IMG Chair Mark McCormack "lashed out at rival SFX
Entertainment" during an interview last week "aimed at
unveiling the future of his company," according to Liz
Mullen of the SPORTSBUSINESS JOURNAL. McCormack said that
SFX "spends too much on acquisitions and may likely be
broken up and sold off in the next several years."
McCormack: "In the sports area, they have overpaid for
everything they have bought. ... To me, SFX is a stock play,
a securities play. ... I don't understand this whole stock
play of hyping the stock, which seems to me to be the
biggest motivation they have." McCormack added that he is
"positive" SFX Chair Robert Sillerman "has an exit strategy
to sell the company, either as a whole or in pieces."
McCormack: "There would be no other reason he would pay what
he is paying for [acquisitions], in my opinion." SFX Sports
Group President Bill Allard "characterized McCormack's
comments as little more than sour grapes." Allard: "In the
past, IMG has been criticized by jealous competitors. It is
unfortunate to see that they are now reverting to similar
tactics as they recognize there is a new market leader."
McCormack believes that "many of the top executives of the
firms SFX has acquired will leave in several years."
McCormack feels those execs "were paid with stock up front
but are now receiving stock and smaller salaries than the
big salaries they received as independents." McCormack: "I
would suspect when the initial contracts of some of these
people at SFX have expired, they will be going independent
again." For more of the McCormack interview, see this
week's issue of the SPORTSBUSINESS JOURNAL (2/14 issue).
