongside a 10% royalty.
However, Megan ultimately managed to secure a deal from Robert Herjavec, who agreed to pay her the same valuation as requested, along with a salary of $50K.
How Was The Deal Controversial?
Although the deal was finalized on Shark Tank, what followed was not a pleasant affair. She never received the promised amount from Robert.
Following this, Robert offered her $55K for 50% equity, which she rejected. The matter took a worse turn when he received extreme criticism from the media for his approach to the deal.
In his defense, Robert stated the deal fell through due to the due diligence process.
Megan sold the venture in 2014; it eventually closed two years later.
3. Bubba Q Boneless Baby Back Ribs
AI Bubba Baker went to Shark Tank along with his daughter, pitching for his barbequed ribs business. He sought $300K for 15% equity in his patented company, Bubba Q Boneless Baby Back Ribs.
Quick Facts
- Founders: Al “Bubba” Baker & daughter Brittani
- Investment Asked: $300K for 15% equity
- Deal Status: $300K for 30% with Daymond John
- Outcome: Legal disputes followed; website inactive as of 2024
- Controversy: Bubba alleged unfair changes to equity terms and exclusion from key decisions
The investors loved the samples and were impressed to hear the $154K sales in 2013.
However, Kevin O’Leary and Daymond John were the only ones to propose an offer. After intense negotiations, the deal was finalized with Daymond John for $300K at 30% equity. The business then did quite well and made $16 million in sales by 2016.
How Was The Deal Controversial?
Things took an ugly turn after the show when, in a 2023 interview, Bubba revealed having been cheated by the show’s makers and Daymond. He alleged to have been forced to take up his valuation from $300K for 30% equity, as promised on the show, to $100K for 35% after the telecast.
Additionally, he claimed to have been left out of crucial business meetings.
Reacting to the allegations, Daymond went to court and filed a restraining order against the entrepreneur. Based on it, Bubba was given a restraining order that forbade him from publicly commenting on Daymond’s family.
As of 2024, the company’s website is down.
4. PinBlock
Vladislav Smolyanskyy approached the panelists with PinBlock, seeking $100K for 20% equity in his construction block toy company.
Quick Facts
- Founder: Vladislav Smolyanskyy
- Investment Asked: $100K for 20% equity
- Deal Status: $100K for 50% with Kevin O’Leary
- Outcome: Deal collapsed; business closed in 2021
- Controversy: Founder claimed Kevin pursued toy companies without his involvement
The founder revealed that he owned only 85% of the business, while his friend owned the remaining 15%. Speaking about the numbers, he revealed that he had made over $18K through a Kickstarter initiative.
While the other Sharks stepped out of the deal, citing its early phase, Kevin O’Leary showed his interest in the condition of licensing the toys.
With no other investor left, a pressurized Vladislav accepted his offer of $100K for 50% of the company. Kevin ended the deal by stating that he would be inclined to collaborate with toy businesses.
How Was The Deal Controversial?
Post Shark Tank, Vladislav’s deal soon turned sour. The real drama unfolded when the entrepreneur claimed that Kevin went to a giant toy firm himself without consulting him.
This is what led to the deal falling through at the end. Vladislav now works for Raindrop Media Management.
After Kevin backed out, the company closed down in 2021.
Comparison of the Most Controversial Shark Tank Deals
Below is a quick look of the businesses, why they became controversial and the final outcome of the most controversial Shark Tank deals.
| Business Name | Main Controversy | Final Outcome |
| ShowNo | Alleged non-seriousness from Lori Greiner | Shut down in 2018 |
| You Smell Soap | Robert Herjavec backed out of a promised deal | Sold in 2014, closed in 2016 |
| Bubba Q Ribs | Legal dispute with Daymond John over equity change | Website down by 2024 |
| PinBlock | Kevin O’Leary allegedly cut the entrepreneur out of talks | Closed in 2021 |
What These Controversial Deals Teach Entrepreneurs
The controversial deals teach valuable lessons in terms of business partnerships for entrepreneurs. Some key takeaways include the following:
- Deals can collapse if either side uncovers hidden risks after Shark Tank.
- A Shark Tank deal doesn’t guarantee long-term commitment.
- Clear communication of financials, ownership, and expectations can prevent disputes.
- Conflicting strategies often lead to unfruitful partnerships.
- Though the show provides national exposure, long-term success depends on strong operations.
Founders must remember that while Shark Tank offers unmatched visibility, true growth requires careful planning and resilient business practices.
The Risk and Reward of Shark Tank Fame
There is no denying that Shark Tank has been a celebration of entrepreneurship with creative pitches and bold ideas. But the show has been an equally controversial topic due to the manner in which deals like ShowNo, PinBlock, and You Smell Soap materialized.
Such stories show that even though the reputed show does fulfill aspirations, it bears risks as well. For entrepreneurs, the lesson is clear: success on Shark Tank is only the beginning, and due diligence is everything.
References
- Deals we struck with ‘Shark Tank’ investor heroes fell apart off-air, New York Post, Michael Kaplan
