The week ends with lots of uncertainty in the sports business.
CAA is nearing an industry-rocking equity deal during a turbulent time for agencies in general. Division reigns at “the summer camp for billionaires” about sovereign investment in sports. The IOC hasn’t determined whether its no-invite to Russia and Belarus will apply to individual athletes.
And virtual reality, whose hype to date has far outpaced its actual reality, gets fresh support.
Sovereign wealth funds were a major topic at the annual “summer camp for billionaires” wrapping up in Idaho on Friday.
Sports are always a big subject at the Allen & Co. Sun Valley Conference, which brings together the world’s top business executives and power brokers — and this year, respective NFL and MLS commissioners Roger Goodell and Don Garber pulled back the curtain on their leagues’ attitudes toward foreign investment.
Garber confirmed that MLS is open to sovereign money investing in franchises. “The NHL and NBA have looked at having sovereign funds and pension funds,” Garber said. “MLS (is) looking at the same thing. Very timely news. We’ll likely discuss that at our board meeting in D.C. next week at our All-Star Game.”
The NFL, on the other hand, isn’t as amenable — at least not yet. “We haven’t made the move as other leagues have to have any kind of public investment,” Goodell said. “It’s something we’ll contemplate at some point in time, but we really like our basic model now, where we have private ownership.”
Both comments are perhaps unsurprising. Although Garber said MLS hasn’t had discussions with wealth funds, the league’s unique ownership structure makes it much easier for foreign investment. Several MLS owners also own NBA or NHL teams — which appear to have no issue with Washington Capitals and Wizards owner Monumental Sports & Entertainment recently selling a stake to Qatar.
Even more MLS owners are also NFL owners, making their evolving views on sovereign money in soccer a strong indicator of where the NFL could ultimately be headed.
Robert Hanashiro-USA TODAY NETWORK
One of the biggest agencies in sports and entertainment could be sold — at a time of unprecedented turbulence for the agency business.
French billionaire Francois-Henri Pinault, husband of Hollywood star Salma Hayek, is nearing a deal to buy a majority stake of Creative Artists Agency valuing the company at more than $7 billion, Front Office Sports confirmed.
An agreement for the Hollywood powerhouse, at least two months away from completion, could still collapse in a situation complicated by Friday’s news that the actors’ union, SAG-AFTRA, joined already-striking writers on the picket line — effectively shutting down nearly all film and television production in the industry’s first tandem strike since 1960.
The agency oversees nearly $18 billion in sports contracts and represents stars such as MLB two-way phenom Shohei Ohtani at a time when sports representation continues to see cutthroat competition for clients, pressure on commissions, consolidation, and rookie-scale contracts and draft slotting — all of which threaten to limit agencies’ ability to negotiate deals.
CAA is majority-owned by Texas-based private equity firm TPG, but the finances of key CAA rival Endeavor, a public company and parent of WME and IMG, offer a window into the ongoing stresses of the agency business. Revenue in Endeavor’s representation segment fell in each of the last three quarters, fueled in part by the 2022 majority sale of the Endeavor Content studio.
Some top CAA execs are interested in extricating themselves from underneath TPG, sources said.
CAA and TPG haven’t commented on the reported sale discussions.
Jerry Lai-USA TODAY Sports
Russia and Belarus will not be invited to compete at next summer’s Paris Olympics due to their ongoing war against Ukraine.
On July 26 — one year out from the start of the 2024 Games — the International Olympic Committee will send out formal invitations to the 203 eligible National Olympic Committees. Russia, Belarus, and Guatemala — the latter suspended since September 2022 due to government interference — will not be among the invitees.
Olympians from Russia and Belarus could still be able to compete in Paris, but only as individual, neutral athletes. The IOC reiterated that it will decide whether these athletes can compete in Paris at a later date.
The previous two Olympics in Beijing and Tokyo forced Russian athletes to compete under the “Russian Olympic Committee (ROC)” banner due to the country’s doping scandal. In Tokyo — the most recent summer games — ROC athletes won 71 medals, the third-most behind the USA and China. Belarus brought home seven medals.
Paris Problems And Peacock
The upcoming Games have made several headlines lately, with developments including a police raid of the Paris 2024 headquarters, the organizing committee’s robust plans for fan events, and Peacock deciding to stream every Olympic event live in the U.S.
Apple isn’t wasting words with its new billboard welcoming Lionel Messi to Miami.
WHOOP has opened its new headquarters in Boston’s Kenmore Square. The 121,000- square-foot, eight-floor space, which neighbors Fenway Park, features a rooftop cafe, private meditation space, state-of-the-art lab, and apparel design studio.
Drake invited Kentucky basketball to practice in his custom, $100 million Toronto home gym — a.k.a., “The Sanctuary.”
Both executives envision Apple’s headset impacting sports viewing.
FIFA’s first year selling Women’s World Cup broadcast rights was a letdown.
