Goldman Sachs Set to Acquire Majority Stake in Excel Sports for Nearly $1 Billion
Goldman Sachs is reportedly nearing an agreement to acquire a majority stake in Excel Sports Management, a prominent sports talent agency representing notable figures such as Tiger Woods, Caitlin Clark, and Derek Jeter, according to the reports. This move underscores Wall Street’s growing interest in the expanding sports industry. The asset management division of Goldman Sachs is in discussions to acquire the Excel holding, which is estimated to be valued at nearly one billion dollars.
Excel Sports Management was founded by sports super-agent Jeff Schwartz, who left International Management Group in 2002 to start his own agency. He was later joined by Mark Steinberg and Casey Close. Over the past twenty years, Excel has evolved from a basketball-focused agency into one of the most formidable sports talent organizations globally, competing with giants like Creative Artists Agency and Endeavor. Close and Steinberg have become prominent figures in baseball and golf representation, respectively, while Schwartz remains a key figure in basketball representation.
This potential transaction, which could be announced as soon as next week, aligns with Goldman Sachs Asset Management’s efforts to expand its presence in private loans and mid-sized corporate buyouts. We notes that the bank has been concentrating on fee-based private investments to drive growth. Earlier this month, Goldman Sachs acquired the venture capital firm Industry Ventures for close to one billion dollars. Goldman plans to acquire the Excel stake from Shamrock Capital, a private equity firm specializing in the entertainment sector, in collaboration with Excel’s management team.
As the value of sports franchises, athlete contracts, media rights, and sponsorships continues to rise, investors globally are increasingly interested in these assets. In 2023, TPG sold Creative Artists Agency to the family office of French billionaire Francois-Henri Pinault for $7 billion, representing a significant gain over its earlier $1.1 billion investment a decade prior. Other notable transactions include Silver Lake’s $13 billion take-private of Endeavor earlier this year, as well as BC Partners’ credit arm acquiring a stake in GSE Worldwide to expand into golf, tennis, and football.
