Tripp Mickle of the Sports Business Journal reports on Madison Avenue Sports & Entertainment’s latest acquisition of MMA agency, Maxum Royalty:
Madison Avenue Sports & Entertainment, the agency started by former NHL executive Ed Horne and defense attorney Joe Tacopina, made its first acquisition two weeks ago, buying a mixed martial arts agency that represents six fighters.
The acquisition of New York-based agency Maxum Royalty was a mix of cash and equity. Under terms of the deal, Maxum founder Jim Barry becomes a partner in Madison Avenue Sports and will work with agency partner Stuart Kudman, a transactional attorney, on the agency’s mixed martial arts business.
“The growth of that sport is nothing short of phenomenal,” Horne said. “This is a sport we see real opportunity in.”
Tacopina added, “It’s the wild west. It’s chaos, and chaos breeds opportunity for guys who are organized and can be trailblazers. This (acquisition) gave us entree into the business.”
Maxum represents six fighters headlined by lightweight Vitor “Shaolin” Ribeiro. Ribeiro signed a multifight contract with Strikeforce and will be on a card with former football star Herschel Walker at the BankAtlantic Center on Jan. 30.
Barry said that he chose to sell the business to Madison Avenue Sports because of the “brand credibility,” resources and support the agency offered. He will work out of the agency’s New York office on Madison Avenue.
Payout Perspective:
The opportunity that Tacopina speaks of is the combination of the growth in the industry and the fact that most fighters are still only represented by their trainers, or other former fighters, that have very little business experience. At some point there may be a need for individuals with the ability to bridge the gap between the MMA world and the business world.
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