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FALK FUSING SPORTS & ENTERTAINMENT THROUGH SFX DEAL
Published May 6, 1998
The sum of the sale of David Falk's FAME to SFX on Monday could exceed $150M in cash and stock, according to Richard Sandomir of the N.Y. TIMES. SFX is paying $82.9M in cash, one million shares of stock (worth $38.75M at yesterday's close) and $15M over five years in "incentive payments" if FAME's cash flow hits certain levels. Other incentives could push the total over $150M. Advantage Int'l Chair Lee Fentress: "Now it'll be interesting to see who retires first, David or Michael [Jordan]." Sandomir reports that Falk will bring his "connections" to companies like Nike, Warner Bros. and WorldCom to SFX. Falk: "We can offer our young superstars like Keith Van Horn and Antoine Walker a way to build businesses without going outside to do it, and it gives us a way to buy companies that we didn't have before." Agent Leigh Steinberg said SFX's acquisition of FAME "highlights the synergy between Big Entertainment and Big Sports, to the extent that sports have become content and programming in a much larger world." Sandomir notes SFX's "next step" could be the acquisition of The Marquee Group (TMG), and writes that Falk "comes into SFX with stronger assets than anyone" at TMG, adding that Falk "could supplant" TMG President Bob Gutkowski "as the dominant executive under the SFX sports banner." Falk could also wind up "supervising" ProServ and his former boss Donald Dell. TMG acquired ProServ last year (N.Y. TIMES, 5/6).