Baseball

• Mind the gap [David Ortiz expects arbitration hearing, not settlement, with Red Sox].
• Baseball agency and marketing agency join forces [Legacy Sport Group and The Agency Sports Management Merge to Form The Legacy Agency].
• Still a possibility that Arn Tellem leaves the agent biz [Sorting through potential Dodgers bidders].
• Boras wins with his patient approach [Tigers offer 'lifeboat' to Prince Fielder].

Sports Law

• “The agent epidemic isn’t abating and no university with premier players is immune” [Refereeing sports agents].

Sports Business

• Let’s see if some of our content gets rolled into the USA TODAY network [USA TODAY Sports Media Group Acquires Big Lead Sports Digital Property and Fantasy Sports Ventures].
• Read of the week regarding IMG Worldwide and Teddy Forstmann [Machiavelli and Mogul].

Shabbat Shalom: Friday Wrap-Up (1/27/2012) from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Gary Gershoff/WireImage/Getty Images

Yesterday it was reported that IMG Worldwide (IMG) Chairman and CEO Theodore J. (Ted) Forstmann passed away at 71-years-old.  The cause of death was brain cancer.  Forstmann will be remembered for his unique ability to invest in companies (including Dr Pepper and Topps), fix them up, make them immensely valuable, and then sell them to make big profits for himself and the investors who bought into his plan.  He was also a noble philanthropist who donated millions of dollars, mostly focusing on ways to benefit various classes of children.

For numerous years, dating back to when Mark McCormack served as Chairman of IMG (when it was referred to as International Management Group), the company was the staple of the sports agent world.  Throughout the company’s existence, it has represented some of the best football players (Peyton Manning), baseball players (Derek Jeter), golfers (Tiger Woods), and tennis players (Roger Federer).  When Ted Forstmann bought the company for $750 million, Peter Johnson was fired, IMG’s team-sports division was scrapped (Manning, Jeter, et. al. went elsewhere for representation in team contract matters), and some its top agents moved on to other agencies, most of whom ended up at Creative Artists Agency (CAA).

IMG reinvented itself under Forstmann to focus more on its media and entertainment services.  It did not take long for IMG profits to become much larger than they had been prior to Forstmann’s takeover in 2004.  Whereas IMG used to be most well known for its representation of athletes, it is now acknowledged for its success with IMG College (collegiate marketing, licensing and media rights), its joint ventures in emerging markets overseas, its fantastic events, and large licensing and consulting arms.

Forstmann graduated from Yale University and received a J.D. from Columbia University.  He is survived by his two sons Siya and Everest.  IMG asks, in lieu of flowers to Forstmann’s family, please consider donations to The Children’s Scholarship Fund.

Ted Forstmann Of IMG Passes Away At 71 Years Old from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

The most thorough reporting that I found on the matter was written by Sharon Waxman and Brent Lang at TheWrap.com (although they need to catch up on the fact that Tiger Woods is no longer an IMG client – he left with his agent Mark Steinberg to become a part of Excel Sports).  They found that Mike Dolan made calls to important board members to discuss how kick Ovitz off of IMG’s board after it was found that Ovitz was trying to create an “executive committee” that management would have to report to, and may have also floated the idea that he was interested in purchasing IMG.  Management currently only has to report to Forstmann and Dolan.

TheWrap.com reported that a “knowledgeable individual” said the board voted 7-4 to get rid of Ovitz and that the board members planned on formalizing that decision this past Monday.  I have left a message with IMG spokesman Jim Gallagher to see if he can confirm that there was a vote, that it was 7-4, and whether or not the decision to kick Ovitz off the board was finalized on Monday.  I also asked whether someone will take Ovitz’s empty seat.  I am awaiting Gallagher’s response.

Internal Issues On The Board Of Directors At IMG from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Football

• Joe Panos won’t give advice to players regarding leaving school early for the NFL [Watt 'loves to compete with the best,' ex-Badger Panos says].
• Trying to avoid a knee-jerk reaction [NCAA likely won't propose emergency legislation regarding Newton case at this week's convention].
• Marvin Austin will appear in the East-West Shrine Game on January 22nd [Disgraced Tar Heel Austin to play in all-star game].
• The stories that future agents really need to read [A ruthless business].

Basketball

• Rick Smith thinks basketball will be harder to control than football [NCAA targets agent problem].

Sports Business

• My man Jason Belzer poses a good question on MSNBC [Business Answers: Marketing & Angel Funding].
• Ted Forstmann doesn’t like IMG being referred to as an agency [IMG's Ted Forstmann talks gambling, global sports growth].
• A 72-year-old member of the tribe [‘Most interesting man’ keeps drinkers thirsty for Dos Equis].

Shabbat Shalom: Friday Wrap-Up (1/14/2011) from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Basketball

• Lots of waiting and seeing [Class of '07 extensions].
• $4 million, 2-year, incentive-laden deal [Iverson plans to sign deal to play in Turkey].
• His thoughts about Josh Luchs’ allegations [Five Really Good Minutes with Mark Termini].

Football

• Michael Katz of Rosenhaus Sports Representation named [UNC documents detail alleged benefits].
• Jason Pierre-Paul is a Rosenhaus client.. [High-end Florida jeweler provided bling to UNC player].
• Quite a convincing argument for CFL > UFL [Why the UFL needs a Union / Commentary on UFL-NFL Relationship].

Sports Law

• She undoubtedly knows what she is getting herself into [Julie Roe Lach named NCAA vice president of enforcement].
• Ted Forstmann clearly is not holding anything back [Sports Kingpin Claims Enemy Dealt Drugs, Prostitutes].

Shabbat Shalom: Friday Wrap-Up (10/29/2010) from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Yesterday, I read a report that Ted Forstmann, Chairman and CEO of IMG Worldwide, has been been betting on tennis matches.  IMG represents some of the best tennis players in the world, is a part-owner of The Tennis Channel, and also is responsible for the organization and execution of many tennis events.

The information that Forstmann has placed bets on tennis matches involving his own clients, was made available based on a lawsuit filed by James Agate.  Agate alleged that Forstmann once bet against IMG client, Roger Federer.  The response by an IMG Vice President denied the accusation, but instead admitted that Forstmann bet on Federer.  The media has taken an interest in this response, asking if Forstmann should be betting on his clients at all, whether it be for them to win or lose a match.  There are claims that there is a clear conflict of interest for Forstmann to be betting on a sport where he has a vested interest in its overall success.  Additionally, many people note that tennis already has a gambling problem that does not need to get worse.

Ted Forstmann Of IMG Accused Of Making Wagers On Tennis Matches from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

In reality, many athlete and agency profiles across various social media platforms are not run by the athletes or top executives themselves.  What too often is the case is that an intern will be given the responsibility of updating Twitter, Facebook, and blog accounts to make it seem like the words are coming straight from the mouth of the athlete or the company CEO, when it could not be further from the truth.  Does this make sense?  In my opinion, no, and if fans/followers/friends catch on (which should not be a hard task), it could be damaging.  Athletes and CEOs, with proper training, can handle the “chore” of posting regularly on these networks, and may even enjoy it.  The one exception for me, is that I will often post updates on my clients’ Facebook Fan Pages just to keep fans updated on achievements of the players and their stats.

It will be much tougher to convince an agency’s CEO to be a regular on social networks than convincing athlete clients (they will probably be on there whether you teach them best practices or not).  After all, why should a CEO bother with the mundane task of sending Tweets containing 140 characters or less, writing lengthy blog posts, or posting updates on Facebook, a site originally created for college students to hookup with and poke each other?

Mashable.com recently talked with Forrester Research CEO George Colony in an effort to understand why so few CEOs are personally using social media and whether or not they should be involved, anyway.

• Fears and issues preventing adoption: Age (most are still trying to switch from the typewriter to the computer), possible regulatory restraints (especially for public companies), risks (of offending customers, partners, BoD and of increased litigation), time.

Casey Wasserman of WMG is tweeting, but he is a young CEO.  Ted Forstmann of IMG and Jonathan Blue of BEST have no Twitter presence.

• Reasons to tweet: Desire (to communicate and to take risks) and audience (will employees and targeted customers listen, participate, comment, criticize?).

If a CEO has absolutely no interest in Tweeting or posting updates to his Facebook page, then there is no reason that the CEO should be forced or encouraged to do so by anybody.  And the CEO also may be someone who is very risk averse.  More importantly, who is the audience for a sports agency CEO?  Is it only the players?  If so, it will be hard to use updates on social media sites to reach those players.  If current clients follow the CEO, they may enjoy reading the updates.  Potential clients will most likely never read them.  But beyond athlete clients, a CEO’s partners, business acquaintances, friends in the media, employees, etc. may appreciate receiving updates, and this granted information may open up doors for opportunities for the CEO’s business.

There is no mandatory number of Tweets or updates for the CEO.  I know that time is a concern, but how often will a CEO be stuck at an airport staring at his Blackberry waiting for the next incoming email to appear?  In that time, why not send out a Tweet updating the world on something that is going on in your or your company’s life?  It makes the CEO seem more like a human being (isn’t that what he is?), which is something employees and clients appreciate.

And it’s not only about posting content.  CEO’s should be keeping up with what is written about them and their companies, and also what others are writing about other companies (including material written by the competition, themselves).  Truthfully, this site should be a bookmark, and CEO’s should also be watching The Master Twitter list of sports agents/agencies.

Should A Sports Agency CEO Be Social Networking? from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

16. Theodore Forstmann Chairman, CEO, IMG (2007 – #26)

37. Scott Boras President, Boras Corp. (2007 – #12)

43. George Pyne President, IMG Sports and Entertainment (2007 – #59)

46. Casey Wasserman Chairman, CEO, Wasserman Media Group (2007 – #79)

70. Tom Condon NFL Agent, CAA (2007 – #90)

98. Arn Tellem President, WMG Management (2007 – #83)

Not ranked. Gene Upshaw Chairman, NFLPA (2007 – #33)

Not ranked. Mark Steinberg SVP and global managing director of golf, IMG (2007 – #72)

Observations

• Similar to last year, I must say that IMG is getting mucho love from the voters.  Forstmann and Pyne received a boost; however, what the hell happened to Steinberg?  He gets his client, Tiger Woods, #1 for two consecutive years and has his name drop off the list?  Where is the justice in that?
• Gene Upshaw, may he rest in piece, must have been left off the list due to his recent death.  Had he still been living, I would bet my money that he makes the list in 2008.
• Wasserman jumps more than thirty slots but Tellem goes down fifteen?  Tellem absolutely tore it up this year with BJ Armstrong is his more than able wingman.  At least no basketball agent was positioned ahead of Tellem on the list.
• Boras has had his fair share of bad moments in the media this year.  While he is still making a lot of money for his clients, I understand why voters have positioned him lower on the rankings.

Last, here is an interesting opinion from Darren Rovell of CNBC regarding agents in this listing:

The most glaring omission from a sector standpoint is the agents. Most notably, Drew Rosenhaus, who I had as No. 20 on my list, is even not in BW’s top 100. Agents Scott Boras (37), Tom Condon (70) and Arn Tellem (98) appear on the list, but I might have had Aaron and Eric Goodwin on the list this year, particularly because of the shoe deals they structured for Kevin Durant, Dwight Howard and Candace Parker.

I agree.  Rosenhaus above the Goodwins, but all of them deserve to be mentioned.  Next question…

BusinessWeek’s 2008 Power 100 from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Baseball

• Who does not love when a player fights back from adversity to regain his old dominance? [Phils lock up closer Lidge with three-year, $37.5M extension].

Basketball

• Let the bashing of the one-and-done rule resume [Lawyer says Arizona signee Jennings heading for Europe].
• When you lose a couple of key players, you have to spend [With Brand out of picture, Warriors reach verbal agreement with Maggette].
• India is far away from having a strong developmental system, but India’s Ministry of Youth Affairs and Sports has added basketball to its priority list [NBA Hopes to Make India Next Hoops Frontier].
• 5 years, $82 million, and the right to bang the boards alongside Samuel Dalembert [Sixers strengthen low post play, sign Brand to five-year deal].
• I would be thrilled with that amount of money after the expiration of my rookie contract, too [Agent says Bucks' Bogut will sign 5-year, $72.5M extension].
• While J.J. is getting no love, another Blue Devil is [Maggette signs contract with Golden State].

Sports Agents/Agencies

• Ted Forstmann, IMG’s Chairman and CEO, is quite worried about the American economy [The Credit Crisis Is Going to Get Worse].
• CAA expands to provide services to soccer players and coaches [CAA Sports and International Soccer Agency Gestifute Create Global Partnership to Represent Top Talent, Including Player of the Year Cristiano Ronaldo and Head Coach Jose Mourinho].
• Yes, the BCS is being represented by IMG in its negotiations with television networks [BCS Enlists IMG for TV Negotiations].

Tennis

• If you did not see last weekend’s Wimbledon final match between Nadal and Federer, you surely missed a spectacle.  18 swooshes in all [Nike Scores Big "Ad In" Win At Wimbledon].

Shabbat Shalom: Friday Wrap-Up from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

$3 billion is the speculated price for a deal to have a chance to go through, but many believe that Forstmann still would have troubles parting with the company. If offered that amount, Forstmann and his investors would receive four times the amount they paid for IMG in 2004. Does $3 billion cover the value of playing golf with Vijay Singh while having Natalie Gulbis carry your clubs? Some believe that Forstmann loves his IMG toy, and does not want to part with it no matter how much is offered. Everything and everyone has a price, though.

IMaGine $3 Billion from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules