Hollywood Agency ICM Buys Stellar to Tap U.K.’s Soccer Riches

(Bloomberg) -- ICM Partners, a Hollywood talent agency representing the likes of Samuel L. Jackson and Beyoncé Knowles-Carter, has agreed to buy London-based Stellar Group to move into the lucrative world of English soccer.

Los Angeles-based ICM announced the deal in a statement Thursday. It’s the group’s third acquisition in Europe this year, following deals for U.K. music promoters Primary Talent and Albatros, a Stockholm-based agency focused on writers.

While many of its peers are firing staff and slimming down due to the pandemic, ICM is using $150 million it raised last year from Crestview Partners to expand into new businesses and internationally. Its two largest competitors, CAA and Endeavor, operate significant sports-representation businesses. UTA, another rival, has a partnership with Klutch Sports, the home of LeBron James.

ICM’s purchase of Stellar opens the door to a market where agents hold ever-increasing influence and collect hefty fees on the transfer of players. Stellar’s list of clients includes Gareth Bale, the Welsh soccer player who joined Spanish giant Real Madrid in 2013 for a then-world-record fee of around 80 million pounds ($103 million) -- a deal the group and its co-founder Jonathan Barnett helped broker.

Founded in the 1990s by Barnett and David Manasseh, Stellar represents athletes across a range of sports. According to the most recent accounts filed with the U.K.’s Companies House, it generated revenue of 29.2 million pounds and pretax profit of 4.8 million pounds for the year through October 2019.

Barnett and Manasseh will become executive chairmen of a new unit called ICM Stellar Sports, according to Thursday’s statement. Barnett said the ICM deal would help Stellar expand operations in North America. “We have found the ideal partner to help our clients further their earning potential in an ever-flattening world where athletes are brands with global appeal across numerous off the field revenue streams,” he said.

U.S. companies and investors have increasingly been looking for ways to tap into the growing global appeal of European soccer. A flurry of takeovers in the last 18 months means Americans now own one-fifth of top teams in U.K., France and Italy, according to data from KPMG Football Benchmark. Private equity firms including CVC Capital Partners and Bain Capital remain in the chase for an interest in the media rights of Italy’s Serie A league.

Stellar was advised by Investec Bank Plc on the ICM deal. Financial details weren’t disclosed.

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