Biggest Story of 2013: IMG for Sale

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.