Sports Business Daily asked some of the biggest names in the sports and marketing industries, including Momentum CEO Chris Weil, their thoughts about the announced news that William Morris Endeavor is purchasing rival talent agency IMG.
“It’s an aggressive price at almost 14X. That’s a big number. … There’s massive cultural differences between the two companies. One of their biggest challenges will be that cultural challenge. The part that is the same is that they (sports and entertainment) are very much transaction-based businesses. The thing that’s interesting is that William Morris had a very specific culture — then Endeavor came on and they are just getting to a common culture. So to add another one in — I’m not saying they can’t do it, (but) it’s going to be a big challenge.
“The sports culture is a little more relationship-based and not quite as cut throat as the Hollywood culture.
“I am thinking there are a few reasons behind this. One is that the Hollywood business is shrinking. The other is that CAA made the move there, and they have more than 1,000 athletes at CAA now. … Sports is still a growth industry, whereas, as you see from every media rights deal, Hollywood is not right now.
“Sports has already been consolidated with public money on the brand side of the business, the media side of the business and the media buying side of the business. Now you see private equity consolidating a huge portion of the content creation and talent side of the business.”
— Chris Weil, chairman and CEO at Momentum