Canada-based Assante Corp. formally announced its
acquisition of the CA-based firm Steinberg Moorad & Dunn
(see THE DAILY, 5/10). As part of the deal, Leigh Steinberg
will become CEO of Assante Sports Management Group, in
addition to keeping his responsibilities with Steinberg
Moorad & Dunn. Jeffrey Moorad will assume the position of
Assante Sports Management Managing Dir. There will be no
change in the day-to-day operations of Steinberg Moorad &
Dunn (Assante). In N.Y., Richard Sandomir reports that the
deal is for $120M "in cash and stock options." Assante
President Martin Weinberg, on placing a value on the agency:
"It has a lot of multiyear contracts that can be counted
on." Steinberg, on entertainment opportunities for
athletes: "The whole concept is that athletes are more than
someone to negotiate for." Sandomir reports that Steinberg
also "spoke to" SFX Entertainment (N.Y. TIMES, 10/28). Also
in N.Y., Sam Walker writes that the deal gives Assante
access to Steinberg's 130 clients. Steinberg and partners
will receive $35M in stock, $35M in cash, and "as much as"
$40M in additional stock if the firm "meets certain revenue
goals over the next five years." The firm could also earn
an additional $10M in cash, based on its performance. It
"could prove to be the largest sum ever paid for an
independent sports agency" (WALL STREET JOURNAL, 10/28).
IN THE WORKS: On CNN's "Moneyline," Steinberg discussed
new ventures as a result of the deal: "We've got plans for
new television shows, for events, for Internet programming.
The old concept of athletes as simply being available for
live gates and some national television is a very narrow
view. What we're seeing is an expansion of that view."
Weinberg: "The main reason we're buying a sports management
company is because we believe that their clients are
significantly underserviced" ("Moneyline," CNN, 10/27).
Steinberg said "nine or 10 more sports agencies" will be
included in the merger, making the total merger worth about
$250M. Agent Eugene Parker is "under negotiations to join"
the group (USA TODAY, 10/28). Steinberg, on Assante
offering financial management services to his clients: "It's
something we've always farmed out in the past. I've talked
with Warren [Moon], Drew [Bledsoe], Steve [Young] and Troy
[Aikman], and they're excited about this, about it opening
new doors for them" (L.A. TIMES, 10/28). In S.F., David
Lazarus writes that in "deciding to branch out," Assante
"looked at more than a dozen agencies before settling on"
Steinberg Moorad & Dunn. Assante's "newly created
subsidiary for athletes" will be based in both Berkeley and
Newport Beach, CA, and "will absorb all of Steinberg's 30
employees and existing operations" (S.F. CHRONICLE, 10/28).
WHAT IT MEANS TO ASSANTE: CBS SportsLine's Len
Pasquarelli writes that sources from Assante "conceded [last
night] that the goal" of the merger is "to immediately raise
the level of competition with" SFX Entertainment. Several
other U.S. firms, "most notably" Conseco, also "hope to soon
enter" athlete representation. One agent, "who has
negotiated with Assante," said that he is in "active talks"
with Conseco (CBS SportsLine, 10/28). Weinberg said that
Steinberg's firm will "immediately contribute" 10-20% of
Assante's total cash flow (FINANCIAL POST, 10/28). Weinberg
added that his company "wants to eventually bring sports
managing to about" 35% of its business. Earlier this year,
Assante bought NKS Management, which offers wealth
management for athletes and entertainers, and Philpott,
Bills & Stolls, a business manager with clients such as
Michael J. Fox and David Hasselhoff (BLOOMBERG, 10/27).
