Mark Cuban has done something more wonderful than Kevin “Mr. Wonderful” O’Leary for “Shark Tank” contestants. Cuban told Shar Tank’s lawyers to remove the equity clause or he was not going to come back. The equity clause required contestants to give Shark Tank’s production company Finnmax 2% of their profits or 5% equity in the company. The contestants had to give equity regardless of whether a deal was struck with investors or not. All of the contestants since Season One had to abide by these rules.
“FYI, there is no additional equity or percentage of anything taken any longer. That was removed retroactively,” said Cuban in a comment thread to a post from Robert Scoble. “I told them I wouldn’t come back this season if it wasn’t.”
Cuban also pointed out that if the clause remained in place, the quality of entrepreneurs and companies would decline. Many entrepreneurs have refused to go on Shark Tank because of this clause. Cuban also said that every contestant that has appeared on Shark Tank since Season One will be relieved of the commitment.