Don Muret of the Sports Business Journal reports that French sports agency Lagardere has established an MMA division as part of its larger goal of breaking into the North American sports market.
Lagardère Unlimited principals see an opportunity to carve a niche representing competitors in a fragmented sport that has drawn big crowds to its live events and done well with pay-per-view, but has no formal union looking out for their best interests, Silverstein said. “We are the first worldwide agency launching a full-scale division with real negotiating power to move the needle for these guys,” he said. “There is so much room for growth. MMA is an emerging market and the last frontier in sports for representation.”
Lagardère Unlimited expects to announce further signings in the coming weeks, including a Brazilian ranked as one of the sport’s top fighters, Silverstein said. He declined to name the competitor until the deal is complete.
Payout Perspective:
The opportunity is certainly there right now on the agency side to make a splash in MMA, but why hasn’t anyone done it yet? Agency on the sponsorship side of MMA requires a set of unique capabilities; not only must an agency have the brand contacts to get a deal done, but also a good working knowledge of the sport and the business.
The reason Georges St-Pierre has been able to close so many high-level sponsorship deals over the past few years is that his manager Shari Spencer has brought knowledge of the sport and business to the table, while CAA has contributed industry contacts and other agent skill-sets. It’s the perfect match.
It’ll be interesting to see whether a.) Lagardere can replicate its European success in North America in general, b.) whether it possesses the contacts in North American to be successful from an MMA standpoint, and c.) if it possesses the requisite knowledge of MMA and the business of MMA to make the right kind of deals for its clients.
I agree with the MMA Payout Perspective. However, if it is true that Lagardere is merging with BEST, who represent Fedor, Mousasi, etc., then they will have purchased the contacts, team, and knowledge necessary to get big in the sport. http://www.sportsbusinessdaily.com/article/138395
I don’t think they will be able to create a union for fighters, as alluded to above, simply because of their presence in the sport, but it wouldn’t hurt to have a more professional agency involved that doesn’t have skulls and crossbones on its website.