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Sale Of IMG Worldwide Could Seriously Shake Sports Business Balance Of Power

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Creative Artists Agency and Lagardere are rumored to be interested in purchasing IMG Worldwide.

The sports business world may soon be heavily shaken.  Last week, I reported that Creative Artists Agency (CAA) created a new venture capital fund and is seeking $20 million in funding.  Meanwhile, another behemoth in the world of sports could possibly be changing hands.

Forstmann Little & Company, a private equity firm that specializes in leveraged buyouts, has decided to put IMG Worldwide up for sale.  IMG Worldwide has long been a global leader in sports, fashion and media, creating and managing events, organizations, celebrities and brands.  On the talent representation side of IMG Worldwide’s business, the company’s clients include Joe Mauer, Peyton and Eli Manning, and Lindsey Vonn.

IMG Worldwide, Inc. (formerly known as International Management Group) was founded by the late Mark McCormack in 1961.  Forstmann Little purchased IMG Worldwide for $750 million in 2004.   The company was advised by the law firm Jones Day in the transaction.  Now, IMG Worldwide is looking for an investment bank to assist in a potential sale of the company.

From Reuters:

The sale is expected to draw interest from big entertainment players ranging from Creative Artists Agency and William Morris to French media group Lagardere, according to the people familiar with the matter. Large private equity firms and billionaires are also expected to participate, the people said.

There have been rumors about a sale of IMG Worldwide since the passing of Ted Forstmann, former Chairman and CEO of IMG Worldwide, in November 2011.  In January 2012, I was told by multiple sources that Lagardère was looking at the possibility of purchasing the company following its acquisition of Gaylord Sports Management.  However, Jim Gallagher, IMG Worldwide’s Senior Vice President of Corporate Communications, had told Sports Agent Blog, “There aren’t ANY conversations going on with Lagardère, or any other company or individual for that matter, regarding a purchase of IMG.  There’s a good reason for that…IMG is NOT for sale.  We are focused on growing all of our businesses around the world.  We set a goal of EBITDA of $146 million for 2011 and while audited numbers won’t be available until March, we are confident that we delivered the $146 million.   Building on that credibility, we have budgeted $170 million for ’12 and $200 million for ’13.  At that time we have several options.”

After years of speculation, it appears that the company will finally be put on the market.  If a company like CAA or Lagardère decides to pony up the money to purchase IMG Worldwide, it would seriously shift the balance of power in the business of sports.

By Darren Heitner

Darren Adam Heitner, Esq., is a preeminent sports attorney and the founder of Heitner Legal, P.L.L.C., a Fort Lauderdale-based law firm specializing in sports law, contract negotiations, intellectual property, and arbitration. He earned his Juris Doctor from the University of Florida Levin College of Law in 2010 and a Bachelor of Arts in Political Science, magna cum laude, from the University of Florida in 2007, where he was named Valedictorian of the College of Liberal Arts and Sciences. Admitted to practice in the state bars of Florida, New York, and the District of Columbia, as well as multiple federal courts, Darren also serves as a certified arbitrator with the American Arbitration Association.

As an adjunct professor, Darren imparts his expertise through teaching Sports Law at the University of Florida Levin College of Law and Name, Image, and Likeness (NIL) at the University of Miami School of Law in the Entertainment, Arts, and Sports Law LL.M. program. His scholarly contributions include authoring several books published by the American Bar Association, such as How to Play the Game: What Every Sports Attorney Needs to Know, and numerous articles in prominent publications like Forbes, Inc. Magazine, and Above the Law. His thought leadership in NIL has earned him recognition as one of the foremost experts by The Wall Street Journal, USA TODAY, and On3, and he has been lauded as a “power player in NIL deals” by Action Network and a “top sports trademark attorney” by Sportico.

Darren’s passion for sports law led him to establish Sports Agent Blog on December 31, 2005, initially titled “I Want To Be A Sports Agent.” The platform, created as a New Year’s resolution, has grown into a cornerstone of the sports agency community, offering in-depth analysis of industry trends, legal disputes, and agent-player dynamics. His commitment to the field is further evidenced by his representation of numerous athletes and sports agents, as well as his prior role as an Adjunct Professor at Indiana University Bloomington, where he developed and taught a course on Sport Agency Management from 2011 to 2014.

Darren’s contributions have been recognized with prestigious honors, including the University of Florida’s 40 Under 40 Award, the University of Florida Levin College of Law’s Outstanding Young Alumnus Award, and designation as the best lawyer in Fort Lauderdale by Fort Lauderdale Magazine. He remains an active voice in the sports law community, sharing insights through his weekly NIL newsletter and his X posts, engaging a broad audience on legal developments in sports.