April 2, 2024

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Endeavor at last makes a long-expected deal with key investor and private equity giant Silver Lake to become a private company once again. … Larry Lucchino dies at the age of 78, leaving a legacy as one of baseball’s most influential executives. … Jessica Pegula, currently the world’s No. 5 women’s tennis player, is intrigued by the possibility of an ATP-WTA merger. … Plus: More on Warren Sapp, Arctos Sports Partners, the Arizona Cardinals, and Dutch soccer club Ajax.

— Eric Fisher [[link removed]] and David Rumsey [[link removed]]

Silver Lake to Take Endeavor Private, Ending Tough Stock Market Run [[link removed]]

Jessica Alcheh-USA TODAY NETWORK

Endeavor, the majority owner of TKO Group Holdings and the parent of assets such as IMG, WME, On Location, and Professional Bull Riders (above), will again become a private entity, ending an often-frustrating run of nearly three years for the company on the New York Stock Exchange.

Completing a strategic review process [[link removed]] that began last fall, private equity giant Silver Lake will acquire the remaining shares in Endeavor it didn’t already own, placing an equity value of $13 billion on Endeavor, a figure that rises to $25 billion when including Endeavor’s interest in TKO. Silver Lake already held about 71% of the voting power in Endeavor and had already signaled an unwillingness to sell its interest to a third party, making this latest outcome widely expected.

The effort to become a private company once again, however, stems primarily from a lack of investor appreciation of Endeavor stock on the NYSE. Shares have fallen 6% since the company’s initial public offering in April 2021, a period in which the Dow Jones Industrial Average has risen 15%, and even that overall drop for Endeavor required an 11% run-up in shares so far this year as expectations rose of the Silver Lake acquisition.

To that end, Endeavor CEO Ari Emanuel frequently complained about the lack of full market appreciation for the company’s extensive presence across many facets of sports and entertainment, including media and content development, league operations, athlete representation, sports betting, and major events.

Now, Emanuel and executives for Silver Lake say the transaction provides an opportunity for the entire scope of those varied elements to be recognized economically.

“This is a very special partnership. Together, we have built and grown Endeavor from $350 million in annual revenue when we first invested in 2012 to nearly $6 billion in consolidated revenue today,” said Egon Durban, Silver Lake co-CEO and managing partner. “Now, Endeavor can take advantage of its unique core platform to meet the dynamic forces driving growth in content, sports, and live events.”

Deal Terms

Endeavor stockholders will receive $27.50 per share, a 55% premium from where the stock stood just before the company’s announcement last fall of its strategic review. A closing is not expected until the first quarter of 2025.

The Silver Lake transaction follows last year’s $7 billion acquisition [[link removed]] of Creative Artists Agency by French billionaire François-Henri Pinault. That deal helped influence Endeavor’s thinking, and it further advanced Emanuel’s belief his company was undervalued given the breadth of its assets.

TKO, the parent company of WWE and UFC, is not a direct party to the Silver Lake acquisition and will remain a public entity, but it will continue to benefit from Endeavor’s involvement.

Larry Lucchino, One of Baseball’s Most Influential Executives, Dies at 78 [[link removed]]

USA TODAY

Larry Lucchino, a veteran baseball team executive who put his stamp on three of the sport’s iconic facilities, helped break the Red Sox’ famed, 86-year title drought and coined the term “Evil Empire” regarding the rival Yankees, has died at the age of 78.

Lucchino is most known for his 14-season run as president and CEO of the Red Sox between 2002 and ’15, during which the team won three World Series, ended the so-called “Curse of the Bambino,” and conducted more than $300 million in renovations for Fenway Park, in turn preserving the iconic ballpark for future generations. Before the ’02 arrival of Fenway Sports Group, of which Lucchino was a part, Fenway Park had been eyed for potential demolition.

But Lucchino’s legacy goes far beyond just Boston. He also helmed the Padres as president and CEO from 1995 to 2001, during which time Petco Park was funded and designed in advance of the ballpark’s ’04 opening, and also led the Orioles as president from 1988 to ’93, when Oriole Park at Camden Yards was designed and built. As a result, Lucchino has few equals in helping lead the sport’s stadium renaissance that saw a re-embrace of baseball-specific facilities with strong nods to history and asymmetrical dimensions.

“Larry’s career unfolded like a playbook of triumphs, marked by transformative moments that reshaped ballpark design, enhanced the fan experience, and engineered the ideal conditions for championships wherever his path led him, and especially in Boston,” said Red Sox principal owner John Henry.

A straight-talking, no-nonsense executive, Lucchino also helped give rise to a major resurgence in the Yankees–Red Sox rivalry in the early 2000s when he said [[link removed]] of New York’s ’02 signing of Cuban pitcher José Contreras, “The evil empire extends its tentacles even into Latin America.” That nickname for the Yankees remains to this day.

Lucchino is also the only known person to have earned World Series rings, a Super Bowl ring (won through his tenure on the Washington board in the early 1980s), and a Final Four watch having played on Princeton’s ’64–65 basketball team led by Bill Bradley.

Big Impact

Among the other touchstones of Lucchino’s career in baseball:

His last major chapter was as chairman of the Worcester Red Sox, commonly known as the WooSox and Boston’s top minor league affiliate. There, Lucchino led the development of the $159 million Polar Park, one of the top facilities in all of Minor League Baseball. Diamond Baseball Holdings purchased [[link removed]] the franchise in December. Lucchino’s facility prowess also extended to JetBlue Park at Fenway South, the Red Sox’ spring training complex in Fort Myers, Fla., that features the same dimensions as Fenway Park and a replica of the Boston facility’s famed Green Monster. During Lucchino’s Boston run, the Red Sox sold out 820 straight games, by far the longest such streak in MLB history. Lucchino boasts an extensive sports industry executive tree of those he either hired or mentored, including current Red Sox president and CEO Sam Kennedy, noted stadium architect Janet Marie Smith, and pickleball executive Mike Dee [[link removed]]. Originally a lawyer by trade, Lucchino worked for the House Judiciary Committee during that panel’s investigation of the Watergate scandal, and he later joined the firm founded by Edward Bennett Williams, president and part-owner of Washington and later owner of Baltimore.

This is the second major death among major baseball executives in the last two weeks following the recent passing [[link removed]] of former Orioles owner Peter Angelos.

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Jessica Pegula Hopes Any Saudi PIF Investment in WTA Avoids LIV’s Fate

Geoff Burke-USA TODAY Sports

Professional tennis is grappling with a future that may include a merged [[link removed]] men’s and women’s tour, a Formula One–style world tour [[link removed]] alongside the four Grand Slams, and possibly billions of investment dollars [[link removed]] from the Public Investment Fund of Saudi Arabia or other entities.

To break down all the biggest issues off the court, Front Office Sports caught up with Jessica Pegula (above), the No. 5–ranked player in the world and daughter of the owners of the Buffalo Bills and Sabres, in Charleston, ahead of the city’s long-running WTA event this week.

On a potential ATP-WTA merger: “I would be open to it. I feel like it would make sense that it would be bigger and maybe better.” On the PIF investing in tennis following golf: “After seeing what happened with LIV and that kind of didn’t go well, it seems like they want to do it in a better way.” On the PIF’s deal with the ATP: “You saw their sponsorships all over any walls in Miami. But, ironically enough, you didn’t really hear anyone talk about it.”

To read the entire story, visit FrontOfficeSports.com [[link removed]].

AWARDS

Every year, Front Office Sports’ awards program recognizes the best and most accomplished in the business of sports.

The 2024 Best Venues Award celebrates the venues that have met and exceeded the evolving demands of fans and that set the new industry standard for success.

🏆 Nominations are open through April 8. Submit your venue [[link removed]] now.

STATUS REPORT Two Up, Two Down

Nathan Ray Seebeck-USA TODAY Sports

Warren Sapp ⬆ Colorado has hired [[link removed]] the Pro Football Hall of Famer (above) as a graduate assistant, adding him to Deion Sanders’s coaching staff. Sapp is enrolled in continuing education classes at the CU Boulder Graduate School.

Arctos Sports Partners ⬆ The private equity entity announced the close of a $4.1 billion fund that includes minority ownership stakes in the Utah Jazz, New Jersey Devils, Philadelphia 76ers, Paris Saint-Germain, and Aston Martin Aramco Formula One Team.

Arizona Cardinals ⬇ An arbitrator ruled [[link removed]] that the NFL franchise must pay $3 million to former executive Terry McDonough for “false and defamatory” statements the team made about him to the media.

Ajax ⬇ The Dutch soccer club has suspended [[link removed]] new CEO Alex Kroes, who just started last month, and it intends to fire him on suspicion of insider trading in the club’s shares. Ajax currently sits in fifth place in the country’s top league.

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Conversation Starters The LSU-Iowa game was the top betting event [[link removed]] for FanDuel on Monday night, surpassing all NBA, MLB, and NHL games. The rematch also saw a 28% increase from last year’s championship game. Steve Cohen’s TGL New York Golf Club has revealed its logo [[link removed]] and lineup for the upcoming season, featuring Cameron Young, Matt Fitzpatrick, Xander Schauffele, and Rickie Fowler. And she’s not done yet: Paige Bueckers, one of the most-hyped recruits ever, led UConn to the Final Four and then the national title game as a freshman and sophomore before tearing her ACL. After rehab, she’s now leading the Huskies back [[link removed]] to the Final Four. Editors’ Picks Women’s March Madness Is Making Stars in the ESPN Studio, Too [[link removed]]by Margaret Fleming [[link removed]]It’s not just players and coaches in women’s basketball having a moment. Little-Known NFL Pay System Doles Out Hundreds of Millions in Annual Bonuses [[link removed]]by Alex Schiffer [[link removed]]Lower-paid NFL players benefit the most from the bonus pool. ‘SI’ Owners Sue Former Publisher Who Tried to ‘Burn Everything Down’ [[link removed]]by A.J. Perez [[link removed]]Manoj Bhargava ‘behaved more like a gangster than a trusted business partner.’ DISCLAIMER

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