Shark Tank Had A Ridiculous Rule For Contestants That Almost Caused Mark Cuban To Walk Off The Show

Summary

• Mark Cuban played a crucial role in changing unfair rules on Shark Tank, making it a better environment for entrepreneurs.
• Cuban pushed for the removal of a clause taking equity from contestants, ensuring fair opportunities on the show.
• Despite his impending departure, Cuban's impact on Shark Tank and its contestants will be long-lasting and significant.

Shark Tank would not be the same without Mark Cuban. He tells it like it is, and fans have seen the shark furious in the past during intense pitches. Sadly, Cuban's time on the show is running out, with a departure set for the end of next season.

Cuban will be missed for several reasons. He played a crucial role in changing the ABC hit show behind the scenes. Shark Tank had an outdated rule in season 1 that was downright unfair. Credit to Cuban for stepping in, and leaving ABC with no choice but to change the rule.

It created a better environment, while superior companies were able to appear on the show. Let's take a closer look at the change, and what else the billionaire did behind the scenes.

Mark Cuban Did Not Agree With The Season 1 Shark Tank Rules Of Entrepreneurs Giving Up Equity To Be On The Show

Over a decade ago, in 2013, it was reported that Mark Cuban left Shark Tank with quite the ultimatum. Credit to Cuban for the moment, who wanted to see contract changes on the show. Cuban threatened not to return if a certain equity clause wasn't removed from contestants.

During season 1, Shark Tank's production company Finnmax was taking either 2% of profits from entrepreneurs, or a 5% equity, all for just coming on the show... Everyone had to sign the deal before agreeing to appear. It was later revealed on Facebook that Mark Cuban was the advocate behind finally removing the rule.

"FYI, there is no additional equity or percentage of anything taken any longer. That was removed retroactively. I told them I wouldn't come back this season if it wasn't."

Cuban also stated that this type of clause was going to limit which companies decided to appear on the show. In the end, the billionaire shark knows how crucial it is for an entrepreneur to give out equity, or any type of additional percentage.

Mark adds, "FYI, there is no additional equity or percentage of anything taken any longer. That was removed retroactively," he told a group of former contestants. "I told them I wouldn't come back this season if it wasn't."

"And if your investor is promising expertise and help the way the sharks do, make sure they spell out precisely what they mean before you sign."

Cuban's contributions were certainly noteworthy and, arguably, he saved the show and a lot of money for future contestants that appeared on Shark Tank.

Mark Cuban's net worth has grown to $5.4 billion in 2024.

Mark Cuban Was Insulted By ABC's Initial Offer To Get Him On The Show

Not only did Mark Cuban threaten to leave, but according to a Sony hack the leaked his emails, Cuban was angry over ABC's offer to appear on Shark Tank. Given his popularity and expertise, Cuban felt as though he'd be compensated as such. However, $30,000 per episode, and a couple of thousands extra for the following seasons did not sit well with the billionaire.

Not only was the salary low, but it came with other clauses Cuban wanted no part of.

He wrote in the email, "Seriously? No chance... this is beyond an insult and it shows no one cares about the investments I have made or the entrepreneurs now it's really business. I will negotiate like any other deal I would do you may want to start cutting me out of the promos."

Since the controversy took place, reported numbers on Cuban's actual salary haven't been made public. We assume the billionaire saw a steady rise along the way. Sadly for Shark Tank fans, Mark also revealed that his time on the show is slowly but surely coming to an end, with the next season his last.

"[Shark Tank] shoots in the summer and I want to spend that time with family before my kids are off on their own," he admitted. "Money obviously is important, and money can buy you time. But the asset I've valued the highest is time."

Credit to Cuban who is leaving on his own terms. This is quite the loss for entrepreneurs, and Shark Tank in general.

Getting Mark Cuban As An Investor Isn't Always Ideal, According To A Fomer Shark Tank Entrepreneur

We've seen this scenario play out on Shark Tank several times before. The entrepreneurs are hoping to get a deal from Mark Cuban, more than anyone else. However, past contestants admitted that partnering with Cuban isn't always what's best, especially given his packed schedule.

ToyGaroo was once an idea that had the potential of making billions. However, the company folded, and an employee for the company put the blame on both Kevin O'Leary and Mark Cuban.

According to Phil Smy, the company's web designer, there was little interaction with Cuban from the start.

"We had little to no interaction with Cuban himself, but he did assign an assistant to monitor us. They claimed that the Toygaroo team was infighting, but the truth is we were battling with them. We knew that the model was wrong - we offered free shipping and because toys were so variable in shape and size that was the wrong thing to do."

"My recollection is that we wanted to move away from the ‘free shipping’ model but Cuban’s team was adamant that was a USP for us and also ‘part of what they signed up for.'"

As for Kevin O'Leary, Smy took exception to his connections in the toy world. He felt as though O'Leary had more partnerships behind the scenes, but that wasn't the case.