“There’s a huge need for this. There’s a growing amount of people who want to be in the sports business, or be an agent,” Steinberg said of the courses, which in normal times would draw 150 or so young professionals, lawyers and other participants in an in-person environment but had about half that in last month’s virtual format.
“Nothing replaces person-to-person,” noted the gregarious Steinberg, whose agency is responsible for the largest contract in sports history, a 10-year, $503 million deal for Kansas City Chiefs quarterback Patrick Mahomes inked last year.
The reasons for the classes aren’t strictly financial, he notes. “I want to help mentor the next generation,” said Steinberg of the academy.
Burkle Buys In
The famed agent, 71, who was the basis for the character of Jerry Maguire, still thinks he has plenty to offer the athlete representation industry, too.
That’s evidenced by a new investment that’s expected to significantly raise the profile of his Newport Beach firm, Steinberg Sports and Entertainment, and expand its presence into sports beyond its current pro football focus.
Yucaipa Cos., an L.A.-based private equity firm run by billionaire Ron Burkle, said on Feb. 17 that it had taken a “significant equity stake” in SSE, whose offices overlook Newport Harbor.
The deal, first reported by Variety, involves Burkle buying out stakes of 10 or so shareholders who helped launch Steinberg’s latest business in 2013.
Expect to see the agency’s marketing, content creation and business development efforts ramped up under the new ownership structure, Steinberg says.
It will also likely free up Steinberg to expand his reach into what he calls “special projects,” efforts ranging from movies, television, podcasts and radio shows.
Those projects could also involve Steinberg—who helped lead the fight to keep the Rams in Southern California in the early 1990s—being involved as a consultant during a sports team’s potential relocation.
“This opens a world of opportunity for us,” Steinberg told the Business Journal.
“We’re going to get into other sports, and build out a big marketing arm,” Steinberg said. “I’m excited.”
Burkle, who has several connections to Orange County, will become a partner in the company.
Steinberg is chairman of the recapitalized business, while his partner Chris Cabott was made CEO.
“The relationship with Ron, and our unique history with team owners, executives and coaches, provides our clients with a vast network of resources to succeed on the field, enhance endorsement portfolios off the field, impact new industries as entrepreneurs and give back though charity,” Cabott said at the time the deal was announced.
OC Ties
The sports representation industry is “hyper-competitive,” and power is gravitating towards those agencies which have ties to multiple sports, as well as deep connections to Hollywood and other parts of the entertainment world, Steinberg notes.
Burkle counts plenty of those connections.
Yucaipa has ties to the Los Angeles-based sports representation and marketing firm Independent Sports and Entertainment and Hollywood agency APA, among other groups.
Burkle, whose wealth is estimated by Forbes to be in the $1.4 billion range, is also the co-owner of the NHL’s Pittsburgh Penguins franchise.
“We are delighted to have SSE join the Yucaipa family,” Burkle said in a statement. “Leigh is a legend in the industry and Chris has quickly become a distinguished and respected industry leader. Culturally and strategically, this is a perfect fit.”
Burkle made his first fortune from acquiring and selling grocery store chains, including Food 4 Less supermarkets—previously based in La Habra—and Ralphs Grocery Co.
His firm was previously the owner of Irvine’s Golden State Foods.
“I’ve long admired Ron’s remarkable innovation in business and philanthropy,” Steinberg said when the deal with Yucaipa was announced. “We recognize that athletes want to connect with the public in a dynamic and personal way that includes various cultural, social and business initiatives.”
Long Route
Steinberg got into the profession when quarterback Steve Bartkowski, who he’d known as a student at University of California, Berkeley, asked him for help after being selected No. 1 overall in 1975. He helped him negotiate the richest rookie contract in league history.
Fast forward to 2021, and the agent has been sober for over a decade after a well-publicized mid-career downfall. His comeback was punctuated by the record-setting deal for Mahomes, who has also built a sizeable endorsement profile under SSE’s guidance. Area companies he’s affiliated with include Foothill Ranch eyewear firm Oakley and Irvine sports recovery device maker Hyperice.
Making clients like Mahomes stars in the entertainment world and not just the sports world is one reason for the deal with Burkle, he says.
The partnership allows his agency “to deliver a powerful punch with multiple resources to service our client’s full potential,” Steinberg said.
The agency’s reach is expected to tap Yucaipa’s network of companies, and expand into areas like hospitality, real estate, technology, media and sport properties, the two companies said after striking the deal.
