Goldman Sachs nears $1 bn deal to buy majority stake in Excel Sports

Founded by Jeff Schwartz, Excel Sports Management is a sports talent agency representing Tiger Woods, Derek Jeter, and Caitlin Clark that is reportedly valued at nearly $1 billion

Goldman Sachs is nearing a deal to acquire a controlling stake in Excel Sports Management, the sports talent agency representing stars like Tiger Woods, Caitlin Clark and Derek Jeter, according to a report by Financial Times. The move reflects Wall Street’s growing interest in the booming sports industry. 

Goldman’s asset management division is in late-stage talks to buy the Excel stake at a valuation close to $1 billion, the news report mentioned.

 

Excel’s rise in sports representation

Excel was founded by sports super-agent Jeff Schwartz, who left International Management Group (IMG) in 2002 to start his own agency. He was later joined by former IMG executives Casey Close and Mark Steinberg. Over just two decades, Excel transformed from a niche basketball agency into one of the most powerful sports talent firms globally, challenging rivals like Creative Artists Agency and Endeavor. Schwartz remains a key figure in basketball representation, while Close and Steinberg have established themselves in baseball and golf, respectively.   

 

 

Goldman’s expansion in private investments

The deal, which could be announced as soon as next week, comes as Goldman Sachs Asset Management expands its footprint in mid-sized corporate buyouts and private loans. The bank has been focusing on fee-based private investments to drive growth, Financial Times said. 

Earlier this month, Goldman acquired venture capital firm Industry Ventures for nearly $1 billion. 

Goldman would be purchasing the Excel stake from Shamrock Capital, an entertainment-focused private equity group, along with Excel’s management team.   

 

Sports industry attracts global investors

The rising value of sports franchises, athlete contracts, media rights and endorsements has drawn sophisticated global investors. In 2023, TPG sold Creative Artists Agency (CAA) to the family office of French billionaire François-Henri Pinault for $7 billion, a major gain after initially buying a stake at a $1.1 billion valuation nearly a decade earlier, the news report said. 

Other recent deals include BC Partners’ credit arm acquiring a stake in sports agency GSE Worldwide to expand into golf, tennis and football, and Silver Lake’s $13 billion take-private of Endeavor earlier this year.