Paragon Sports Constructors Transitions to 100% Employee Ownership in Texas

Paragon Sports Constructors, a Fort Worth-based company, has transitioned to a 100% employee-owned model through an Employee Stock Ownership Plan (ESOP). Originally founded in 1985 as a family-owned paving company focused on building and surfacing running tracks, Paragon has significantly expanded its scope to include the construction and maintenance of a wide variety of athletic facilities, such as synthetic turf fields, natural grass fields, courts, and full stadium projects.

In 2009, William Chaffe became President and Chief Operating Officer after a group of partners took over the company, which then had annual sales of about $9 million. Under his leadership, sales have soared to over $120 million. Chaffe has underscored the company's commitment to quality over quantity, stating, "We didn't want to be the biggest. We wanted to be the best."

As private equity firms and strategic buyers have looked to consolidate within the construction industry, Paragon's leaders decided against selling the business. They recognized the significant value of their longstanding employees who have cultivated expertise and strong customer relationships over the years. Instead, they opted to create a structure where employees could share in the ownership and success of the company.

Employees at Paragon now have the chance to acquire a financial stake in the business as part of their retirement plan without needing to buy shares outright. Chaffe emphasized that the ownership extends beyond executives, stating, "It’s not just leadership that owns the company. Every single person on the job site has a stake."

When the employee ownership news was announced, it elicited a strong emotional response, with one longtime employee likening the ESOP benefits to having a second retirement plan.

To facilitate this transition, Paragon partnered with J.P. Morgan's ESOP Advisory team. Doug Dell, a commercial banker at J.P. Morgan, highlighted the company's vision to maintain its culture, preserve independence, and reward employees who contributed to its success.

As Fort Worth continues to grow, Phillip Wiginton, North Texas Market Executive for J.P. Morgan, noted that some companies prioritize retaining talent and institutional knowledge over mere size.

After six months of employee ownership, operational life at Paragon remains unchanged, with the same management team and ongoing projects. However, employees are set to receive their first statements reflecting the value of their ESOP shares this fall. The company is also implementing educational initiatives to help employees understand the implications of ownership and financial literacy.

Chaffe articulated a vision for the company’s future, expressing pride in the legacy being created: "Paragon wouldn’t be the company it is today without the people who have helped build it. Now our employees have the opportunity to share in where it goes next."