Mellody's Math: Cheerleading Ca-Ching

June 7 -- If you think of cheerleading as young girls with pom-poms, consider this: more than 15 million people turned to ESPN last year to watch cheerleading competitions, and towns across America are reaping millions for hosting the events.

Cheerleading is now an industry as much as an activity. With girls starting at younger ages and more boys signing up every year, cheerleaders have become less about the sideline, and more about the bottom line.

Varsity Brands, the only publicly traded company in the cheerleading industry, is cashing in on the trend, doing everything from running cheerleading camps and major competitions to selling uniforms and gear.

"We've got great growth in front of us," says Jeff Webb, CEO of Varsity Brands. "The market's growing, we're growing, and we're doing a lot better job of leveraging our overhead. I think the sky's the limit."

With its stock on the rise, the Memphis-based company has cornered most of the cheerleading market. Varsity — by far the largest of the more than 50 companies specializing in cheerleader apparel and merchandise — had revenues of close to $150 million in 2001.

With an estimated 1.5 million cheerleaders in the United States, spending an average of $700 each per year (with non-cheerleading industry expenses included), the industry known for pom-poms and polyester could reach close to $750 million, Webb says.

Pom-Poms and Dollar Signs

In order to participate in most competitions, cheerleaders must attend camp, the centerpiece of cheerleading economics.

They range from instructional day camps to residential overnight camps housed on college campuses across the country. The cheerleaders almost always attend the camps as an entire team, often traveling hours by caravan across state lines to learn the newest cheers and routines.

In a recent visit to the University of Alabama cheerleading camp, there were 1,200 participants attending. All told, 270,000 will attend cheerleading camps this summer.