Billionaire Scores $30 Million Stake in Sports Agency

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Now that Ron Burkle’s West Hollywood investment firm Yucaipa Cos. has closed a $30 million investment in sports agency Independent Sports and Entertainment, the billionaire is setting to work increasing the earning power of its clients.

Under terms of the deal, the supermarket magnate will serve as chairman of the board in the rebranded company, previously known as Relativity Sports, which represents more than 300 star athletes. He plans to leverage off-the-field marketing and endorsement opportunities to build the brands of the sports stars on the books.

His first move was to bring in Hank Ratner, former chief executive of Madison Square Garden Co., to serve as ISE’s CEO.

The company will now look for expansion opportunities outside of its core sports management business and enter the media and entertainment space through partnerships and acquisitions, according to Ratner.

“We will work closely with Ron’s broad portfolio of assets to provide our clients with unique opportunities to build their brands through all stages of their careers,” he said in a statement.

The agency has retained top agents and clients from Relativity Sports, one of several Relativity Media subsidiaries that split from the Beverly Hills parent company during bankruptcy proceedings that began last year.

ISE’s goal of boosting the personal brand of its clients is driven by today’s sports and media environment, where athletes can earn more annually from endorsements than that do from team contracts. Additionally, off-field appearances on reality TV or talk shows can similarly grow an athlete’s profile.

“While the networks may have a lockdown on televised games, additional content is a valuable commodity whether it’s distributed by smartphone, tablet, or computer,” said Joe Longo, adjunct professor of sports law at Loyola Marymount University. “Off-the-field content is very popular right now and top-level athletes can build a successful brand if they deal with the right media partners.”

Burkle knows sports partnerships. He and retired hockey great Mario Lemieux have co-owned the Pittsburgh Penguins, winners of this year’s Stanley Cup, since 1999.

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