Investment bank Goldman Sachs (GS) is close to crossing the finishing line on a $1 billion deal to buy a controlling stake in Excel Sports Management.
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Tiger Talent
According to an article in the Financial Times, Goldman’s asset management division is in late-stage talks to secure the stake in the sports talent agency, which represents stars like golfing legend Tiger Woods, basketball star Caitlin Clark and Detroit Lions quarterback Jared Goff.
Excel was founded by sports super-agent Jeff Schwartz, who left International Management Group (IMG) in 2002 to start his own agency. It was originally focused on the sport of basketball, but has now evolved to cover the main American pastimes like baseball and football.
Goldman would be buying the stake from entertainment-focused private equity group Shamrock Capital and Excel’s management team.
The deal, which could be announced as soon as next week, shows the bounce in value of and demand for sports franchises, athletes’ contracts, media rights and endorsements.
Bouncing Value
In 2023, TPG (TPG) sold Creative Artists Agency (CAA) to the family office of French billionaire François-Henri Pinault for $7 billion, a major gain after initially buying a stake at a $1.1 billion valuation nearly a decade earlier.
Other recent deals include BC Partners’ credit arm acquiring a stake in sports agency GSE Worldwide to expand into golf, tennis and football, and Silver Lake’s $13 billion take-private of Endeavor earlier this year.
The deal would also mark the expansion of Goldman Sachs Asset Management’s footprint into mid-sized corporate buyouts and private loans.
Earlier this month, Goldman acquired venture capital firm Industry Ventures for nearly $1 billion. It has not been the easiest year for Goldman Sachs and other investment banks looking to do deals. That’s because of economic uncertainty around President Trump’s tariff policy and higher interest rates.
However, as can be seen above, its appetite for investments has been back on form since the middle of the year.
Is GS a Good Stock to Buy Now?
On TipRanks, GS has a Moderate Buy consensus based on 5 Buy and 7 Hold ratings. Its highest price target is $870. GS stock’s consensus price target is $824.50, implying a 9.82% upside.
