George Pyne proclaimed that Bruin Sports Capital “is open for business” this morning with an initial investment of $250M, mostly from WPP. The equity secured, plus Bruin’s ability to borrow at least $250M more, gives Pyne’s firm a minimum of $500M in buying power. Bruin intends to acquire, build and operate businesses with a focus on sports and entertainment, media, marketing and branded lifestyle. Bruin hired Allen & Co., a N.Y.-based investment bank, in June to assist in raising funds for the venture, and the first round of investments were secured within the last six months. “To be able to do that gives us great confidence in our future prospects,” Pyne said this morning. The U.K.-based WPP, whose businesses largely include marketing, advertising and PR firms, represents the lead investor within a syndicate that put forth the $250M. Pyne, the former IMG Sports & Entertainment President, will build Bruin both organically and through acquisitions, which could include sports marketing agencies, events, franchises, leagues and federations. Traditionally, Pyne has not been interested in talent representation agencies. Bruin will not set out to buy companies and flip them for a profit. Rather, Pyne’s goal is to take a “long-term approach to building a business,” he said. “We want to develop a platform that will endure for the next 10-to-15 years, and hopefully much longer.” As Bruin pursues sports acquisitions, its long-term approach will serve “as an important point of differentiation,” he said. Pyne added that Bruin will be based on “identifying unique opportunities, attracting world-class management teams, establishing a culture of innovation and creating real value." Pyne: "The key points of differentiation that will define Bruin Sports Capital include its unparalleled access to the best deals; long-term, flexible capital; extensive operating expertise; strategic capital in WPP and other investors; and finally, our speed of execution.”
WPP LOOKING TO GIVE CLIENTS MORE OPPORTUNITIES: WPP was interested in IMG when it was for sale in '13, but Founder & CEO Martin Sorrell called it too expensive at the time. Among WPP’s many businesses across 110 countries are Kantar Media, GroupM Entertainment, Ogilvy and Chime Communications, which bought motorsports agency JMI in '13. “Martin is a builder of businesses on a global basis and to have him as the lead investor provides opportunities for Bruin that we wouldn’t otherwise have had,” Pyne said. Part of WPP’s reasoning for the investment is to provide its global client base with sports media and sponsorship opportunities through Bruin. Sorrell said, “WPP’s investment in sports and sports content through Bruin Sports Capital is an important part of its strategy, as it impacts new markets, new media, data investment management and the application of technology and horizontality.” Pyne, who spent 11 years at NASCAR before joining IMG in '06, has begun to assemble a staff of eight to 10 investment and management professionals for Bruin. The firm has not made any announcements about its staff or its board and Pyne would not comment on personnel, but IMG said last month that Tony Crispino had left the company to join Pyne’s new venture. Bruin has not made an official announcement about Crispino or his position yet, but he previously oversaw finances for IMG College and other divisions.
