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Big 5 shareholder nominates three director candidates


New Canaan, Conn. - Stadium Capital Management LLC and its affiliates have notified Big 5 Sporting Goods Corp. that Stadium Capital will nominate three independent candidates to the board of directors of Big 5 at the 2015 annual meeting, expected to be held in June 2015. The nominees are Dominic P. DeMarco, a managing director and co-chief investment officer of SCM and an existing member of the board; Nicholas Donatiello Jr., a consumer, media and technology strategist; and Michael J. McConnell, an investor and former CEO of consumer-facing businesses with restructuring expertise.

With beneficial ownership of more than 11% of Big 5, SCM is the company's largest stockholder and has been an investor in Big 5 for nearly a decade.

Speaking for SCM's Investment Committee, Mr. DeMarco said: "It has become clear to us that the board of directors lacks a sufficient sense of urgency and the fresh perspectives necessary to unlock Big 5's full potential,” said DeMarco. “Over the past one, five and 10 years, Big 5 has underperformed its peer group, the S&P 600 Retailing Index and the Russell 2000 by a staggering amount. This level of underperformance is unacceptable, and we are confident that our fellow stockholders will agree that substantial change on the Board is needed."

Also today SCM delivered a letter to Steven G. Miller, Big 5's chairman, president and CEO, regarding SCM's continuing concerns with the company's governance practices.

Concerns include what SCM calls conflicts of interest and limited share ownership among existing board members, coupled with poor governance practices, producing “subpar operating performance and unacceptable stockholder returns.”

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