Big IMG Cuts, Golf Client Expansion Coming
/Tripp Mickle of SBJ reports on William Morris-Endeavor's plans for new acquisition IMG and the news for golf sounds decidedly mixed with huge cuts as well as an expansion of client representation in the cards.
According to the documents, WME is confident it can achieve the $151 million in cuts because IMG historically has been focused on “growth and expansion over margin and profitability” and has a “siloed, decentralized” corporate structure. AlixPartners and Accenture, whom WME hired to evaluate IMG’s business, agreed, the report says.
Siloed? Paging Dr. Freud...go on...
The Moody’s analysts said they anticipated the cost savings would “be difficult and could impact performance for a specific division or even overall results” at the new company, but they added that Endeavor’s ability to eliminate costs after acquiring William Morris Agency gave them “a degree of confidence” that WME could effectively cut costs at IMG.
The documents don’t go into great detail about WME’s plans for increasing revenue at WME/IMG. It plans to reinvigorate IMG’s client representation business in golf, tennis and other areas by leaning on WME’s track record in client representation, and it plans to consolidate sales forces and develop a bonus structure that improves sales results.
