The heavily tattooed, bandana-wearing CEO fits right in at TapouT, a 140-employee clothing company in Grand Terrace, Calif. thatprovides athletes as well assupporters of mixed martial arts, a combat sport known for its violence.

Besides the name, exactly what makes Punkass and his co-founders uniqueis definitely thecommitmentthey provided more than a decade ago to a sport which was then virtually unknown. They took a gambleon the market that rarely existed.

The risk? In the event the market didn’timprove, TapouT might havenowhere to go. The reward? When the market exploded, they would be the first ones in.

Back in 1997, TapouT’s three co-founders — Dan “Punkass” Caldwell, Charles “Mask” Lewis and Tim “Skyskrape” Katz — didn’t have college degrees and little money. Howeverall three had been learning mixed martial arts and were passionate fans of the sport. They were certain that someday; the sport will beacknowledged — even appreciated — by the mainstream viewers.

Therefore they took the kind of stepthat would make little sense to anybodybut their fellow true followers: They maxed out their credit cardsto starta small operation selling t-shirts at underground mixed martial arts competitions.

Back then, mixed martial art was still a fledgling movement, well under the radar of other clothing companies. Nowadays, it’s almost as main stream as boxing — and TapouT’s block-letter logo is becoming synonymous with the game.

The company sponsors well-known fighters such as Vladimir “The Janitor” Matyushenko and Thiago “Pitbull” Alves. (Together with tattoos and bulging biceps, nicknames certainly are a must-have for professionals of mixed martial arts). TapouT additionally sells clothing, mouth guards, nutritional supplements and otherlabeled goods online and at retail chains including Macy’s and Champs Sports.

All those t-shirts and nutritional vitaminsincreasequickly. Last year, TapouT raked in $200 million in yearlyearnings — more than 16 times its $12 million revenue in 2006.

Just how does TapouT maintain the mixed martial arts market in a headlock? Clients say it is the early relationship the company established with both fighters and followers.

“They’ve been right in the mix from the beginning,” says Andrew Lang, co-owner of Lightning MMA, a mixed martial arts gym in Laguna Hills, Calif. “Those three guys were at the events — they have this presence, this rapport with the fighters.”

Within the late ’90s, TapouT sponsored fledgling fighters for $300 a pop. These days, sponsorships cost anywhere from $3,000 to $1 million.

“We have a full team dealing with our fighters and their managers 24/7,” says Punkass. “We’re concerned about their personal lives, also. How’s their newborn baby? How do they feel after a fight?”

The goal is to get fighters to wear TapouT gear in and out of the ring. That, in return, has given the company mass attraction among followers — that comeprimarily from the sought-after 18- to 34-year-old male group.

“I do not know who’s more fanatic, mixed martial arts people or maybe NASCAR people,” says Marshal Cohen, chief industry analyst at the NPD Group, a market research firm. “But in both case, when you’re that fanatical there’s ahuge allegiance to a brand, and it’s all about the lifestyle. It’s much like a club.”

To make sure that club grows; Punkass, Mask and Skyskrape brought a seasoned entrepreneur, Marc Kreiner, on board in 2006. Kreiner got a varied background — he established disco bands in the ’70s plus more recently started an infomercial company — but he helped take TapouT products about 20,000 shopsworldwide. He also inked a number of licensing agreements, together with a line of TapouT-branded nutritional supplements with Champion Nutrition.

“We are licensing a nutrition line, energy drinks and TapouT gyms,” says Kreiner Marc, now the president and chairman of TapouT. “The motto is ‘Grow big or go home.’”

But TapouT’s development had its low ebbs. In 2009, co-founder Mask — known for his bigpersonality and signature face paint — died in a caraccident. Kreiner, Punkass and Skrape were leveled by the loss of their friend and also colleague. Plenty of TapouT employees got commemorative tattoos in Mask’s honor using the word “believe.”

Punkass says that Mask’s death has become the company’s biggest challenge to date. Yet TapouT has other, less tragic troubles. While mixed martial arts has toned down the violence a little in recent years — the policies, for example, do notpermit biting and eye-gouging — some lingering controversy regarding the sport’s roughness could limit the development of its fan base, which is TapouT’s primary audience.

Some smaller companies also havejoined in the mixed martial arts apparelcompany, including Dethrone Royalty Clothing and also Hitman Fight Gear. But when it comes to the competition, TapouT’s primary threat is a lot bigger players, such as Nike and Adidas.

So could TapouT become the next sports apparel giant, similar to Under Armour?

It really is unlikely, suggests Cohen, the NPD Group analyst. But for the moment, at least, the companydoesn’t have significant opponentsvyingfor a share of the same market, he notes. And there’sroom enoughto grow: The whole sports apparel market rakes in $12 billion annually in the United States only.

As TapouT gives its name to a growing number of products, the businessoperatesthe risk of diluting its brand and losing “street cred” having its loyal group of followers. Yet Punkass isn’t worried about that.

“I do not see ourselves making TapouT Ken and Barbie items anytime soon,” he says. “We won’t create a product unless it connects to our core audience. We stay true to the brand.”

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