With 2013
slowly winding down, the big story has been the much talked about sale of IMG
Worldwide’s sports and entertainment management agency by private-equity owner
Forstmann Little. IMG Worldwide, which was founded in
Cleveland, is expected to sell for nearly $2
billion. IMG pioneered the marketing of primarily individual sport
athletes, which consists of megastars like Tiger Wood, Peyton Manning, Novak Djokovic,
and Maria Sharapova. IMG was on the forefront of shaping the professional
sports and sports management industries since it was created from a handshake with
golf star Arnold Palmer. The sale of its athlete management business
doesn’t come by complete surprise as IMG has been moving away from representing
athletes in recent years, after the death of the
co-founder of Forstmann Little, Theodore Forstmann. Properties owned
by IMG Worldwide include IMG Academy,
IMG College,
IMG Consulting,
IMG Media,
IMG Fashion,
Sports,
and Talent.
Initial bids
were due by
mid-September. A potential deal is expected to be reached sometime before
Thanksgiving in 2013. IMG Worldwide may receive attention from
buyout firm Bain Capital,
private equity firm KKR & Co.
and entertainment companies Creative Artists
Agency and William Morris
Endeavor Entertainment. Numerous other private equity firms have
also expressed interest.
This sale will
involve a sizable portfolio of athletes in various sports including tennis,
golf, and football. While IMG’s list of athletes it represents has decreased in
recent years, it still represents megastars Roger Federer, Rafael Nadal, Cam
Newton and Sprint Cup driver Danica Patrick. The buyer should still retain a
significant level of influence in the sports industry. A buyer such as Creative
Artists Agency will likely form a monopoly of the athlete management industry
since it already dominates the industry. Entering the holiday season, IMG will
likely accept and complete a deal. The story is likely to become one of the
biggest sports business stories of 2013 and will likely outshine the sports
agency news with rapper Jay-Z and the formation of Roc
Nation.
