Larry Ellison Hits the High Seas With Endeavor in Sailing Deal

(Bloomberg) -- Billionaire Larry Ellison is selling an ownership stake in the professional sailing league he co-founded to Endeavor, the Hollywood talent agency and media business led by Ari Emanuel.

The deal values the two-year-old SailGP, which Ellison created with five-time America’s Cup winner Russell Coutts, at $200 million. Neither side would disclose the size of Endeavor’s stake.

Coutts said Endeavor, whose sports properties include the Ultimate Fighting Championship, has expertise in media rights, production, licensing and sponsorship that would help SailGP grow globally.

“Last year we were a complete startup,” Coutts said in an interview. “Endeavor gives us so much more capability to fast-track expansion.”

SailGP is scheduled to begin its second season Feb. 28 in Sydney, where seven countries will field teams. The circuit staged five events last season, and subsequently added teams from Denmark and Spain. SailGP will feature five events this season, and is exploring the possibility of another in the Middle East.

Endeavor’s sports properties also include the Professional Bull Riders. Last month, Endeavor acquired On Location Experiences, a high-end events business that’s part-owned by the National Football League.

On Location offers luxury travel, accommodations, and experiences like on-field access at the Super Bowl and international sports events. The company has eyed international expansion to link with major events and rights holders like the Olympics, FIFA and Formula One racing.

Ellison is the world’s 11th-richest person, with a net worth of $61.3 billion, according to the Bloomberg Billionaires Index. The Oracle Corp. co-founder started SailGP after his America’s Cup run ended in 2017. His Oracle team won the cup in 2010 and 2013.

The plan calls for Ellison to underwrite SailGP until it becomes commercially viable. SailGP then would move to a franchise model.

Unlike the America’s Cup, all the boats in SailGP are identical. In an effort to reduce costs, teams share a number of services, including design.

SailGP added sponsors during the offseason, including chemical company Ineos Group Holdings SA, which was founded by billionaire Jim Ratcliffe. Ineos has sponsored an America’s Cup team. Building-products maker Rockwool International A/S also signed on as a SailGP sponsor, joining Rolex.

“This is fast-paced. It’s nation-versus-nation. It’s a global championship,” Coutts said. “This has changed the perception of what sailing can be.”

To contact the reporter on this story: Scott Soshnick in New York at ssoshnick@bloomberg.net

To contact the editors responsible for this story: Nick Turner at nturner7@bloomberg.net, John J. Edwards III, Rob Golum

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