Endeavor could soon be forced to sell the nine minor league baseball teams it bought in December following the Major League Baseball Players Association’s investigation into the deals.
The MLBPA was looking into whether Endeavor’s purchases violated its agent regulations, as the company also owns talent agency WME Sports.
- Endeavor says that the teams it acquired are operated in a separate entity called Diamond Baseball Holdings and believes there is no conflict of interest.
- MLBPA-certified agents Jon Rosen, Jim Murray, and Michael Stival are all employed by WME Sports.
In January, the MLBPA warned WME Sports agents that they would be decertified if they don’t divest from the company.
“The resolution of this dispute may have an adverse impact on our business and may include a sale of our baseball agency business or a sale of DBH,” the company stated in its SEC filing.
Endeavor highlighted that failure to manage conflicts of interest could affect its reputation and financial condition.
Sports Spending Spree
Along with WME, Endeavor owns UFC, Professional Bull Riders, and Euroleague basketball, which all contributed to $1.5 billion in fourth-quarter revenue.
Financial terms of the minor league team acquisitions were not disclosed, but the teams consisted of Triple-A, High-A, and Single-A affiliates.
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