One of the most important funding banks within the nation is moving into the expertise company enterprise.
Goldman Sachs on Tuesday introduced a deal that can see it purchase a majority stake in Excel Sports Management, the company that represents shoppers like Tiger Woods, Caitlin Clark, Derek Jeter and Nikola Djokic.
Front Office Sports reported that the deal values Excel at practically $1 billion.
The deal was made by Private Equity at Goldman Sachs Alternatives, which capabilities as a non-public fairness agency inside the funding financial institution, investing in and buying firms in sure areas. Goldman, it must be famous, has been lively within the sports activities area, as an advisor to house owners, founders and leagues. It launched a devoted sports activities advisory enterprise in 2023.
“We have been impressed with Excel’s position at the heart of the fast-growing sports ecosystem and believe in their sustained, long-term success,” stated Leonard Seevers, associate in non-public fairness at Goldman Sachs Alternatives. “Excel capitalizes on the combination of deep consumer loyalty to sports franchises, premier brands, and continued innovation in fan engagement, and we are excited to partner with Jeff and the rest of the Excel team to unlock new possibilities across the broader industry. We are confident that we can deliver our One Goldman Sachs approach to be a value-add partner in Excel’s next chapter of growth ambitions, leveraging our expertise as a global investment bank, premier wealth manager and one of the world’s largest investment managers.”
“Goldman Sachs is an exceptional partner for Excel Sports Management as we advance into our next stage of growth,” added Jeff Schwartz, founder and CEO of Excel Sports Management. “Our organizations share a mutual commitment to excellence and integrity, and both define success by the success of our clients. Goldman’s access, expertise, and extensive resources will provide a powerful platform to accelerate Excel’s expansion and enhance the value we deliver to our clients worldwide.”
While the deal will get Goldman into the company enterprise, there’s no signal that it’s concerned with conventional leisure agenting. Sports has change into an enormous enterprise, and the demand for funding within the sports activities ecosystem is very robust, so a sports-focused company can plug into that bigger technique.
Sports has change into huge enterprise for conventional companies too, with CAA, UTA and WME all having giant sports activities advisory companies. WME has needed to divest its soccer and basketball illustration companies to keep away from battle of curiosity guidelines with these leagues, however continues to be a serious participant in different sports activities.
Shamrock Capital, the non-public fairness agency that’s lively within the media, leisure and sports activities area, will exit as an investor in Excel as a part of the deal.
Moelis & Company served as unique monetary advisor and Katten Muchin Rosenman LLP served as authorized advisor to Excel on the transaction. Goldman Sachs & Co. LLC served as unique monetary advisor and Latham & Watkins LLP served as authorized counsel to Goldman Sachs. LionTree Advisors served as monetary advisor to Shamrock Capital on the transaction.