IMG Bounces Back From Debt Levels Since McCormack's Death

IMG was "stretched and struggling under debt that some put as high as $200[M]" when Founder MARK MCCORMACK passed away about a year ago, but has since "taken steps to clean up the mess," according to BUSINESSWEEK's Diane Brady. While sales and billings are down from about $1.3B to $1B, profits are up after IMG consolidated business units from 20 to nine, "closed money-losing locations, and laid off 400 people in the past year to bring the staff to roughly 2,200." IMG co-CEO BOB KAIN said that the debt "was never close" to $200M and is "below half that now." Kain: "Nothing apocalyptic happened except that Mark died." Brady adds that Kain and co-CEO ALASTAIR JOHNSTON are "more obsessed with bottom-line results" because IMG "needs to show cash flow" while Rothschild North America Vice Chair ROGER KIMMEL seeks potential investors. IMG execs "want in" on the investment opportunities. Among the options: find a partner that is already public or one that can afford to buy out the McCormack family's stake and "as earnings grow, shift more equity to executives." Kain said an IPO is possible, but "something we wouldn't consider for three (to) five years" (BUSINESSWEEK, 7/12 issue).

Manning Brothers Among The Athletes On IMG's Roster

MORE THAN A PASSING INTEREST: In a Q&A with Colts QB and IMG client PEYTON MANNING, Brady asks how important the firm is to his financial success. Manning: "I got the largest rookie contract ever. Then I got the largest NFL contract ever. [IMG Football President] TOM CONDON is the only guy who could have gotten that done." Manning, on why he signed with IMG: "The entire company is what attracted me. ... They were the only ones who could do player representation, marketing and [give] financial advice." Manning added if Condon, IMG Senior Corporate VP PETER JOHNSON and IMG Financial Dir of Team Sports JOHN PALGUTA were to leave, "it would be awfully difficult for me to stay" (BUSINESSWEEK.com, 7/6).

FIRST & FOREMOST: ARNOLD PALMER, who was McCormack's first client and remains with IMG today, said, "I suppose that sports marketing was more generalized when I started out. You had a lot of different clients. Now, it's very specific, and the players know those people — those clients — extremely well. We knew them, but there were more of them. They still go out on the golf course, but they do it a little differently. Actually, when I think about it, it hasn't changed that much" (BUSINESSWEEK.com, 7/6).